# EDGAR Filing Document

**Accession Number:** 0001882607
**File Stem:** 0001062993-23-007669
**Filing Date:** 2023-3
**Character Count:** 3151097
**Document Hash:** 75c6b3230ea05e1f7ebba5b8d4862270
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001062993-23-007669.hdr.sgml**: 20230327

**ACCESSION NUMBER**: 0001062993-23-007669

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 199

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230327

**DATE AS OF CHANGE**: 20230327

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ALPINE SUMMIT ENERGY PARTNERS, INC.
- **CENTRAL INDEX KEY:** 0001882607
- **STANDARD INDUSTRIAL CLASSIFICATION:** CRUDE PETROLEUM & NATURAL GAS [1311]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41510
- **FILM NUMBER:** 23761448

**BUSINESS ADDRESS:**
- **STREET 1:** 2200 - 885 WEST GEORGIA STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C 3E8
- **BUSINESS PHONE:** 16155053770

**MAIL ADDRESS:**
- **STREET 1:** 2200 - 885 WEST GEORGIA STREET
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6C 3E8

?xml version="1.0" encoding="UTF-8"? Alpine Summit Energy Partners, Inc.: Form 10-K - Filed by newsfilecorp.com

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

__________________________

**FORM 10-K**

(Mark One)

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the fiscal year ended** <u>**December 31, 2022**</u>

or

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from______ to______**

**Commission File Number: <u>001-41510</u>**

![form10kx001.jpg](form10kxz001.jpg)

**<u>ALPINE SUMMIT ENERGY PARTNERS, INC.</u>**

**(Exact name of registrant as specified in its charter) __________________________** 

---

| | |
|:---|:---|
| &nbsp;&nbsp;**British Columbia** | &nbsp;&nbsp;**98-1623755** |
| &nbsp;&nbsp;(State or other jurisdiction of<br>incorporation or organization) | &nbsp;&nbsp;(I.R.S. employer<br>identification no.) |

---

__________________________

**3322 West End Ave., Suite 450**

**Nashville, TN** 

**37203**

**(Address of principal executive offices and zip code)**

**(346) 264-2900** 

**(Registrant's telephone number, including area code)**

__________________________

**None**

(Former name, former address and former fiscal year, if changed since last report)

__________________________

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Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|  **<u>Class A Subordinate Voting Shares</u>** | **<u>ALPS</u>** | **<u>The Nasdaq Stock Market LLC</u>** |

---

Securities registered pursuant to Section 12(g) of the Act:

**None**

(Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☐ Yes ☒ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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.

---

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

---

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 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

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If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐ <sup>1</sup>

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐ <sup>1</sup>

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Aggregate market value of the registrant's common stock held by non-affiliates of the registrant, based upon the closing price of the Class A subordinate voting shares of the registrant on June 30, 2022 as reported on the OTCQX International Market on that date: $180,786,853.

As of March 27, 2023, there were 33,929,921 Class A subordinate voting shares, no par value, of the registrant outstanding.

**DOCUMENTS INCORPORATED BY REFERENCE**

Certain parts of the registrant's Definitive Proxy Statement relating to the registrant's 2023 Annual Meeting of Shareholders (the "**2023 Proxy Statement**") are incorporated by reference into Part III of this Annual Report on Form 10-K (the "**Annual Report**").

**CONVENTIONS**

In this Annual Report on Form 10-K, we use the terms "Alpine Summit," "we," the "Company," "our" and "us" to refer to Alpine Summit Energy Partners, Inc. and its subsidiaries. References herein to "$", "US$" or "dollars" are to United States dollars and references herein to "$Cdn", "C$" or "CDN dollars" are to Canadian dollars. Unless otherwise indicated, all financial information herein has been presented in United States dollars.________________________________________

<sup>1</sup> Check boxes are blank, pending adoption of the underlying rules.

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**ALPINE SUMMIT ENERGY PARNTERS, INC.**

**FORM 10-K**

**FOR THE YEAR ENDED DECEMBER 31, 2022**

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [**FORWARD-LOOKING STATEMENTS**](#page_5_integixAnchor) | [3](#page_5_integixAnchor) |
| [**PART I**](#page_7_integixAnchor) | [5](#page_7_integixAnchor) |
| [Item 1. Business](#page_7_integixAnchor) | [5](#page_7_integixAnchor) |
| [Item 1A. Risk Factors](#page_17_integixAnchor) | [15](#page_17_integixAnchor) |
| [Item 1B. Unresolved Staff Comments](#page_40_integixAnchor) | [40](#page_40_integixAnchor) |
| [Item 2. Properties](#page_40_integixAnchor) | [40](#page_40_integixAnchor) |
| [Item 3. Legal Proceedings](#page_45_integixAnchor) | [45](#page_45_integixAnchor) |
| [Item 4. Mine Safety Disclosures](#page_45_integixAnchor) | [45](#page_45_integixAnchor) |
| **[**PART II**](#page_46_integixAnchor)** | [46](#page_46_integixAnchor) |
| [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#page_46_integixAnchor) | [46](#page_46_integixAnchor) |
| [Item 6. \[Reserved\]](#page_49_integixAnchor) | [49](#page_49_integixAnchor) |
| [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](#page_49_integixAnchor) | [49](#page_49_integixAnchor) |
| [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](#page_60_integixAnchor) | [60](#page_60_integixAnchor) |
| [Item 8. Financial Statements and Supplementary Data](#page_60_integixAnchor) | [60](#page_60_integixAnchor) |
| [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures](#page_60_integixAnchor) | [60](#page_60_integixAnchor) |
| [Item 9A. Controls and Procedures](#page_60_integixAnchor) | [60](#page_60_integixAnchor) |
| [Item 9B. Other Information](#page_61_integixAnchor) | [61](#page_61_integixAnchor) |
| [Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections.](#page_61_integixAnchor) | [61](#page_61_integixAnchor) |
| [**PART III**](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [Item 10. Directors, Executive Officers and Corporate Governance](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [Item 11. Executive Compensation](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [Item 13. Certain Relationships and Related Transactions, and Director Independence](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [Item 14. Principal Accounting Fees and Services](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [**PART IV**](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [Item 15. Exhibits, Financial Statement Schedules](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [Item 16. Form 10-K Summary](#page_62_integixAnchor) | [62](#page_62_integixAnchor) |
| [Exhibit Index](#page_63_integixAnchor) | [63](#page_63_integixAnchor) |
| [**SIGNATURES**](#page_65_integixAnchor) | [65](#page_65_integixAnchor) |
| [Index to Consolidated Financial Statements](#page_F1_integixAnchor) | [F-1](#page_F1_integixAnchor) |

---

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**FORWARD-LOOKING STATEMENTS**

This Annual Report contains certain "forward-looking information" and "forward-looking statements" (together, "**forward-looking statements**"), including management's assessment of Alpine Summit Energy Partner, Inc.'s (the "**Company"** or "**Alpine Summit**") future plans and operations specifically in relation to the remainder of 2023 and 2024. Such forward-looking statements are generally identifiable by words such as "anticipate", "believe", "intend", "plan", "expect", "schedule", "indicate", "focus", "outlook", "propose", "target", "objective", "priority", "strategy", "estimate", "budget", "forecast", "would", "could", "will", "may", "future" or other similar words or expressions and include forward-looking statements relating to or associated with individual wells, facilities, regions or projects as well as timing of any future event which may have an effect on the Company's operations and financial position. Forward-looking statements are based on expectations, forecasts, and assumptions made by the Company using information available at the time of the statement and historical trends which includes expectations and assumptions concerning: the accuracy of reserve estimates and valuations; performance characteristics of producing properties; access to third-party infrastructure; government policies and regulation; future production rates; accuracy of estimated capital expenditures; availability and cost of labor and services and owned or third-party infrastructure; royalties; development and execution of projects; the satisfaction by third parties of their obligations to the Company; and the receipt and timing for approvals from regulators and third parties. All statements concerning expectations or projections about the future and statements and information regarding the future business plan or strategy, timing or scheduling, production volumes with splits by commodity, production declines, expected and future activities and capital expenditures, commodity prices, costs, royalties, schedules, operating or financial results, future financing requirements, and the expected effect of future commitments are forward-looking statements.

The forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Such factors include, but are not limited to:

* changes in general economic, business and political conditions, including commodity price volatility, interest rates and currency exchange, OPEC (as defined below) actions, ongoing global economic concerns, Russia's continuing military invasion of Ukraine, and rising civil unrest and activism globally;

* changes in supply and demand for the Company's oil, natural gas, and natural gas liquids ("**NGLs**");

* a global public health crisis including the outbreak of the novel coronavirus (COVID-19) in 2020 which has caused volatility and disruptions in the supply, demand and pricing for crude oil, natural gas, and NGLs, global supply chains and financial markets, as well as declining trade and market sentiment and reduced mobility of people;

* volatility of commodity prices and the related effects of changing price differentials;

* ability to access capital from internal and external sources (including the Corporate Credit Facility and the ABS Facility, each as defined below);

* the Company's ability to meet foreseeable obligations by actively monitoring its credit facilities through use of loans/notes, asset sales, coordinating payment and revenue cycles each month, and an active commodity hedge program to mitigate commodity price risk and secure cash flows;

* ability to finance planned activities including infrastructure expansions which are required to meet future growth targets;

* access to third-party pipelines and facilities and access to sales markets;

* the ability to obtain regulatory, stakeholder and third-party approvals and satisfy any associated conditions that are not within the Company's control for exploration and development activities and projects;

* the ability of the Company to execute the normal course issuer bid ("**NCIB**");

* successful and timely implementation of capital expenditures;

* risks associated with the development and execution of major projects;

* risk that projects and opportunities intended to grow cash flow and/or reduce costs may not achieve the expected results in the time anticipated or at all;

* the Company's ability to operate and access to facilities to meet forecast production;

* the ability of the Company to pay dividends to its shareholders;

* the timing of payments in respect of the various development partnerships;

------

* operational risks and uncertainties associated with crude oil, natural gas, and NGLs activities, including unexpected formations or pressures, reservoir performance, fires, blow-outs, equipment failures and other accidents, uncontrollable flows of natural gas and wellbore fluids, pollution and other environmental risks;

* hanges in costs including production, royalty, transportation, general and administrative, and finance;

* adverse weather conditions which could disrupt production and affect drilling and completions resulting in increased costs and/or delay adding production;

* actions by government authorities including changes to taxes, fees, duties and government-imposed compliance costs;

* hanges to laws and government policies including environmental (and climate change), royalty, and tax laws and policies;

* ounter-party risk with third parties to perform their obligations with whom the Company has material relationships;

* unplanned facility maintenance or outages or unavailability of third-party infrastructure which could reduce production or prevent the transportation of products to processing plants and sales markets;

* a major outage or environmental incident or unexpected event such as fires (including forest fires), hurricanes or equipment failures or similar events that would affect the Company's facilities or third-party infrastructure used by the Company;

* environmental risks (including climate change) and the cost of compliance with current and future environmental laws, including climate change laws along with risks relating to increased activism and opposition to fossil fuels;

* the risk that competing business objectives may exceed the Company's capacity to adapt and implement change;

* the potential for security breaches of the Company's information technology systems by malicious persons or entities, and the unavailability or failure of such systems to perform as anticipated as a result of such breaches;

* risks with transactions including closing an asset or property acquisition or disposition and the failure to realize anticipated benefits from any transaction;

* finding new crude oil and natural gas reserves that can be developed economically to replace reserves depleted by production;

* the accuracy of estimating reserves and future production and the future value of reserves;

* risk associated with commodity price hedging activities using derivatives and other financial instruments;

* maintaining debt levels at a reasonable multiple of cash flow;

* risk that the Company may be subject to litigation;

* the accuracy of cost estimates, some of which are provided at an early stage and before detailed engineering has been completed;

* risk associated with partner or joint arrangements to which the Company is a party;

* inability to secure labor, services or equipment on a timely basis or on favourable terms;

* increased competition from other industry participants for, among other things, capital, acquisitions of assets or undeveloped lands, and skilled personnel; and

* increased competition from companies that provide alternative sources of energy.

Statements relating to "reserves" or "resources" are forward-looking statements, including financial measurements such as net present value, as they involve the assessment, based on estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future.

Readers are advised that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities law.

Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

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**PART I**

**ITEM 1. BUSINESS** 

**Background** 

The Company was incorporated under the *Business Corporations Act* (British Columbia) (the "**BCBCA**") on July 30, 2008 under the name "Red Pine Petroleum Ltd."

On April 8, 2021, the Company entered into the business combination agreement (the "**Business Combination Agreement**") pursuant to which Red Pine Petroleum Ltd. agreed to complete a series of transactions to effect a combination between the company and HB2 Origination, LLC ("**Origination**" or "**HB2**"), and changed its name to "Alpine Summit Energy Partners, Inc." upon completion of the transaction. These series of transactions resulted in a reverse take-over (the "**RTO**") of the Company by the mebers of origination.

Alpine Summit's Class A subordinate voting shares (the "**Subordinate Voting Shares**") are listed on the TSX Venture Exchange (the "**TSXV**") under the symbol "ALPS.U" and the Nasdaq Global Market (the "**Nasdaq**") under the symbol "ALPS".

The following organizational chart illustrates the inter-corporate relationships among the Company and its subsidiaries as of December 31, 2022. See Exhibit 21.1 to this Annual Report for a list of subsidiaries of the Company.

![form10kx002.jpg](form10kxz002.jpg)

The Company's head office is located at 3322 West End Ave., Suite 450, Nashville, Tennessee 37203. The registered office of the Company is located at Suite 2200, HSBC Building, 885 West Georgia St., Vancouver, British Columbia, V6C 3E8.

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**General Development of the Business**

***January 2023 - March 2023***

On January 20, 2023, the Company announced the successful payout and liquidation of its fifth development partnership that it formed during the second quarter of 2022 (the "**Fifth Development Partnership**"), along with the concurrent closing of its seventh development partnership (the "**Seventh Development Partnership**"). The Fifth Development Partnership partially funded the drilling and completion of a total of six wells and comprised a total capital program of approximately US$50.3 million, with 60% funded by external partners. As part of the completion of the Fifth Development Partnership, the Company retired redeemable non-controlling interests of approximately US$36.4 million, after previous distributions of $0.5 million. The Seventh Development Partnership has an expanded capital program of approximately US$57.1 million, with approximately US$34.3 million of external development capital, and is expected to continue to develop assets within the Company's existing operational footprint.

On February 3, 2023, the Company announced that it had completed an exercise by six partners of the put right provided to such partners by the Fifth Development Partnership. In connection with the exercise, 499,794 Class B non-voting units of Origination ("**HB2 Units**") (exchangeable on a one-for-one basis for Subordinate Voting Shares) were issued to these partners. Two of the partners from the Fifth Development Partnership partners exchanged their interests at a deemed value of US$5.23 per unit and the remaining four DP5 partners exchanged their interests at a deemed value of US$5.01 per unit.

On February 23, 2023, the Company announced that the Board of Directors of the Company (the "**Board**") had commenced a strategic review of its assets. The Company is seeking to facilitate a timely and orderly response to unsolicited inquiries by other upstream oil and natural gas companies who have expressed interest in acquiring various assets of the Company. The Board also deemed it prudent to suspend its monthly dividend payments beginning in March 2023.

On March 8, 2023, the Company announced that it had engaged Stephens Inc. as its financial advisor to pursue an asset sale for various strategic, high producing assets recently developed and proven by the Company. Proceeds of such sale are expected to retire existing liabilities as well as place additional capital on the Company's balance sheet.

On March 10, 2023, HB2 entered into an Omnibus Waiver (the "**Waiver**") to the corporate credit facility with Bank7 Corp. (the "**Corporate Credit Facility**"). The Waiver grants HB2 a waiver of all covenants contained in Article VII of the Corporate Credit Facility and makes certain other conforming changes.

On March 21, 2023, HB2 amended and restated the Omnibus Waiver Agreement (the "**Amended Waiver**") and entered into an extension to the Corporate Credit Facility ("**Extension Agreement**"). The Extension Agreement and the Amended Waiver extend the final maturity date of the Corporate Credit Facility to July 1, 2023 and grant HB2 a waiver of all covenants contained in Article VII of the Corporate Credit Facility through July 1, 2023 and makes certain other conforming changes.

On March 23, 2023, the Company amended its asset-backed securitization facility of certain producing oil and gas wells (the "**ABS Facility**") to, among other things, suspend certain covenants, including with respect to the debt service coverage ratio, the production tracking rate and the loan-to-value requirement, until July 1, 2023, and to extend the initial maturity date of the first tranche of the ABS Facility until July 1, 2023.

***Year Ended December 31, 2022***

On January 4, 2022, the Company announced that, effective December 31, 2021, the Subordinate Voting Shares commenced trading on the OTCQB under the symbol "ASEPF."

On January 10, 2022, the Company announced the successful payout and liquidation of its second development partnership (the "**Second Development Partnership**"), along with the concurrent closing of its fourth development partnership (the "**Fourth Development Partnership**"). The Second Development Partnership funded the drilling and completion of five wells in the Giddings Field near Austin, TX and comprised a total capital program of approximately US$35.2 million, with 60% funded by external partners. As part of the completion of the Second Development Partnership, the Company retired redeemable non-controlling interests of approximately US$23.5 million, after previous distributions of US$4.5 million. The Fourth Development Partnership had an expanded capital program of approximately US$42.0 million, with approximately US$25.2 million of external development capital, and was used to develop assets within the Company's existing operational footprint.

On March 10, 2022, the Company announced the closing of a new development partnership by Origination ("**Red Dawn 1**"). Red Dawn 1 had a capital plan of approximately US$50.4 million, with approximately US$30.3 million of external development capital, and was used to partially fund the drilling and completion of five wells.

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On March 14, 2022, the Company announced the closing of the Corporate Credit Facility by its operating subsidiary, Origination. The Corporate Credit Facility, led by Bank7 Corp. ("**Bank7**"), replaced the October 2021 Facility (defined below). The Corporate Credit Facility had a total size of US$30 million. The Corporate Credit Facility is secured by working interests in a subset of the Company's producing assets and charges interest at the greater of 5.00% and Prime +1.75%. The Corporate Credit Facility, which has a one-year maturity, is expected to provide the Company with additional working capital flexibility.

On April 27, 2022, the Company announced the successful payout and liquidation of its third development partnership (the "**Third Development Partnership**"), along with the concurrent closing of its Fifth Development Partnership. The Third Development Partnership funded the drilling and completion of a total of five wells: three wells in the Giddings Field near Austin, TX and two wells in Webb County, TX; and comprised a total capital program of approximately US$35.3 million, with 60% funded by external partners. As part of the completion of the Third Development Partnership, the Company retired redeemable non-controlling interests of approximately US$30.2 million. The Fifth Development Partnership expanded its capital program by approximately US$50.3 million, with approximately US$30.2 million of external development capital, is expected to continue to develop assets within the Company's existing operational footprint. Additionally, twelve partners of the Third Development Partnership exercised the put right provided to such partners by the Third Development Partnership regarding residual interests in their associated investment and elected to sell their remaining interest in the Third Development Partnership for 894,929 Class B non-voting units of Origination (exchangeable on a one-for-one basis for Subordinate Voting Shares of the Company), with a deemed value of US$5.70 per unit (which was calculated with reference to the trailing 30 day share price and the allowable discounts permitted by the policies of the TSXV), or a total of approximately US$5.1 million.

On May 2, 2022, the Company announced the successful closing of the ABS Facility. The ABS Facility is led by an insurance company and had an initial size of US$80 million with additional capacity to expand up to US$150 million in total. The ABS Facility is secured by working interests in a subset of the Company's producing assets, which are held by an affiliate of its operating subsidiary, Origination, and charges interest at LIBOR + 6.00% (with a 1% LIBOR floor) for the initial year, and LIBOR +12% (with a 1% LIBOR floor) for the second year. Proceeds from the ABS Facility were used to repay existing indebtedness, the Company's asset backed preferred instrument in connection with the Shareholder Takeout (discussed below), and for general corporate purposes.

On May 20, 2022, the Company announced that the exercise by twelve partners of the put right provided by the Third Development Partnership was completed. In connection with the exercise, 894,929 Class B non-voting units of Origination (exchangeable on a one-for-one basis for Subordinate Voting Shares of the Company) were issued to these partners on May 19, 2022, at a deemed value of US$5.70 per unit.

On June 7, 2022, the Company announced that it received approval from the TSXV of its Notice of Intention to Make an NCIB. Under the NCIB, the Company may purchase for cancellation up to 1,648,783 Subordinate Voting Shares over a 12-month period commencing on June 10, 2022. The NCIB will expire no later than June 9, 2023. The price that Alpine Summit will pay for Subordinate Voting Shares in open market transactions will be the market price at the time of purchase. Any Subordinate Voting Shares that are purchased under the NCIB will be cancelled. The actual number of Subordinate Voting Shares that may be purchased and the timing of such purchases will be determined by the Company. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and other factors. The Company appointed Leede Jones Gable Inc. to make purchases under the NCIB on its behalf.

On June 13, 2022, the Company announced it was approved for graduation from Tier 2 issuer status to Tier 1 issuer status on the TSXV, effective June 14, 2022. Concurrently with the graduation to a Tier 1 listing on the TSXV, the TSXV also accepted the Company's application to release the securities previously deposited into escrow on the basis that the Company has a market capitalization in excess of CAD$100 million and therefore was considered an "exempt issuer" under National Policy 46-201.

On July 15, 2022, the Company announced the successful payout and liquidation of the Fourth Development Partnership, along with the concurrent closing of its sixth development partnership (the "**Sixth Development Partnership**"). The Fourth Development Partnership funded the drilling and completion of a total of five wells: three wells in the Giddings Field near Austin, TX and two wells in Webb County, TX; and comprised a total capital program of approximately US$35.2 million, with 60% funded by external partners. As part of the completion of the Fourth Development Partnership, Alpine Summit had retired redeemable non-controlling interests of approximately US$31.7 million, after previous distributions of $2.7 million. The Sixth Development Partnership expanded its capital program to approximately US$56.9 million, with approximately US$34.2 million of external development capital, and expected to continue to develop assets within the Company's existing operational footprint.

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On July 27, 2022, the Company announced that it completed the previously announced exercise by nine partners of the put right provided by the Fourth Development Partnership. 706,975 Class B non-voting units of Origination (exchangeable on a one-for one basis for Subordinate Voting Shares of the Company) were issued to these partners on July 26, 2022, at a deemed value of US$5.85 per unit.

On September 13, 2022, the Company announced the successful expansion of its asset backed securitization of certain producing oil and natural gas wells. The ABS Facility was increased by US$55 million, to a total size of US$135 million, with additional capacity to expand up to US$150 million in total. The ABS Facility is secured by working interests in a subset of the Company's producing assets, which are held by an affiliate of its operating subsidiary, Origination, and charges interest at LIBOR + 8.00% (with a 1% LIBOR floor) for the initial year, and LIBOR + 14% (with a 1% LIBOR floor) for the second year. Proceeds from the ABS Facility are used for continued development activities, working capital, and general corporate purposes.

On September 26, 2022, the Company announced that the Nasdaq Stock Market LLC approved the Company's application to list its Subordinate Voting Shares on Nasdaq, with the Subordinate Voting Shares commencing trading on Nasdaq at the opening of the market on September 28, 2022, under the ticker symbol "ALPS."

On September 27, 2022, the Company announced that the TSXV approved an amendment to the NCIB, which commenced on June 10, 2022 and will conclude on the earlier of the date on which purchases under the NCIB have been completed and June 9, 2023. The NCIB was amended to reflect that the Company is permitted to enter into an automatic share purchase plan ("**ASPP**") with its designated broker, Leede Jones Gable Inc., to facilitate the purchase of its Subordinate Voting Shares under the NCIB during times when the Company would not ordinarily be permitted to purchase such shares due to regulatory restrictions or self-imposed black-out periods. All other terms and conditions of the NCIB remained the same.

On October 4, 2022, the Company announced the successful expansion of the Corporate Credit Facility, which originally had a total size of US$30 million (as announced on March 14, 2022). The Corporate Credit Facility was increased to a total size of US$65 million and as of that date had a borrowing base availability of US$17.4 million. The Corporate Credit Facility's maturity date and interest rate remained unchanged.

On November 10, 2022, the Company announced the successful payout and liquidation of Red Dawn 1 that it formed during the first quarter of 2022, along with the concurrent closing of another development partnership ("**Red Dawn 2**"). Red Dawn 1 partially funded the drilling and completion of a total of five wells and comprised a total capital program of approximately US$50.4 million, with 60% funded by external partners. As part of the completion of the Red Dawn 1 program, the Company retired redeemable non-controlling interests of approximately US$38.5 million. Red Dawn 2 has an expanded capital program of approximately US$57.7 million, with approximately US$34.6 million of external development capital, and is expected to continue to develop assets within the Company's existing operational footprint.

On December 1, 2022, the Company announced that twelve Red Dawn 1 partners exercised the put right provided to such partners by Red Dawn 1, regarding residual interests in their associated investment. In connection with the exercise, 617,103 Class B non-voting units of Origination (exchangeable on a one-for-one basis for Subordinate Voting Shares of the Company) were issued to these partners, at a deemed value of US$5.16 per unit.

On December 13, 2022, the Company announced that the board of directors of the Company approved the Company's capital return program for 2023, which consisted of: i) increasing the existing monthly dividend by 5% and ii) continuing the share buyback program under the previously announced and approved NCIB.

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***Year Ended December 31, 2021***

*Shareholder Takeout*

On March 5, 2021, the Company implemented an equity buy-back structure, under which a controlling unitholder exchanged 100% of their holdings (being 3,992,629 membership units of Origination, which represented approximately 23.4% of Origination's membership units at the time) along with a US$1,000,000 promissory note for asset-backed preferred instruments (each, a "**Preferred Instrument**") issued by AIP Holdco, LP (with a total of 23,500,000 Preferred Instruments issued). The remaining Preferred Instruments were redeemed at a price of US$1.00 per Preferred Instrument.

The Preferred Instruments were not convertible into shares of Alpine Summit (being the resulting issuer after completion of the "RTO") and had no governance rights. The Preferred Instruments were not secured obligations, and a default would have only resulted in increased fixed rate of return.

*Development Partnerships*

The Company, through its wholly owned subsidiary Origination, sponsors and manages development programs to participate in its drilling initiatives and accelerate its growth. Most of Origination's drilling programs are limited partnerships structured to minimize drilling risks on repeatable prospects and optimize tax advantages for private investors. At the commencement of production of a well, Origination assigns working interest rights for such well to an operating partnership.

During the first quarter of 2021, Origination formed a development partnership (the "**First Development Partnership**") with 13 limited partners (the "**First Partnership LPs**") and certain wholly-owned subsidiaries of Origination as limited partners and the general partner, which was US$21.8 million in total size. The First Development Partnership funded the drilling and completion of five wells, with the First Partnership LPs funding 60% and Origination funding 40%. The First Partnership LPs could choose to receive development partnership units ("**DP Units**") that distributed profits either based on a Flat payout option or an IRR based payout option. Flat Payout Units participated in 75% of the income of the First Development Partnership (along with IRR based Payout Units) until that income equaled their invested capital and thereafter participated in 20% of the income of the First Development Partnership (along with IRR based Payout Units). IRR Based Payout Units participated in 75% of the income of the First Development Partnership (along with Flat Payout Units) until that income equaled their invested capital plus a 15% annualized return on invested capital or 120% of their initial investment, whichever was greater and thereafter participated in 6% of the income of the First Development Partnership, along with Flat Payout Units, which participated in 20% of the income of the First Development Partnership. The First Partnership LPs also had a put right to effectively sell their remaining interest for HB2 Units or cash, subject to the consent of Origination and certain other restrictions, for an amount calculated at the net future present values on oil and natural gas reserve estimates.

During the second quarter of 2021, Origination formed its Second Development Partnership with 25 limited partners (the "**Second Partnership LPs**") and certain wholly-owned subsidiaries of Origination as limited partners and the general partner, which was US$35.2 million in total size. The Second Development Partnership funded the drilling and completion of five wells, with the Second Partnership LPs funding 60% and Origination funding 40%. The Second Partnership LPs could choose to receive development partnership units ("**DP Units**") that distributed profits either based on a Flat payout option or an IRR based payout option. Flat Payout Units participated in 75% of the income of the Second Development Partnership (along with IRR based Payout Units) until that income equaled their invested capital and thereafter participated in 20% of the income of the Second Development Partnership (along with IRR based Payout Units). IRR Based Payout Units participated in 75% of the income of the Second Development Partnership (along with Flat Payout Units) until that income equaled their invested capital plus a 15% annualized return on invested capital or 120% of their initial investment, whichever was greater and thereafter participated in 6% of the income of the Second Development Partnership, along with Flat Payout Units, which participated in 20% of the income of the Second Development Partnership. The Second Partnership LPs also had a put right to effectively sell their remaining interest for HB2 Units or cash, subject to the consent of Origination and certain other restrictions, for an amount calculated at the net future present values on oil and natural gas reserve estimates.

On October 7, 2021, the Company announced the successful payout and liquidation of the First Development Partnership, along with the concurrent closing of Third Development Partnership. As part of the completion of the First Development Partnership, Alpine Summit had retired redeemable non-controlling interests of approximately US$15.3 million, after previous distributions of $1.9 million.

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Origination formed the Third Development Partnership with 23 limited partners (the "**Third Partnership LPs**") and certain wholly-owned subsidiaries of Origination as limited partners and the general partner, which was US$34.7 million in total size. The Third Development Partnership funded the drilling and completion of five wells, with the Third Partnership LPs funding 60% and Origination funding 40%. The Third Partnership LPs could choose to receive development partnership units ("**DP Units**") that distributed profits either based on a Flat payout option or an IRR based payout option. Flat Payout Units participated in 75% of the income of the Third Development Partnership (along with IRR based Payout Units) until that income equaled their invested capital and thereafter participated in 20% of the income of the Third Development Partnership (along with IRR based Payout Units). IRR Based Payout Units participated in 75% of the income of the Third Development Partnership (along with Flat Payout Units) until that income equaled their invested capital plus a 15% annualized return on invested capital or 120% of their initial investment, whichever is greater and thereafter participated in 6% of the income of the Third Development Partnership, along with Flat Payout Units, which participated in 20% of the income of the Third Development Partnership. The Third Partnership LPs also had a put right to effectively sell their remaining interest for HB2 Units or cash, subject to the consent of Origination and certain other restrictions, for an amount calculated at the net future present values on oil and natural gas reserve estimates.

*Convertible Promissory Notes*

During the year ended December 31, 2021, Origination issued $1,075,000 in promissory notes for cash of which $75,000 were to an officer of the Company.

During the year ended December 31, 2021, Origination issued 353,870 HB2 Units in exchange for $3,475,000 in promissory notes of which $600,000 were held by an officer of the Company. In addition, Origination exchanged $1,000,000 of promissory notes in connection with the asset backed preferred instrument (see Shareholder Takeout section).

During the year ended December 31, 2021, Origination repaid $1,755,000 of promissory notes with cash and also offset $270,000 of promissory notes with agreed upon overhead expenses, which was shown as a reduction of general and administrative expenses.

In June 2021, Origination issued a series of unsecured, non-interest-bearing convertible promissory notes to individuals in aggregate principal amount of $2.3 million with a maturity date of sixty days from the date of issuance. Per the terms of these convertible promissory notes, they were convertible into units of Origination at a conversion rate of $9.82/unit at the option of the noteholder or Origination. On July 2, 2021, Origination exercised its option to convert all the existing convertible notes into 234,216 HB2 Units effective as of July 7, 2021.

*Other Developments*

On August 18, 2021, Alpine Summit Energy Partners Finco, Inc. ("**Finco**") completed a brokered private placement of an aggregate of 161,976 Subordinate Voting Subscription Receipts at a subscription price of C$4.01 per Subordinate Voting Subscription Receipt and 17,057 Multiple Voting Subscription Receipts at a subscription price of C$401.29 per Multiple Voting Subscription Receipt for aggregate gross proceeds of approximately C$7.5 million. After deducting the agent's fees and expenses incurred in connection with the offering, the net proceeds of the Finco Financing were approximately C$7.2 million. The Company used the net proceeds of the Finco Financing principally to fund the general working capital of the Company. On October 28, 2021, the Company announced that its operating subsidiary, Origination, entered into a new corporate credit facility (the "**October 2021 Facility**") with a total size of up to US$12.5 million with a one-year maturity. The October 2021 Facility was secured by working interests in a subset of the Company's producing assets and charged interest of prime +2.25%.

On December 14, 2021, in accordance with its current monthly dividend policy, the Company declared a dividend of $0.03 per Subordinate Voting Share for the month of January 2022. Simultaneously with declaring the dividend on the Subordinate Voting Shares, the Company also declared a dividend on the Multiple Voting Shares equal to $3.00 per share and a dividend on the Proportionate Voting Shares equal to $0.03 per share. The dividend was payable on January 31, 2022, to the shareholders of record at the close of business on January 17, 2022.

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*Significant Acquisitions*

Except for the RTO, the Company did not complete any individually significant acquisitions during the year ended December 31, 2021.

**Description of the Business** 

***General***

Alpine Summit is a U.S. oil and natural gas development company that operates and develops oil and gas wells. Alpine Summit focuses its drilling activity in two main areas, the Austin Chalk and Eagle Ford formations in the Giddings Field in Austin, Fayette, Lee, Robertson and Washington Counties, TX (the "**Giddings Assets**") and the Hawkville Field in Webb and LaSalle Counties, TX (the "**Hawkville Assets**"), both well-positioned acreage locations in Texas which have produced substantial amounts of oil, natural gas, and NGLs for decades.

Alpine Summit distributes its commodity products through a network of marketing agreements covering its oil, natural gas, and NGLs. In general, these marketing agreements provide for Alpine Summit to receive prices that are referenced relative to highly visible and transparent benchmark prices and the Company is not reliant upon any single significant customer.

Alpine Summit enjoys a competitive advantage to other natural gas producers in the United States by virtue of its access to gulf coast natural gas markets without significant basis differentials. Alpine Summit anticipates being a beneficiary of the announced expansion of significant LNG export terminals in this area commencing in late Q4 2024 and well into 2026, since it views substantial expansion of interstate pipelines from other basins as unlikely.

Alpine Summit has become one of the more experienced energy operators in the Giddings and Hawkville Field areas and is complemented by a seasoned leadership team and a proven operating team. The Company's development history has enabled it to maintain a breadth of service provider contacts without undue reliance on any single service provider. The Company's employees are non-unionized and its service providers work on a contract basis.

The Company's ability to develop assets depends on its maintenance of ongoing lease obligations with groups of mineral rights owners throughout the state of Texas. These royalty and access agreements govern its surface and drilling operations and Alpine Summit must stay in continuous compliance to effectuate its business. Further, prior to beginning additional development work, the Company must file all applicable regulatory paperwork with the relevant regulatory body, namely the Texas Railroad Commission, in order obtain valid drilling permits. The Company is also required to comply with all applicable federal, state and county regulations while drilling wells in addition to when developed assets are on production. The Company believes it is in good standing with relevant regulatory bodies and does not foresee any imminent changes to applicable policy or procedures that would impact operations.

On February 23, 2023, the Company announced that the Board had commenced a strategic review of its assets and on March 8, 2023, the Company announced that it had engaged Stephens Inc. as its financial advisor to pursue an asset sale for the Hawkville Assets. Other than completing existing in-process wells, the Company expects to pause field activity until the completion of the sales process. The Company plans to focus on developing its existing and adjacent footprint over the next several years while also evaluating additional development projects that fit its investment criteria.

***Specialized Skill and Knowledge***

The Company relies on the specialized skill and knowledge of its management and staff to compile, interpret and evaluate technical data, drill and complete wells, design and operate production facilities and numerous additional activities required to explore for and produce oil, natural gas, and NGLs. From time to time, the Company employs consultants and other service providers to provide complementary experience and expertise to carry out its oil, natural gas, and NGL operation effectively. It is the belief of management of the Company that its officers and employees, who have significant technical, operational and financial experience in the oil and natural gas industry, hold the necessary skill sets to successfully execute the Company's business strategy in order to achieve its corporate objectives.

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***Competition*** 

The oil and natural gas industry is competitive in all its phases. The Company competes with numerous other participants in the search for, and the acquisition of, oil and natural gas properties and in the marketing of oil, natural gas, and NGLs. The Company's competitors include resource companies which have greater financing resources, staff and facilities than those of the Company. Competitive factors in the distribution and marketing of oil, natural gas, and NGLs include price, methods, and reliability of delivery. The Company believes that its competitive position is equivalent to that of other oil and natural gas issuers of similar size and at a similar stage of development.

***Cyclical and Seasonal Impact of Industry*** 

The Company's operational results and financial condition are dependent on the prices received for its oil, natural gas, and NGL production. Oil, natural gas, and NGL pricing have fluctuated widely during recent years. Commodity prices are determined by supply and demand, geopolitical factors, weather and general economic conditions, as well as conditions in other oil and natural gas regions. Declining prices in oil, natural gas, and NGLs could have an adverse effect on the Company's financial condition. In addition, the development of oil and natural gas reserves is dependent on access to areas where drilling and other oilfield operations are to be undertaken.

***Government Regulations***

The oil and natural gas industry is subject to extensive controls and regulations governing its operations imposed by legislation enacted by various levels of government, all of which should be carefully considered by investors in the oil and natural gas industry. Numerous governmental entities, including the U.S. Environmental Protection Agency ("**EPA**"), the U.S. Occupational Safety and Health Administration ("**OSHA**") and analogous state agencies, have the power to enforce compliance with these laws and regulations and the permits issued under them, often requiring difficult and costly action. Since these requirements apply to all operators in the oil and natural gas industry, it is not anticipated that the Company's competitive position within the industry will be adversely affected in a manner materially different than that of other oil and natural gas companies of similar size. All legislation and regulation are a matter of public record and the Company is unable to predict what additional legislation or amendments may be enacted.

These laws and regulations may, among other things (i) require the acquisition of permits to conduct drilling and other regulated activities; (ii) restrict the types, quantities and concentration of various substances that can be released into the environment or injected into formations in connection with oil and natural gas drilling and production activities; (iii) require remedial measures to mitigate pollution from former and ongoing operations, such as requirements to close pits and plug abandoned wells; (iv) impose specific safety and health criteria addressing worker protection; and (v) impose substantial liabilities for pollution resulting from drilling and completion activities.

Significant existing environmental and occupational health and safety laws and regulations include the following U.S. laws and the regulations promulgated to implement and enforce them, as amended from time to time:

* the Clean Air Act ("**CAA**"), which restricts the emission of air pollutants from many sources and imposes various operational, monitoring, and reporting requirements and has been relied upon by the EPA as authority for adopting climate change regulatory initiatives relating to greenhouse gas ("GHG") emissions;

* the Federal Water Pollution Control Act, also known as the federal Clean Water Act, which regulates discharges of pollutants to 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;

* 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;

* the Resource Conservation and Recovery Act ("**RCRA**"), which governs the generation, treatment, storage, transport, and disposal of solid wastes, including hazardous wastes;

* the Safe Drinking Water Act ("**SDWA**"), which ensures the quality of the nation's public drinking water through *inter alia*, controlling the injection of waste fluids into below-ground formations that may adversely affect drinking water sources;

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* the Emergency Planning and Community Right-to-Know Act, which requires facilities to implement a safety hazard communication program and disseminate information to employees, local emergency planning committees, and response departments on toxic chemical uses and inventories; and

* the Occupational Safety and Health Act, 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.

Compliance with federal environmental or occupational health and safety legislation and comparable state laws, as well as local ordinances including those pertaining to land use, zoning, building, and transportation requirements, can require significant expenditures or operational restrictions. Breach of such requirements may result in the suspension or revocation of necessary licenses and authorizations, civil liability for pollution damage or personal injury, and the imposition of material fines, administrative, civil and criminal penalties, and remediation costs, all of which have the potential to negatively impact the Company's earnings and corporate growth. The Company maintains an active list of its expected future expenditures to reclaim its properties to acceptable regulatory standards. The expected future obligation is not outside the norm for a company of its size and operations. The Company has internal procedures designed to ensure that the environmental aspects of new developments are taken into account prior to proceeding with them.

***Employees*** 

As of December 31, 2022, the Company had 26 full-time employees.

***Reorganizations*** 

The following is a summary of the Business Combination. This summary is qualified in its entirety by the terms of the Business Combination Agreement which is available under the Company's profile on EDGAR at www.sec.gov/edgar.

On April 8, 2021, the Company, Origination, Finco, Red Pine Petroleum Subco Ltd. ("**Subco**") and Alpine Summit Energy Investors, Inc. ("**Blocker**") entered into the Business Combination Agreement pursuant to which the parties agreed to complete a series of transactions to affect a business combination between the Company (through its predecessor Red Pine Petroleum Ltd.) and Origination and that resulted in a reverse take-over of the Company by the members of Origination.

The principal steps of the RTO were as follows:

(1) Finco issued Subscription Receipts for gross proceeds of approximately CDN$7,500,000;

(2) immediately prior to the closing of the RTO:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company amended its articles to (i) reclassify its common shares as Subordinate Voting Shares, (ii) create a new class of Multiple Voting Shares and a new class of Proportionate Voting Shares, and (iii) change its name from "Red Pine Petroleum Ltd." to "Alpine Summit Energy Partners, Inc." and, immediately thereafter, effected the Consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each outstanding membership unit of Origination was converted into three membership units of Origination (the "**Recapitalization**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Subscription Receipts were converted into Finco Shares, with each holder of a Subordinate Voting Subscription Receipt receiving one Class A Finco Share in exchange therefor and each holder of a Multiple Voting Subscription Receipt receiving one Class B Finco Share in exchange therefor; and

(3) on closing of the RTO:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company, Finco and Subco completed a three-cornered amalgamation under the BCBCA pursuant to which all Finco shareholders (including former holders of the Subscription Receipts) exchanged their Class A Finco Shares for Subordinate Voting Shares or their Class B Finco Shares for Multiple Voting Shares, as applicable, in each case on a one-for-one basis, and Finco and Subco amalgamated, with the resulting entity ("**Amalco**") to continue as a wholly-owned subsidiary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Amalco was wound up into the Company and the assets of Amalco (which consisted of the funds invested by the holders of the Subscription Receipts, net of expenses) were transferred to the Company by operation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) certain U.S. holders of membership units in Origination (other than Blocker) contributed their membership units in Origination to the Company in exchange for Multiple Voting Shares on a one-hundred membership units (post-Recapitalization) for one Multiple Voting Shares basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) certain of the non-U.S. holders of membership units in Origination contributed their membership units in Origination to the Company in exchange for Subordinate Voting Shares on a one membership unit (post-Recapitalization) for one Subordinate Voting Share basis subject to adjustment for any applicable withholding taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) each holder of Blocker Shares contributed their Blocker Shares to the Company in exchange for Subordinate Voting Shares on a one Blocker Share for three Subordinate Voting Shares basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Initial Holder subscribed for Proportionate Voting Shares carrying voting rights that, in the aggregate, represented approximately 32% of the voting rights of the Company upon completion of the RTO on a fully diluted basis for a purchase price equivalent to their fair market value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Company used certain proceeds of the Finco Financing and the membership units of Origination received by it to subscribe for Blocker Shares, following which the proceeds of Finco Financing received by Blocker were contributed to Origination in exchange for membership units of Origination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) membership units of Origination held by Blocker were re-designated as Class A Voting Units of Origination and membership units of Origination held by other remaining members of Origination will be re-designated as Class B Non-Voting Units of Origination.

**Available Information** 

Our website address is https://www.alpinesummitenergy.com.

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**ITEM 1A** **. RISK FACTORS** 

**Risk Factor Summary**

Below is a summary of the principal factors that make an investment in our Subordinate Voting Shares speculative or risky, but does not address all of the risks that we face. Additional discussion of the risks summarized below, and other risks that we face, may be found immediately following this summary.

**Risks Related to our Business**

* We are largely dependent on crude oil, natural gas, and NGL pricing, which may affect the value of the Company's assets and its ability to pursue its business objectives.

* Lower commodity prices may disrupt the production of crude oil, natural gas, and NGL reserves at an acceptable level of profitability.

* We may be unable to obtain additional funding in order to carry out our oil, natural gas, and NGL acquisition and development activities.

* Adverse well or reservoir performance could result in reduced corporate volumes and revenues.

* Our crude oil, natural gas, and NGL development and production activities depend, to one degree or another, on adequate infrastructure and the availability of drilling and related equipment in the particular areas where such activities will be conducted.

* The marketability of our production depends in part on the availability, proximity and capacity of gathering and transportation pipeline facilities.

* Our development programs require sophisticated and scarce technical skills as well as capital and access to land and oilfield service equipment and may not result in the discovery of economic reserves.

* Our current and future development and production activities require the handling of volatile liquids and gases, which may lead to environmental, health and safety risks.

* Oil, natural gas, and NGL development involves a high degree of risk and there is no assurance that expenditures made on development by the Company will result in new discoveries of oil, natural gas, or NGLs in commercial quantities.

* We cannot guarantee that the Company's future development efforts will result in the discovery and development of oil and natural gas reserves.

* As a holding company, we are subject to the risks attributable to each of our subsidiaries.

* We may not be able to keep pace with technological developments in the oil and natural gas industry.

* Estimates of economically recoverable crude oil, natural gas reserves, and NGLs, and related future net cash flows, are based upon a number of variable factors and assumptions that may turn out to be inaccurate, which can materially affect the quantities and present value of our reserves.

* Fuel reduction regulations, alternative fuel requirements, increasing consumer demand for alternatives to oil and natural gas and technological advances in fuel economy and renewable energy generation devices could reduce the demand for crude oil and liquid hydrocarbons.

* Any environmental damage, loss of life, injury or damage to property caused by the Company's operations could damage our reputation in the areas in which the Company operates.

* A negative shift in investor or shareholder sentiment of the oil and natural gas industry could adversely affect our business and ability to raise debt and equity capital.

* The success of the Company's business is highly dependent on its ability to finding, developing, and acquiring petroleum and natural gas reserves in a cost-efficient manner.

* We may be unable to obtain all necessary registrations, permits, and authorizations that are required to carry out development at our properties.

**Macroeconomic and Financial Risks**

* Our Corporate Credit Facility and ABS Facility (collectively, "**Debt Facilities**") contain a number of restrictive covenants that impose significant operating and financial restrictions on the Company.

* Market conditions, weakening global relationships can impact the prices for crude oil, natural gas, and NGLs

* The discontinuation of LIBOR may adversely affect the value of the ABS Facility Notes or the cost of our borrowings.

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**Legal and Regulatory Risks**

* In the United States, the energy industry is subject to scrutiny, frequently hostile, by political and environmental groups, which may lead to increased regulation and increased compliance costs.

* We are subject to stringent federal and state laws and regulations related to labor and occupational health and safety issues that could adversely affect the cost, manner or feasibility of conducting our operations. 

* We may be subject to regulations that restricts our ability to discharge water produced as part of our production operations.

* All phases of the oil and natural gas business present environmental risks and hazards and are subject to environmental regulation pursuant to a variety of international conventions and national, state and local laws and regulations.

* Climate change, environmental, social and governance and sustainability initiatives may result in regulatory or structural industry changes and/or could result in increased operating costs and reduced demand for the oil, natural gas, and NGLs that we produce while potential physical effects of climate change could disrupt our operations and cause us to incur significant costs in preparing for or responding to those effects.

**Risks Related to Ownership of our Subordinate Voting Shares**

* Our Board may modify or revoke the declaration and payment of our dividends at any time at its discretion.

* Our principal shareholder and executive officers have the ability to control or significantly influence all matters submitted to the Company's shareholders for approval, including the election of directors.

* Directors and officers of the Company may also be directors and officers of other oil and natural gas companies involved in oil and natural gas exploration and development, and conflicts of interest may arise.

**Certain Tax Risks**

* The Company anticipates being subject to taxation both in Canada and the United States which could have a material adverse effect on our financial condition and results of operations.

* The Company's principal asset is an indirect interest in Origination and, accordingly, the Company depends on distributions from Origination to pay its taxes and expenses. Origination's ability to make such distributions may be subject to various limitations and restrictions.

* The Tax Receivable Agreement with Origination, Blocker and the Tax Receivable Recipients (as defined below) requires Blocker to make cash payments to the Tax Receivable Recipients in respect of certain tax benefits to which Blocker may become entitled, and Blocker expects that the payments Blocker will be required to make may be substantial.

* The Company's organizational structure, including the Tax Receivable Agreement, confers certain benefits upon the Tax Receivable Recipients that will not benefit the holders of Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares to the same extent as it will benefit the Tax Receivable Recipients.

* Payments under the Tax Receivable Agreement to the Tax Receivable Recipients may be accelerated or exceed the benefits Blocker realizes in respect of the tax attributes subject to the Tax Receivable Agreement.

* Blocker will not be reimbursed for any payments made to the Tax Receivable Recipients in the event that any tax benefits are disallowed.

Investors should carefully consider the risk factors set out below and consider all other information contained herein, and in the Company's other public filings, before making an investment decision. The risks set out below are not an exhaustive list and should not be taken as a complete summary or description of all the risks associated with the Company's business and the oil, natural gas, and NGL business generally.

The risks set out below are grouped into the following categories: (1) Risks Related to the Business; (2) Macroeconomic and Financial Risks; (3) Legal and Regulatory Risks; (4) Risks Related to Ownership of our Subordinate Voting Shares and (5) Certain Tax Risks. Many risks affect more than one category, and the risks are not in the order of significance or probability of occurrence because they have been grouped by categories.

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**Risks Related to the Business**

***Any investment in our shares should be considered highly speculative***

An investment in the Company should be considered highly speculative due to the nature of the Company's involvement in the acquisition, development, production, and marketing of oil, natural gas, and NGL reserves and production and its current stage of development. Oil and natural gas operations involve many risks which even a combination of experience, knowledge and careful evaluation may not be able to overcome. There is no assurance that further commercial quantities of oil and natural gas will be discovered or acquired by the Company, or that the Company will be able to successfully monetize its current reserves.

***We are largely dependent on crude oil, natural gas, and NGL pricing, which may affect the value of the Company's assets and its ability to pursue its business objectives***

The Company's financial results are largely dependent on the prevailing prices of crude oil, natural gas, and NGL. Crude oil, natural gas, and NGL pricing are subject to fluctuations in supply, demand, market uncertainty and other factors that are beyond the Company's control. This can include but is not limited to: the global and domestic supply of and demand for crude oil, natural gas, and NGL; global and North American economic conditions; the actions of the Organization of Petroleum Exporting Countries ("**OPEC**") or individual producing nations; the Russian invasion of Ukraine; government regulation; political stability; the ability to transport commodities to markets; developments related to the market for liquefied natural gas; the availability and prices of alternate fuel sources; the ongoing impact of COVID-19 and related government mandates on global economic conditions, and weather conditions. In addition, significant growth in crude oil, natural gas, and NGL production in the United States has resulted in pressure on transportation and pipeline capacity which contributes to fluctuations in prices. All of these factors are beyond the Company's control and can result in a high degree of price volatility.

Fluctuations in the price of commodities and associated price differentials affect the value of the Company's assets and the Company's ability to pursue its business objectives. Prolonged periods of low commodity prices and volatility may also affect the Company's ability to meet its financial obligations as they come due. Any substantial and extended decline in the price of crude oil, natural gas, or NGL could have an adverse effect on the Company's reserves, borrowing capacity, revenues, profitability and cash flow and may have a material adverse effect on the Company's business, financial condition, results of operations, prospects and the level of expenditures for the development of crude oil and natural gas reserves. This may include delay or cancellation of existing or future drilling or development partnerships or curtailment in production as the economics of producing from some wells may become impaired.

In addition, bank borrowings available to the Company are, in part, determined by the value of the Company's assets. A sustained material decline in commodity prices from historical average prices could reduce the value of the Company's assets, therefore reducing the bank credit available to the Company which could require that a portion, or all, of the Company's bank debt be repaid, as well as curtailment of the Company's investment programs.

The Company conducts regular assessments of the carrying amount of its assets in accordance with US GAAP. If crude oil, natural gas, or NGL pricing decline significantly and remain at low levels for an extended period of time, the carrying amount of the Company's assets may be subject to impairment.

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***Oil, natural gas, and NGL pricing are volatile. Low and volatile commodity prices may adversely affect our business, financial condition, or results of operations and our ability to meet our capital expenditure obligations and financial commitments***

When the Company identifies hydrocarbons of sufficient quantity and quality and successfully brings them on stream, it faces a pricing environment which is volatile and subject to a myriad of factors, largely out of the Company's control. Low prices for the Company's expected primary products will have a material effect on the Company's cash flow and profitability and thus re-investment capacity, and hence ultimate growth potential. Low prices also limit access to capital, both equity and debt. The Company in part mitigates the risk of pricing volatility through the use of risk management contracts, such as puts, fixed priced sales, swaps, collars or similar contracts. However, access to such commodity price protection instruments may not be available in future periods, or available only at a cost considered to be uneconomic.

***Lower commodity prices may disrupt the production of crude oil, natural gas, and NGL reserves at an acceptable level of profitability***

Production of crude oil, natural gas, and NGL reserves at an acceptable level of profitability may not be possible during periods of low commodity prices. The Company will attempt to mitigate this risk by focusing on higher netback opportunities and will act as operator where possible, thus allowing the Company to manage costs, timing, method and marketing of production. Production risk is also addressed by concentrating field activity in regions where infrastructure is or will be readily accessible at an acceptable cost. In periods of low commodity prices, the Company may shut-in production, either temporarily or permanently, if netbacks are sub-economic.

***We may not be able to maintain sufficient capital programs***

Capital expenditures are designed to accomplish two main objectives, being the generation of short- and medium-term cash flow from development activities, and expansion of future cash flow from the identification of or further development of reserves and opportunities. The Company focuses its activity in core areas, which allows it to leverage its experience and knowledge, and acts as operator wherever possible. The Company may use farm-outs to minimize risk on plays it considers higher risk or where total capital invested exceeds an acceptable level. In addition, the Company may enter into risk management contracts in support of capital programs, and to manage future debt levels. Generally, capital programs are financed from operating cash flows, disciplined use of debt, development partnerships and occasionally, equity. Failure to develop producing wells or to sell production at a reasonable price and thus maintain an acceptable level of cash flow, will result in the exhaustion of available financial resources and will require the Company to seek additional capital which may not be available, or only available on unacceptable terms, or terms highly dilutive to existing shareholders. In addition, credit availability from the Company's bankers is also necessary to support capital programs and any changes to credit arrangements may have an effect on both the size of the Company's future capital programs and the timing of expenditures. As the banking facility available to the Company is based on future cash flows from existing production, falling commodity prices will likely have an effect on borrowing availability.

***We may be unable to secure additional funding in the future to cover working capital and investment needs, which could result, among other things, reduced or delayed capital expenditures***

The Company's operations are highly capital intensive, and the Company anticipates that it will make substantial capital expenditures for the acquisition, development and production of oil, natural gas, and NGL reserves in the future, including in relation to its assets. The Company may therefore require additional funding in the future to cover working capital and investment needs. Should the Company not be able to obtain such funding on favorable terms, or at all, the Company may, *inter alia*, be forced to reduce or delay capital expenditures, sell assets on unfavorable terms or to restructure or refinance its debt. Failure to obtain funding could also cause the Company to forfeit its interest in certain properties and to miss certain acquisition opportunities. Any of the aforementioned could have a material adverse effect on the Company's business, results of operations, prospects and financial condition.

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***We may be unable to obtain additional funding in order to carry out our oil, natural gas, and NGL acquisition and development activities***

The Company's cash flow from its reserves may not be sufficient to fund its ongoing activities at all times. From time-to-time, the Company may require additional financing in order to carry out its oil, natural gas, and NGL acquisition and development activities. Failure to obtain such financing on a timely basis could cause the Company to forfeit its interest in certain properties, miss certain acquisition opportunities and reduce or terminate its operations. If the Company's revenues from its reserves decrease as a result of lower oil, natural gas, and NGL pricing or otherwise, it will affect the Company's ability to expend the necessary capital to replace its reserves or to maintain its production. If the Company's cash flow from operations and current cash balance is not sufficient to satisfy its capital expenditure requirements, there can be no assurance that additional debt or equity financing will be available to meet these requirements or available on favorable terms.

***Adverse well or reservoir performance could result in reduced corporate volumes and revenues***

Changes in productivity in wells and areas developed by the Company could result in termination or limitation of production, or acceleration of decline rates, resulting in reduced overall corporate volumes and revenues. In addition, wells drilled by the Company tend to produce at high initial rates followed by rapid declines until a flattening decline profile emerges. There is a risk that the decline profile which eventually emerges for newly drilled wells is sub-economic.

***The Company is exposed to changes in the equity markets, which could result in equity not being available***

The Company assesses the sufficiency of its cash flow and borrowing capacity to fund its existing capital budget. Nevertheless, funding is finite and investment must result in production being brought on stream, followed by the generation of cash flow and the identification of proved plus probable reserves. Alpine Summit entered into the credit facility with Goldman Sachs (the "**Goldman Facility**") in late 2020 and the October 2021 Facility, which was later replaced by the Corporate Credit Facility and the ABS Facility, which were put into place in order to provide the Company with additional working capital flexibility.

Although equity is another source of financing, the Company is exposed to changes in the equity markets, which could result in equity not being available, or only available under conditions which are unacceptably dilutive to existing shareholders. The inability of the Company to develop profitable operations, with the consequent exclusion from debt and equity markets, may result in the Company curtailing or suspending operations.

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***Periods of high field activity can result in shortages of services, products, equipment, or manpower in many or all of the components of our development cycles***

Periods of high field activity can result in shortages of services, products, equipment, or manpower in many or all of the components of the development cycle. Increased demand and inflationary pressures may lead to higher land and service costs during peak activity periods. In addition, access to transportation and processing facilities may be difficult or expensive to secure. The Company's competitors include companies with far greater resources, including access to capital and the ability to secure oilfield services at more favorable prices and to build out operations on a scale which lowers the economic threshold for monetization of a resource. The Company competes by maintaining a large inventory of self-generated development locations, by acting as operator where possible, and through facility access. The Company also seeks to carefully manage key supplier relationships. Declines in commodity prices should, in principle, result in lower service costs; however, this may be offset by service providers choosing to retire equipment rather than operate at sub-optimum prices, or ceasing business altogether.

***Our crude oil, natural gas, and NGL development and production activities depend on adequate infrastructure and available drilling equipment***

Crude oil, natural gas, and NGL development and production activities depend, to one degree or another, on adequate infrastructure and the availability of drilling and related equipment in the particular areas where such activities will be conducted. Reliable roads, bridges, power sources, water supply and disposal facilities are important determinants, which affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the operations, financial condition and results of operations. In the past, for example, the Company has had to curtail production to due maintenance issues or equipment damage of our suppliers and marketers. If the Company is unable to obtain, or unable to obtain without undue cost, drilling rigs, equipment, supplies or personnel, its development and production operations could be delayed or adversely affected. Furthermore, pipeline and trucking operations are subject to uncertainty and lack of availability, due to mechanical and/or social issues. Oil, natural gas, and NGLs pipelines and truck transport travel through miles of territory and are subject to the risk of diversion, destruction, or delay. Some transport methods may result in increased levels of risk and could lead to operational delays which could affect the Company's ability to add to its resource base and produce oil and could have a significant impact on its reputation or cash flow. Additionally, some required equipment may be difficult to obtain in the Company's areas of operations, which could hamper or delay operations, and could increase the cost of those operations.

***Our production depends in part on adequate gathering and transportation facilities***

The marketability of production depends in part on the availability, proximity and capacity of gathering and transportation pipeline facilities and trucks. In South Texas, for example, this has been a particular challenge because of the lack of existing takeaway capacity. These facilities and equipment may be temporarily unavailable to the Company due to market conditions, regulatory reasons, mechanical reasons or other factors or conditions, and may not be available in the future on terms the Company considers acceptable, if at all. If any pipelines, or trucks become unavailable, the Company would, to the extent possible, be required to find a suitable alternative to transport crude oil and condensate, NGLs and natural gas, which could increase the costs and/or reduce the revenues the Company might obtain from the sale of production. Adverse weather, such as rain, mud and ice, have hampered the ability of trucks to get to and from our drilling locations.

Production is also dependent in part on access to third-party facilities and pipelines with the result that production may be reduced by outages, accidents, maintenance programs, pro-rationing and similar interruptions outside of the Company's control. For example, on June 8, 2022, an explosion occurred at the Freeport LNG liquefaction plant on Quintana Island, TX which caused the temporary shutdown of that plant and materially decreased the amount of LNG the U.S. producers, including Alpine Summit, were able to export during the remainder of 2022.

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Transportation of natural gas to processing facilities and to market is similarly exposed to the extent that the required capacity is not covered by contract. In addition, contracts for processing or pipeline access are for a fixed term and may not be renewed or may be renewed under more onerous terms. A pipeline shutdown could also have an impact on safety because it would require the use of additional trucksand personnel. In addition, both the cost and availability of pipelinesor trucks to transport production could be adversely impacted by new state or federal regulations relating to transportation of crude oil. Any significant change in market, regulatory or other conditions affecting access to, or the availability of, these facilities and equipment, including due to failure or inability to obtain access to these facilities and equipment on terms acceptable to the Company or at all, could materially and adversely affect business and, in turn, financial condition and results of operations.

***Our business and operations could be adversely affected if we lose key personnel***

A loss in key personnel of the Company could delay the completion of certain projects or otherwise have a material adverse effect on the Company. Shareholders are dependent on the Company's management and staff in respect of the administration and management of all matters relating to the Company's assets.

Recruiting and retaining qualified personnel is critical to the Company's success. The number of persons skilled in the acquisition and development of oil and natural gas properties is limited and competition for such persons is intense. The Company believes that it will be successful in recruiting excellent personnel to meet its corporate objectives but, as the Company's business activity grows, it may require additional key financial, administrative and technical personnel. Although the Company believes that it will be successful in attracting and retaining qualified personnel, there can be no assurance of such success. In the event that the Company is unable to retain existing qualified personnel and/or attract additional qualified personnel, its ability to grow its business or develop its existing properties could be materially impaired.

***Property development projects may not result in the discovery of economic reserves***

Alpine Summit's development programs require sophisticated and scarce technical skills as well as capital and access to land and oilfield service equipment. The Company endeavors to minimize the associated risks by ensuring that:

* activity is focused in core regions where internal expertise and experience can be applied; 

* prospects are internally generated; 

* development drilling is in areas where there is immediate or near-term access to facilities, pipelines and markets or where construction of or access to necessary infrastructure is within the Company's financial capacity; and 

* the Company acts as operator where possible which enables the Company to generally control the timing, cost and technical content of its exploration and development programs.

Nevertheless, drilling and completing a well may not result in the discovery of economic reserves, or a well may be rendered uneconomic by commodity price declines or an increasing cost structure. In addition, the Company's investment program has been focused on development of the Giddings Assets and the Hawkville Assets, resulting in asset concentration risk.

***Field operations may lead to environmental, health and safety risks***

The Company's current and future development and production activities involve the use of heavy equipment and the handling of volatile liquids and gases. Catastrophic events, regardless of cause or responsibility, such as well blowouts, explosions and fires within pipeline, gathering, or facility infrastructure, as well as failure of gathering systems or mechanical equipment, could lead to releases of liquids or gases, spills of contaminants, personal injuries and death, damage to the environment, as well as uncontrolled cost escalation. With support from suitably qualified external parties, the Company has developed and implemented policies and procedures to mitigate environmental, health and safety risks. These policies and procedures include the use of formal corporate policies, emergency response plans, and other policies and procedures reflecting what management considers to be best oilfield practices. These policies and procedures are subject to periodic review. The Company also manages environmental and safety risks by maintaining its operations to a high standard and complying with all state and federal environmental and safety regulations. Nevertheless, application of best practices to field operations serves only to mitigate, not eliminate, risk. The Company maintains industry-specific insurance policies, including environmental damage and control of well, on important owned drilled locations and specific equipment. Although the Company believes its current insurance coverage corresponds to industry standards, there is no guarantee that such coverage will be available in the future, and if it is, at a cost acceptable to the Company, or that existing coverage will necessarily extend to all circumstances or incidents resulting in loss or liability.

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***Declining general economic, business or industry conditions may have a material adverse effect on our results of operations, liquidity and financial condition***

Markets for future production of crude oil, natural gas, and NGLs are outside the Company's capacity to control or influence and can be affected by events such as weather, climate change, regulation, regional, national and international supply and demand imbalances, facility and pipeline access, geopolitical events, currency fluctuation, introduction of new or termination of existing supply arrangements, as well as downtime due to maintenance or damage, either to owned or third-party facilities and pipelines. The Company will attempt to mitigate these risks as follows:

* Properties are developed in areas where there is access to existing or planned processing and pipeline or other transportation infrastructure.

* The Company will delay drilling or tie-in of new wells or shut-in production if acceptable pricing cannot be realized.

***Our future oil, natural gas, and NGL development may involve unprofitable efforts***

Oil, natural gas, and NGL development involves a high degree of risk and there is no assurance that expenditures made on development by the Company will result in new discoveries of oil, natural gas, or NGL in commercial quantities. It is difficult to project the costs of implementing a drilling program due to the inherent uncertainties of drilling in unknown formations, the costs associated with encountering various drilling conditions such as over pressured zones and tools lost in the drilling process, and changes in drilling plans and locations as a result of prior exploratory wells or additional seismic data and interpretations thereof.

The long-term commercial success of the Company depends on its ability to find, acquire, develop, and commercially produce oil and natural gas reserves. No assurance can be given that the Company will be able to locate satisfactory properties for acquisition or participation. Moreover, if such acquisitions or participations are identified, the Company may determine that current markets, terms of acquisition and participation or pricing conditions make such acquisitions or participations uneconomic.

Future oil and natural gas development may involve unprofitable efforts, not only from dry wells, but from wells that are productive but do not produce sufficient net revenues to return a profit after drilling, operating and other costs. Completion of a well does not assure a profit on the investment or recovery of drilling, completion and operating costs. In addition, drilling hazards or environmental damage could greatly increase the cost of operations, and various field operating conditions may adversely affect the production from successful wells. These conditions include delays in obtaining governmental approvals or consents, shut-ins of connected wells resulting from extreme weather conditions, insufficient storage or transportation capacity or other geological and mechanical conditions. While close well supervision and effective maintenance operations can contribute to maximizing production rates over time, production delays and declines from normal field operating conditions cannot be eliminated and can be expected to adversely affect revenue and cash flow levels to varying degrees.

In addition, oil and natural gas operations are subject to the risks of development and production of oil, natural gas, and NGL properties, including encountering unexpected formations or pressures, premature declines of reservoirs, blow outs, cratering, sour gas releases, fires, spills or leaks. These risks could result in personal injury, loss of life, and environmental or property damage. Any of the aforementioned risks could have a material adverse effect on the Company's future results of operations, liquidity and financial conditions.

***We cannot guarantee that the Company's future development efforts will result in the discovery and development of oil and natural gas reserves***

The Company's future oil and natural gas reserves, production, and cash flows to be derived therefrom are highly dependent on the Company successfully acquiring or discovering new reserves. Without the continual addition of new reserves, any existing reserves the Company may have at any particular time and the production therefrom will decline over time as such existing reserves are realized. A future increase in the Company's reserves will depend not only on the Company's ability to develop any properties it may have from time to time, but also on its ability to select and acquire suitable producing properties or prospects. There can be no assurance that the Company's future development efforts will result in the discovery and development of additional commercial accumulations of oil, natural gas, and NGLs.

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***Project risks may have an impact on our expected revenues***

Project delays, should they occur, may delay expected revenues from operations and could also have other negative consequences for the Company. Further, project cost estimates may not be accurate due to several factors, and significant project cost over-runs could make a project uneconomic. The Company's ability to execute projects and market oil, natural gas, and NGLs will depend upon numerous factors beyond the Company's control, including: the availability of processing capacity; the availability and proximity of pipeline capacity or other means of transport; the availability of storage capacity; the supply of and demand for oil, natural gas, and NGLs; the availability of alternative fuel sources; the effects of inclement weather; the availability of drilling and related equipment; unexpected cost increases; accidental events; currency fluctuations; changes in regulations; the availability and productivity of skilled labor; and the regulation of the oil and natural gas industry by various levels of government and governmental agencies. Because of these factors, the Company could be unable to execute projects on time, on budget or at all, and may not be able to effectively market the oil, natural gas, and NGLs that it produces. Consequently, any of the aforementioned factors could have a material adverse effect on the Company's business, cash flows, financial position, results of operations or prospects.

***As a holding company we are subject to the risks attributable to each of our subsidiaries***

Alpine Summit is a holding company and essentially all of its assets are its indirect ownership of Origination. As a result, investors in Alpine Summit will be subject to the risks attributable to Origination and its subsidiaries. As a holding company, Alpine Summit conducts substantially all of its business through Origination and its subsidiaries, which generate substantially all of its revenues. Consequently, Alpine Summit's cash flows and ability to complete current or desirable future enhancement opportunities are dependent on the earnings of Origination and its subsidiaries. The ability of these entities to pay dividends and other distributions will depend on their operating results and will be subject to applicable laws and regulations which require that solvency and capital standards be maintained by such companies and contractual restrictions contained in the instruments governing their debt. In the event of a bankruptcy, liquidation or reorganization of any of the Company's subsidiaries, holders of indebtedness and trade creditors may be entitled to payment of their claims from the assets of those subsidiaries before Alpine Summit, which may have an adverse effect on the business, prospects, result of operation and financial condition of Alpine Summit.

***We may not be insured for, or our insurance may be inadequate to protect us against, all risks***

The Company's involvement in the development of oil and natural gas properties may result in the Company becoming subject to liability for pollution, blow-outs, property damage, personal injury or other hazards. Although the Company has obtained insurance in accordance with industry standards to address such risks, such insurance has exclusions or limitations on liability that may render it insufficient to cover the full extent of such liabilities. In addition, such risks or additional risks may not, in all circumstances be insurable or, in certain circumstances, the Company may elect not to obtain insurance to deal with specific risks due to the high premiums associated with such insurance or for other reasons. The payment of such uninsured liabilities would reduce the funds available to the Company. The occurrence of a significant event that the Company is not fully insured against, or the insolvency of the insurer of such event, could have a material adverse effect on the Company's financial position, results of operations or prospects.

***If we are unable to foster necessary working relationships with industry participants, it may impair the Company's ability to grow***

The ability of the Company to successfully bid on and acquire additional properties, to discover reserves, to participate in drilling opportunities and to identify and enter into commercial arrangements will depend on developing and maintaining effective working relationships with industry participants and on the Company's ability to select and evaluate suitable partners and to consummate transactions in a highly competitive environment. These relationships are subject to change and may impair the Company's ability to grow.

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To develop the Company's business, it may enter into strategic and business relationships, which may take the form of joint ventures with other parties or with local government bodies, or contractual arrangements with other oil and natural gas companies, including those that supply equipment and other resources that the Company may use in its business. The Company may not be able to establish these business relationships or, if established, it may not be able to maintain them. In addition, the dynamics of the Company's relationships with strategic partners may require the Company to incur expenses or undertake activities it would not otherwise be inclined to take to fulfill its obligations to these partners or maintain its relationships. If the Company fails to make the cash calls required by its joint venture partners in the joint ventures it does not operate, the Company may be required to forfeit its interests in joint ventures. If the Company's strategic relationships are not established or maintained, its business prospects may be limited, which could diminish its ability to conduct its operations.

***Competition in the oil and natural gas industry is intense, making it more difficult for us to acquire** **skilled industry personnel** **and find and develop reserves in the future***

The oil and natural gas industry is highly competitive. The Company actively competes for acquisitions, leases and licenses, skilled industry personnel and capital to finance such activities with a substantial number of other oil and natural gas companies, many of which have significantly greater financial, technical and personnel resources than the Company. The Company's competitors include major integrated oil and natural gas companies and numerous other independent oil and natural gas companies and individual producers and operators. Competitors may be able to evaluate, bid for and purchase a greater number of properties and prospects than the Company's financial, technical or personnel resources permit. The Company's size and financial status may impair its ability to compete for oil and natural gas properties and prospects.

The Company's ability to acquire additional prospects and to find and develop reserves in the future will depend on its ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment. If the Company is unable to compete successfully in these areas in the future, its future revenues and growth may be diminished or restricted. The availability of properties for acquisition depends largely on the business practices of other oil and natural gas companies, commodity prices, general economic conditions and other factors the Company cannot control or influence.

***We may not be able to keep pace with technological developments in our industry***

The oil and natural gas industry is characterized by rapid and significant technological advancements and introductions of new products and services utilizing new technologies. Other oil and natural gas companies may have greater financial, technical and personnel resources that allow them to enjoy technological advantages and may in the future allow them to implement new technologies before the Company. There can be no assurance that the Company will be able to respond to such competitive pressures and implement such technologies on a timely basis or at an acceptable cost. One or more of the technologies currently utilized by the Company or implemented in the future may become obsolete. In such case, the Company's business, financial condition and results of operations could be materially adversely affected. If the Company is unable to utilize the most advanced commercially available technology, its business, financial condition and results of operations could be materially adversely affected.

***Reserve estimates depend on many assumptions that may turn out to be inaccurate. Any material inaccuracies in reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves***

Estimates of economically recoverable crude oil, natural gas reserves, and NGLs, and related future net cash flows, are based upon a number of variable factors and assumptions. These include commodity prices, production, future operating, transportation, development and facility as well as decommissioning costs, access to market, and potential changes to the Company's operations or to reserve measurement protocols arising from regulatory or fiscal changes. All of these estimates may vary from actual circumstances, with the result that estimates of recoverable crude oil and natural gas reserves attributable to any property are subject to revision. In future, the Company's actual production, revenues, royalties, transportation, operating expenditures, finding, development, facility and decommissioning costs associated with its reserves may vary from such estimates, and such variances may be material.

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***We may be exposed to third party credit risk that could have a material adverse effect on the Company's financial results and financial condition***

The Company is or may be exposed to third party credit risk through its contractual arrangements with its current or future joint venture partners, marketers of its petroleum and natural gas production, counterparties to financial instruments and other parties. In the event such entities fail to meet their contractual obligations, such failures could have a material adverse effect on the Company's financial results and financial condition.

***Conservation measures and technological advances could reduce demand for our petroleum products***

Fuel reduction regulations, alternative fuel requirements, increasing consumer demand for alternatives to oil and natural gas and technological advances in fuel economy and renewable energy generation devices could reduce the demand for crude oil and liquid hydrocarbons. Recently, certain jurisdictions have implemented policies or incentives to decrease the use of fossil fuels and encourage the use of renewable fuel alternatives, which may lessen the demand for petroleum products and put downward pressure on commodity prices. In addition, advancements in energy efficient products have a similar effect on the demand for oil and natural gas products. The Company cannot predict the effect of changing demand for oil and natural gas products, and any major changes may have a material adverse effect on the Company's business, financial condition, results of operations and cash flow.

***If any of our operations cause damage in the areas in which we operate, the Company's reputation could be negatively affected*** 

Any environmental damage, loss of life, injury or damage to property caused by the Company's operations could damage its reputation in the areas in which the Company operates. Negative sentiment towards the Company could result in a lack of willingness of municipal authorities to grant the necessary licenses or permits for the Company to operate its business and in residents in the areas where the Company is doing business opposing the Company's further operations in the area. If the Company develops a reputation for having an unsafe worksite, it may impact the Company's ability to attract and retain the necessary skilled employees, consultants and contractors to operate its business. Further, the Company's reputation could be affected by actions and activities of other companies operating in the oil and natural gas industry, over which the Company has no control. In addition, environmental damage, loss of life, injury or damage to property caused by the Company's operations could result in negative investor sentiment towards the Company, which may result in limiting the Company's access to capital, increasing the cost of capital, and decreasing the price and liquidity of the Subordinate Voting Shares.

***A negative shift in investor or shareholder sentiment of the oil and natural gas industry could adversely affect our business and ability to raise debt and equity capital***

A number of factors, including the concerns of the effects of the use of fossil fuels on climate change, the effect of crude oil and natural gas operations on the environment, environmental damage relating to spills of petroleum products during production and transportation and indigenous rights, have affected certain investors' sentiments towards investing in the crude oil and natural gas industry. As a result of these concerns, some institutional, retail and public investors have announced that they no longer are willing to fund or invest in crude oil and natural gas properties or companies tied to crude oil and natural gas or are reducing the amount thereof over time. In addition, certain institutional investors are requesting that issuers develop and implement more robust social, environmental and governance policies and practices. Developing and implementing such policies and practices can be costly and require a significant time commitment from the Board, management and employees of the Company. Failing to implement the policies and practices as requested by institutional investors may result in such investors not investing in the Company at all. Any reduction in the investor base interested or willing to invest in the crude oil and natural gas industry, and more specifically, the Company, may result in limiting the Company's access to capital, increasing the cost of capital, and decreasing the price and liquidity of the Subordinate Voting Shares, even if the Company's operating results, underlying asset values or prospects have not changed. Additionally, these factors, as well as other related factors, may cause a decrease in the value of the Company's assets which may result in an impairment change.

***Our operations and financial condition may be impacted by unforeseeable or uncontrollable circumstances***

The Company's operations and its financial condition may be affected by uncontrollable, unpredictable and unforeseeable circumstances such as weather patterns, changes in contractual, regulatory or fiscal terms, actions by governments at various levels, both domestic and other, termination of access to third-party pipelines or facilities, actions by industry organizations, local communities, exclusion from certain markets or other undeterminable events.

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***We may fail in achieving the anticipated benefits of acquisitions and dispositions***

The Company may make acquisitions and dispositions of businesses and assets that occur in the ordinary course of business. Achieving the benefits of acquisitions depends in part on successfully consolidating functions and integrating operations and procedures in a timely and efficient manner, as well as realizing the anticipated growth opportunities and synergies from combining the acquired businesses and operations with those of the Company. The integration of acquired businesses or assets may require substantial management effort, time and resources and may divert management's focus from other strategic opportunities and operational matters. Management assesses the value and contribution of individual properties and other assets.

***We may experience challenges finding, developing, and acquiring petroleum and natural gas reserves on an economic basis***

Petroleum and natural gas reserves naturally deplete as they are produced over time. The success of the Company's business is highly dependent on its ability to acquire and/or discover new reserves in a cost-efficient manner. Substantially all of the Company's cash flow is derived from the sale of the oil and natural gas reserves it accumulates and develops. In order to remain financially viable, the Company must be able to replace reserves over time at a lesser cost on a per unit basis than its cash flow on a per unit basis. The reserves and costs used in this determination are estimated each year based on numerous assumptions and these estimates and costs may vary materially from the actual reserves produced or from the costs required to produce those reserves. The Company mitigates this risk by employing a qualified and experienced team of petroleum and natural gas professionals, operating in geological areas in which prospects are well understood by management and by closely monitoring the capital expenditures made for the purposes of increasing its petroleum and natural gas reserves.

***Our return on certain assets operated by other companies may depend upon a number of factors that may be outside of our control***

The Company has certain farm-in agreements under which other companies may operate some of the assets in which the Company will have or has an interest. The Company will have diminished ability to exercise influence over the operation of those assets or their associated costs, which could adversely affect the Company's financial performance. The Company's return on assets operated by others may therefore depend upon a number of factors that may be outside of the Company's control, including the timing and amount of capital expenditures, the operator's expertise and financial resources, the approval of other participants, the selection of technology and risk management practices.

***We may be subject to growth-related risks including capacity constraints and pressure on its internal systems and controls, which could have a material adverse impact on our business, operations and prospects***

The Company may be subject to growth-related risks including capacity constraints and pressure on its internal systems and controls. The ability of the Company to manage growth effectively will require it to continue to implement and improve its operational and financial systems and to expand, train and manage its employee base. The inability of the Company to deal with this growth could have a material adverse impact on its business, operations and prospects.

***We may be unable to obtain all necessary registrations, permits, and authorizations that are required to carry out development at our properties***

The operations of the Company require registrations, permits and authorizations from various governmental authorities. There can be no assurance that the Company will be able to obtain all necessary registrations, permits and authorizations that are required to carry out development at its properties. The permitting process in Texas and the United States, particularly at the local level, may take significant time, meaning that development projects have a longer cycle time to completion than they might elsewhere.

**Macroeconomic and Financial Risks**

***Our Debt Facilities (as defined below) contain operating and financial restrictions that may restrict our business and financing activities.***

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Our Corporate Credit Facility and ABS Facility (collectively, "**Debt Facilities**") contain a number of restrictive covenants that impose significant operating and financial restrictions on us, including restrictions on our ability to, among other things:

* sell assets, including equity interests in our subsidiary;

* redeem our debt;

* make investments;

* incur or guarantee additional indebtedness;

* create or incur certain liens;

* make certain acquisitions and investments;

* enter into agreements that restrict distributions or other payments from our restricted subsidiary to us;

* consolidate, divide, merge or transfer all or substantially all of our assets;

* engage in transactions with affiliates;

* create unrestricted subsidiaries;

* enter into swap agreements beyond certain maximum thresholds; and

* engage in certain business activities.

As a result of these covenants, we are limited in the manner in which we conduct our business, and we may be unable to engage in favorable business activities or finance future operations or capital needs. Our ability to comply with some of the covenants and restrictions contained in our Debt Facilities may be affected by events beyond our control. If market or other economic conditions deteriorate, or if oil, natural gas, and NGL pricing decline further from their current level or remain volatile for an extended period of time, our ability to comply with these covenants may be impaired. A failure to comply with the covenants, ratios or tests in our Debt Facilities or any future indebtedness could result in an event of default under our Debt Facilities or our future indebtedness, which, if not cured or waived, could have a material adverse effect on our business, financial condition and results of operations.

If an event of default under either of our Debt Facilities occurs and remains uncured, the lenders or holders under the applicable Credit Facility:

* would not be required to lend any additional amounts to us;

* could elect to declare all borrowings or notes outstanding, together with accrued and unpaid interest and fees, to be due and payable;

* may have the ability to require us to apply all of our available cash to repay these borrowings or notes; or

* may prevent us from making debt service payments under our other agreements.

The borrowing base under our Corporate Credit Facility is redetermined at least quarterly, based in part on assumptions of the administrative agent with respect to, among other things, crude oil, natural gas, and NGL pricing. A negative adjustment to the borrowing base could occur if crude oil, natural gas, or NGL prices used by the lenders are significantly lower than those used in the last redetermination, including as result of a decline in commodity prices or an expectation that reduced prices will continue. As of December 31, 2022, we had $41,500,000 outstanding under our Corporate Credit Facility. In the event that the amount outstanding under our Corporate Credit Facility exceeds the redetermined borrowing base, we could be forced to repay a portion of our borrowings. In addition, the portion of our borrowing base made available to us for borrowing is subject to the terms and covenants of our Corporate Credit Facility, including compliance with the ratios and other financial covenants of such facility.

Our obligations under the Corporate Credit Facility are collateralized by first priority liens and security interests on substantially all of our assets excluding those included in the ABS Facility, including mortgage liens on oil and natural gas properties having at least 90% of the PV-9 (determined using commodity price assumptions by the administrative agent of the Corporate Credit Facility) of the borrowing base properties (with respect to the Corporate Credit Facility). If we are unable to repay our indebtedness under the Corporate Credit Facility (including any amount of borrowings in excess of the borrowing base resulting from a redetermination of our Corporate Credit Facility), the lenders could seek to foreclose. Our obligations under the ABS Facility are collateralized by first priority liens and security interests on a discrete set of wells that have been conveyed to a subsidiary that issued the ABS Facility notes (the "**Issuer**"). If the Issuer is unable to repay the indebtedness under the ABS Facility, the noteholders could seek to foreclose against the Issuer.

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***Global market conditions can impact the prices for crude oil, natural gas, and NGLs***

Market conditions which include global crude oil, natural gas, and NGL supply and demand and global events including the Russian invasion of Ukraine; actions taken by OPEC, Russia's withdrawal from OPEC, sanctions against Russia, Iran and Venezuela, slowing growth in China and emerging economies, weakening global relationships, isolationist and punitive trade policies, shale production in the United States, sovereign debt levels and political upheavals in various countries including growing anti-fossil fuel sentiment, the outbreak of COVID-19 and the price war between Saudi Arabia and Russia have caused significant volatility in commodity prices. In addition, continued hostilities in the Middle East and the occurrence or threat of terrorist attacks, including attacks on crude oil infrastructure in crude oil producing nations, in the United States or other countries could adversely affect the economies of the United States and other countries. These events and conditions may cause a significant reduction in the valuation of crude oil and natural gas companies and a decrease in confidence in the future of the crude oil and natural gas industry.

***The war in Ukraine and Russia may continue to have a material adverse impact on us and our subsidiaries.***

On February 24, 2022, the President of Russia, Vladimir Putin, announced a military invasion of Ukraine. In response, countries worldwide, including the United States, have imposed sanctions against Russia on certain businesses and individuals, including, but not limited to, those in the banking, import and export sectors. This invasion has led, is currently leading, and for an unknown period of time will continue to lead to disruptions in local, regional, national, and global markets and economies affected thereby. These disruptions caused by the invasion have included, and may continue to include, political, social, and economic disruptions and uncertainties and material increases in certain commodity prices that may affect our business operations or the business operations of our subsidiaries.

***The implementation of risk management instruments may expose us to certain risks and there can be no assurance that these instruments will be available or continue to be available on commercially reasonable terms***

The Company may enter into risk management instruments in the form of swaps, puts, calls, and similar instruments to secure revenue or offset the risk of revenue losses related to changes in commodity prices, carbon prices, interest rates and related global macroeconomic events. However, such arrangements may be expensive and there can be no assurance that these instruments will be available or continue to be available on commercially reasonable terms. In addition, implementing risk management instruments itself carries certain risks, including expenses associated with termination or close-out of treasury transactions under hedging agreements and the risk that the Company could incur losses should it fail to anticipate movements in the underlying referenced futures contract. The Company may also be required to provide cash collateral under its hedging arrangements, which the Company may be unable to provide or which could affect the liquidity of the Company. There is also the risk that the Company will be obliged to make payments under swap arrangements, even in a scenario where its production has decreased or ceased, potentially creating cash obligations which the Company is unable to settle. Further, certain types of hedging arrangements, if entered into by the Company, may also involve a risk of not realizing potential gains if the Company should fail to anticipate movements in the underlying referenced futures contract.

***The discontinuation of LIBOR may adversely affect the value of the cost of our borrowings under the ABS Facility***

National and international regulators and law enforcement agencies have conducted investigations into a number of rates or indices that are deemed to be "reference rates." Actions by such regulators and law enforcement agencies may result in changes to the manner in which certain reference rates are determined, their discontinuance, or the establishment of alternative reference rates. In particular, on July 27, 2017, the Chief Executive of the U.K. Financial Conduct Authority (the "**FCA**"), which regulates LIBOR, announced that the FCA will no longer persuade or compel banks to submit rates for the calculation of LIBOR after 2021. As of the date of this Annual Report, USD LIBOR is available in five settings (overnight, one-month, three-month, six-month and 12-month). The ICE Benchmark Administration ("**IBA**") has stated that it will cease to publish all remaining USD LIBOR settings immediately following their publication on June 30, 2023, absent subsequent action by the relevant authorities. As of January 1, 2022, all non-USD LIBOR reference rates in all settings ceased to be published. There can be no assurance that non-USD synthetic LIBOR or USD LIBOR will remain available in the future.

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The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee (the "**ARRC**"), a steering committee comprised of large U.S. financial institutions, has identified the Secured Overnight Financing Rate ("**SOFR**") as its preferred alternative rate for LIBOR. On December 6, 2021, the ARRC released a statement selecting and recommending forms of SOFR, along with associated spread adjustments and conforming changes, to replace references to 1-week and 2-month USD LIBOR. We expect that a substantial portion of our future floating rate investments will be linked to SOFR. At this time, it is not possible to predict the effect of the transition to SOFR. Although there have been an increasing number of issuances utilizing SOFR or the Sterling Over Night Index Average ("**SONIA**") (the GBP-LIBOR nominated replacement alternative reference rate that is based on transactions), it is unknown whether SOFR or any other alternative reference rates will attain market acceptance as replacements for LIBOR.

Given the inherent differences between LIBOR and SOFR, or any other alternative reference rates that may be established, the transition from LIBOR may disrupt the overall financial markets and adversely affect the cost of our borrowings under the ABS Facility. In addition, changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market for LIBOR based securities, including the value and/ The transition from LIBOR to SOFR or other alternative reference rates may also introduce operational risks in our accounting, financial reporting, loan servicing, liability management and other aspects of our business.

***Our business, operations, and financial conditions may be adversely affected by the** **COVID-19 pandemic or other similar pandemics***

The Company's business, operations and financial condition could be materially adversely affected by the outbreak of epidemics or pandemics or other health crises. In December 2019, COVID-19 was reported to have surfaced in Wuhan, China; on January 30, 2020, the World Health Organization ("**WHO**") declared the outbreak a global health emergency; and on March 11, 2020 the WHO declared the outbreak of COVID-19 a global pandemic. The outbreak spread exponentially throughout the world and despite the development and deployment of vaccines, infections have persisted with numerous variants that have since emerged. The spread of COVID-19 has led companies and various jurisdictions to impose restrictions such as quarantines, business closures and domestic and international travel restrictions. The occasion and duration of the business disruptions internationally and related financial effect cannot be reasonably estimated at this time. Similarly, the Company cannot estimate whether or to what extent this pandemic and the potential financial effect may extend beyond what has already been experienced.

Such public health crises can result in volatility and disruptions in the supply, demand, and pricing for crude oil, natural gas, and NGLs, global supply chains and financial markets, as well as declining trade and market sentiment and reduced mobility of people, all of which could affect commodity prices, interest rates, credit ratings, credit risk and inflation. In particular, crude oil prices significantly weakened in 2020 in response to the outbreak of COVID-19. The risks to the Company of such public health crises also include risks to employee health and safety and a slowdown or temporary suspension of operations in geographic locations affected by an outbreak. This could include the Company's wells and facilities and/or third-party facilities and pipelines used by the Company.

At this point, the extent to which COVID-19 may continue to affect the Company is uncertain; however, it is possible that the ongoing COVID-19 pandemic may have a material adverse effect in the future on the Company's business, results of operations and financial condition. If subsequent waves or additional variants of COVID-19 emerge which are more transmissible or cause more severe disease, or if other diseases emerge with similar effects, there may be further adverse impacts on the economy, commodity prices, and the Company's operations.

We believe that in addition to the impacts described above, other impacts included or could in the future include, but are not limited to:

* Structural shift in the global economy and its demand for oil, natural gas, and NGLs as a result of changes in the way people work, travel and interact, or in connection with a global or regional recession or depression;

* Infections and quarantining of our employees and the personnel of other third parties in areas in which we operate;

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* Our insurance policies may not cover losses associated with pandemics or similar global health threats;

* Litigation risk and possible loss contingencies related to a pandemic and its impact, including with respect to commercial contracts, employment matters, personal injury and insurance arrangements; and

* Cybersecurity incidents, as our reliance on digital technologies increases, those digital technologies may become more vulnerable and experience a higher rate of cybersecurity attacks, intrusions or incidents in the current environment of remote connectivity, as well as increased geopolitical conflicts and tensions.

**Legal and Regulatory Risks**

***Our operations can be substantially affected by changes in government regulations and policies***

In the United States the energy industry is subject to scrutiny, frequently hostile, by political and environmental groups. This may lead to increased regulation and increased compliance costs. In particular, there is a risk that existing income tax rates could be increased, rules and regulations around well licensing or surface access could be changed, horizontal drilling and hydraulic fracturing could be subject to increased oversight or regulation.

***We are subject to stringent federal and state laws and regulations related to labor and occupational health and safety issues that could adversely affect the cost, manner or feasibility of conducting our operations or expose us to significant liabilities*** 

The Company is subject to labor and health and safety laws and regulations, at a national and state level in the United States, that govern, among other things, the relationship between the Company and its employees and the health and safety of the Company's employees. For example, the Company is required to adopt certain measures to safeguard the health and safety of its employees, as well as third parties, in its work locations. In the event that compliance by the Company with such requirements is reviewed by the applicable authorities and a decision that the Company violated any labor or health and safety laws, results from such review, the Company may be exposed to penalties and sanctions, including the payment of fines and, depending on the level of severity of the infraction, exposed to the closure of its work locations and/or stoppage of its operations and the cancellation or suspension of governmental registrations, permits, or authorizations, any one of which may result in interruption or discontinuity of activities in the Company's facilities, and materially and adversely affect the Company.

***We are subject to restrictions and costs related to water and waste disposal*** 

The Company may be subject to regulation that restricts our ability to discharge water produced as part of production operations. Productive zones frequently contain water that must be removed in order for the oil and natural gas to produce, and ability to remove and dispose of sufficient quantities of water from the various zones will determine whether the Company can produce oil, natural gas, and NGLs in commercial quantities. The produced water must be transported from the leasehold and/or injected into disposal wells. The availability of disposal wells with sufficient capacity to receive all of the water produced from wells may affect the ability to produce wells. Also, the cost to transport and dispose of that water, including the cost of complying with regulations concerning water disposal, may reduce profitability. Where water produced from projects fails to meet the quality requirements of applicable regulatory agencies, wells produce water in excess of the applicable volumetric permit limits, the disposal wells fail to meet the requirements of all applicable regulatory agencies, or the Company is unable to secure access to disposal wells with sufficient capacity to accept all of the produced water, the Company may have to shut in wells, reduce drilling activities, or upgrade facilities for water handling or treatment.

The costs to dispose of this produced water may increase if any of the following occur:

* the Company cannot obtain future permits from applicable regulatory agencies;

* water of lesser quality or requiring additional treatment is produced;

* wells produce excess water;

* new laws and regulations require water to be disposed in a different manner; or

* costs to transport the produced water to the disposal wells increase.

The disposal of fluids gathered from oil, natural gas, and NGLs producing operations in underground disposal wells has been pointed to by some groups and regulators as a potential cause of increased induced seismic events in certain areas of the country, particularly in Oklahoma, Texas, Colorado, Kansas, New Mexico and Arkansas. Several states have adopted or are considering adopting laws and regulations that may restrict or otherwise prohibit oilfield fluid disposal in certain areas or underground disposal wells, and state agencies implementing those requirements may issue orders directing certain wells in areas where seismic incidents have occurred to restrict or suspend disposal well operations or impose standards related to disposal well construction and monitoring. While the Company cannot predict the ultimate outcome of these actions, any action that temporarily or permanently restricts the availability of disposal capacity for produced water or other oilfield fluids may increase costs or have other adverse impacts on operations.

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***We are subject to stringent federal, state, and local laws and regulations related to environmental issues that could adversely affect the cost, manner, or feasibility of conducting our operations or expose us to significant liabilities*** 

All phases of the oil and natural gas business present environmental risks and hazards and are subject to environmental regulation pursuant to a variety of international conventions and national, state and local laws and regulations. As an owner, licensee, and/or operator of oil and natural gas properties in the United States, the Company is subject to various national, state and local laws and regulations relating to the discharge of materials into, and protection of, the environment. Environmental laws and regulations in the United States impose substantial restrictions on, among other things, the use of natural resources, interference with the natural environment, the location of facilities, the handling and storage of hazardous materials such as hydrocarbons, the use of radioactive material, the disposal of waste, and the emission of noise and other activities. These laws and regulations may, among other things: (a) impose liability on the owner or lessee under an oil and natural gas lease for the cost of property damage, oil spills, discharge of hazardous materials, remediation and clean-up resulting from operations; (b) subject the owner or lessee to liability for pollution damages and other environmental or natural resource damages; and (c) require suspension or cessation of operations in affected areas.

Environmental protection legislation in the United States is evolving in a manner that has and is expected to continue to result in stricter standards and enforcement, larger fines, liabilities and sanctions, and potentially increased capital expenditures and operating costs. To mitigate potential environmental liabilities, the Company, in addition to implementing policies and procedures designed to prevent an accidental spill or discharge, maintains insurance at industry standards.

If existing environmental regulatory requirements or enforcement policies change or new regulatory or enforcement initiatives are developed and implemented in the future, the Company may be required to make significant, unanticipated capital and operating expenditures with respect to its continued operations. Moreover, these risks are likely to be enhanced with the current presidential administration and Democrats controlling Congress. Examples of recent environmental regulations include the following:

*•Ground-Level Ozone Standards*. In 2015, the EPA issued a final rule under the CAA, lowering the National Ambient Air Quality Standard ("**NAAQS**") for ground-level ozone from 75 parts per billion to 70 parts per billion under both the primary and secondary standards to provide requisite protection of public health and welfare, respectively. Since that time, the EPA has issued area designations with respect to ground-level ozone and final requirements that apply to state, local, and tribal air agencies for implementing the 2015 NAAQS for ground-level ozone. State implementation of the revised NAAQS could, among other things, require installation of new emission controls on some of the Company's equipment, result in longer permitting timelines, and significantly increase the Company's capital expenditures and operating costs arising from the program's operations.

• *EPA Review of Drilling Waste Classification*. Drilling, fluids, produced water and most of the other wastes associated with the exploration, development and production of oil, natural gas, or NGLs, if properly handled, are currently exempt from regulation as hazardous waste under the RCRA and instead, are regulated under RCRA's less stringent non-hazardous waste provisions. However, it is possible that certain oil, natural gas, and NGL drilling and production wastes now classified as non-hazardous could be classified as hazardous wastes in the future. Any future loss of the RCRA exclusion for drilling fluids, produced waters and related wastes could result in an increase in the Company's costs to manage and dispose of generated wastes, which could have a material adverse effect on the industry as well as on the Company's business.

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• *Federal Jurisdiction over Waters of the United States*. In 2015, the EPA and U.S. Army Corps of Engineers ("**Corps**") under the Obama Administration released a final rule outlining federal jurisdictional reach under the Clean Water Act, over waters of the United States, including wetlands. However, the EPA rescinded this rule in 2019 and promulgated the Navigable Waters Protection Rule in 2020. The Navigable Waters Protection Rule defined what waters qualify as navigable waters of the United States and are under Clean Water Act jurisdiction. This new rule has generally been viewed as narrowing the scope of waters of the United States as compared to the 2015 rule, but litigation in multiple federal district courts is currently challenging the rescission of the 2015 rule and the promulgation of the Navigable Waters Protection Rule. In June 2021, the Biden Administration announced plans to develop its own definition for jurisdictional waters, and in August 2021, a federal judge for the U.S. District Court for the District of Arizona issued an order striking down the Navigable Water Protection Rule. On December 7, 2021, the U.S. Environmental Protection Agency and the Department of the Army announced a proposed rule to revise the definition of "waters of the United States," which would return to the 2015 definition of "waters of the United States," updated to reflect consideration of Supreme Court decisions. On January 24, 2022, the Supreme Court agreed to consider the scope of the Clean Water Act again in Sackett v. EPA. To the extent that a revised rule or Supreme Court decision expands the scope of the Clean Water Act's jurisdiction in areas where the Company conducts operations, the Company could incur increased costs and restrictions, delays or cancellations in permitting or projects, which developments could expose it to significant costs and liabilities.

Additionally, the federal Occupational Safety and Health Act and analogous state occupational safety and health laws require employers to organize information about materials, some of which may be hazardous or toxic, that are used, released or produced in the Company's operations. Moreover, the OSHA hazard communication standard, the EPA community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require that information be maintained concerning hazardous materials used or produced in the Company's operations and that this information be provided to employees as well as certain persons employed by OSHA or its state counterparts.

The discharge of oil, natural gas, NGLs, or other pollutants into the air, soil, or water may give rise to liabilities to third parties and may require the Company to incur costs to remedy such discharge in the event that they are not covered by the Company's insurance. Although the Company maintains insurance to industry standards, which in part covers liabilities associated with discharges, it is not certain that such insurance will cover all possible environmental events, foreseeable or otherwise, or whether changing regulatory requirements or emerging jurisprudence may render such insurance of little benefit.

The Company's oil, natural gas, and NGL operations include drilling, well completions and tie-ins, production, facility operation, distribution, pricing, marketing and transportation and are subject to compliance with federal, state and local laws and regulations controlling the discharge of pollutants into the environment or otherwise relating to the protection of the environment. Regulations and laws impose restrictions on emissions, spills and releases of various substances used in oil and natural gas industry operations, requirements for waste handling and storage, habitat protection and the operation, maintenance, abandonment and reclamation of facilities, pipelines and wells. Changes to environmental regulations could delay or prevent planned activity, affect current and forecast production levels and increase the cost of production and/or development capital expenditures.

Although the Company believes that it is in material compliance with current applicable environmental regulations, changing government regulations may have an adverse effect on the Company. The Company's practice is to do all that it reasonably can to ensure that it remains in material compliance with environmental protection legislation. The Company also believes that it is reasonably likely that the trend towards stricter standards in environmental legislation and regulation will continue. The Company is committed to meeting its responsibilities to protect the environment wherever it operates and will take such steps as required to ensure compliance with environmental legislation.

No assurance can be given that environmental laws will not result in a curtailment of production, a material increase in the costs of production or the costs of development activities, or otherwise adversely affect the Company's financial condition, capital expenditures, results of operations, competitive position or prospects. The complexity and breadth of changes in environmental regulation make it extremely difficult to predict the potential future effects on Alpine Summit.

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***Climate change, environmental, social and governance and sustainability initiatives may result in regulatory or structural industry changes and/or could result in increased operating costs and reduced demand for the oil, natural gas, and NGLs that we produce while potential physical effects of climate change could disrupt our operations and cause us to incur significant costs in preparing for or responding to those effects***

Climate change, environmental, social and governance ("**ESG**") and sustainability are a growing global movement. Continuing political and social attention to these issues has resulted in both existing and pending international agreements and national, regional and local legislation, regulatory measures, reporting obligations and policy changes. Also, there is increasing societal pressure in some of the areas where we operate, to limit greenhouse gas emissions as well as other global initiatives. These agreements and measures, including the Paris Climate Accord, may require, or could result in future legislation, regulatory measures or policy changes that would require significant equipment modifications, operational changes, taxes, or purchases of emission credits to reduce emission of greenhouse gases from our operations or those of our customers, which may result in substantial capital expenditures and compliance, operating, maintenance and remediation costs. As a result of heightened public awareness and attention to these issues as well as continued political and regulatory initiatives to reduce the reliance upon oil, natural gas, and NGLs, demand for hydrocarbons may be reduced, which could have an adverse effect on our business, financial condition, and results of operations. The imposition and enforcement of stringent greenhouse gas emissions reduction requirements could severely and adversely impact the oil and natural gas industry and therefore significantly reduce the value of our business.

Certain financial institutions, institutional investors and other sources of capital have begun to limit or eliminate their investment in financing of conventional energy-related activities due to concerns about climate change, which could make it more difficult for our customers and for us to finance our respective businesses. Increasing attention to climate change, ESG and sustainability has resulted in governmental investigations, and public and private litigation, which could increase our costs or otherwise adversely affect our business or results of operations.

In addition, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters. Such ratings are used by some investors to inform their investment and voting decisions. Unfavorable ESG ratings may lead to increased negative investor sentiment toward us and our industry and to the diversion of investment to other companies or industries, which could have a negative impact on the price of our securities and our access to and costs of capital.

Any or all of these ESG and sustainability initiatives may result in significant operational changes and expenditures, reduced demand for our products and services, and could materially adversely affect our business, financial condition, results of operations, stock price or access to capital markets.

***We may become involved in, named as a party to, or be the subject of, various legal proceedings***

In the normal course of the Company's operations, it may become involved in, named as a party to, or be the subject of, various legal proceedings, including regulatory proceedings, tax proceedings and legal actions, proceedings related to personal injuries, property damage, property tax, provision of services, leases, land rights, the environment and/or contract disputes. The outcome of outstanding, pending or future proceedings cannot be predicted with certainty and may be determined adversely to the Company and as a result, could have a material adverse effect on the Company's assets, liabilities, business, financial condition and results of operations.

**Risks Related to Ownership of our Common Stock**

***The Board of Directors may modify or revoke our dividend policy at any time at its discretion***

The declaration and payment of future dividends (and the amount thereof) is subject to the discretion of the Board and may vary depending on a variety of factors and conditions existing from time to time, including fluctuations in commodity prices, the financial condition of the Company, production levels, results of operations, capital expenditure requirements, working capital requirements, debt service requirements, operating costs, interest rates, contractual restrictions, the Company's hedging activities or programs, available investment opportunities, the Company's business plan, strategies and objectives, the satisfaction of the solvency and liquidity tests imposed by the BCBCA for the declaration and payment of dividends and other factors that the Board may deem relevant. Depending on these and various other factors, many of which are beyond the control of the Company, the dividend policy of the Company may vary from time to time and, as a result, future cash dividends could be reduced or suspended entirely.

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Pursuant to the BCBCA, the Company may not declare or pay a dividend if there are reasonable grounds for believing that: (i) the Company is, or would after the payment be, unable to pay its liabilities as they become due; or (ii) the realizable value of its assets would thereby be less than the aggregate of its liabilities and stated capital of its outstanding shares.

Dividends may be reduced or suspended during periods of lower cash flow from operations. The timing and amount of the Company's capital expenditures, and the ability of the Company to repay or refinance debt as it becomes due, directly affect the amount of cash dividends that may be declared by the Board. Future acquisitions, expansions of the Company's assets, and other capital expenditures and the repayment or refinancing of debt as it becomes due may be financed from sources such as cash flows from operations, the issuance of additional shares or other securities of the Company, and borrowings. Dividends may be reduced, or even eliminated, at times when significant capital or other expenditures are made. There can be no assurance that sufficient capital will be available on terms acceptable to the Company, or at all, to make additional investments, fund future expansions or make other required capital expenditures. To the extent that external sources of capital, including the issuance of additional shares or other securities or the availability of credit facilities, become limited or unavailable on favorable terms or at all due to credit market conditions or otherwise, the ability of the Company to make the necessary capital investments to maintain or expand its operations, to repay debt and to invest in assets, as the case may be, may be impaired. To the extent the Company is required to use cash flows from operations to finance capital expenditures or acquisitions or to repay debt as it becomes due, the cash available for dividends may be reduced and the level of dividends declared may be reduced or suspended entirely.

Over time, the Company's capital and other cash needs may change significantly from its current needs, which could affect whether the Company pays dividends and the amounts of dividends, if any, it may pay in the future. If the Company pays dividends, it may not retain a sufficient amount of cash to finance external growth opportunities, meet any large unanticipated liquidity requirements or fund its activities in the event of a significant business downturn.

The market value of the Company's securities may deteriorate if dividends are reduced or suspended. Furthermore, the future treatment of dividends for tax purposes will be subject to the nature and composition of dividends paid by the Company and potential legislative and regulatory changes.

***Our principal shareholder, executive officers, and directors have the ability to control or significantly influence all matters submitted to the Company's shareholders for approval***

Our largest shareholder holds approximately 31.9% of the voting rights of the Company as of March 27, 2023. In addition, management and the Board own or control approximately 17.7% of the Subordinate Voting Shares as of March 27, 2023. If acting together, such holders would be able to significantly influence all matters requiring shareholder approval, including without limitation, the election of directors.

***Conflicts of interest could arise in the future between us, on the one hand, and certain of our directors and officers*** 

Directors and officers of the Company may also be directors and officers of other oil and natural gas companies involved in oil and natural gas exploration and development, and conflicts of interest may arise between their duties as officers and directors of the Company and as officers and directors of such other companies. Such conflicts must be disclosed in accordance with, and are subject to such other procedures and remedies as apply under the BCBCA.

***Any additional capital raised by the Company through the sale of equity or convertible securities may dilute your ownership in the Company***

The Company may issue additional securities in the future, which may dilute a shareholder's holdings in the Company. The Company's articles permit the issuance of an unlimited number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares, and shareholders will have no pre-emptive rights in connection with such further issuances. Also, additional shares may be issued by the Company in a number of circumstances, including on the exercise of warrants that may be issued by the Company, on the exercise of convertible securities under the Company's equity incentive plans and in connection with the put right granted by Origination in respect of any of the Company's development partnerships.

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***We are a smaller reporting company and we cannot be certain if the reduced disclosure requirements applicable to smaller reporting companies will make our Subordinate Voting Shares less attractive to investors***

We are currently a "smaller reporting company" as defined by Rule 12b-2 of the Exchange Act. As a "smaller reporting company," we are subject to reduced disclosure obligations in our SEC filings compared to other issuers, including, among other things, an exemption from the requirement to present five years of selected financial data, being required to provide only two years of audited financial statements in annual reports and being subject to simplified executive compensation disclosures. Until such time as we cease to be a "smaller reporting company," such reduced disclosure in our SEC filings may make it harder for investors to analyze our operating results and financial prospects. If some investors find our common stock less attractive as a result of any choices to reduce disclosure we may make, there may be a less active trading market for our common stock and our stock price may be more volatile.

***We are currently an "Emerging Growth Company" under United States Securities Laws***

We are an "emerging growth company" as defined in section 3(a) of the Exchange Act (as amended by the JOBS Act), and will continue to qualify as an emerging growth company until the earliest to occur of: (a) the last day of the fiscal year during which we have total annual gross revenues of US$1.235 billion (as such amount is indexed for inflation every five years by the SEC) or more; (b) the last day of our fiscal year following the fifth anniversary of the date of the first sale of common equity securities pursuant to an effective registration statement under the Securities Act; (c) the date on which we have, during the previous three-year period, issued more than US$1 billion in non-convertible debt; and (d) the date on which we are deemed to be a "large accelerated filer", as defined in Rule 12b-2 under the Exchange Act. We will qualify as a large accelerated filer (and would cease to be an emerging growth company) at such time when on the last business day of our second fiscal quarter of such year the aggregate worldwide market value of our common equity held by non-affiliates is US$700 million or more.

For so long as we remain an emerging growth company, we are permitted to, and intend to, rely upon exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include not being required to comply with the auditor attestation requirements of Section 404. We cannot predict whether investors will find our securities less attractive because we rely upon certain of these exemptions. If some investors find the securities less attractive as a result, there may be a less active trading market for our securities and the price of our securities may be more volatile. On the other hand, if we no longer qualify as an emerging growth company, we would be required to divert additional management time and attention from development and other business activities and incur increased legal and financial costs to comply with the additional associated reporting requirements, which could negatively impact our business, financial condition and results of operations.

**Certain Tax Risks** 

The following is a discussion of certain material federal income tax risks associated with the acquisition and ownership of Subordinate Voting Shares. This Annual Report does not discuss risks associated with any applicable state, provincial, local or foreign tax laws. The tax related information in this Annual Report does not constitute tax advice and is for informational purposes only. For advice on tax laws applicable to a shareholder's individual tax situation, shareholders should seek the advice of their tax advisors. Each prospective shareholder is urged to review this Annual Report in its entirety and to consult his, her or its own tax advisors with respect to the federal, state, provincial, local and foreign tax consequences arising in connection with the acquisition and ownership of Subordinate Voting Shares.

***Tax Classification of the Company***

Although the Company is and expects to continue to be a Canadian corporation, the Company should be treated as a United States corporation for United States federal income tax purposes under Section 7874 of the U.S. Internal Revenue Code of 1986, as amended ("**Code**") and should be subject to United States federal income tax on its worldwide income. However, for Canadian tax purposes and regardless of any application of Section 7874 of the Code, the Company will be treated as being resident in Canada under the *Income Tax Act* (Canada) ("**Tax Act**") and be subject to Canadian federal income tax on its worldwide income. As a result, the Company is anticipated to be subject to taxation both in Canada and the United States which could have a material adverse effect on its financial condition and results of operations.

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Dividends received by shareholders who are residents of Canada for purposes of the Tax Act generally must be included in the shareholder's income for Canadian tax purposes and will also be subject to U.S. withholding tax. Any such dividends may not qualify for a reduced rate of U.S. withholding tax under the Canada-United States income tax treaty. In addition, a foreign tax credit or a deduction under the Tax Act in respect of any U.S. withholding tax may not be available for such Canadian shareholders.

Dividends received by U.S. shareholders will not be subject to U.S. withholding tax, but will be subject to Canadian withholding tax. For U.S. federal income tax purposes, a U.S. shareholder may elect for any taxable year to receive either a credit or a deduction for all foreign income taxes paid to the shareholder during the year. Dividends paid by the Company will be characterized as U.S. source income for purposes of the foreign tax credit rules under the Code. Accordingly, U.S. shareholders generally will not be able to claim a credit for any Canadian tax withheld unless, depending on the circumstances, they have an excess foreign tax credit limitation due to other foreign source income that is subject to a low or zero rate of foreign tax. In addition, Treasury Regulations that apply to taxes paid or accrued impose additional requirements for Canadian withholding taxes to be eligible for a foreign tax credit, and there can be no assurance that those requirements will be satisfied. Subject to certain limitations, a U.S. shareholder should be able to claim a deduction for the U.S. shareholder's Canadian tax paid, provided that the U.S. shareholder has not elected to credit other foreign taxes during the same taxable year.

Dividends received by shareholders that are neither Canadian nor U.S. shareholders will be subject to both U.S. and Canadian withholding tax. These dividends may not qualify for a reduced rate of U.S. or Canadian withholding tax under any income tax treaty otherwise applicable to a shareholder of the Company, subject to examination of the relevant treaty.

Because the Subordinate Voting Shares will be treated as shares of a U.S. domestic corporation, the U.S. gift, estate and generation-skipping transfer tax rules generally apply to a non-U.S. shareholder of Subordinate Voting Shares.

As a U.S. domestic corporation for U.S. federal income tax purposes, the taxation of the Company's non-U.S. shareholders upon a disposition of Subordinate Voting Shares generally depends on whether the Company is classified as a United States real property holding corporation (a "**USRPHC**") under the Code. The Company expects that it may be classified as a USRPHC for the foreseeable future. Accordingly, it is expected that non-U.S. shareholders will generally be subject to U.S. federal income tax at graduated tax rates as if the gain or loss realized on any disposition of Subordinate Voting Shares was effectively connected with the conduct of a U.S. trade or business, unless the Subordinate Voting Shares were "regularly traded on an established securities market" within the meaning of Section 897 of the Code during such period under the rules set forth in Treasury Regulations, in which case non-U.S. shareholders whose holdings (actually and constructively) at all times during the shorter of the five-year period ending on the date of disposition and such non-U.S. shareholder's holding period for the Subordinate Voting Shares (if shorter) constituted 5% or less of the Company's Subordinate Voting Shares would generally not be subject to such U.S. federal income tax. Alpine's Subordinate Voting Shares are currently listed on the TSXV and traded on the NASDAQ. There can be no assurance that the Subordinate Voting Shares will satisfy such regularly traded exception at any particular point in the future.

***Changes in tax laws and the recently enacted Inflation Reduction Act of 2022 may affect the Company and its shareholders***

There can be no assurance that the Canadian and U.S. federal income tax treatment of the Company or an investment in the Company will not be modified, prospectively or retroactively, by legislative, judicial or administrative action, in a manner adverse to the Company or its shareholders.

Changes to U.S. tax laws (which changes may have retroactive application) could adversely affect the Company or its shareholders. In recent years, many changes to U.S. federal income tax laws have been proposed and made, and additional changes to U.S. federal income tax laws are likely to continue to occur in the future.

The U.S. Congress is currently considering numerous items of legislation which may be enacted prospectively or with retroactive effect, which legislation could adversely impact the Company's financial performance and the value of the Subordinate Voting Shares. Additionally, states in which we operate or own assets may impose new or increased taxes. If enacted, most of the proposals would be effective for current or later years. The proposed legislation remains subject to change, and its impact on the Company and holders of Subordinate Voting Shares is uncertain.

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In addition, the Inflation Reduction Act of 2022 was recently signed into law and includes provisions that will impact the U.S. federal income taxation of corporations. Among other items, this legislation includes provisions that will impose a minimum tax on the book income of certain large corporations and an excise tax on certain corporate stock repurchases that would be imposed on the corporation repurchasing such stock. Because the Company should be treated as a United States corporation for United States federal income tax purposes under Section 7874 of the Code, it is anticipated that the Company will likely be subject to the excise tax on certain corporate stock repurchases should it affect any such repurchase transactions. However, it remains unclear how this legislation will be implemented by the U.S. Department of the Treasury and we cannot predict how this legislation or any future changes in tax laws might affect the Company or holders of Subordinate Voting Shares.

***Future federal, state or local legislation also may impose new or increased taxes or fees on oil, natural gas, and NGL extraction or production***

Future changes in U.S. federal income tax laws, or the introduction of a carbon tax, as well as any similar changes in state law, could eliminate or postpone certain tax deductions that currently are available with respect to oil and natural gas development, or increase costs, and any such changes could have an adverse effect on the Company's financial position, results of operations, and cash flows. Additionally, future legislation could be enacted that increases the taxes or fees imposed on oil, natural gas, and NGL extraction or production. Any such legislation could result in increased operating costs and/or reduced consumer demand for petroleum products, which in turn could affect the prices the Company receives for its oil, natural gas, or NGLs.

**Tax Risks Relating to the Company's Organizational Structure** 

***The Company's principal asset is an indirect interest in Origination and, accordingly, the Company depends on distributions from Origination to pay its taxes and expenses. Origination's ability to make such distributions may be subject to various limitations and restrictions***

The Company is a holding company and has no material assets other than its indirect ownership of Origination units. As such, the Company has no independent means of generating revenue or cash flow. Moreover, the Company's ability to pay its taxes and operating expenses or declare and pay dividends in the future, if any, will be dependent upon the financial results and cash flows of Origination and its subsidiaries and distributions it receives indirectly from Origination. There can be no assurance that Origination and its subsidiaries will generate sufficient cash flow to distribute funds to the Company or that applicable state law and contractual restrictions will permit such distributions.

Origination will continue to be treated as a partnership for U.S. federal income tax purposes and, as such, will generally not be subject to entity-level U.S. federal income tax. Instead, taxable income will be allocated to the holders of Origination Class A Voting Units and Class B Non-Voting Units. Accordingly, holders of Origination Class A Voting Units and Class B Non-Voting Units will incur income taxes on their allocable share of any net taxable income of Origination. Origination is obligated to make tax distributions to holders of Origination Class A Voting Units and Class B Non-Voting Units. Blocker intends, as its manager, to cause Origination to make cash distributions to the owners of Origination Class A Voting Units and Class B Non-Voting Units in an amount sufficient to fund their tax obligations in respect of taxable income allocated to them, and make cash payments to cover the operating expenses of Blocker and the Company, including payments under the Tax Receivable Agreement (as defined below). However, Origination's ability to make such distributions and payments may be subject to various limitations and restrictions, such as restrictions on distributions and payments that would either violate any contract or agreement to which Origination is then a party, including debt agreements, or any applicable law, or that would have the effect of rendering Origination insolvent. If the Company does not have sufficient funds to pay tax or other liabilities or to fund its operations, it may have to borrow funds, which could materially adversely affect its liquidity and financial condition and subject it to various restrictions imposed by any such lenders. In addition, if Origination does not have sufficient funds to make distributions, the Company's ability to declare and pay cash dividends will also be restricted or impaired.

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***The Tax Receivable Agreement with Origination, Blocker and the Tax Receivable Recipients (as defined below) requires Blocker to make cash payments to the Tax Receivable Recipients in respect of certain tax benefits to which Blocker may become entitled, and Blocker expects that the payments Blocker will be required to make may be substantial***

Blocker is a party to the Tax Receivable Agreement with Origination, the Initial Holder and certain executive employees (such agreement, the "**Tax Receivable Agreement**" and the Initial Holder and executive employees party to the Tax Receivable Agreement, the "**Tax Receivable Recipients**"). Under the Tax Receivable Agreement, Blocker will be required to make cash payments to the Tax Receivable Recipients equal to 85% of the tax benefits, if any, that Blocker actually realizes, or in certain circumstances is deemed to realize, as a result of: (i) the increases in its share of the tax basis of assets of Origination resulting from any redemptions or exchanges of Class B Non-Voting Units**,** and (ii) certain other tax benefits related to Blocker making payments under the Tax Receivable Agreement. Although the actual timing and amount of any payments that Blocker makes to the Tax Receivable Recipients under the Tax Receivable Agreement will vary, it expects those payments may be significant. Any payments made by Blocker to the Tax Receivable Recipients under the Tax Receivable Agreement may generally reduce the amount of overall cash flow that might have otherwise been available to it. Furthermore, Blocker's future obligation to make payments under the Tax Receivable Agreement could make the Company a less attractive target for an acquisition.

The actual amount and timing of any payments under the Tax Receivable Agreement will vary depending upon a number of factors, including the timing of redemptions and exchanges by the holders of Class B Non-Voting Units, the amount of gain recognized by such holders of Class B Non-Voting Units, the amount and timing of the taxable income Blocker generates in the future, and the federal tax rates then applicable.

***The Company's organizational structure, including the Tax Receivable Agreement, confers certain benefits upon the Tax Receivable Recipients that will not benefit the holders of Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares to the same extent as it will benefit the Tax Receivable Recipients***

The Company's organizational structure, including the Tax Receivable Agreement, confers certain benefits upon the Tax Receivable Recipients that will not benefit the holders of Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares to the same extent as it will benefit the Tax Receivable Recipients. Origination will be a party to the Tax Receivable Agreement with Blocker, and the Tax Receivable Recipients and it will provide for the payment by Blocker to the Tax Receivable Recipients of 85% of the amount of tax benefits, if any, that it actually realizes, or in some circumstances is deemed to realize, as a result of (i) the increases in the tax basis of assets of Origination resulting from any redemptions or exchanges of Class B Non-Voting Units from the holders thereof as described under Article XI of the A&R LLC Agreement, and (ii) certain other tax benefits related to Blocker making payments under the Tax Receivable Agreement.

***In certain cases, payments under the Tax Receivable Agreement to the Tax Receivable Recipients may be accelerated or significantly exceed the actual benefits Blocker realizes in respect of the tax attributes subject to the Tax Receivable Agreement***

The Tax Receivable Agreement provides that upon certain mergers, asset sales, other forms of business combinations or other changes of control or if, at any time, Blocker elects an early termination of the Tax Receivable Agreement, then its obligations, or its successor's obligations, under the Tax Receivable Agreement to make payments thereunder would be based on certain assumptions, including an assumption that Blocker would have sufficient taxable income to fully utilize all potential future tax benefits that are subject to the Tax Receivable Agreement.

As a result of the foregoing, (i) Blocker could be required to make payments under the Tax Receivable Agreement that are greater than the specified percentage of the actual benefits it ultimately realizes in respect of the tax benefits that are subject to the Tax Receivable Agreement, and (ii) if it elects to terminate the Tax Receivable Agreement early, it would be required to make an immediate cash payment equal to the present value of the anticipated future tax benefits that are the subject of the Tax Receivable Agreement, which payment may be made significantly in advance of the actual realization, if any, of such future tax benefits. In these situations, Blocker's obligations under the Tax Receivable Agreement could have the effect of delaying, deferring or preventing certain mergers, asset sales, other forms of business combinations or other changes of control of the Company. There can be no assurance that Blocker will be able to fund or finance its obligations under the Tax Receivable Agreement.

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***Blocker will not be reimbursed for any payments made to the Tax Receivable Recipients in the event that any tax benefits are disallowed***

Payments under the Tax Receivable Agreement will be based on the tax reporting positions that Blocker determines, and the IRS or another tax authority may challenge all or part of the tax basis increases, as well as other related tax positions Blocker takes, and a court could sustain such challenge. If the outcome of any such challenge would reasonably be expected to materially affect a recipient's payments under the Tax Receivable Agreement, then Blocker will not be permitted to settle or fail to contest such challenge without the consent (not to be unreasonably withheld or delayed) of each Tax Receivable Recipient that directly or indirectly owns at least 15% of the outstanding Class B Non-Voting Units. Blocker will not be reimbursed for any cash payments previously made under the Tax Receivable Agreement in the event that any tax benefits initially claimed by Blocker and for which payment has been made are subsequently challenged by a taxing authority and are ultimately disallowed. Instead, any excess cash payments made by Blocker to a Tax Receivable Recipient will be netted against any future cash payments that Blocker might otherwise be required to make under the terms of the Tax Receivable Agreement. However, Blocker might not determine that Blocker has effectively made an excess cash payment to a Tax Receivable Recipient for a number of years following the initial time of such payment and, if any of Blocker's tax reporting positions are challenged by a taxing authority, Blocker will not be permitted to reduce any future cash payments under the Tax Receivable Agreement until any such challenge is finally settled or determined. As a result, payments could be made under the Tax Receivable Agreement in excess of the tax savings that Blocker realizes in respect of the tax attributes with respect to a Tax Receivable Recipient that are the subject of the Tax Receivable Agreement.

***Fluctuations in the Company's tax obligations and effective tax rate and realization of the Company's deferred tax assets may result in volatility of the Company's operating results***

The Company will be subject to taxes by the Canadian federal, state, local and foreign tax authorities, and the Company's tax liabilities will be affected by the allocation of expenses to differing jurisdictions. The Company records tax expense based on estimates of future earnings, which may include reserves for uncertain tax positions in multiple tax jurisdictions, and valuation allowances related to certain net deferred tax assets. At any one time, many tax years may be subject to audit by various taxing jurisdictions. The results of these audits and negotiations with taxing authorities may affect the ultimate settlement of these matters. The Company expects that throughout the year there could be ongoing variability in the quarterly tax rates as events occur and exposures are evaluated. The Company's future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:

* changes in the valuation of deferred tax assets and liabilities;

* expected timing and amount of the release of any tax valuation allowances;

* tax effects of share-based compensation;

* changes in tax laws, regulations or interpretations thereof; or

* future earnings being lower than anticipated in countries where the Company has lower statutory tax rates and higher than anticipated earnings in countries where the Company has higher statutory tax rates.

In addition, the Company's effective tax rate in a given financial statement period may be materially impacted by a variety of factors including but not limited to changes in the mix and level of earnings, varying tax rates in the different jurisdictions in which the Company operates, fluctuations in valuation allowances, deductibility of certain items, or by changes to existing accounting rules or regulations. Further, tax legislation may be enacted in the future which could negatively impact the Company's current or future tax structure and effective tax rates. The Company may be subject to audits of income, sales, and other transaction taxes by federal, state, local, and foreign taxing authorities. Outcomes from these audits could have an adverse effect on the Company's operating results and financial condition.

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**General**

Although the Company believes that the above risks fairly and comprehensibly illustrate all material risks facing the Company, the risks noted above do not necessarily comprise all those potentially faced by the Company as it is impossible to foresee all possible risks.

**Forward-Looking Statements May Prove Inaccurate**

Shareholders and prospective investors are cautioned not to place undue reliance on the Company's forward-looking statements. By its nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, of both a general and specific nature, that could cause actual results to differ materially from those suggested by the forward-looking statements or contribute to the possibility that predictions, forecasts or projections will prove to be materially inaccurate.

**ITEM 1B. UNRESOLVED STAFF COMMENTS**

Not applicable

**ITEM 2. PROPERTIES**

As of December 31, 2022, Alpine's assets consisted of a total leasehold position of 432,476.81 gross and 312,909.76 net acres, including the Hawkville area, the Giddings area, and the Holbrook Basin area. For the three months ended December 31, 2022, Alpine had 30.9 net wells (37 gross wells) with a net production rate of 14,445 BOE per day (gross production rate of 22,588 BOE per day). During 2022, Alpine maintained average net production per day of 10,513 BOE during 2022 (gross production rate of 16,145 BOE per day). During 2022, Alpine operated one rig exclusively in the Hawkville area, and one rig exclusively in the Giddings area, and one rig that traveled between the two areas. Approximately 49%, 40%, and 11% of production from Alpine's assets was attributable to oil, natural gas, and NGLs, respectively, for the year ended December 31, 2022.

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The Hawkville Assets are located in Webb and La Salle Counties, Texas, in the core of the Eagle Ford Shale, and include 14,363.96 gross and 14,312.64 net acres. The acreage comprising the Hawkville Assets also includes the Austin Chalk formation overlying the Eagle Ford Shale. The Austin Chalk formation has shown itself to be an independent reservoir from the Eagle Ford Shale and represents a very attractive development target.

The Giddings Assets in the Austin Chalk area are located in Austin, Fayette, Lee, Robertson and Washington Counties, Texas, and include 9,004.14 gross and 7,582.80 net acres. There are several notable producing areas along the Austin Chalk trend, the largest of which is the Giddings area. Recent improvements in drilling and completion technologies have unlocked new development opportunities in the Giddings area. Wells drilled in recent years have helped to substantiate the strong economic viability of new drilling activity across the Austin Chalk formation.

The Giddings Assets in the Eagle Ford area are located in Fayette, Lee and Washington Counties, Texas, and include 134,198.18 gross and 16,103.79 net acres. While development has focused on the Austin Chalk, the Eagle Ford may still be shown to have potential in the future.

The Holbrook Basin Assets are located in Apache, Navajo and Coconino Counties, Arizona, and include 274,910.53 gross and net acres. Development of these assets for Helium is pending further research and planning.

**Preparation and Internal Controls Over Reserves Estimates**

All the proved oil and natural gas reserves disclosed in this Annual Report on Form 10-K are based on reserve estimates determined and prepared by independent reserve engineers W.D. Von Gonten Engineering, LLC. ("**WDVG**"), a leader of petroleum property analysis for industry and financial institutions. WDVG performs consulting petroleum engineering services under Texan Board of Professional Engineers Registration No. F-1855. Within WDVG, the technical person primarily responsible for preparing the estimates set forth in the WDVG letter dated February 3, 2023, filed as an exhibit to this Annual Report on Form 10-K, was Mr. William D. Von Gonten, Jr. Mr. Von Gonten has been a practicing consulting petroleum engineer at WDVG since 1995. Mr. Von Gonten is a Registered Professional Engineer in the State of Texas (License No. 73244) and has over 35 years of practical experience in petroleum engineering, with over 35 years of experience in the estimation and evaluation of reserves. He graduated from Texas A&M University in 1988 with a Bachelor of Science degree in Petroleum Engineering. Mr. Von Gonten meets or exceeds the education, training, and experience requirements set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers; he is proficient in judiciously applying industry standard practices to engineering and geoscience evaluations as well as applying SEC and other industry reserve definitions and guidelines.

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The proved oil and natural gas reserves disclosed in this Annual Report on Form 10-K are based on reserve estimates determined and prepared by independent reserve engineers primarily using decline curve analysis to determine the reserves of individual producing wells. To establish reasonable certainty with respect to our estimated proved reserves, the independent reserve engineers employed technologies that have been demonstrated to yield results with consistency and repeatability. Reserves attributable to producing wells with limited production history and for undeveloped locations were estimated using volumetric estimates or performance from analogous wells in the surrounding area. These wells were considered to be analogous based on production performance from the same formation and completions using similar techniques. The technologies and economic data used to estimate our proved reserves include, but are not limited to, well logs, geological maps, seismic data, well test data, production data, historical price and cost information and property ownership interests. This data was reviewed by various levels of management for accuracy before consultation with independent reserve engineers. This consultation included review of properties, assumptions and available data. Internal reserve estimates were compared to those prepared by independent reserve engineers to test the estimates and conclusions before the reserves were included in this Annual Report on Form 10-K. The accuracy of the reserve estimates is dependent on many factors, including the following:

• the quality and quantity of available data and the engineering and geological interpretation of that data;

• estimates regarding the amount and timing of future costs, which could vary considerably from actual costs;

• the accuracy of economic assumptions; and

• the judgment of the personnel preparing the estimates.

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The Company's Chief Operating Officer, Mr. Mike McCoy, is the technical professional primarily responsible for overseeing the preparation of our reserves estimates. He has a Bachelor of Science degree in Petroleum Engineering from Texas A&M University with over 30 years of practical industry experience, including over 30 years of estimating and evaluating reserve information. His qualifications meet or exceed the Society of Petroleum Engineers' standard requirements to be a professionally qualified Reserve Estimator and Auditor.

We encourage ongoing professional education for our engineers and analysts on new technologies and industry advancements as well as refresher training on basic skill sets. In order to ensure the reliability of reserves estimates, the Company personnel responsible for reserves ("**Reserves Personnel**") follows comprehensive SEC-compliant internal controls and policies to determine, estimate and report proved reserves including:

• confirming that we include reserves estimates for all properties owned and that they are based upon proper working and net revenue interests;

• ensuring the information provided by other departments within the Company such as Accounting is accurate;

• communicating, collaborating, and analyzing with technical personnel in our business units;

• comparing and reconciling the internally generated reserves estimates to those prepared by third parties; and

• utilizing experienced reservoir engineers or those under their direct supervision to prepare reserve estimates.

Reserves Personnel works closely with independent petroleum consultants at each fiscal year end to ensure the integrity, accuracy and timeliness of annual independent reserves estimates. These independently developed reserves estimates are presented to the Reserves Committee. In addition to reviewing the independently developed reserve reports, the Reserves Committee also periodically meets with the independent petroleum consultants that prepare estimates of proved reserves.

**Drilling Activity** 

The following table sets forth the number of gross and net productive and non-productive wells drilled in the years ended December 31, 2022, 2021, and 2020 by region. The number of wells drilled refers to the number of wells completed at any time during the fiscal year, regardless of when drilling was initiated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| **Giddings** | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** |
|  | **Gross** | **Net** | **Gross** | **Net** | **Gross** | **Net** |
| **Exploratory** |  |  |  |  |  |  |
|  **Productive** | **–** | **–** | **–** | **–** | **–** | **–** |
|  **Dry** | **–** | **–** | **–** | **–** | **–** | **–** |
| **Development** |  |  |  |  |  |  |
|  **Productive** | **11** | **7.27** | **10** | **5.78** | **7** | **5.82** |
|  **Dry** | **–** | **–** | **–** | **–** | **–** | **–** |
| **Total** |  |  |  |  |  |  |
|  **Productive** | **11** | **7.27** | **10** | **5.78** | **7** | **5.82** |
|  **Dry** | **–** | **–** | **–** | **–** | **–** | **–** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** | **For the year ended December 31,** |
| **Hawkville** | **2022** | **2022** | **2021** | **2021** |
|  | **Gross** | **Net** | **Gross** | **Net** |
| **Exploratory** |  |  |  |  |
|  **Productive** | **–** | **–** | **–** | **–** |
|  **Dry** | **–** | **–** | **–** | **–** |
| **Development** |  |  |  |  |
|  **Productive** | **7** | **5.65** | **–** | **–** |
|  **Dry** | **–** | **–** | **–** | **–** |
| **Total** |  |  |  |  |
|  **Productive** | **7** | **5.65** | **–** | **–** |
|  **Dry** | **–** | **–** | **–** | **–** |

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**Acreage and Well Count**

The following table summarizes gross and net developed and undeveloped acreage as of December 31, 2022 by region (net acreage is our percentage ownership of gross acreage).

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|:---|:---|:---|:---|:---|:---|:---|
| Acres | Developed | Developed | Undeveloped | Undeveloped | Total | Total |
|  | Gross | Net | Gross | Net | Gross | Net |
| Giddings | &nbsp;&nbsp;&nbsp;&nbsp;9004 | &nbsp;&nbsp;&nbsp;&nbsp; 7583 |  |  | 9004 | 7583 |
| EagleFord |  |  | 134918 | 16104 | 134198 | 16104 |
| Hawkville | 749 | 749 | 13615 | 13564 | 14364 | 14313 |
| Holbrook |  |  | 274910 | 274910 | 274910 | 274910 |
| Total | 9753 | 8332 | 422723 | 304578 | 432476 | 312910 |

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**Delivery Commitments**

Alpine Summit has firm transportation commitments for 90 Mcf/day of dry gas for certain of its Hawkville Assets extending through November 2023, increasing to 150 Mcf/day beginning in November 2023 and extending for five years. We view this firm transportation as an asset to the Company given the significant flowback restrictions surrounding our competitors' ability to access the market. Independent reservoir analysis has confirmed that the Company's completed and developable locations are more than sufficient to meet these transportation commitments.

In the event the Company is unable to meet these delivery commitments due to an inability to continue developing locations, we would still be obligated to pay the transportation fees associated with this firm commitment, but we do have the ability to remarket this firm transportation to mitigate this potential risk.

For a further discussion of our oil and natural gas reserves, refer to Item 7*. Management's Discussion and Analysis of Financial Condition and Results of Operations* and *Item 8. Financial Statements and Supplementary Data – Supplemental Oil and Gas Information (Unaudited).*

**ITEM 3. LEGAL PROCEEDINGS**

There are no legal proceedings that the Company is or was a party to, or that any of its property is or was the subject of, during its most recently completed financial year, that were or are material to it, and there are no such material legal proceedings that the Company is currently aware of that are contemplated.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

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**PART II**

**ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES**

**Market Information**

The Company's Subordinate Voting Shares are listed on the TSX-V under the symbol "ALPS.U" and on the Nasdaq under the symbol "ALPS".

**Shareholders** 

As of March 21, 2023, there were 139 holders of record of our Subordinate Voting Shares.

**Dividends** 

The Company declared monthly dividends totaling approximately $12.4 million for the year ended December 31, 2022. The cash dividends were declared for all issued and outstanding Subordinate Voting Shares, Multiple Voting Shares, and Proportionate Voting Shares. Dividends are approved at the sole discretion of the Company's Board, and the Company's Corporate Credit Facility can limit the dividends the Company is able to pay unless the Company meets certain covenants in accordance with its credit agreement.

On February 23, 2023, the Board deemed it prudent to suspend its monthly dividend payments, beginning in March 2023, until further notice. The decision to pay any future dividends is solely within the discretion of, and subject to approval by, our Board. Our Board's determination of any such dividends, including the record date, the payment date and the actual amount of the dividend, will depend upon our profitability and financial condition, contractual restrictions, restrictions imposed by applicable law and other factors that the Board deems relevant at the time of such determination.

**Equity Compensation Plans** 

The following table sets forth the number of Subordinate Voting Shares to be issued upon exercise of outstanding convertible securities, the weighted-average exercise price of such outstanding convertible securities and the number of Subordinate Voting Shares remaining available for future issuance under our equity compensation plans as at December 31, 2022, which have been approved by the Company's shareholders. The Company does not have any equity compensation plans that have not been approved by shareholders.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Plan Category** | &nbsp;&nbsp;**Number of Subordinate Voting<br>Shares to be issued upon**<br>**exercise of outstanding**<br>**securities** | &nbsp;&nbsp;**Weighted-average**<br>**exercise price of**<br>**outstanding**<br>**securities** | &nbsp;&nbsp;**Number of Subordinate Voting<br>Shares remaining**<br>**available for future issuance under**<br>**equity compensation plans (excluding**<br>**securities reflected in the first column)** |
| Equity compensation plans approved by Shareholders |  |  |  |
| Stock Options | 2834288 | $3.56 | 524233 |
| Restricted Stock Units | 82500 | n/a | 747841 |
| Deferred Share Units | 226335 | n/a | 277443 |
| Total | 3143123 |  | 1549517 |

---

------

**Recent Sales of Unregistered Securities** 

The following information represents securities sold by the Company for the period covered by this Annual Report which were not registered under the Securities Act. Included are new issues, securities issued upon conversion from other share classes, and securities issued in exchange for property, services, or other securities.

On January 19, 2022, Origination issued 826,063 Class B non-voting units of Origination ("**HB2 Units**") in connection with the exercise by ten partners of their put right provided to them by the second development partnership of the Company (which are exchangeable on a one-for-one basis for Subordinate Voting Shares of the Company). The HB2 Units were issued on a private placement basis in accordance with an exemption from the registration requirements of the Securities Act under Rule 506(b), as a transaction not involving any public offering. The sale was made only to "accredited investors" was not made by any general solicitation or advertising.

On May 19, 2022, Origination issued 894,929 HB2 Units in connection with the exercise by twelve partners of their put right provided to them by the third development partnership of the Company (which are exchangeable on a one-for-one basis for Subordinate Voting Shares of the Company). The HB2 Units were issued on a private placement basis in accordance with an exemption from the registration requirements of the Securities Act under Rule 506(b), as a transaction not involving any public offering. The sale was made only to "accredited investors" was not made by any general solicitation or advertising.

On June 1, 2022, the Company granted 1,214,321 restricted stock units ("**RSUs**") to certain officers, directors and employees of the Company pursuant to the terms of its equity incentive plan (the "**Equity Incentive Plan**") and 88,694 deferred share units ("**DSUs**") to certain non-executive directors of the Company pursuant to the terms of its deferred share unit plan (the "**DSU Plan**"). Each RSU entitles the holder to acquire one subordinate voting share in certain circumstances, subject to vesting requirements, provided that such RSU may also be settled in cash, all in accordance with the Equity Incentive Plan, and each DSU entitles the holder to acquire one subordinate voting share in certain circumstances, subject to vesting requirements, provided that such DSU may also be settled in cash, all in accordance with the DSU Plan. The grants were made on a private placement basis in accordance with an exemption from the registration requirements of the Securities Act under Rule 506(b), as a transaction not involving any public offering. The sale was made only to "accredited investors" was not made by any general solicitation or advertising.

On July 26, 2022, 706,975 HB2 Units were issued in connection with the exercise by nine partners of their put right provided to them by the Fourth Development Partnership of the Company (which are exchangeable on a one-for-one basis for Subordinate Voting Shares of the Company). The Class B non-voting units were issued on a private placement basis in accordance with an exemption from the registration requirements of the Securities Act under Rule 506(b), as a transaction not involving any public offering. The sale was made only to "accredited investors" was not made by any general solicitation or advertising.

On November 30, 2022, 617,103 HB2 Units were issued in connection with the exercise by twelve partners of their put right provided to them by the Red Dawn 1 development partnership (which are exchangeable on a one-for-one basis for Subordinate Voting Shares of the Company). The Class B non-voting units were issued on a private placement basis in accordance with an exemption from the registration requirements of the Securities Act under Rule 506(b), as a transaction not involving any public offering. The sale was made only to "accredited investors" was not made by any general solicitation or advertising.

On February 3, 2023, 499,794 HB2 Units were issued in connection with the exercise by six partners of their put right provided to them by the Fifth Development Partnership. The Class B non-voting units were issued on a private placement basis in accordance with an exemption from the registration requirements of the Securities Act under Rule 506(b), as a transaction not involving any public offering. The sale was made only to "accredited investors" was not made by any general solicitation or advertising.

------

**Purchases of Equity Securities by the Issuer and Affiliated Purchasers:** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| Period | &nbsp;&nbsp;(a)<br>Total number of shares (or units) purchased | &nbsp;&nbsp;(b)<br>Average price paid per share (or unit) | &nbsp;&nbsp;(c)<br>Total number of shares (or units) purchased as part of publicly announced plans or programs | &nbsp;&nbsp;(d)<br>Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs |
| October 1, 2022 - October 31, 2022 | &nbsp;&nbsp;276900 | &nbsp;&nbsp;$5.41 | &nbsp;&nbsp;276900 | &nbsp;&nbsp;1105983 <sup>2</sup> |
| November 1, 2022 - November 30, 2022 | &nbsp;&nbsp;226000<sup>3</sup> | &nbsp;&nbsp;$5.35 | &nbsp;&nbsp;223900 | &nbsp;&nbsp;882083 <sup>2</sup> |
| December 1, 2022 - December 31, 2022 | &nbsp;&nbsp;33600<sup>4</sup> | &nbsp;&nbsp;$5.21 | &nbsp;&nbsp;32900 | &nbsp;&nbsp;849183 <sup>2</sup> |
| Total | &nbsp;&nbsp;536400 | &nbsp;&nbsp;$5.32 | &nbsp;&nbsp;533700 | &nbsp;&nbsp;n/a |

---

________________________________________

<sup>2</sup> Represents the maximum number of shares that may yet be purchased under the Company's NCIB, which commenced on June 10, 2022 and will conclude on the earlier of the date on which purchases under the NCIB have been completed and June 9, 2023. As of the time of commencement, the Company may purchase for cancellation up to 1,648,783 Subordinate Voting Shares under the NCIB.

<sup>3</sup> 2,100 of the 226,000 Subordinate Voting Shares purchased in November 2022 were purchased by Craig Perry, our Chief Executive Officer, on the open market at an average price of $5.41 per share. The remaining 223,900 Subordinate Voting Shares were purchased by the Company under our NCIB.

<sup>4</sup> 700 of the 33,600 shares purchased in December 2022 were purchased by Craig Perry, our Chief Executive Officer, on the open market at a price of $5.35 per share. The remaining 32,900 Subordinate Voting Shares were purchased by the Company under our NCIB.

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**ITEM 6** **. [RESERVED]**

**ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis should be read in conjunction with other sections of this Annual Report, including but not limited to "Forward-Looking Statements", Part 1. Item 1A Risk Factors, and our consolidated financial statements and the accompanying notes included in Part II. Item 8. Financial Statements and Supplementary Data of this Annual Report.* 

*The Company historically prepared its consolidated financial statements under International Financial Reporting Standards. For the year ended and as at December 31, 2022 the consolidated financial statements of the Company and its subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). US GAAP has been applied retrospectively.* 

*This section of our Annual Report discusses 2022 and 2021 items and year-over-year comparisons between those periods. Amounts are stated in US dollars unless otherwise noted.*

**OVERVIEW AND HIGHLIGHTS**

The Company is a U.S. oil and natural gas development company focused on maximizing return on equity. The Company has focused its drilling activity in two main areas, the Austin Chalk and Eagle Ford formations in the Giddings Field in Austin, Fayette, Lee, Robertson and Washington Counties, TX (the "Giddings Assets") and the Hawkville Field in Webb and LaSalle Counties, TX (the "Hawkville Assets").

For future periods, the Company plans to continue to develop its existing and adjacent footprint over the next several years while also evaluating additional development projects that fit its investment criteria.

As of December 31, 2022, the Company's assets consisted of a total leasehold position of 432,477 gross and 312,910 net acres, including the Hawkville area, the Giddings area, and the Holbrook Basin area, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Giddings Assets: (a) in the Austin Chalk area include 9,004 gross and 7,583 net acres, and (b) in the Eagle Ford area include 134,198 gross and 16,104 net acres.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Hawkville Assets: include 14,364 gross and 14,313 net acres.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Holbrook basin assets are located in Apache, Navajo and Coconino Counties, Arizona, and include 274,911 gross and net acres. Development of these assets for Helium is pending further research and planning.

**2022 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Oil and natural gas sales (net of royalties) of $195.6 million for the year ended December 31, 2022 (December 31, 2021 - $70.8 million).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reported net income and comprehensive income of $44.4 million for the year ended December 31, 2022 (December 31, 2021 - loss of $32.6 million). Adjusted EBITDA[<sup>1</sup>](#_ftn1_integixAnchor) (defined below) of $140.1 million for the same period (December 31, 2021 - $46.2 million).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reported net income and comprehensive income attributable to the Company's common shareholders of $7.4 million for the year ended December 31, 2022 (December 31, 2021 - loss of $32.3 million)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 18 new wells were brought onto production during 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the three months ended December 31, 2022, Alpine had 30.9 net wells (37 gross wells) with a net production rate of 14,445 BOE per day (gross production rate of 22,588 BOE per day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Average net production per day of 10,513 BOE during 2022 (gross production rate of 16,145 BOE per day) an increase of 156% year over year due to extensive drilling activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Development projects continued to be funded via the development partnership structures, to facilitate continued drilling initiatives.

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[<sup>5</sup>](#_ftnref1_integixAnchor) This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures" section for further information and the detailed reconciliation to the most directly comparable measure under GAAP.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entered into the ABS Facility for total borrowings of $135 million. As of December 31, 2022, approximately $110 million was outstanding on the ABS Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expanded the size of the Corporate Credit Facility to a maximum size of $65 million. As of December 31, 2022 $41.5 million was drawn under the Corporate Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listing on the Nasdaq Stock Market of the Company's Class A Subordinate Voting Shares on September 28, 2022, trading under the ticker symbol "ALPS".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Implemented a dividend distribution policy, starting January 2022, where monthly dividends of $0.03 per share for each of the subordinated voting shares and proportionate voting shares and $3.00 per each share of the multiple voting shares were declared each month, with aggregate dividends declared and paid in 2022 of $12,416,759 (2021 - $nil).

**Subsequent Event Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company continued with its monthly dividend program, $0.03 per SVS ($3.00 per MVS and $0.03 per PVS) for January and February 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On January 20, 2023, the Company successfully completed the payout and liquidation of its development partnership five and concurrently formed development partnership seven.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 23, 2023, the Company announced the suspension of the monthly dividend payments commencing in March 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company announced the commencement of a strategic review of assets on February 23, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 3, 2023, the Company announced the resignation of Darren Tangen from the Board of Directors and subsequent hiring of James Russo as his replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On March 8, 2023, the Company announced the hiring of Stephens Inc. as its financial advisor to pursue an asset sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In March 2023, the Company received covenant waivers on the Corporate Credit Facility and the ABS Facility until July 1, 2023 for potential future covenant breaches.

**Oil and Natural Gas Reserves** 

The Company's year-end reserve evaluation as of January 1, 2023, was prepared by W.D. VonGonten & Co. in a report dated February 3, 2023 (the "Reserves Report"). The Reserve Report evaluates all of the Company's oil, natural gas, and NGL reserves, and uses pricing estimates in accordance with guidelines established by the United States Securities and Exchange Commission. Under these guidelines, oil and natural gas reserves are estimated using then-current operating and economic conditions.

Highlights of the Reserves Report include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Proved developed producing reserves ("PDP") were 15.8 million BOE and total proved reserves ("1P") were 24.0 million BOE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The PDP reserves have a composition of 24% oil and 76% natural gas and NGL, whereas the 1P reserves were composed of 18% oil and 82% natural gas and NGL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net future development costs were $4.0 million for PDP and $75.5 million for 1P.

For details on the reserves data and estimates, as well as changes, refer to *Item 8. Financial Statements and Supplementary Data - Supplemental Oil and Gas Information (Unaudited).*

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**OPERATIONAL AND FINANCIAL RESULTS**

**Net Oil and Gas Revenues**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;For the year ended December 31, | **2022** | 2021 |
| &nbsp;&nbsp;Oil | $**97438790** | $50868794 |
| &nbsp;&nbsp;Natural gas | **77966801** | 10286929 |
| &nbsp;&nbsp;NGLs | **20243366** | 9641067 |
| &nbsp;&nbsp;Total | $**195648957** | $70796790 |
| &nbsp;&nbsp;% of total oil and gas revenue by product type: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil weighting | **49.8%** | 71.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas weighting | **39.9%** | 14.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NGL weighting | **10.3%** | 13.6% |

---

Our revenues vary from year to year primarily as a result of changes in commodity prices and production volumes. In 2022, oil and gas revenues increased by $124,852,168, an increase of 176.4% from 2021, driven by an 155.7% increase in production volumes and an increase in the average per BOE realized selling price of 8.1%, excluding the effect of commodity derivatives.

*Production volumes:* 

The higher production in 2022 is a result of the addition of 18 new wells, with a primary focus on Hawkville gas wells attributing to the change in sales mix.

The production for the years ended December 31, 2022 and 2021, reflecting the Company's working interests and net of royalties, are as follows:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;Year ended December 31, | **2022** | 2021 | **% Change** |
| &nbsp;&nbsp;**Production:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil (bbl) | **1030226** | 743427 | 38.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas (Mcf) | **13316867** | 2398310 | 455.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NGLs (bbl) | **587623** | 357769 | 64.2% |
| &nbsp;&nbsp;Total BOE<sup>1</sup> | **3837327** | 1500914 | 155.7% |
| &nbsp;&nbsp;**Average Daily Production:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil (bbl/d) | **2823** | 2037 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas (Mcf/d) | **36485** | 6571 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NGLs (bbl/d) | **1610** | 980 |  |
| &nbsp;&nbsp;Total BOE<sup>1</sup> per day | **10513** | 4111 |  |
| &nbsp;&nbsp;**Production Weighting on a BOE basis:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil | **26.8%** | 49.5% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas | **57.9%** | 26.7% |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NGL | **15.3%** | 23.8% |  |

---

**<sup>1</sup>** *Natural gas is converted to a barrel of oil equivalent ("BOE") at the rate of one barrel equaling six Mcf (defined as one thousand cubic feet) based upon the approximate relative energy content of oil and natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices.*

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*Average sales price:*

On a per-BOE basis, the Company's average realized price for the year ended December 31, 2022 increased compared to the same period of 2021 by $3.82 per BOE, reflecting a 8.1% increase. The increase in sales prices is primarily due to the increase in the commodity price indices for oil, natural gas, and NGL. However, the realized average sales price per BOE also reflects the increased production of natural gas and NGLs at a lower overall per BOE price.

The average realized sales prices for the years ended December 31, 2022 and 2021, are as follows:

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;For the year ended December 31, | **2022** | 2021 | **% Change** |
| &nbsp;&nbsp;Oil - Bbl | $**94.58** | $68.42 | 38.2% |
| &nbsp;&nbsp;Natural gas - Mcf | $**5.85** | $4.29 | 36.5% |
| &nbsp;&nbsp;NGL - Bbl | $**34.45** | $26.95 | 27.8% |
| &nbsp;&nbsp;Average sales price per BOE | $**50.99** | $47.17 | 8.1% |

---

**Commodity Derivative Instruments**

The future results of the Company's oil and natural gas operations will be affected by market prices of oil and natural gas which is affected by numerous factors beyond the control of the Company, including weather, imports, marketing of competitive fuels, proximity and capacity of oil and natural gas pipelines and other transportation facilities, any oversupply or undersupply of oil, natural gas and natural gas liquid products, economic disruptions, the regulatory environment, the economic environment, and other regional and political events, none of which can be predicted with certainty.

The Company enters into various commodity price derivative instruments to manage the price risk attributable to part of its future production. As the Company's derivatives are not designated for hedge accounting, the changes in fair value of the derivatives are recognized in income (loss) each period, creating earnings volatility in connection with outstanding derivatives. As commodity prices increase or decrease, such changes will have the opposite effect on the fair value of the derivatives.

At December 31, 2022, the net fair value of the open commodity derivatives was an asset position of $3,077,079 (2021 - liability position of $20,424,601). The change from 2021 is primarily due to the volume of outstanding derivatives as well as changes in the forward commodity prices relatively to the fixed price of the derivatives.

The Company's net loss on commodity derivatives for the year ended December 31, 2022 was $10,023,495 (2021 - $33,525,453). This amount consists of an unrealized gain of $26,246,351 (2021 - loss of $15,903,217) and realized losses of $36,269,846 million (2021 - loss of $17,622,236).

*Refer to Note 18 of the financial statements for additional details.*

Management of cash flow variability is an integral component of the Company's business strategy. Business conditions are monitored regularly and reviewed by the Company to establish risk management guidelines in carrying out the Company's strategic risk management program.

**Expenses**

The following table summarizes the Company's expenses and other income (expenses) for the periods indicated:sss

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| | | |
|:---|:---|:---|
| For the year ended December 31, | **2022** | 2021 |
| **Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Production costs and transportation | $**41495709** | $12087223 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | **26090160** | 25021117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depletion and depreciation | **62082471** | 23497715 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset retirement obligation accretion | **43756** | 24209 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | **129712096** | 60630264 |
| **Operating Income** | **55913366** | (23358927) |
| **Other income (expenses)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance and interest expense | **(13428333)** | (5727544) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition costs | **-** | (1567967) |
| **Income (loss) before income taxes** | **42485033** | (30654438) |
| Deferred income tax provision (benefit) | **(1928319)** | **1928319** |
| Net income (loss) and comprehensive income (loss) | **44413352** | **(32582757)** |
| Net income attributable to redeemable non-controlling interest | **33796021** | 13091908 |
| Net income (loss) attributable to non-controlling interest | **3189196** | (13330237) |
| Net income (loss) attributable to the Company | $**7428135** | $(32344428) |
| **Select Expenses per BOE:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Production costs and transportation | $**10.81** | $8.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | $**6.80** | $16.67 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depletion and depreciation | $**16.18** | $5.66 |
| &nbsp;&nbsp;&nbsp;&nbsp;Finance and interest expense | $**3.50** | $3.82 |

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------

*Production and Transportation Costs*

Total production and transportation costs for the year ended December 31, 2022, increased by $29,408,486, an increase of 243% when compared to the same period of 2021, primarily due to the overall increased production noted above. On a per BOE basis, the production and transportation costs increased by $2.76, an increase of 34%, due to higher operating costs for wells brought online in 2022, primarily relating to higher water disposal, fuel, and trucking costs, as well as overall market increases for service costs. The higher service costs are mainly due to inflation and market availability.

*General and Administrative Costs*

General and administrative costs for the year ended December 31, 2022, remained relatively consistent with an increase of $1,069,043 or 4%, when compared to the same period of 2021. This increase was primarily due to an increase in employee salaries and benefits of $3,709,863, an increase in professional, legal and advisory costs of $1,042,547, and office and administrative costs of $735,312, as well as increases in other items such as software, and lease expenses, and partially offset by the reduction to stock-based compensation of $4,281,056. From a per BOE perspective, the general and administrative costs reduced by $9.87 per BOE, a reduction of 59%, as a result of increased production levels noted above.

*Depreciation, Depletion, and Amortization* 

The depreciation, depletion, and amortization expense consist of depletion on the Company's evaluated oil and gas properties. Depletion expense increased for the year ended December 31, 2022, by $38,584,756, an increase of 164% as compared to the same period of 2021 due to an increase in production, as well as an increase in the evaluated properties that are part of the depletion base. Depletion expense on a BOE basis also increased by $0.52 per BOE, an increase of 3%, reflecting the higher costs incurred on the new wells, due to inflation and market availability.

*Finance and Interest Expense*

Finance and interest expense for the year ended December 31, 2022, increased by $7,700,789, an increase of 134%, as compared to the same period of 2021 due to the increase in overall borrowings. The main increase relates to the financing and interest costs on the ABS Facility, as well as the Corporate Credit Facility, as defined in the financial statements. On a per BOE basis, the finance and interest expense has decreased by $0.32 per BOE, a decrease of 8%, due to the increased production in 2022.

*Income Tax Expense (Benefit)*

For the year ended December 31, 2022, the Company recognized an income tax benefit of $1,928,319, resulting in an effective tax benefit of 4.5%, compared to an income tax expense of $1,928,319 for the year ended December 31, 2021, resulting in an effective tax rate of 5.9%. The overall change in the Company's effective tax rate for the year ended December 31, 2022, from the previous year is primarily due to: (i) changes in amounts of income (loss) not subject to corporate tax and, (ii) current year activity causing the reversal of a previously recorded deferred tax expense resulting from temporary differences in recognition of items related to cost recovery of oil and natural gas properties.

Additionally, the Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes that recovery is more likely than not, it does not establish a valuation allowance reserve against the recorded net deferred tax assets. As of December 31, 2022, the Company recorded a valuation allowance on its net deferred tax assets after reflecting the reversal of previously recorded deferred tax liabilities due to current year activity. *Refer to Note 15 of the financial statements for additional details.*

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**Non-GAAP Financial Measures:**

Within this report, references are made to terms which are not recognized under GAAP. Specifically, "field operating netbacks", "adjusted EBITDA", and measurements "per commodity unit" and "per BOE" do not have any standardized meaning as prescribed by GAAP and are regarded as non-GAAP measures. These non-GAAP measures may not be comparable to the calculation of similar amounts for other entities and readers are cautioned that use of such measures to compare enterprises may not be valid. The Company's management uses these non-GAAP supplemental measures to benchmark operations against prior periods and peer group companies and believes they provide useful supplemental information that can be used by investors, lenders, analysts and other parties to analyze the Company's performance and financial results.

*Field Operating Netbacks* 

Field operating netbacks are used by management to assess operational performance of assets. Field operating netbacks are calculated by deducting depletion and commodity derivatives from the gross margin and is presented on a per BOE basis.

The Field Operating Netback for the years ended December 31, 2022 and 2021 are as follows:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;For the year ended December 31, | **2022** | 2021 |
| &nbsp;&nbsp;Revenue from product sales | $**195648957** | $70796790 |
| &nbsp;&nbsp;Gain/(loss) on derivative instruments | **(10023495)** | (33525453) |
| &nbsp;&nbsp;Less: Production costs and transportation | **(41495709)** | (12087223) |
| &nbsp;&nbsp;Less: Depreciation, depletion and amortization | **(62082471)** | (23497715) |
| &nbsp;&nbsp;Gross margin | **82047282** | 1686399 |
| &nbsp;&nbsp;Remove: Gain/(loss) on derivative instruments | **10023495** | 33525453 |
| &nbsp;&nbsp;Remove: Depreciation, depletion and amortization | **62082471** | 23497715 |
| &nbsp;&nbsp;Field operating netback - total | $**154153248** | $58709567 |
| &nbsp;&nbsp;Field operating netback - per BOE | $**40.17** | $39.11 |

---

For the year ended December 31, 2022, the Field Operating Netback per BOE remained relatively consistent, with an increase of $1.06 per BOE when compared to 2021. This reflects an offset of the $2.76 per BOE increase in production costs and transportation, with the increase in the average realized sales price per BOE of $3.82.

*Adjusted EBITDA* 

Adjusted earnings before interest, taxes, depletion and amortization ("Adjusted EBITDA"), is a non-GAAP measure that is used to supplement the Company's reported financial performance or position. The Company believes that Adjusted EBITDA, considered along with net earnings (loss), is a relevant indicator of trends relating to our operating performance and provides management and investors with additional information for comparison of our operating results to the operating results of other companies. All figures presented do not reflect any potential impact of non-controlling interests or redeemable non-controlling interests. The Company's calculation of Adjusted EBITDA is net income/(loss) adding back finance and interest expense, depletion and depreciation, impairment, gains/losses on commodity derivatives, and non-recurring costs.

The following table provides a reconciliation of net income/(loss) before redeemable non-controlling interest and non-controlling interest to Adjusted EBITDA:

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| | | |
|:---|:---|:---|
| Year ended December 31, | **2022** | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income/(loss):** | $**44413352** | ($32582757) |
| &nbsp;&nbsp;&nbsp;&nbsp;(+) Depreciation, depletion, and amortization expense | 62082471 | 23497715 |
| &nbsp;&nbsp;&nbsp;&nbsp;(+) Finance and interest expense | 13428333 | 5727544 |
| &nbsp;&nbsp;&nbsp;&nbsp;(+) Stock based compensation expense | 10197720 | 14478776 |
| &nbsp;&nbsp;&nbsp;&nbsp;(+) Acquisition costs |  | 1567967 |
| &nbsp;&nbsp;&nbsp;&nbsp;(+) Derivative commodity contract (gains)/losses | 10023495 | 33525453 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Adjusted EBITDA** | $**140145371** | $46214698 |

---

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**FINANCING, LIQUIDITY AND CAPITAL RESOURCES**

Companies operating in the upstream oil and gas industry require sufficient cash in order to fund capital programs that maintain and increase production and reserves, to acquire strategic oil and gas assets, to repay current liabilities and debt and ultimately to provide a return to shareholders. The Company's capital programs are funded by existing working capital, various lending facilities and redeemable non-controlling interests (discussed below) and cash provided from operating activities. Fluctuations in commodity prices, product demand, interest rates and various other risks may impact capital resources and capital expenditures.

During 2022, the main financing related transactions included the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Asset backed securitization facility (the "ABS Facility"):**

The Company entered into two tranches of borrowings under the ABS Facility, for a total size of $135 million.

On April 27, 2022, Tranche 1 of the ABS Facility was drawn for $80 million and carries an interest rate of LIBOR+6% (with a 1% LIBOR floor) for the initial year, LIBOR +12% for the second year. Tranche 1 has an initial maturity date of one year, with the Company having the option to extend an additional year to an ultimate maturity date of April 2024.

On September 12, 2022, Tranche 2 of the ABS Facility was drawn for an additional $55 million and carries an interest rate of LIBOR+8% (with a 1% LIBOR floor) for the initial year, LIBOR +14% for the second year. Tranche 2 has an initial maturity date of one year, with the Company having the option to extend an additional year to an ultimate maturity date of September 2024.

All borrowings under the ABS Facility are secured by working interests in a subset of the Company's producing assets.

As at December 31, 2022, the Company had $109,982,677 of principal outstanding under the ABS Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Corporate Credit Facility:**

During the first quarter of 2022, the Company replaced its previous credit facility, which had a $12,500,000 borrowing capacity. The new corporate credit facility had a borrowing capacity of $30,000,000, which was subsequently increased in October 2022 to $65,000,000, subject to quarterly borrowing base determinations by the lender. The facility charges interest at prime +2.25% and had a one-year maturity. A subset of certain Company working interests in producing assets have been secured in connection with the Corporate Credit Facility.

As at December 31, 2022, the Company ad drawn $41,500,000 under the Corporate Credit Facility (2021 - $2,200,000). The borrowing base as at December 31, 2022 was $64,435,764 (2021- $6,579,750).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Goldman Facility**

The Company had borrowings under a credit facility with Goldman Sachs (the "Goldman Facility"), which carried an interest rate of LIBOR+6% (with a 1% LIBOR floor) and a maturity date of December 22, 2031. All borrowings under the Goldman Facility were secured by the Company's oil and gas producing wells as well as all assets of three of the Company's subsidiaries.

In April 2022, in connection with the ABS Facility (above), the Company repaid the Goldman Facility in full. The principal borrowing under this facility as at December 31, 2022 was $nil (2021 - $25,237,409).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Asset Backed Preferred Instruments:**

The Company had previously issued mandatorily redeemable instruments as part of a share buy-back structure. These instruments were fully repaid and settled in 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Development Partnerships:**

The Company utilizes development partnerships as a mechanism to partially finance its development projects and activities. As part of the development partnerships, investors will provide funding to be used for the development of specific wells, in return, the investors will receive partnership units that provide a specified return, plus participation in the residual of those wells that can be realized via redemption.

Due to the redemption feature, the development partnership interests issued to external investors are accounted for as redeemable non-controlling interest.

------

For the year ended December 31, 2022, the redeemable non-controlling interests provided cash inflows of $53,728,933 (2021 - $41,042,693), and cash outflows for the distribution and settlement of $10,369,504 (2021 - $6,388,870). Of the total redeemable non-controlling interest that received distributions and/or was settled, the remaining non-cash balance related to settlements via the issuance of redeemable non-controlling interests for a new development partnership, via non-controlling interest shares, or via oil and gas property dispositions

As at December 31, 2022, the redemption value of the redeemable non-controlling interest was $107,583,737 (2021 - $46,552,839).

*Refer to Note 2 and Note 9 of the financial statements for additional details.* 

*Working Capital and Liquidity Risk*

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with the financial liabilities as they become due.

At December 31, 2022 the Company had a working capital deficit of $162,980,101, compared to a deficit of $36,148,466 as at December 31, 2021. Current assets increased by $12,104,044 compared to 2021, primarily due to an increase in accounts receivables due to higher oil and gas revenues, as well as increases in restricted cash and derivative assets, and partially offset by a reduction in cash and cash equivalents. This was offset by an increase in current liabilities of $138,935,679 primarily due to increases in accounts payable and accrued liabilities as well as current portions of borrowings, due to increased capital expenditures on oil and natural gas properties, and partially offset by a reduction to the current portion of the derivative liabilities.

Due to the working capital deficit, the Company does not currently have the cash resources to meet its current liabilities for the next twelve months. These factors raise substantial doubt about the Company's ability to continue as a going concern.

The Company's ability to continue as a going concern is dependent on its ability to generate sufficient cash flows from operations, as well as its ability to obtain financing via an asset sale and/or the issuances of debt and/or equity in the short term. While the Company believes it has sufficient forecasted funds to meet foreseeable obligations, there can be no assurance that the Company will be successful in its efforts to raise additional funds in the short term and its ability to generate sufficient operating cash flows.

Due to these factors, the Company may be unable to continue as a going concern. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern, and such adjustments could be material.

In an effort to increase liquidity, the Company has during and subsequent to the year ended December 31, 2022: (i) continued its drilling program to bring wells online and to increase cash flows from operating activities, (ii) raised funds through development partnerships, (iii) entered into a strategic review of assets and engaged Stephens Inc. for a potential asset sale, (iv) commenced the suspension of monthly dividends starting March 2023, (v) obtained waivers for covenant breaches on the Corporate Credit Facility and ABS Facility until July 1, 2023 in the event of a covenant breach, and (vi) obtained an extension to the initial maturity date of the first tranche of the ABS Facility until July 1, 2023.

***Sources and Uses of Cash***

The Company's sources and uses of cash are summarized as follows:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;For the year ended December 31, | **2022** | **2021** |
| &nbsp;&nbsp;Net cash from operating activities | $**92902136** | $32996780 |
| &nbsp;&nbsp;Net cash used for investing activities | **(212210813)** | (56678478) |
| &nbsp;&nbsp;Net cash from financing activities | **121184325** | 29414953 |
| &nbsp;&nbsp;Net change in cash and cash equivalents and restricted cash | $**1875648** | $5733255 |

---

------

*Cash Flows from Operating Activities*

The net cash from operating activities in 2022 increased by $59,905,356, an increase of 182% from 2021. The increase was driven by the increase in production, as well as changes to working capital and timing of cash receipts and disbursements.

*Cash Flows used for Investing Activities*

During the year ended December 31, 2022, the Company's cash flows used for investing activities increased by $155,532,335, an increased of 274% when compared to 2021, due to increased drilling and development of its oil and gas properties. For the evaluated oil and gas properties, the majority of the activity related to the drilling of horizontal wells in the Giddings and Hawkville Fields. The expenditures on unevaluated properties focused on the acquisition, exploration and development of those unevaluated assets.

Our cash flows used in investing activities reflects actual cash spending, which can lag several months from when the related costs were incurred. As a result, our actual cash spending is not always reflective of current levels of development activity.

*Cash Flows from Financing Activities*

During the year ended December 31, 2022, cash provided by and used in financing activities increased by $91,769,372, an increase of 312% when compared to 2021, primarily due to the increased net borrowings under the external debt facilities, as well as increases in the net proceeds from the issuance of redeemable non-controlling interests.

The net cash proceeds from the debt issuances were in part offset by the use of cash for the payments of dividends of $18,969,442, to both the Company's common shareholders, and dividends paid to its non-controlling interest holders, as well as the use of $4,324,915 in cash to repurchase and cancel the Company's shares.

*Refer to the statements of cash flows of the financial statements for further details.* 

**Off-Balance-Sheet Arrangements**

The Company does not have any special-purpose entities nor is it a party to any arrangements that would be excluded from the consolidated balance sheet.

**CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND POLICIES** 

The Company's financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP), which require management to make estimates, judgments and assumptions that affect the amounts reported in our financial statements and accompanying notes. Certain accounting policies are identified as critical because they require management to make judgments and estimates based on conditions and assumptions that are inherently uncertain, and because the estimates are of material magnitude to revenue, expenses, cash flows from operations, income or loss and/or other important financial results. These accounting policies could result in materially different results should the underlying conditions change or the assumptions prove incorrect.

We consider the following to be our most critical accounting policies and estimates involving significant judgment or estimates. See Note 2 to the financial statements in this Annual Report for further details on our accounting policies as at December 31, 2022.

<u>*Going Concern*</u>

The financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

*Oil and Natural Gas Properties*

The Company uses the full-cost method of accounting for its oil and natural gas properties. Under this method, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated in a single cost center representing the Company's activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, and general and administrative expenses directly related to acquisition, exploration and development activities, but does not include any costs related to production, selling or general corporate administrative activities.

------

In determining the depletion capitalized costs of oil and natural gas properties are amortized using the unit-of-production method. Under this method, depletion is calculated at the end of each period by multiplying total production for the period by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus estimates of future development costs by estimates of proved reserves quantities. Unproved and unevaluated property costs and related carrying costs are excluded from the depletion base until the properties associated with these costs are considered proved or impaired. The Company reviews its unproved and unevaluated properties at the end of each quarter to determine whether the costs incurred should be transferred to the full cost pool and thereby subject to amortization.

As a result, the determination of depletion can be significantly impacted by the costs identified as being part of the depletion base, and the proved reserves volumes and future development costs.

Similarly, the assessment of impairment of evaluated oil and gas properties is subject to the ceiling test. This ceiling test determines a limit, or ceiling, on the net capitalized costs of oil and natural gas properties. The net capitalized costs are limited to the lower of unamortized costs less related deferred income taxes or the cost center ceiling. The cost center ceiling is defined as the sum of: (a) the present value, discounted at 10%, of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus (b) unproved and unevaluated property costs not being amortized, plus (c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less (d) any income tax effects related to the properties involved.

Therefore, changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company's actual ceiling test computation and impairment analyses in future periods.

*Oil and Natural Gas Reserves Quantities and Standardized Measure of Future Net Revenue*

Engineers and technical staff prepare the estimates of oil and natural gas reserves and associated future net revenues. While the Company has proved, probable and possible reserves, the Company has elected to present only proved reserves in this report. Proved reserves are defined as the quantities of oil and natural gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible-from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations-prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project within a reasonable time.

The assessment of reported recoverable quantities of proved reserves includes estimates regarding production volumes, commodity prices, remediation costs, timing and amount of future development costs, and production, transportation and marketing costs for future cash flows. It also requires interpretation of geological and geophysical models in anticipated recoveries. The economical, geological and technical factors used to estimate reserves may change from period to period. Accordingly, reserves estimates are generally different from the quantities of oil and natural gas that are ultimately recovered. Any significant variance could materially and adversely affect the future reserves estimates, financial condition, results of operations and cash flows. The Company cannot predict the amounts or timing of future reserves revisions. If such revisions are significant, they could significantly affect future depletion of capitalized costs and result in an impairment of assets that may be material.

Estimates of proved oil and natural gas reserves are key inputs used for the calculations of depletion and the ceiling test. The estimated present value of future net cash flows from proved oil and natural gas reserves is highly dependent upon the quantities of proved reserves, the estimation of which requires substantial judgment. Oil and natural gas reserves are estimated using then-current operating and economic conditions, with no provision for price and cost escalations in future periods except by contractual arrangements. The associated commodity prices and the applicable discount rate used in estimates for depletion and the ceiling test are in accordance with guidelines established by the United States Securities and Exchange Commission. Under these guidelines, future net revenues are calculated using prices that represent the arithmetic averages of the first day-of-the-month oil and natural gas prices for the previous 12-month period, and a 10% discount factor is used to determine the present value of future net revenues.

------

The reserve assessment was completed by an external third-party engineering firm for the years ended December 31, 2022 and 2021 and reserves are internally updated for interim periods.

**2023 OBJECTIVES AND OUTLOOK**

During 2023, the Company plans on continuing to manage production of its primary assets in the Giddings and Hawkville fields. As previously disclosed, the Company expects to bring seven wells onto production by the end of the first quarter of 2023, with a pause in activity until the sales process is complete.

The Board has formed a sub-committee, led by independent directors, to lead discussions with the various stakeholders of the Company as it assesses alternatives following the conclusion of the sales process.

**SUBSEQUENT EVENTS** 

*Dividends* 

On January 3, 2023, the Company's board of directors (the "Board") declared a dividend of $0.0315 per SVS and PVS, and $3.15 per MVS. Payable on January 31, 2023, to shareholders of record on the close of business on January 17, 2023.

On February 1, 2023, the Company's Board declared a dividend of $0.0315 per SVS and PVS, and $3.15 per MVS. Payable on February 28, 2023, to shareholders of record on the close of business on February 14, 2023.

On February 23, 2023, it was announced that monthly dividends would be suspended beginning in March 2023, in connection with the strategic review of assets.

*Completion of the Fifth Development Partnership and creation of Development Partnership Seven* 

On January 20, 2023, the Company redeemed redeemable non-controlling interests with a redemption value of $36,354,869. As part of this redemption, the development partnership five units with a redemption value of $2,505,631 were exchanged for 499,794 Class B non-voting units of the Company's operating subsidiary.

On January 20, 2023, the Company also formed the development partnership seven program, with 24 external limited partners and the Company's operating subsidiary as a limited partner and the general partner. The intention of the program is to finance the drilling and completion of five wells, with external partners funding approximately 60% and the Company funding 40%. The Company raised $34,262,236 from external limited partners of which $4,946,981 was raised from officers and directors of the Company.

*Strategic Review of Assets*

On February 23, 2023, the Company announced that the Board had commenced a strategic review of its assets. The Company is seeking to facilitate a timely and orderly response to unsolicited inquiries by other upstream oil and gas companies who have expressed interest in acquiring various assets of the Company.

*Director Resignation*

*Engagement of Stephens Inc.*

On March 8, 2023, the Company announced that it had engaged Stephens Inc. as its financial advisor to pursue an asset sale for various strategic, high producing assets recently developed and proven by the Company. Proceeds of such sale are expected to retire existing liabilities as well as place additional capital on the Company's balance sheet.

*<u>Debt Amendments and Covenant Waiver`</u>*

In March 2023, the Company received a waiver of all covenants on the Corporate Credit Facility until July 1, 2023, and received a waiver on certain covenants on the ABS Facility until July 1, 2023. The Company also received an extension on the initial maturity date of Tranche 1 under the ABS Facility until July 1, 2023. In the absence of a covenant waiver, a breach of the covenant would result in the Corporate Credit Facility and/or ABS Facility to be due on demand.

**Additional Information**

Additional information relating to the Company is contained in the Company's Form 10-K.

------

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Not applicable.

**ITEM 8** **. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

The financial information required by Item 8 is located beginning on page F-1 of this Annual Report.

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

None.

**ITEM 9A. CONTROLS AND PROCEDURES**

**Disclosure Controls and Procedures**

Management of the Company, including the Chief Executive Officer ("**CEO**") and Chief Financial Officer ("**CFO**"), have evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the year covered by this Form 10-K. The term "disclosure controls and procedures" means controls and other procedures established by the Company that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, our management conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period ended December 31, 2022, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our principal executive officer and principal financial officer have concluded that during the period covered by this report, our disclosure controls and procedures were effective as of December 31, 2022.

The Company, including its CEO and CFO, does not expect that its internal controls and procedures will prevent or detect all error and all fraud. A control system, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

**Management's Annual Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States.

Our management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2022, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in *Internal Control - Integrated Framework* (2013). We have evaluated the effectiveness of our internal control over financial reporting as of the end of the period covered by this report, with the participation of our CEO and CFO, as well as other key members of our management. Based on this assessment, management concluded that, as of December 31, 2022, the Company's internal control over financial reporting was effective.

**Attestation Report of the Registered Public Accounting Firm**

This Annual Report does not include an attestation report of the Company's registered independent public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered independent public accounting firm as the Company qualifies as an "emerging growth company" under the Jumpstart Our Business Start-ups Act of 2012.

------

**Changes in Internal Control** **Over Financial Reporting**

There were no changes in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) under the Exchange Act) during the fourth quarter ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

**ITEM 9B** **. OTHER INFORMATION**

None.

**ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not Applicable.

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**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

The information required in response to this item will be set forth in the Company's 2023 Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report and is incorporated herein by reference.

**ITEM 11. EXECUTIVE COMPENSATION**

The information required in response to this item will be set forth in the Company's 2023 Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report and is incorporated herein by reference.

**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

The information required in response to this item will be set forth in the Company's 2023 Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report and is incorporated herein by reference.

**ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

The information required in response to this item will be set forth in the Company's 2023 Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report and is incorporated herein by reference.

**ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The information required in response to this item will be set forth in the Company's 2023 Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report and is incorporated herein by reference.

**PART IV**

**ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES**

**(a)(1) Financial Statements**

The financial statements listed in the accompanying index (page F-1) are filed as part of this Annual Report.

**(a)(2) Financial Statement Schedules**

Schedules have been omitted because they are not applicable, not material or because the information is included in the consolidated financial statements or the notes thereto.

**(a)(3) Exhibits**

The exhibits are incorporated by reference from the Exhibit Index attached hereto.

**ITEM 16. FORM 10-K SUMMARY**

None.

------

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br>**No.** | **Description of Exhibit** |
| [2.1](exhibit2-1.htm)[\*](exhibit2-1.htm) | [Business Combination Agreement amongst HB2 Origination, LLC, Alpine Summit Energy Investors, Inc., Red Pine Petroleum Ltd., Alpine Summit Energy Partners Finco, Inc., and Red Pine Petroleum Subco Ltd., dated April 8, 2021](exhibit2-1.htm) |
| [3.1](exhibit3-1.htm)[\*](exhibit3-1.htm) | [Amended Articles of Alpine Summit Energy Partners, Inc.](exhibit3-1.htm) |
| [3.2](exhibit3-2.htm)[\*](exhibit3-2.htm) | [Notice of Articles of Alpine Summit Energy Partners, Inc.](exhibit3-2.htm) |
| [3.3](exhibit3-3.htm)[\*](exhibit3-3.htm) | [Quorum Policy of Alpine Summit Energy Partners, Inc.](exhibit3-3.htm) |
| [4.1](exhibit4-1.htm)[\*](exhibit3-3.htm) | [Description of Registrant's Securities](exhibit4-1.htm) |
| [10.1](exhibit10-1.htm)[\*](exhibit10-1.htm) | [Alpine Summit Funding, LLC, $80,000,000 Series 2022-1 Floating Rate Oil & Gas Asset-Backed Notes due April 2023 Note Purchase Agreement, dated April 29, 2022](exhibit10-1.htm) |
| [10.2](exhibit10-2.htm)[\*](exhibit10-2.htm) | [Asset Purchase Agreement dated April 29, 2022, by and between Alpine Summit Funding, LLC, and HB2 Origination, LLC](exhibit10-2.htm) |
| [10.3](exhibit10-3.htm)[\*](exhibit10-3.htm) | [Amended and Restated Indenture between Alpine Summit Funding, LLC, as Issuer, and UMB Bank, N.A., as Indenture Trustee, as Paying Agent and as Securities Intermediary, dated as of September 12, 2022](exhibit10-3.htm) |
| [10.4](exhibit10-4.htm)[\*](exhibit10-4.htm) | [First Supplemental Indenture, dated as of March 23, 2023, but made effective as of December 31, 2022, between Alpine Summit Funding, LLC and UMB Bank, N.A., as Indenture Trustee](exhibit10-4.htm) |
| [10.5\*♦](exhibit10-5.htm) | [Side Letter Agreement, dated as of March 23, 2023, among Alpine Summit Funding Holdings, LLC, Alpine Summit Energy Partners, Inc., HB2 Origination, LLC, Ironroc Energy Partners LLC, Ageron Ironroc Energy, LLC and the noteholders](exhibit10-5.htm) |
| [10.6](exhibit10-6.htm)[\*](exhibit10-6.htm) | [Alpine Summit Funding, LLC, $55,000,000 Series 2022-2 Floating Rate Oil & Gas Asset-Backed Notes due September 2023 Note Purchase Agreement, dated September 12, 2022](exhibit10-6.htm) |
| [10.7](exhibit10-7.htm)[\*](exhibit10-7.htm) | [Asset Purchase Agreement dated September 12, 2002, by and between Alpine Summit Funding, LLC, and HB2 Origination, LLC](exhibit10-7.htm) |
| [10.8](exhibit10-8.htm)[\*](exhibit10-8.htm) | [Amended and Restated Management Services Agreement between Alpine Summit Funding, LLC, as Issuer, and HB2 Origination, LLC, as Manager, dated September 12, 2022](exhibit10-8.htm) |
| [10.9](exhibit10-9.htm)[\*](exhibit10-9.htm) | [$65,000,000 First Amended and Restated Credit Agreement for Reducing Revolving Credit Facility dated September 30, 2022, between HB2 Origination, LLC, as Borrower, and Bank 7, as Lender](exhibit10-9.htm) |
| [10.10](exhibit10-10.htm)[\*](exhibit10-10.htm) | [Omnibus Waiver Agreement dated March 10, 2023, between HB2 Origination, LLC, as Borrower, and Bank7, as Lender](exhibit10-10.htm) |
| [10.11](exhibit10-11.htm)[\*](exhibit10-11.htm) | [Amended and Restated Omnibus Waiver Agreement dated March 21, 2023, between HB2 Origination, LLC, as Borrower, and Bank7 as Lender](exhibit10-11.htm) |
| [10.12](exhibit10-12.htm)[\*](exhibit10-12.htm) | [Extension Agreement, effective as of March 21, 2023, by and between HB2 Origination, LLC, as Borrower, and Bank7, as Lender](exhibit10-12.htm) |
| [10.13](exhibit10-13.htm)[\*](exhibit10-13.htm)[#](exhibit10-13.htm) | [Alpine Summit Energy Partners, Inc. 2021 Stock and Incentive Plan](exhibit10-13.htm) |
| [10.14](exhibit10-14.htm)[\*#](exhibit10-14.htm) | [Alpine Summit Energy Partners, Inc. Deferred Share Unit Plan](exhibit10-14.htm) |
| [10.15](exhibit10-15.htm)[\*#](exhibit10-15.htm) | [Form of Stock Option Award Agreement](exhibit10-15.htm) |
| [10.16](exhibit10-16.htm)[\*#](exhibit10-16.htm) | [Form of Restricted Stock Unit Award Agreement](exhibit10-16.htm) |
| [10.17](exhibit10-17.htm)[\*#](exhibit10-17.htm) | [Form of Deferred Share Unit Grant Letter](exhibit10-17.htm) |
| [10.18](exhibit10-18.htm)[\*#](exhibit10-18.htm) | [Form of Indemnity Agreement between Alpine Summit Energy Partners, Inc. and its directors and officers as of September 7, 2021](exhibit10-18.htm) |
| [10.19](exhibit10-19.htm)[\*#](exhibit10-19.htm) | [Member Services Agreement by and between HB2 Origination, LLC, and Craig Perry dated May 7, 2022](exhibit10-19.htm) |
| [10.20](exhibit10-20.htm)[\*#](exhibit10-20.htm) | [Member Services Agreement by and between HB2 Origination, LLC, and William Wicker dated May 7, 2022](exhibit10-20.htm) |
| [10.21](exhibit10-21.htm)[\*#](exhibit10-21.htm) | [Member Services Agreement by and between HB2 Origination, LLC, and Michael McCoy dated September 7, 2021](exhibit10-21.htm) |

---

------

---

| | |
|:---|:---|
| **Exhibit**<br>**No.** | **Description of Exhibit** |
| [10.22](exhibit10-22.htm)[\*#](exhibit10-22.htm) | [Member Services Agreement by and between HB2 Origination, LLC, and Christopher Nilan dated May 7, 2022](exhibit10-22.htm) |
| [10.23](exhibit10-19.htm)[\*#](exhibit10-19.htm) | [Member Services Agreement by and between HB2 Origination, LLC, and Travis Reagan Brown, dated May 7, 2022](exhibit10-19.htm) |
| [10.24](exhibit10-20.htm)[\*#](exhibit10-20.htm) | [Employment Agreement entered into as of September 7, 2021, by and between HB2 Origination, LLC, and Darren Moulds](exhibit10-20.htm) |
| [10.25](exhibit10-21.htm)[\*#](exhibit10-21.htm) | [Employment Agreement entered into as of September 7, 2021, by and between HB2 Origination, LLC, and Chrystie Holmstrom](exhibit10-21.htm) |
| [10.26](exhibit10-22.htm)[\*#](exhibit10-22.htm) | [Form of Restrictive Covenant Agreement for Officers](exhibit10-22.htm) |
| [14.1](exhibit14-1.htm)[\*](exhibit14-1.htm) | [Code of Ethics for Alpine Summit Energy Partners, Inc.](exhibit14-1.htm) |
| [21.1](exhibit21-1.htm)[\*](exhibit21-1.htm) | [Subsidiaries of Alpine Summit Energy Partners, Inc.](exhibit21-1.htm) |
| [23.1](exhibit23-1.htm)[\*](exhibit23-1.htm) | [Consent of Independent Registered Public Accounting Firm](exhibit23-1.htm) |
| [23.2](exhibit23-2.htm)[\*](exhibit23-2.htm) | [Consent Letter of Independent Reserves Evaluators](exhibit23-2.htm) |
| [24.1](#page_61_integixAnchor)[\*](#page_61_integixAnchor) | [Power of Attorney](#page_61_integixAnchor) |
| [31.1](exhibit31-1.htm)[\*](exhibit31-1.htm) | [Certification of Chief Executive Officer Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002](exhibit31-1.htm) |
| [31.2](exhibit31-2.htm)[\*](exhibit31-2.htm) | [Certification of Chief Financial Officer Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002](exhibit31-2.htm) |
| [32.1](exhibit32-1.htm)[‡](exhibit32-1.htm) | [Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002](exhibit32-1.htm) |
| [32.2](exhibit32-2.htm)[‡](exhibit32-2.htm) | [Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002](exhibit32-2.htm) |
| [99.1](exhibit99-1.htm)[\*](exhibit99-1.htm) | [Summary Reserve Report](exhibit99-1.htm) |
| 101.INS | Inline XBRL Instance Document–the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document |
| [101.SCH](asepf-20221231.xsd) | [Inline XBRL Taxonomy Extension Schema Documen](asepf-20221231.xsd) |
| [101.CAL](asepf-20221231_cal.xml) | [Inline XBRL Taxonomy Extension Calculation Linkbase Document](asepf-20221231_cal.xml) |
| [101.DEF](asepf-20221231_def.xml) | [Inline XBRL Taxonomy Extension Definition Linkbase Document](asepf-20221231_def.xml) |
| [101.LAB](asepf-20221231_lab.xml) | [Inline XBRL Taxonomy Extension Label Linkbase Document](asepf-20221231_lab.xml) |
| [101.PRE](asepf-20221231_pre.xml) | [Inline XBRL Taxonomy Extension Presentation Linkbase Document](asepf-20221231_pre.xml) |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |

---

\* Filed herewith.

‡ Document has been furnished, is not deemed filed and is not to be incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, irrespective of any general incorporation language contained in any such filing.

# Management contract, compensatory plan or arrangement required to be filed pursuant to Item 601(b)(10)(iii)(A) of Regulation S-K

♦ Certain identified information has been omitted from this exhibit because it is both (1) not material and (2) the type that the Company treats as private or confidential.

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on March 27, 2023.

---

| |
|:---|
| **ALPINE SUMMIT ENERGY PARTNERS, INC.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Craig Perry |
| By: Craig Perry |
| Title: Chief Executive Officer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |

---

**POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Craig Perry and Craig Perry, jointly and severally, his or her attorney-in-fact, each with the full power of substitution, for such person, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might do or could do in person hereby ratifying and confirming all that each of said attorneys-in-fact and agents, or his or her substitute, may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Name and Signature** | &nbsp;&nbsp;**Title** | &nbsp;&nbsp;**Date** |
|  /s/ Craig Perry | Chief Executive Officer and Director<br>(Principal Executive Officer) | March 27, 2023 |
| Craig Perry |  |  |
| /s/ Darren Moulds  | Chief Financial Officer<br>(Principal Financial and Accounting Officer) | March 27, 2023 |
| Darren Moulds |  |  |
| /s/ James Russo | Director | March 27, 2023 |
| James Russo |  |  |
| /s/ Stephen Schaefer | Director | March 27, 2023 |
| Stephen Schaefer |  |  |
| /s/ Porter Collins | Director | March 27, 2023 |
| Porter Collins |  |  |
|  /s/ Agenia Clark | Director | March 27, 2023 |
| Agenia Clark |  |  |

---

------

**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm](#page_P2_integixAnchor) (Weaver and Tidwell, LLP; Houston, TX; PCAOB 10 #410) | [F-2](#page_P2_integixAnchor) |
| [Consolidated Balance Sheets as at December 31, 2022 and 2021](#page_64_integixAnchor) | [F-4](#page_64_integixAnchor) |
| [Consolidated Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2022 and 2021](#page_F5_integixAnchor) | [F-5](#page_F5_integixAnchor) |
| [Consolidated Statements of Changes in Shareholders' Deficiency for the Years ended December 31, 2022 and 2021](#page_66_integixAnchor) | [F-6](#page_66_integixAnchor) |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2022 and 2021](#page_67_integixAnchor) | [F-7](#page_67_integixAnchor) |
| [Notes to the Consolidated Financial Statements](#page_68_integixAnchor) | [F-8](#page_68_integixAnchor) |
| [Supplemental Oil and Gas Information (Unaudited)](#f41_integixAnchor) | [F-40](#f41_integixAnchor) |

---

------

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and the Board of Directors of

Alpine Summit Energy Partners, Inc.

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Alpine Summit Energy Partners, Inc. (formerly Red Pine Petroleum Ltd.) (the "Company") as of December 31, 2022 and 2021, and the related consolidated statements of operations and comprehensive income (loss), changes in shareholders' deficiency and cash flows for each of the two years in the period ended December 31, 2022, and the related notes to the consolidated financial statements.

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its consolidated operations and its cash flows for each of the two years then ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has a net working capital deficiency of $162,980,101, which raises substantial doubt about its ability to continue as a going concern. Management's plans in regards to this matter is described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated 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 consolidated 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 consolidated 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 consolidated 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 consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ WEAVER AND TIDWELL, L.L.P.

We have served as the Company's auditor since 2021.

Houston, Texas

March 24, 2023

------

**ALPINE SUMMIT ENERGY PARTNERS** **, INC. (FORMERLY RED PINE PETROLEUM LTD.)**

**CONSOLIDATED BALANCE SHEETS**

As at December 31 (in U.S. dollars, except share amounts)

---

| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;Notes | **2022** | **2021** |
| **ASSETS** |  |  |  |
| **Current assets:** |  |  |  |
| Cash and cash equivalents |  | $7123068 | $8622815 |
| Restricted cash | &nbsp;&nbsp;2 | 3375395 |  |
| Accounts receivable, net | &nbsp;&nbsp;3 | 26466208 | 18797635 |
| Derivative assets | &nbsp;&nbsp;18 | 2019600 |  |
| Prepaid expenses |  | 1075697 | 535474 |
| **Total current assets** |  | **40059968** | **27955924** |
| **Oil and natural gas properties, full-cost method:** |  |  |  |
| Evaluated |  | 347541801 | 110155103 |
| Unproved and unevaluated |  | 42866767 | 24987312 |
| Less: accumulated depreciation, depletion and amortization |  | (87993495) | (25911025) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Oil and natural gas properties, net** | &nbsp;&nbsp;4 | **302415073** | **109231390** |
| **Other noncurrent assets:** |  |  |  |
| Operating lease assets | &nbsp;&nbsp;5 | 548963 | 434488 |
| Derivative assets | &nbsp;&nbsp;18 | 1057479 |  |
| **Total assets** |  | $**344081483** | $**137621802** |
| **LIABILITIES AND SHAREHOLDERS' DEFICIENCY** |  |  |  |
| **Current liabilities** |  |  |  |
| Accounts payable and accrued liabilities |  | $96432486 | $48245677 |
| Corporate credit facility | &nbsp;&nbsp;7 | 41500000 | 2200000 |
| Current portion of operating lease liabilities | &nbsp;&nbsp;5 | 210157 | 119371 |
| Current portion of long-term debt (net) | &nbsp;&nbsp;7 | 60226919 | 7059834 |
| Accrued liability for automatic share purchase plan | &nbsp;&nbsp;11 | 4670507 |  |
| Derivative liabilities | &nbsp;&nbsp;18 |  | 6479508 |
| **Total current liabilities** |  | **203040069** | **64104390** |
| Long-term debt, net | &nbsp;&nbsp;8 | 48678708 | 16139307 |
| Operating lease liabilities | &nbsp;&nbsp;5 | 401734 | 389218 |
| Asset backed preferred instrument | &nbsp;&nbsp;8 |  | 18687351 |
| Derivative liabilities | &nbsp;&nbsp;18 |  | 13901672 |
| Asset retirement obligations | &nbsp;&nbsp;6 | 458078 | 431704 |
| Deferred income tax liability | &nbsp;&nbsp;15 |  | 1928319 |
| **Total liabilities** |  | $**252578589** | $**115581961** |
| Commitments and contingencies | &nbsp;&nbsp;19 |  |  |
| **Redeemable non-controlling interest** | &nbsp;&nbsp;9 | $**107583737** | $**46552839** |
| **SHAREHOLDERS' DEFICIENCY** |  |  |  |
| &nbsp;&nbsp;Share capital - Subordinate Voting Shares<br>*Authorized unlimited shares without par value. Issued and outstanding are 33,956,073 and 32,535,731 as at December 31, 2022 and 2021, respectively.* | &nbsp;&nbsp;11 | 47595028 | 41989020 |
| &nbsp;&nbsp;Share capital - Multiple Voting Shares<br>*Authorized unlimited shares without par value. Issued and outstanding are 8,380 and 10,336 as at December 31, 2022 and 2021, respectively.* | &nbsp;&nbsp;11 | 1051546 | 1296914 |
| &nbsp;&nbsp;Share capital - Proportionate Voting Shares<br>*Authorized unlimited shares without par value. Issued and outstanding are 15,947 as at December 31, 2022 and 2021.* | &nbsp;&nbsp;11 | 128213 | 128213 |
| Additional paid-in capital |  | 36436307 | 40252848 |
| Accumulated deficit |  | (76210173) | (83638308) |
| **Shareholders' equity (deficit) attributable to the Company** |  | **9000921** | **28687** |
| Non-controlling interest | &nbsp;&nbsp;10 | (25081764) | (24541685) |
| **Total Shareholders' Deficiency** |  | $**(16080843)** | $**(24512998)** |
| **TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS' DEFICIENCY** |  | $**344081483** | $**137621802** |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**ALPINE SUMMIT ENERGY PARTNERS** **, INC. (FORMERLY RED PINE PETROLEUM LTD.)**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)**

For the years ended December 31 (in U.S. dollars, except share and per share amounts)

---

| | | | |
|:---|:---|:---|:---|
| | &nbsp;&nbsp;Notes | **2022** | **2021** |
| **REVENUES** |  |  |  |
| Oil and gas revenues | &nbsp;&nbsp;14 | $195648957 | $70796790 |
| Gain / (loss) on derivative instruments, net | &nbsp;&nbsp;18 | (10023495) | (33525453) |
| **Total revenues** |  | **185625462** | **37271337** |
| **OPERATING EXPENSES** |  |  |  |
| Production costs and transportation |  | 41495709 | 12087223 |
| General and administrative | &nbsp;&nbsp;21 | 26090160 | 25021117 |
| Depreciation, depletion, and amortization | &nbsp;&nbsp;4 | 62082471 | 23497715 |
| Asset retirement obligation accretions | &nbsp;&nbsp;6 | 43756 | 24209 |
| **Total operating expenses** |  | **129712096** | **60630264** |
| **O** **PERATING INCOME (LOSS)<br>OTHER INCOME (EXPENSE)** |  | **55913366** | **(23358927)** |
| Finance and interest expense | 20 | (13428333) | (5727544) |
| Acquisition costs | 1 | - | (1567967) |
| **Total other income (expense)** |  | (13428333) | (7295511) |
| **INCOME (LOSS) BEFORE INCOME TAXES** |  | **42485033** | **(30654438)** |
| Income tax provision (benefit) | &nbsp;&nbsp;15 | (1928319) | 1928319 |
| **NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)** |  | **44413352** | **(32582757)** |
| NET INCOME ATTRIBUTABLE TO REDEEMABLE NON-CONTROLLING INTEREST | 9 | 33796021 | 13091908 |
| NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 10 | 3189196 | (13330237) |
| **NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY** |  | $**7428135** | $**(32344428)** |
| **Earnings (loss) per SVS and PVS, and MVS on an as-converted basis:** (Note 13) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  | $**0.22** | $(0.76) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  | $**0.20** | $(0.76) |
| **Weighted average number of shares per SVS and PVS, and MVS on an as-converted basis:** (Note 13) | **Weighted average number of shares per SVS and PVS, and MVS on an as-converted basis:** (Note 13) | **Weighted average number of shares per SVS and PVS, and MVS on an as-converted basis:** (Note 13) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  | **34453696** | 42596264 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  | **53586327** | 42596264 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**ALPINE SUMMIT ENERGY PARTNERS, INC** **. (FORMERLY RED PINE PETROLEUM LTD.)** 

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIENCY**

As at and for the years ended December 31 (in U.S. dollars, except share and per share amounts)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Notes | Total Share<br>Capital | Additional Paid<br>In-Capital | Accumulated<br>Deficit | **Total shareholders'<br>equity attributable to<br>the Company** | Non-controlling<br>interests | **Total** <br>**Equity** |
|  |  | Note 11 |  |  |  |  |  |
| Balance as at January 1, 2021 |  | $37097376 | $3721683 | $(39408964) | $**1410095** | $- | $**1410095** |
| Issuance of member units for cash | &nbsp;&nbsp;11 | 8044700 |  |  | **8044700** |  | **8044700** |
| Issuance of member units exchanged for notes | &nbsp;&nbsp;11 | 3475000 |  |  | **3475000** |  | **3475000** |
| Issuance of member units for oil and gas properties | &nbsp;&nbsp;11 | 3499995 |  |  | **3499995** |  | **3499995** |
| Issuance of member units to contractors | &nbsp;&nbsp;11 | 9073228 |  |  | **9073228** |  | **9073228** |
| Redemption of member units | &nbsp;&nbsp;8 | (8680786) |  | (11884916) | **(20565702)** |  | **(20565702)** |
| Issuance of member units exchanged for notes | &nbsp;&nbsp;11 | 2300000 |  |  | **2300000** |  | **2300000** |
| Allocation of opening non-controlling interest | &nbsp;&nbsp;10 | (18721276) | 30208275 |  | **11486999** | (11486999) | **-** |
| Shares issued for cash, net of issuance costs of $247,218 | &nbsp;&nbsp;1 | 5499832 |  |  | **5499832** |  | **5499832** |
| PVS issued for cash | &nbsp;&nbsp;1 | 128213 |  |  | **128213** |  | **128213** |
| Shares issued on reverse recapitalization | &nbsp;&nbsp;1 | 1697865 |  |  | **1697865** |  | **1697865** |
| Stock based compensation | &nbsp;&nbsp;12 |  | 5405548 |  | **5405548** |  | **5405548** |
| Development partnership redemption for Origination Member Units | &nbsp;&nbsp;10 |  | 917342 |  | **917342** | 275551 | **1192893** |
| Net loss |  |  |  | (32344428) | **(32344428)** | (13330237) | **(45674665)** |
| **Balance as at December 31, 2021** |  | $**43414147** | $**40252848** | $**(83638308)** | $**28687** | $**(24541685)** | $**(24512998)** |
| Settlement of RSUs | &nbsp;&nbsp;11, 12 | 9685555 | (9685555) |  | **-** |  | **-** |
| Repurchase of SVS for cancellation | &nbsp;&nbsp;11 | (4324915) |  |  | **(4324915)** |  | **(4324915)** |
| Change in NCI ownership | &nbsp;&nbsp;10 |  | 1445850 |  | **1445850** | (1445850) | **-** |
| Automatic share purchase plan | &nbsp;&nbsp;11 |  | (4670507) |  | **(4670507)** |  | **(4670507)** |
| Stock based compensation | &nbsp;&nbsp;12 |  | 10197720 |  | **10197720** |  | **10197720** |
| Development partnership redemption for Origination Member Units | &nbsp;&nbsp;10 |  | 11312710 |  | **11312710** | 4269258 | **15581968** |
| Dividends declared | &nbsp;&nbsp;10, 11 |  | (12416759) |  | **(12416759)** | (6552683) | **(18969442)** |
| Net income |  |  |  | 7428135 | **7428135** | 3189196 | **10617331** |
| **Balance as at December 31, 2022** |  | $**48774787** | $**36436307** | $**(76210173)** | $**9000921** | $**(25081764)** | $**(16080843)** |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**ALPINE SUMMIT ENERGY PARTNERS, INC** **. (FORMERLY RED PINE PETROLEUM LTD.)**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

For the years ended December 31 (in U.S. dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Notes | **2022** | **2021** |
| **Cashflows from operating activities** |  |  |  |
| Net income (loss) |  | $44413352 | $(32582757) |
| Adjustments to reconcile net income (loss) to cashflows from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depletion and depreciation | &nbsp;&nbsp;4 | 62082471 | 23497715 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating lease asset | &nbsp;&nbsp;5 | 121088 | 64559 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset retirement obligation accretion expense | &nbsp;&nbsp;6 | 43756 | 24209 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | &nbsp;&nbsp;12 | 10197720 | 14478776 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | &nbsp;&nbsp;7 | 5199882 | 1058759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) / loss on derivative instruments | &nbsp;&nbsp;18 | (26246352) | 15859796 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense (benefit) | &nbsp;&nbsp;15 | (1928319) | 1928319 |
| Margin returns/(calls) on derivative instruments, net | &nbsp;&nbsp;18 | 2788093 |  |
| Changes in operating assets and liabilities | &nbsp;&nbsp;22 | ***(***3769555**)** | 8667404 |
| **Cashflows used in investing activities** |  | **92902136** | **32996780** |
| **Cashflows from investing activities** |  |  |  |
| Capital expenditures on oil and natural gas properties | &nbsp;&nbsp;4 | (212210813) | (56678478) |
| **Cashflows from investing activities** |  | **(212210813)** | **(56678478)** |
| **Cashflows from financing activities** |  |  |  |
| Issuance of shares for cash, net of issuance costs |  |  | 13672745 |
| Cash acquired on acquisition | &nbsp;&nbsp;1 |  | 396173 |
| Proceeds from Redeemable NCI | &nbsp;&nbsp;9 | 53728933 | 41042693 |
| Redemption and distributions to Redeemable NCI | &nbsp;&nbsp;9 | (10369504) | (6388870) |
| Proceeds from credit facility draws | &nbsp;&nbsp;7 | 108000000 | 2200000 |
| Proceeds from promissory notes | &nbsp;&nbsp;8 |  | 3375000 |
| Repayment on credit facility | &nbsp;&nbsp;7 | (68700000) |  |
| Repayment of promissory notes | &nbsp;&nbsp;8 |  | (2025000) |
| Repayment of asset backed preferred notes | &nbsp;&nbsp;8 | (18687351) | (4735700) |
| ABS Facility issuance, net of issuance costs | &nbsp;&nbsp;7 | 130761336 |  |
| Payment on ABS Facility | &nbsp;&nbsp;7 | (25017323) |  |
| Other long term debt repayment | &nbsp;&nbsp;7 | (25237409) | (18122088) |
| Dividends on common shares and noncontrolling interest | &nbsp;&nbsp;10, 11 | (18969442) |  |
| Cash used for common share repurchases | &nbsp;&nbsp;11 | (4324915) |  |
| **Cashflows provided by financing activities** |  | **121184325** | **29414953** |
| Net increase/(decrease) in cash and cash equivalents and restricted cash |  | 1875648 | 5733255 |
| Cash, cash equivalents and restricted cash, beginning of year |  | 8622815 | 2889560 |
| **Cash, cash equivalents and restricted cash, end of year** |  | $**10498463** | $**8622815** |

---

*Refer to Note 22 for supplementary cash flow information.*

The accompanying notes are an integral part of these consolidated financial statements.

------

**NOTES** **TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**1. GENERAL**

**Description of Business**

Alpine Summit Energy Partners, Inc. (formerly Red Pine Petroleum Ltd. ("Red Pine") (the "Company" or "Alpine Summit") was incorporated on July 30, 2008 under the Business Corporations Act (British Columbia) ("BCBCA"). On April 8, 2021, the Company entered into a Business Combination Agreement ("BCA") pursuant to which it agreed to complete the BCA with HB2 Origination LLC ("Origination") and changed its name to "Alpine Summit Energy Partners, Inc." upon completion of the BCA (described below).

The Company is engaged in oil and natural gas development, production, acquisition, and exploration activities in Texas through its controlled subsidiary Origination. The Company's operating activities are mainly focused in the Austin Chalk and Eagle Ford formations in the Giddings Field, as well as the Hawkville Field.

**Reverse Takeover Agreement** 

On April 8, 2021, the Company, Origination, Alpine Summit Energy Partners Finco, Inc. ("Finco"), Red Pine Petroleum Subco Ltd. ("Subco") and Alpine Summit Energy Investors, Inc. ("Blocker") entered into the BCA pursuant to which the parties agreed to complete a series of transactions to effect a combination between the Company (through its predecessor Red Pine Petroleum Ltd.) and Origination and that resulted in a reverse take-over ("RTO") of the Company by the members of Origination.

The principal steps of this transaction were as follows:

(a) Finco issued subscription receipts (the "Subscription Receipts") for gross proceeds of approximately Canadian Dollars ("CAD") $7,500,000 (the "Finco Financing"), as described below.

(b) immediately prior to the closing of the BCA:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company amended its articles to (A) reclassify its common shares as Subordinate Voting Shares ("SVS"), (B) create a new class of Multiple Voting Shares ("MVS") and a new class of Proportionate Voting Shares ("PVS"), and (C) change its name from "Red Pine Petroleum Ltd." to "Alpine Summit Energy Partners, Inc.";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each outstanding membership unit of Origination was split into three membership units of Origination ("Origination Member Units");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Subscription Receipts converted into shares of Finco, with each subordinate voting subscription receipt converting to one Class A share of Finco, and each holder of a multiple voting subscription receipt converting to one Class B share of Finco.

(c) on closing of the BCA:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company, Finco and Subco completed a three-cornered amalgamation under the BCBCA pursuant to which all Finco shareholders (including former holders of the Subscription Receipts) exchanged their (A) Class A shares of Finco for SVS; and (B) Class B shares of Finco for MVS, as applicable, in each case on a one-for-one basis, and Finco and Subco amalgamated, with the resulting entity ("Amalco") to continue as a wholly-owned subsidiary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Amalco wound up into the Company, and the assets of Amalco (which consist of the funds invested by the holders of the Subscription Receipts, net of expenses) transferred to the Company by operation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) certain U.S. holders of Origination Member Units (other than Blocker) contributed their Origination Member Units to the Company in exchange for MVS, on a one hundred Origination Member Units for one MVS basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) certain non-U.S. holders of Origination Member Units contributed their Origination Member Units to the Company in exchange for SVS, on a one Origination Member Unit for one SVS basis, subject to adjustment for any applicable withholding taxes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Origination Member Units held by Blocker (the "Blocker Shares) were contributed to the Company in exchange for SVS on a one Blocker Share for three SVS basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a related party, being an officer, director and shareholder of Origination pre-closing of the BCA, and of Alpine Summit post-closing of the BCA, subscribed for 15,947.292 PVS carrying voting rights that would, in the aggregate, represent approximately 32.2% of the voting rights of the Company upon completion of the BCA on a fully diluted basis for a purchase price equivalent to their estimated fair market value of $128,213;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Company used certain proceeds from the Finco Financing and the Origination Member Units received by it to subscribe for Blocker Shares, following which the proceeds of Finco Financing received by Blocker were contributed to Origination in exchange for Origination Member Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Origination Member Units held by Blocker were re-designated as Class A voting units of Origination and Origination Member Units held by other remaining members of Origination were re-designated as Class B non-voting units of Origination.

**The Finco Financing**

On August 18, 2021, Finco completed a brokered private placement of the Subscription Receipts, consisting of an aggregate of 161,976 subordinate voting subscription receipts at a subscription price of CAD$4.01 per subscription receipt and 17,057 multiple voting subscription receipts at a subscription price of CAD$401.29 per subscription receipt for aggregate gross proceeds of approximately CAD$7,500,000 (net proceeds of US$5,499,832). Finco is a special purpose British Columbia company incorporated solely for the purpose of the Finco Financing.

The Finco Financing was completed pursuant to the terms of an agency agreement dated August 18, 2021 among Finco, the Company and Eight Capital ("Agent"), as lead agent and sole bookrunner. The Subscription Receipts are governed by the terms of the subscription receipt agreement (the "Subscription Receipt Agreement") dated August 18, 2021 among Finco, the Agent and Odyssey Trust Company in its capacity as subscription receipt agent.

Each subordinate voting subscription receipt and each multiple voting subscription receipt entitled the holder thereof to receive, upon automatic exchange in accordance with the terms of the Subscription Receipt Agreement, without payment of additional consideration or further act or formality on the part of the holder thereof, one Class A share of Finco and one Class B share of Finco, respectively, upon the satisfaction or waiver of the escrow release conditions at or before the escrow release deadline. Each Class A share of Finco was exchanged for one SVS and each Class B share of Finco was exchanged for one MVS upon completion of the BCA.

In connection with the Finco financing, the Agent was entitled to receive a cash commission of $21,002 and an advisory fee of $156,381 (collectively, the "Agent's Fees"). On closing of the Finco Financing, the Agent received payment of 50% of the Agent's Fees. The remaining 50% of the Agent's Fees were paid to the Agent upon the satisfaction of the escrow release conditions.

**Reverse Takeover**

On September 7, 2021, the Company completed the BCA (as described above). As a result, the former shareholders of Origination acquired control of the combined Company and, thereby the transaction constitutes a reverse recapitalization of Red Pine by Origination. The BCA is considered a purchase of the Red Pine's net assets by Origination.

As Red Pine did not qualify as a business in accordance with Accounting Standards Codification ("ASC") *Topic 805 - Business Combinations*, the BCA does not constitute a business combination. The BCA was accounted for as a reverse recapitalization as the equivalent of Origination issuing its equity for the net assets of the Company, accompanied by a recapitalization. Accordingly, all historical financial information presented in these consolidated financial statements represents the accounts of Origination and its wholly owned subsidiaries "as if" Origination was the predecessor to the Company. The shares and net loss per common share, prior to the BCA, have been adjusted to reflect the share exchange ratios established in the BCA.

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As a part of the reverse takeover, the Company issued 534,384 SVS on September 7, 2021, for total consideration of $1,697,865 based on the Finco Financing value of CAD$4.01/SVS (US$3.18/SVS), for the Red Pine net assets, which were made up primarily of cash valued at $396,173. The difference between the fair value of the consideration issued and the net assets acquired was recorded in additional paid in capital.

Acquisition related costs of $1,567,967 were recognized as transaction costs in other income (expense) within the consolidated statements of operations and comprehensive income (loss) for the year ended December 31, 2021, when the costs were incurred.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

These consolidated financial statements (the "financial statements") of the Company and its subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). Amounts are stated in US dollars unless otherwise noted.

The Company historically prepared its consolidated financial statements under International Financial Reporting Standards. For the year ended and as at December 31, 2022 the Company transitioned to US GAAP and applied US GAAP retrospectively.

**Basis of Measurement**

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses, as well as the disclosure of contingent assets and liabilities in the financial statements. In determining these estimates, management makes subjective and complex judgments that may require assumptions about matters that are inherently uncertain. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Estimates and assumptions that, in the opinion of the Company's management, are significant include the estimation of oil and natural gas reserves and depletion (Note 2 below), the redemption value of redeemable non-controlling interests (Note 2 below and Note 9), determination of whether long-lived assets are impaired (Note 2 below), valuation of asset retirement obligations (Note 2 below and Note 6), and deferred tax assets/liabilities (Note 2 below and Note 15). The Company bases its estimates and judgments on historical experience and on various other assumptions and information believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be predicted with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained, or if the Company's operating environment changes. Actual results may differ from the estimates and assumptions used in the preparation of these financial statements.

**Going Concern**

The financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

As at December 31, 2022 the Company had a working capital deficit of $162,980,101, reflecting a significant increase in outstanding accounts payable and accrued liabilities as well as borrowings, due to the Company's increased capital expenditures on oil and natural gas properties. As a result, the Company does not currently have the cash resources to meet its current liabilities for the next twelve months. These factors raise substantial doubt about the Company's ability to continue as a going concern.

The Company's ability to continue as a going concern is dependent on its ability to generate sufficient cash flows from operations, as well as its ability to obtain financing via an asset sale and/or the issuances of debt and/or equity in the short term. While the Company believes it has sufficient forecasted funds to meet foreseeable obligations, there can be no assurance that the Company will be successful in its efforts to raise additional funds in the short term and its ability to generate sufficient operating cash flows.

Due to these factors, the Company may be unable to continue as a going concern. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern, and such adjustments could be material.

**Basis of Consolidation**

*Subsidiaries* 

The financial statements include the accounts of the Company and its consolidated subsidiaries, after the elimination of intercompany transactions and balances. The Company consolidates all entities that it controls either through a majority voting interest or as the primary beneficiary of variable interest entities ("VIEs").

The Company evaluates (1) whether it holds a variable interest in an entity, (2) whether the entity is a VIE, and (3) whether the Company's involvement would make it the primary beneficiary.

The assessment of whether the entity is a VIE is generally performed qualitatively, which requires judgment. These judgments include: (a) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) evaluating whether the equity holders, as a group, have the characteristics of a controlling financial interest, (c) determining whether two or more parties' equity interests should be aggregated, (d) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from the entity, and (e) if disproportionate voting rights are identified, whether substantially all of the investee's activities are on behalf of an investor that has disproportionately few voting rights. Significant judgements involve the analysis of the risks and rewards that the VIE's operations generate and the nature of the Company's involvement with and interest in the VIE, including the form of the Company's ownership interest, representation in an entity's governance, and ability to participate in making decisions.

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For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is the primary beneficiary. The primary beneficiary is defined as the variable interest holder with (a) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (b) the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company, and its ability to control the VIEs through arrangements such as general partnership interests or contracts.

The Company's consolidated VIEs consist of its controlled subsidiary, Origination, as its control over Origination is contractually provided and not granted via the equity interest. Origination, through its subsidiaries, holds the Company's main operations, including external financing. Some of Origination's drilling programs are structured through limited partnerships (the "Development Partnerships"), which are consolidated VIEs of Origination (see Note 9).

Under the contractual agreements with the VIEs, the Company has the power to direct activities of the VIEs and can have assets transferred out of the VIEs under its control. Therefore, the Company considers that there is no asset in any of the VIEs that can be used only to settle obligations of the VIE, except for certain assets that are designated as collateral for long term debt (Note 7).

If an entity is determined to not be a VIE, the voting interest entity model is applied, where an investor holding the majority voting rights consolidates the entity.

Ownership interests in subsidiaries represented by other parties that do not control the entity are presented in the consolidated financial statements as activities and balances attributable to noncontrolling interests.

*Joint Arrangements*

A portion of the Company's oil and natural gas business activities involve jointly controlled assets and are conducted under joint operating agreements. These consolidated financial statements reflect only the Company's proportionate share of the joint operation's controlled assets and liabilities it has incurred, its share of any liabilities jointly incurred with other joint interest partners, income from the sale or use of its share of the joint operation's output, together with its share of expenses incurred by the joint operation and any expenses it incurs in relation to its interest and its share of production in such activities.

**Segment Reporting**

The Company operates in a single operating and reportable segment. Operating segments are defined as components of a public entity for which separate financial information is regularly reviewed by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company's chief operating decision maker allocates resources and assesses performance based upon financial information at the Company level. The Company's operations are primarily conducted in, and its assets are primarily located in, the United States of America. The Company's revenues are entirely generated in the United States of America.

**Functional and Presentation Currency**

These financial statements are presented in US dollars. The functional currency of the Company and its individual subsidiaries is the US dollar, which represents the primary economic environment in which the entities operate.

Foreign currency transactions are those transactions whose terms are denominated in a currency other than the functional currency. Transactions denominated in foreign currencies are translated to the functional currency using the exchange rate prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using the exchange rate in effect as at the balance sheet date. Exchange gains and losses resulting for the remeasurement of monetary assets and liabilities are included in general and administrative expenses in the consolidated statements of operations and comprehensive income (loss) in the period in which they arise.

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**Cash and Cash Equivalents**

Cash and cash equivalents include short-term investments with a term to maturity of three months or less when purchased (Note 18).

**Restricted Cash**

Cash and cash equivalents that are restricted as to the withdrawal or usage, in accordance with specific arrangements, are presented as restricted cash. The amount of restricted cash as of December 31, 2022 is $3,375,395 (December 31, 2021 - $nil), reflecting the interest reserve account maintained in connection with the asset backed securitization facility (Note 7).

**Accounts Receivable, Net**

The accounts receivable are primarily receivables from crude oil, natural gas, and natural gas liquids customers and joint interest owners. Oil and natural gas sales are normally collected by the Company between 30 and 60 days from deliveries. Joint interest receivables are typically collected within 30 to 90 days of the joint interest bill being issued to the partner.

Accounts receivable, net are recorded at amortized cost. Management evaluates all accounts periodically and an allowance is established based on the best facts available. Management considers historical collection data, accounts receivable aging trends, other operational trends and reasonable forecasts to estimate the collectability of receivables. The Company's accounts receivable are subject to normal industry credit risk (Note 18).

**Derivatives**

The Company has entered into certain financial risk management contracts in order to manage the exposure to market risks from fluctuations in commodity prices and interest rates. The Company considers all risk management contracts to be economic hedges, but has not designated its financial risk management contracts as accounting hedges and, therefore, has not applied hedge accounting. As a result, all financial risk management contracts are measured at fair value with changes in fair value recognized in income (Note 17). Transaction costs are recognized in the consolidated statements of operations and comprehensive income (loss) as incurred.

In the consolidated balance sheets, the fair values of the derivative instruments are presented as current and non-current assets or liabilities depending on the timing of settlements and the resulting cash flows associated with the instruments. Fair value amounts related to cash flows occurring beyond one year are classified as non-current (Note 18).

**Oil and Natural Gas Properties, Net**

*Oil and Natural Gas Properties*

The Company uses the full-cost method of accounting for its oil and natural gas properties. Under this method, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated in a single cost center representing the Company's activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, and general and administrative expenses directly related to acquisition, exploration and development activities, but does not include any costs related to production, selling or general corporate administrative activities.

Sales of oil and natural gas properties are accounted for as adjustments to net capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between net capitalized costs and proved reserves of oil and gas. All costs related to production activities and maintenance and repairs are expensed as incurred. Significant workovers that increase the properties' reserves are capitalized. In the years ended December 31, 2022 and 2021, there were no property sales that resulted in a significant alteration.

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*Depletion*

Capitalized costs of oil and natural gas properties are amortized using the unit-of-production method. Under this method, depletion is calculated at the end of each period by multiplying total production for the period by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus estimates of future development costs by estimates of proved reserves quantities. Unproved and unevaluated property costs and related carrying costs are excluded from the depletion base until the properties associated with these costs are considered proved or impaired. The Company reviews its unproved and unevaluated properties at the end of each quarter to determine whether the costs incurred should be transferred to the full cost pool and thereby subject to amortization.

Upon impairment, which includes leases that have expired or have been deemed uneconomic, the costs of the unproved properties are immediately included in the depletion base.

The determination of depletion is significantly impacted by the proved reserves volumes and future development costs.

Relative volumes of reserves and production are converted at the energy equivalent conversion ratio of six thousand cubic feet of natural gas to one barrel of oil.

*Impairment*

Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the net capitalized costs of oil and natural gas properties. The net capitalized costs are limited to the lower of unamortized costs less related deferred income taxes or the cost center ceiling. The cost center ceiling is defined as the sum of: (a) the present value, discounted at 10%, of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus (b) unproved and unevaluated property costs not being amortized, plus (c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less (d) any income tax effects related to the properties involved.

Any excess of the Company's net capitalized costs above the cost center ceiling is expensed as a full-cost ceiling impairment. The Company's derivative instruments are not considered in the ceiling test computations as the Company does not designate these instruments as hedges for accounting purposes.

The estimated present value of after-tax future net cash flows from proved oil and natural gas reserves is highly dependent on the quantities of proved reserves, the estimation of which requires substantial judgement. The associated commodity prices and the applicable discount rate used in these estimates are in accordance with guidelines established by the United States Securities and Exchange Commission. Under these guidelines, oil and natural gas reserves are estimated using then-current operating and economic conditions, with no provision for price and cost changes in future periods except by contractual arrangements. Future net revenues are calculated using prices that represent the arithmetic averages of the first-day-of-the-month oil and natural gas prices for the previous 12-month period, and a 10% discount factor is used to determine the present value of future net revenues. For the period from January through December 2022, these average oil and natural gas prices were $94.49 per Bbl and $6.25 per MMBtu, respectively. For the period from January through December 2021, these average oil and natural gas prices were $66.55 per Bbl and $3.64 per MMBtu, respectively. In estimating the present value of after-tax future net cash flows from proved oil and natural gas reserves, the average oil prices were further adjusted by property for quality, transportation and marketing fees and regional price differentials, and the average natural gas prices were further adjusted by property for energy content, transportation and marketing fees and regional price differentials.

During the years ended December 31, 2022 and 2021, the Company's full-cost ceiling exceeded the net capitalized costs less related deferred income taxes. As a result, the Company recorded no impairment to its net capitalized costs for those periods.

As a non-cash item, the full-cost ceiling impairment impacts the accumulated depletion and the net carrying value of the Company's assets on its consolidated balance sheets, as well as the corresponding shareholders' deficiency, but it has no impact on the Company's net cash flows as reported. Changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company's actual ceiling test computation and impairment analyses in future periods.

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*Other Impairment Estimates*

Unproved and unevaluated properties are assessed periodically to determine whether they have been impaired, based on the Company's future development plans, the probability of successful development of properties and the length of time that the Company expects to hold the properties, amongst other factors.

Upon impairment, the costs of the unproved and unevaluated properties are immediately included in the depletion base. Exploratory dry holes are included in the depletion base immediately upon determination that the well is not productive.

During the year ended December 31, 2022 and 2021, no unproved and unevaluated properties were impaired and transferred to be included in the depletion base as part of evaluated properties.

*Reserves*

The assessment of reported recoverable quantities of proved reserves includes estimates regarding production volumes, commodity prices, remediation costs, timing and amount of future development costs, and production, transportation and marketing costs for future cash flows. It also requires interpretation of geological and geophysical models in anticipated recoveries. The economical, geological and technical factors used to estimate reserves may change from period to period. Changes in reported reserves can impact the carrying values of the Company's oil and natural gas properties, the calculation of depletion and depreciation, and the provision for asset retirement obligations.

The reserve assessment was completed by an external third-party engineering firm for the years ended December 31, 2022 and 2021 and reserves are internally updated for interim periods.

**Asset Retirement Obligations**

The Company recognizes asset retirement obligations ("ARO") arising from regulatory, contractual or other legal requirements to perform certain property and asset reclamation activities at the end of the respective asset life when the fair value of this obligation is determinable. These obligations consist of estimated future costs associated with the plugging and abandonment of natural gas and oil wells, and land restoration in accordance with applicable local, state and federal laws.

The Company estimates the expected cash flows associated with the obligation and discounts the amounts using a credit-adjusted risk-free interest rate. This discounted fair value of the ARO liability is recognized in the period in which it is incurred, with the associated asset retirement cost capitalized as part of the carrying cost of the related natural gas and oil asset in property, plant and equipment, net and depleted as the reserves are produced.

In the estimation of the initial fair value of an ARO, the Company uses assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical assessments of the assets, estimated amounts and timing of settlements including reserve lives, discount rates, and inflation rates. Given the significance of the unobservable nature of a number of the inputs, this measurement is considered Level 3 on the fair value hierarchy (Note 17).

In periods subsequent to the initial measurement of an ARO, period-to-period changes are recognized in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flows. To the extent future revisions to these assumptions impact the present value of the existing ARO liability, a corresponding adjustment is made to the related asset. Accretion, reflecting the increases in the ARO liability due to the passage of time is recognized as part of operating expenses within the consolidated statements of operations and comprehensive income (loss) (Note 6).

**Leases**

The Company assesses whether a contract is or contains a lease, at the inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognizes a right-of-use ("ROU") asset and a corresponding lease liability with respect to lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less). For such short-term leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. The Company also made the accounting policy election to not separate lease and non-lease components for its real estate leases.

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The lease liability is initially measured at the present value of the unpaid lease payments at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. Subsequently, the lease liability is measured using the effective interest method, by increasing the carrying amount to reflect accretion on the lease liability and by reducing the carrying amount to reflect the lease payments made.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received.

For operating leases, the Company records the amortization of the ROU assets and the accretion of the lease liabilities as a single lease cost on a straight-line basis over the lease term.

The measurement of the lease liabilities and ROU assets requires the use of judgment and estimates which are applied in determining whether an arrangement contains a lease, determining the lease term, appropriate discount rate, and whether there are any indicators of impairment for ROU assets.

**Revenue from Contracts with Customers**

The Company enters into contracts with customers to sell its oil, natural gas and natural gas liquids. Revenue from these contracts is recognized when the Company's performance obligations are satisfied, which generally occurs with the transfer of the control to the customer, and when collectability is reasonably assured. The transfer of control usually occurs when the product is physically transferred at the delivery point agreed upon in the contract and legal title to the product passes to the customer (often at terminals, pipelines, or other transportation methods). The Company evaluates creditworthiness on an individual customer basis prior to entering into a sales contract and throughout the contract duration (Note 18).

The sales contracts range from short term to long term contracts that are variable-priced and based on actual quantities delivered each period. The transaction price includes variable consideration as product pricing is based on published market prices and adjusted for contract specified differentials such as quality, energy content and transportation. Determining the variable consideration does not require significant judgment and the Company engages third party sources to validate the estimates.

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical expedient in accordance with ASC 606 – Revenue from Contracts with Customers ("ASC 606"). The expedient applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

The Company evaluates its arrangements with third parties and partners to determine if the Company acts as the principal or as an agent. In making this evaluation, the Company considers if it obtains control of the product delivered or services provided, which is indicated by the Company having the primary responsibility for the delivery of the product or rendering of the service, having the ability to establish prices or having inventory risk.

If the Company acts in the capacity of an agent rather than as a principal in a transaction, then the revenue is recognized on a net-basis.

Revenue is recognized net of royalties due to third parties in an amount that reflects the consideration the Company expects to receive in exchange for those products.

**Share Based Compensation**

The Company grants share purchase options, which are classified as equity settled awards. The fair value of each option granted by the Company are estimated using the Black-Scholes option pricing model and are recognized into general and administrative expense over the vesting period of the options.

The Company has also issued restricted share units ("RSUs") and deferred share units ("DSUs") which are both accounted for as equity classified awards. The Company's RSUs and DSUs grants are valued using the intrinsic value method, utilizing the closing share price on the day before the grant and are recognized into general and administrative expense over the vesting period for each grant (Note 12).

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In all cases for these awards, the Company estimates forfeitures and updates this estimate over the vesting period of the awards.

**Income Taxes**

Income tax expense comprises current and deferred tax. The expense is recognized in net income (loss) except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income (loss).

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Each reporting period, the Company reviews its deferred tax assets for the possibility they will not be realized. A valuation allowance will be recorded if it is more likely than not that a deferred tax asset will not be realized.

The benefits of uncertain tax positions that the company has taken or expects to take in its income tax returns are recognized in the financial statements if management concludes that it is more likely than not that the position will be sustained with the tax authorities. Significant judgment is required in the accounting for income tax contingencies and tax disputes because the outcomes are often difficult to predict. The Company did not have any uncertain tax positions during the periods presented in these financial statements.

Interest and penalties are recognized in finance expense and income tax expense, respectively. For the fiscal years ended December 31, 2022 and 2021, the Company did not incur interest and penalties related to income taxes.

**Non-Controlling Interests**

Non-controlling interests ("NCI") represent ownership interest in consolidated subsidiaries which are not owned, directly or indirectly, by the Company. The portion of equity not owned by the Company in such entities is reflected as NCI within the equity section of the consolidated balance sheets, and the share of income/(loss) attributable to NCI is shown as a component of net income/(loss) in the consolidated statements of operations and comprehensive income (loss). Changes to the parent company's ownership that do not result in a loss of control are accounted for as equity transactions.

**Redeemable Non-controlling Interests** 

Non-controlling interests with redemption features that are not solely within the control of the Company are considered redeemable non-controlling interests. The Company's redeemable non-controlling interests ("Redeemable NCI") reflects the development partnership units that are not held by the Company either directly or indirectly, and which contain certain redemption rights, as described in Note 9.

The Redeemable NCI is classified in temporary equity that is reported between liabilities and shareholders' deficiency on the consolidated balance sheets and is initially recognized at its issuance date fair value. Subsequently, the Redeemable NCI is adjusted each reporting period for the net income (or loss) attributable to the Redeemable NCI interests. Further measurement adjustments are made to adjust the Redeemable NCI to the higher of the redemption value or the carrying value each reporting period.

The measurement adjustments to the redemption value are recognized through accumulated deficit and are reflected in the attribution of net income (loss) between the NCI holders, the common shareholders of the Company and the Redeemable NCI holders, such that an increase in the redemption value over the carrying value would increase the net income attributed to the Redeemable NCI.

The redemption value is calculated based on future net present values of the oil and gas reserves of the related development partnership, subject to a fixed discount rate.

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**Adoption of New Accounting Standards**

Accounting Standards Update ("ASU") 2019-12, *Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes* was issued in December 2019. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance. The Company adopted ASU 2019-12 effective January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company's operating results, financial position or disclosures.

ASU 2020-06, *Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity* was issued in August 2020. The update simplifies the accounting for certain financial instruments with both liability and equity characteristics and is effective for smaller reporting companies for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company early adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have a material impact on the Company's operating results, financial position or disclosures.

ASU 2020-04, *Reference Rate Reform (Topic 848)*, was issued in March 2020 in response to the risk of cessation of the London Interbank Offered Rate (LIBOR). This amendment provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging arrangements, and other transactions that reference LIBOR. ASU 2020-04 was effective upon issuance for all entities and through December 31, 2022. In December 2022, the FASB issued ASU 2022-06 *- Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848* which is effective on issuance and defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The adoption of ASU 2022-06 did not have a material impact on the Company's operating results, financial position or disclosures.

**Future Accounting Standard Changes**

ASU 2021-08 *- Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers*, was issued in October 2021. The update, which can be adopted retrospectively or prospectively, requires the application of Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2022. The Company expects to adopt this ASU prospectively for future business combinations, with no impact at the time of adoption.

The Company considers the applicability and the impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable, the effects of adoption are not expected to be material or are clarifications of ASUs previously disclosed.

**3. ACCOUNTS RECEIVABLE, NET**

The accounts receivable, net balances consist of:

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| | | |
|:---|:---|:---|
| December 31, | **2022** | 2021 |
| Trade receivables from sales of crude oil and natural gas | $**24097294** | $18110135 |
| Joint interest billing receivables and other | **2368914** | 687500 |
| Accounts receivable, net | $**26466208** | $18797635 |

---

The Company has not had significant credit losses in the past and believes its accounts receivables are fully collectible. As such, no allowance for expected losses has been made as of December 31, 2022 and 2021, and no bad debt expense was recognized in the years presented in these financial statements.

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**4. OIL AND NATURAL GAS PROPERTIES**

The property, plant and equipment, net balances consist of:

---

| | | |
|:---|:---|:---|
| December 31, | **2022** | 2021 |
| Oil and natural gas properties: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evaluated (subject to depletion) | $**347541801** | $110155103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unproved and unevaluated (not subject to depletion) | **42866767** | 24987312 |
| Total oil and gas properties | **390408568** | 135142415 |
| Accumulated depreciation, depletion, and amortization | **(87993495)** | (25911025) |
| **Oil and gas properties, net** | $**302415073** | $109231390 |

---

The Company recognized depletion and depreciation of $62,082,471 during the year ended December 31, 2022 (December 31, 2021 - $23,497,715). The depletion per barrel of oil equivalent ("BOE") produced was an average of $16.18 for the year ended December 31, 2022 (December 31, 2021 - $15.66).

The unproved and unevaluated property costs not subject to depletion as of December 31, 2022 and the year in which these costs were incurred, are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Description | 2022 | 2021 | 2020 | 2019 and<br>prior | Total |
| Costs incurred for: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property acquisition | $2244517.0 | $4300745 | $- | $1243615 | $7788877 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exploration | 1635842.0 | 1222509 |  |  | 2858351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Development | 32219539.0 |  |  |  | 32219539 |
| Total unproved and unevaluated (not subject to depletion) | $36099898.0 | $5523254 | $- | $1243615 | $42866767 |

---

Property acquisition costs are costs incurred to purchase, lease or otherwise acquire oil and natural gas properties, but may also include broker and legal expenses, geological and geophysical expenses and capitalized internal costs associated with developing oil and natural gas prospects on these properties.

Property acquisition costs incurred that remain in unproved and unevaluated property as at December 31, 2022 are mainly related to the Company's in progress development of wells in both the Giddings and the Hawkville fields. The Company believes that the majority of these unproved costs will become subject to depletion within the next two to three years by proving up reserves relating to the acreage through exploration and development activities, by impairing the acreage that will expire before the Company can explore or develop it further or by determining that further exploration and development activity will not occur.

Costs excluded from depletion also include those costs associated with exploration and development wells in progress or awaiting completion at year-end. These costs are transferred into the depletion base on an ongoing basis as these wells are completed and proved reserves are established or confirmed. The Company anticipates that the majority of the costs associated with these wells in progress at December 31, 2022 will be transferred to the amortization base during 2023. Unproved and unevaluated property costs for exploration and development wells incurred in years prior to 2022 are costs related to the advanced preparation for wells that the Company intends to drill in the future.

**5. LEASES**

The Company's leases consist of leases for office space, which are classified as operating leases.

The Company incurred total operating lease costs of $137,782 during the year ended December 31, 2022 (December 31, 2021 - $74,101), and total variable lease costs of $77,705 during the year ended December 31, 2022 (December 31, 2021 - $1,069). These costs are included within general and administrative expenses on the consolidated statements of operations and comprehensive income (loss).

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The cash paid for amounts included in the measurement of lease liabilities were $144,539 during the year ended December 31, 2022 (December 31, 2021 - $nil). This amount is included in operating activities in the consolidated statements of cash flows.

As at December 31, 2022, the operating lease liabilities are expected to mature as follows:

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| | |
|:---|:---|
|  | Operating Leases |
| 2023 | $234092 |
| 2024 | 237524 |
| 2025 | 181363 |
| Total undiscounted lease payments | 652979 |
| Less: effect of discounting | (41088) |
| **Total lease liability** | $**611891** |

---

The Company has also entered into an agreement for the lease of new office space, which has not commenced as at December 31, 2022, and has thereby not yet been recognized. The lease is expected to commence in the fall of 2023. The initial non-cancellable term of this lease is for 10 years, with the undiscounted lease payments over the non-cancellable term equal to $2,226,432, plus variable lease costs for operating costs.

**6. ASSET RETIREMENT OBLIGATIONS**

---

| | | |
|:---|:---|:---|
|  | **2022** | 2021 |
| Balance as at January 1 | $**431704** | $219937 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities incurred and acquired | **89636** | 121553 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liabilities settled | **(127862)** | (29913) |
| &nbsp;&nbsp;&nbsp;&nbsp;Revision of estimates | **20844** | 95918 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion expense | **43756** | 24209 |
| **Balance as at December 31** | $**458078** | $431704 |

---

The total future AROs were estimated based on the Company's net ownership interest in petroleum and natural gas assets including well sites, the estimated costs to abandon and reclaim the petroleum and natural gas assets and the estimated timing of the costs to be incurred in future periods.

As at December 31, 2022, the Company estimated the total undiscounted amount of cash flows required to settle its ARO to be approximately $2,634,225 (December 31, 2021 – $1,340,178) which will be incurred between 2023 and 2054. As at December 31, 2022, a weighted average credit-adjusted risk-free interest rate of 10.32% (December 31, 2021 – 9.73%) and an inflation rate of 2.28% (December 31, 2021 – 2.42%) were used to calculate the ARO.

The Company has no assets that are legally restricted for purposes of settling AROs.

**7. DEBT**

*Asset Backed Securitization Facility*

In 2022, the Company entered into an asset backed securitization of certain producing oil and gas wells (the "ABS Facility"). The ABS Facility is led by an insurance company, and all borrowings under the ABS Facility are secured by working interests in a subset of the Company's producing assets, which are held by a subsidiary of its operating subsidiary, Origination.

The ABS Facility consists of the following tranches:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On April 27, 2022 the ABS Facility had an initial size of $80,000,000 ("Tranche 1") with additional capacity to expand up to $150,000,000 in total based on the underlying collateral. Tranche 1 of the ABS Facility carries an interest rate of LIBOR+6% (with a 1% LIBOR floor) for the initial year, LIBOR +12% (with a 1% LIBOR floor) for the second year. Tranche 1 has an initial maturity date of one year, with the Company having the option to extend an additional year to an ultimate maturity date of April 2024. Interest payments are required monthly.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On September 12, 2022 the ABS Facility was increased by $55,000,000 ("Tranche 2"), to a total size of $135,000,000. Tranche 2 of the ABS Facility carries an interest rate of LIBOR+8% (with a 1% LIBOR floor) for the initial year, LIBOR +14% (with a 1% LIBOR floor) for the second year. Tranche 2 has an initial maturity date of one year, with the Company having the option to extend an additional year to an ultimate maturity date of September 2024. Interest payments are required monthly.

The Company's subsidiaries have certain financial covenants under the ABS Facility, including maintaining a debt service coverage ratio of no less that 1.1 to 1.0.

Under the terms of the ABS Facility, the Company is also required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As of the initial borrowing date, enter into certain forward commodity swap contracts included in Note 18 which it has done.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Maintain an interest reserve account that will hold a cash balance sufficient to cover three months of scheduled interest payments (Note 2 - restricted cash).

Repayments of the undiscounted principal required under the ABS Facility for each year noted are as follows:

---

| | |
|:---|:---|
| 2023 | $61630567 |
| 2024 | 48352110 |
| 2025 and thereafter |  |
| **Total** | $109982677 |

---

In addition to the required principal repayments outlined above, the Company's subsidiaries could also be required to make additional payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the debt service coverage ratio is less than 1.20 to 1.00, the Company must make an additional principal prepayment equal to net income/(loss) adjusted for all non-cash charges, plus/(minus) working capital not including the current portion of debt under this facility and other adjustments required under the terms of the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the production tracking ratio is less than 80%, the Company must make an additional principal prepayment equal to net income/(loss) adjusted for all non-cash charges, plus/(minus) working capital not including the current portion of debt under this facility and other adjustments required under the terms of the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the loan to value is above 85%, the Company must make an additional principal prepayment equal to net income/(loss) adjusted for all non-cash charges, plus/(minus) working capital not including the current portion of debt under this facility and other adjustments required under the terms of the agreement.

At December 31, 2022, the Company was not subject to any other additional principal prepayments.

The carrying value of the outstanding loan balances is composed of:

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| | | | |
|:---|:---|:---|:---|
| **December 31, 2022** | Current | Long-term | **Total (net)** |
| Principal drawn | $61630567 | $48352110 | $**109982677** |
| Unamortized discount and interest at the imputed rate | 680615 | 842926 | **1523541** |
| Unamortized debt issuance costs | (2084263) | (516328) | **(2600591)** |
| **Total (net)** | $60226919 | $48678708 | $**108905627** |

---

As the ABS Facility is an increasing rate debt, finance expense is recognized based on the imputed effective interest rate of 12.2% and 13.6% for Tranche 1 and 2 over the expected two-year term of each tranche, respectively, plus the LIBOR interest rate component. As a result, interest expense recognized in the first year of each tranche will exceed interest paid, and effectively result in an interest accrual, shown as unamortized discount and interest at the imputed rate above. For the year ended December 31, 2022, the Company incurred $8,968,929 of finance expense (December 31, 2021 - $nil), and interest paid on the ABS Facility was $5,808,996.

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*Goldman Facility*

On December 22, 2020, the Company entered into a credit facility with Goldman Sachs (the "Goldman Facility"). All borrowings under the Goldman Facility were secured by the Company's oil and gas producing wells and the assets of three of the Company's subsidiaries. The Goldman Facility carried an interest rate of LIBOR+6% (with a 1% LIBOR floor) and had a maturity date of December 2031. Interest payments were required quarterly.

In April 2022, in connection with the ABS Facility, the Company repaid the Goldman Facility in full and amortized the remaining unamortized borrowing costs.

The outstanding balances under this facility were as follows:

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| | | | |
|:---|:---|:---|:---|
| <br>**December 31, 2022** | Current | Long-term | **Total (net)** |
| Principal drawn |  |  |  |
| Unamortized discount and debt issuance costs |  |  |  |
| **Total (net)** |  |  |  |
| <br>**December 31, 2021** | Current | Long-term | **Total (net)** |
| Principal drawn | $7722206 | $17515203 | $25237409 |
| Unamortized discount and debt issuance costs | (662372) | (1375896) | (2038268) |
| **Total (net)** | $7059834 | $16139307 | $23199141 |

---

For the year ended December 31, 2022, the Company incurred $2,420,486 of finance expense related to the facility (December 31, 2021 - $3,612,927).

*Corporate Credit Facility*

In October 2021, the Company's operating subsidiary Origination closed on a corporate credit facility (the "Corporate Credit Facility"). The Corporate Credit Facility had a maximum borrowing capacity of $12,500,000, subject to quarterly borrowing base determinations by the lender. The loan charged interest at prime +2.25% and had a one-year maturity. A subset of certain Company working interests in producing assets were secured in connection with the Corporate Credit Facility.

During the first quarter of 2022, Origination closed a new Corporate Credit Facility to replace the previous facility. The new Corporate Credit Facility had a maximum borrowing capacity of $30,000,000, which was subsequently increased in October 2022 to $65,000,000, subject to quarterly borrowing base determinations by the lender. The Corporate Credit Facility is secured by working interests in a subset of the Company's producing assets and charges interest at the greater of 5.00% and prime +1.75% and has a one-year maturity.

As of December 31, 2022, the Company had drawn $41,500,000 under the Corporate Credit Facility (December 31, 2021 - $2,200,000), and for the year ended December 31, 2022, incurred $1,736,868 of interest expense related to the facility (December 31, 2021 - $nil). The borrowing base as of December 31, 2022 was $64,435,764 (December 31, 2021- $6,579,750).

**8. OTHER DEBT INSTRUMENTS**

*Asset Backed Preferred Instruments*

On March 5, 2021, Origination executed an Origination Member Units buy-back structure, in which a member exchanged 100% of their holdings (3,992,629 Origination Member Units representing approximately 23.4% of the outstanding Origination Member Units at the time) along with a $1,000,000 promissory note for 23,500,000 mandatorily redeemable units in a newly created limited partnership controlled by Origination (the "LP Units"). The redemption terms of these LP Units required:

* 6,670,000 of the LP Units were required to be redeemed at the following prices per unit, depending on when the redemption was made: before May 1, 2021 at $0.71 per LP Unit, or thereafter but before June 1, 2021 at $0.8809 per LP Unit, or thereafter but before September 1, 2021 at $1.00 per LP Unit. If not paid by September 1, 2021, the LP Units would be considered in default.

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* The remaining 16,830,000 LP Units were required to be redeemed at $1.00 per LP Unit by March 5, 2024. If not redeemed by that date, the redemption price would increase to $1.35 per LP Unit and the Company would be considered to be in default.

While outstanding, all LP Units earned a fixed rate of return of 12% per annum, which increased to 17% in any event of default.

The LP Units were determined to be mandatorily redeemable instruments, classified as a liability, initially measured at fair value and subsequently at amortized cost.

As a result of the buy-back, the Company recorded a reduction to Origination Member Units of $8,680,786 (weighted average issue price of $21.7/unit) a reduction in promissory note liability of $1,000,000, a liability for the LP Units at an initial fair value of $21,565,702 and a reduction to accumulated deficit of $11,884,916. The fair value of the LP Units was determined by discounting the expected cash flows related to the instrument at the market-based rate of 12% per annum at that time.

In the second quarter of 2021, the Company redeemed 6,670,000 LP Units at $0.71 per LP Unit for a total amount of $4,735,700. In 2022, the Company redeemed the remaining LP Units for $16,830,000, plus accrued interest of $2,515,398, using the proceeds from the ABS Facility (Note 7).

For the year ended December 31, 2022, the Company recorded finance expense related to the outstanding LP Units in the amount $658,047 (December 31, 2021 - $1,857,351).

*Promissory and Convertible Promissory Notes*

The Company did not have promissory and convertible promissory notes outstanding during the year ended December 31, 2022.

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| | |
|:---|:---|
|  | 2021 |
| Balance as at January 1 – $| 5425000 |
| Issued for cash – | 3375000 |
| Converted to Origination Member Units – | (3475000) |
| Converted to LP Units – | (1000000) |
| Repayment of notes – | (2025000) |
| Converted to Origination Member Units – | (2300000) |
| Balance as at December 31 – |  |

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During the year ended December 31, 2021, Origination issued $3,375,000 in promissory and convertible promissory notes for cash, some of which were held by officers of the Company.

The outstanding promissory notes were settled as follows in the year ended December 31, 2021:

* $3,475,000 in promissory notes were settled via the issuance of 353,870 Origination Member Units, and $1,000,000 in promissory notes was exchanged and settled as part of the receipt of LP Units, in connection with the Asset Backed Preferred Instrument.

* $1,755,000 in promissory notes was paid in cash, and $270,000 in promissory notes was offset with agreed upon overhead expenses paid by the Company on behalf of the note holders, which was shown as a reduction of general and administrative expenses.

* $2,300,000 of the convertible promissory notes were converted into 234,216 Origination Member Units.

For the year ended December 31, 2022, the Company recorded finance expense related to the promissory and convertible promissory notes in the amount of $nil (December 31, 2021 - $300,685).

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**9. REDEEMABLE NON-CONTROLLING INTERESTS**

The following table outlines the movement in redeemable non-controlling interests in the years presented.

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| | | |
|:---|:---|:---|
|  | **2022** | 2021 |
| Balance as at January 1 | $**46552839** | $- |
| Redeemable non-controlling interests issued | **154456707** | 55138395 |
| Net loss and comprehensive loss attributed | **10598514** | 12851005 |
| Revaluation to redemption value, net | **23197507** | 240903 |
| Distributions | **(3340254)** | (6388870) |
| Settlement | **(123881576)** | (15288594) |
| **Balance as at December 31** | $**107583737** | $46552839 |

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The Company has established the Development Partnerships as a mechanism to partially finance its development projects and activities. The redeemable non-controlling interest reflects the development partnership units that are not held by the Company either directly or indirectly. These external units consist of: (a) the Flat Payout Units, and (b) the IRR Payout Units.

The Flat Payout Units and the IRR Payout Units are entitled to 75% of the distributions of the related development partnership, until the "Base Payout" amount is received. The Base Payout is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the Flat Payout Units - an amount equal to the invested capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the IRR Payout Units - an amount equal to the greater of (i) the invested capital plus a 15% annualized return and (ii) 120% of the initial investment.

After the Base Payout has been achieved, the participation in subsequent distribution will reduce to 20% of the Flat Payout Units held and 6% of the IRR Payout Units held. At that time, the unit holders also have the right to redeem (the "Put Right") the units for either (i) Class B non-voting units of Origination (which are exchangeable on a one-for-one basis for SVS shares of the Company), or (ii) cash, subject to certain restrictions, and with the number of shares or cash to be distributed to be calculated based on future net present values of the oil and gas reserves of the related development partnership.

*Development Partnership 1 ("DP1")*

During the first quarter of 2021, the Company formed DP1 with 13 external limited partners and Origination as a limited partner and the general partner. The intention of the DP1 was to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company raised $13,140,240 from external limited partners of which $1,366,709 was raised from officers and directors of the Company at that time. Investors participated $3,252,132 in Flat Payout Units and $9,888,108 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $nil to external partners (2021 - $1,853,127).

On October 7, 2021, on completion of the DP1 program, the Company liquidated DP1 and redeemed the associated redeemable non-controlling interests with a redemption value of $15,288,594. As part of this redemption, DP1 units with a redemption value of $1,192,893 were exchanged for 339,372 Class B non-voting units of Origination via the Put Right.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP1 was $nil (December 31, 2021 - $15,288,594).

*Development Partnership 2 ("DP2")*

During the third quarter of 2021, the Company formed DP2 with 25 external limited partners and Origination as a limited partner and the general partner. The intention of the DP2 was to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company raised $20,815,329 from external limited partners of which $1,724,967 was raised from officers and directors of the Company at that time. Investors participated $7,390,362 in Flat Payout Units and $13,424,967 in IRR Payout Units.

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During the year ended December 31, 2021, the Company distributed $4,535,743 to external partners.

In January 2022, on completion of the DP2 program, the Company liquidated DP2 and redeemed the associated redeemable non-controlling interests with a redemption value of $23,511,818. As part of this redemption, DP2 units with a redemption value of (a) $3,159,695 were exchanged for 826,063 Class B non-voting units of Origination via the Put Right, and (b) $84,300 retained the ongoing rights of working interest in the DP2 wells and as a result, the fair value of the units was settled with a disposition from PP&E, reflecting the disposition of the associated working interest.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP2 was $nil (December 31, 2021 - redemption value of $23,511,818 and carrying value of $25,370,013, respectively).

*Development Partnership 3 ("DP3")*

During the fourth quarter of 2021, the Company formed DP3 with 23 external limited partners and Origination as a limited partner and the general partner. The intention of the DP3 was to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company raised $21,182,826 from external limited partners of which $4,032,672 was raised from officers and directors of the Company. Investors participated $10,413,322 in Flat Payout Units and $10,769,504 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $nil to external partners (2021 - $nil).

In April 2022, on completion of the DP3 program, the Company liquidated DP3 and redeemed the associated redeemable non-controlling interests with a redemption value of $30,171,337. As part of this redemption, DP3 units with a redemption value of $5,102,229 were exchanged for 894,929 Class B non-voting units of Origination via the Put Right.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP3 was $nil (December 31, 2021 - $21,182,826).

*Development Partnership 4 ("DP4")*

During the first quarter of 2022, the Company formed DP4 with 29 external limited partners and Origination as a limited partner and the general partner. The intention of DP4 was to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $25,225,079 from external limited partners of which $1,484,256 was raised from officers and directors of the Company. Investors participated $11,638,948 in Flat Payout Units and $13,586,130 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $2,747,270 to external partners.

In July 2022, on completion of the DP4 program, the Company liquidated DP4 and redeemed the associated redeemable non-controlling interests with a redemption value of $31,734,290. As part of this redemption, DP4 units with a redemption value of (a) $4,135,797 were exchanged for 706,975 Class B non-voting units of Origination via the Put Right, and (b) $291,599 retained the ongoing rights of working interest in the DP4 wells and as a result, the fair value of the units was settled with a disposition from PP&E, reflecting the disposition of the associated working interest.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP4 was $nil (December 31, 2021 - $nil).

*Development Partnership Red Dawn 1 ("Red Dawn 1")*

During the first quarter of 2022, the Company formed Red Dawn 1 with 37 external limited partners and Origination as a limited partner and the general partner. The intention of Red Dawn 1 is to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $30,269,097 from external limited partners of which $773,836 was raised from officers and directors of the Company. Investors participated $16,692,200 in Flat Payout Units and $13,576,895 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $nil to external partners.

In November 2022, on completion of the Red Dawn 1 program, the Company liquidated Red Dawn 1 and redeemed the associated redeemable non-controlling interests with a redemption value of $38,464,144. As part of this redemption, Red Dawn 1 units with a redemption value of (a) $3,184,247 were exchanged for 617,103 Class B non-voting units of Origination via the Put Right, and (b) $166,684 retained the ongoing rights of working interest in the Red Dawn 1 wells and as a result, the fair value of the units was settled with a disposition from PP&E, reflecting the disposition of the associated working interest.

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As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in Red Dawn 1 was $nil (December 31, 2021 - $nil).

*Development Partnership 5 ("DP5")*

During the second quarter of 2022, the Company formed DP5 with 25 external limited partners and Origination as a limited partner and the general partner. The intention of DP5 is to partially finance the drilling and completion of six wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $30,171,345 from external limited partners of which $4,308,462 was raised from officers and directors of the Company. Investors participated $19,657,921 in Flat Payout Units and $10,513,413 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $450,668 to external partners.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP5 was $36,354,869 (December 31, 2021 - $nil).

*Development Partnership 6 ("DP6")*

During the third quarter of 2022, the Company formed DP6 with 38 external limited partners and Origination as a limited partner and the general partner. The intention of DP6 is to partially finance the drilling and completion of ten wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $34,157,892 from external limited partners of which $2,215,096 was raised from officers and directors of the Company. Investors participated $21,176,246 in Flat Payout Units and $12,981,645 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $142,316 to external partners.

As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in DP6 was $36,595,572 (December 31, 2021 - $nil).

*Development Partnership Red Dawn II ("Red Dawn 2")*

During the fourth quarter of 2022, the Company formed Red Dawn 2 with 36 external limited partners and Origination as a limited partner and the general partner. The intention of Red Dawn 2 is to partially finance the drilling and completion of five wells, with the external partners funding approximately 60% and the Company funding 40%. The Company has raised $34,633,295 from external limited partners of which $872,944 was raised from officers and directors of the Company. Investors participated $20,645,955 in Flat Payout Units and $13,987,340 in IRR Payout Units.

During the year ended December 31, 2022, the Company distributed $nil to external partners.

The Red Dawn 2 program has not been completed as at December 31, 2022. As at December 31, 2022 both the redemption value and carrying value of the Redeemable NCI in Red Dawn 2 was $34,633,295 (December 31, 2021 - $nil).

**10. NON-CONTROLLING INTERESTS**

The NCI reflects the Class B non-voting units of Origination that are not held by the Company either directly or indirectly. There are 19,552,864 outstanding Class B non-voting units of Origination held by external holders, reflecting a 35.967% economic interest in Origination as of December 31, 2022 (December 31, 2021 - 32.954%).

------

*2022 Activities*

In 2022, the following development partnership units were exchanged for Class B non-voting units of Origination (Note 9), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. DP2: 826,063 Class B non-voting units of Origination were issued, with a value of $3,159,695.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. DP3: 894,929 Class B non-voting units of Origination were issued, with a value of $5,102,229.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. DP4: 706,975 Class B non-voting units of Origination were issued, with a value of $4,135,797.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Red Dawn 1: 617,103 Class B non-voting units of Origination were issued, with a value of $3,184,247.

The issuance of these Class B units is reflected as a reduction to Redeemable NCI for the value at which these units were issued, an increase to NCI for the change in the Company's share in Origination's net assets, and an increase to additional paid-in capital for the difference.

During the year ended December 31, 2022, Origination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Repurchased and cancelled 799,600 of its Class A units, held by the Company, to match the number of SVS cancelled by the Company (Note 11).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Issued 2,024,401 of its Class A units to the Company, to match the number of SVS issued by the Company in connection with the settlement of certain RSUs (Note 12).

The change in these Class A units resulted in a change to the NCI ownership, triggering an adjustment to the carrying value of NCI, with a corresponding offset to additional paid-in capital.

Origination declared and paid dividends to its Class B non-voting units of Origination totaling $6,552,683, for the year ended December 31, 2022, resulting in a decrease of non-controlling interest.

*2021 Activities*

On closing the BCA, Origination's consolidated book value of net liabilities was $35,344,612, which results in an opening NCI balance of $11,486,999. This NCI balance along with the weighted average stated capital of the equity interests surrendered by the NCI holder of $18,721,276, for a total of $30,208,275, has been credited to additional paid in-capital.

In October 2021, development partnership units of DP1 were exchanged for 339,372 Class B non-voting units of Origination at a value of $1,192,893 (Note 9), reflecting a reduction to Redeemable NCI for the value at which these units were issued, an increase to NCI for the change in the Company's share in Origination's net assets, and an increase to additional paid-in capital for the difference

**11. EQUITY**

*Authorized Share capital*

The Company is authorized to issue an unlimited number of SVS, MVS, and PVS, with no par value. Subject to certain restrictions set out in the Company's articles, each SVS is entitled to one vote per share, each MVS is convertible, at the option of the holder, into 100 SVS and entitles the holder to 100 votes per share and each PVS is convertible into one SVS and entitles the holder to 1,000 votes per share. Each PVS will automatically convert to one SVS upon the holder's equity interest in Origination reducing to less than 75% of the interest held on the date of the closing of the BCA.

------

The following table summarizes the movements in the Company's common shares:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Origination Member Units | Origination Member Units | SVS Shares | SVS Shares | MVS Shares | MVS Shares | PVS Shares | PVS Shares | **Total Share** <br>**Capital** |
|  | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount |  |
| Balance as at January 1, 2021 | 17083501 | $37097376 |  | $- |  | $- |  | $- | $**37097376** |
| Issuance of member units for cash | 819215 | 8044700 |  |  |  |  |  |  | **8044700** |
| Issuance of member units exchanged for notes | 353870 | 3475000 |  |  |  |  |  |  | **3475000** |
| Issuance of member units for oil and gas properties | 356415 | 3499995 |  |  |  |  |  |  | **3499995** |
| Issuance of member units to contractors | 923954 | 9073228 |  |  |  |  |  |  | **9073228** |
| Redemption of member units | (3992629) | (8680786) |  |  |  |  |  |  | **(8680786)** |
| Issuance of member units exchanged for notes | 234216 | 2300000 |  |  |  |  |  |  | **2300000** |
| Origination Member Units split 1:3 | 31557084 |  |  |  |  |  |  |  | **-** |
| Allocation of opening non-controlling interest | (16168422) | (18721276) |  |  |  |  |  |  | **(18721276)** |
| Exchange of units for SVS and MVS | (31167204) | (36088237) | 1427421 | 1652798 | 297398 | 34435439 |  |  | **-** |
| Shares issued for cash, net of share issuance costs of $247,218 |  |  | 161976 | 476978 | 17057 | 5022854 |  |  | **5499832** |
| PVS issued for cash |  |  |  |  |  |  | 15947 | 128213 | **128213** |
| Shares issued on reverse recapitalization |  |  | 534384 | 1697865 |  |  |  |  | **1697865** |
| Conversion of MVS to SVS |  |  | 30411950 | 38161379 | (304120) | (38161379) |  |  | **-** |
| **Balance as at December 31, 2021** | **-** | $**-** | **32535731** | $**41989020** | **10335** | $**1296914** | **15947** | $**128213** | $**43414147** |
| Exchange of units for SVS and MVS |  |  | 195541 | 245368 | (1955) | (245368) |  |  | **-** |
| Settlement of RSUs |  |  | 2024401 | 9685555 |  |  |  |  | **9685555** |
| Repurchase of SVS for cancellation |  |  | (799600) | (4324915) |  |  |  |  | **(4324915)** |
| **Balance as at December 31, 2022** | **-** | $**-** | **33956073** | $**47595028** | **8380** | $**1051546** | **15947** | $**128213** | $**48774787** |

---

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*2022 Activity* 

On June 10, 2022, the TSX Venture Exchange ("TSXV") approved the Company's normal course issuer bid ("NCIB"). Under the NCIB, the Company may purchase, for cancellation, up to 1,648,783 SVS of the Company (representing approximately 5% of its issued and outstanding SVS as of June 6, 2022) over a 12-month period commencing on June 10, 2022. The NCIB will expire no later than June 9, 2023.

On September 27, 2022, the TSXV approved an amendment to the Company's NCIB, which permits the Company to enter into an automatic share purchase plan ("ASPP") to facilitate the purchase of SVS under the NCIB during times when the Company would not ordinarily be permitted to purchase such shares due to regulatory restrictions of self-imposed black-out periods.

In connection with the NCIB, during 2022 the Company purchased and cancelled 799,600 SVS at an average price of $5.41/share for an aggregate value of $4,324,915, and as at December 31, 2022, recorded a liability of $4,670,507, representing the contractual maximum share purchases remaining under the ASPP at an amended maximum purchase price of $5.50 per share.

During 2022, 1,955 MVS were converted into 195,541 SVS on a 100 to 1 basis, and 2,024,401 SVS were issued as a result of settling certain RSUs (Note 12).

Previously recorded stock-based compensation of $9,685,555 has been removed from additional paid-in capital and has been reclassified to share capital to reflect the impact of settlement (Note 12).

*2021 Activity*

During the year ended December 31, 2021, the Company issued 819,215 Origination Member Units for aggregate cash of $8,044,700 ($9.82/unit) and issued 353,870 Origination Member Units in exchange for the retirement of $3,475,000 in promissory notes ($9.82/unit).

The Company entered into an agreement, with a third party, to acquire 16,201 net acres in the Eagle Ford formation, located in the Austin, Fayette, Lee and Washington counties of Texas. In exchange for the acreage, the Company issued 203,666 Origination Member Units valued at $2,000,000 ($9.82/unit).

In addition, the Company issued 152,749 Origination Member Units, valued at $1,499,995 ($9.82/unit) in exchange for an approximately 630 net mineral acreage in Washington County, Texas.

In May of 2021, the Company issued 923,954 Origination Member Units to officers and consultants of the Company for services at an estimated value of $9.82 per Origination Member Unit for total consideration of $9,073,228 in connection with the listing application.

On July 2, 2021, the Company exercised its option to convert all the existing convertible promissory notes with a principal of $2,300,000 into 234,216 Origination Member Units ($9.82/unit) effective as of July 7, 2021.

During the year ended December 31, 2021, 304,120 MVS shares were converted into 30,411,950 SVS.

*Dividends*

The Company implemented a dividend distribution policy, starting January 2022, where monthly dividends of $0.03 per SVS and PVS and $3.00 per MVS were declared each month, with aggregate dividends declared and paid in 2022 of $12,416,759 (2021 - $nil). There are no restrictions that limit the payment of dividends by the Company.

The total dividends declared and paid during the year ended December 31, 2022 by class of shares was $12,092,734, $318,284, and $5,741 for shares of SVS, MVS, and PVS, respectively (2021 - $nil).

**12. SHARE BASED COMPENSATION**

The Company has granted share-based compensation consisting of share purchase options and restricted share units ("RSUs") under the terms of the 2021 Stock and Incentive Plan, which was approved by shareholders in May 2021 and adopted by the Board in September 2021. The options and RSUs have been granted with time-based vesting provisions over a period of 0 to 3 years. Vested RSUs will settle in Subordinate Voting Shares on a one-to-one basis as soon as practicable following the vesting date, and vested options will settle in Subordinate Voting Shares on a one-to-one basis as soon as practicable following the exercise date.

------

Additionally, the Company awarded deferred share units ("DSUs") to directors as compensation for service under the terms of the Deferred Share Unit Plan, which was approved by shareholders in May 2021 and adopted by the Board in September 2021. The initial tranche of DSUs vested on June 1, 2022, and subsequent awards vest twelve months following the date of grant. Vested DSUs will settle in Subordinate Voting Shares on a one-to-one basis as soon as practicable following the termination of service of an eligible director.

Compensation expense for share-based awards was $10,197,720 during year ended December 31, 2022 (December 31, 2021 - $5,405,548). These amounts are included in general and administrative expense in the consolidated statements of operations and comprehensive income (loss). The activity and assumptions for the share-based compensation plans are included below.

*Share Purchase Options*

The options outstanding under this plan are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Stock options<br>outstanding** | **Weighted-<br>average<br>exercise price** | **Weighted<br>average<br>remaining<br>contractual term<br>(years)** | **Aggregate<br>Intrinsic Value** |
| **Outstanding, January 1, 2022** | 2834288 | $**3.56** |  |  |
| Granted |  |  |  |  |
| Forfeited |  |  |  |  |
| Expired |  |  |  |  |
| Exercised<sup>1</sup> |  |  |  |  |
| **Outstanding, December 31, 2022** | **2834288** | $**3.56** | **8.95** | $**4166403** |
| **Exercisable, December 31, 2022** | **1803985** | $**3.56** | **8.95** | $**2651858** |

---

<sup>*1*</sup>*No options were exercised during the years ended December 31, 2022 or 2021*

The weighted average assumptions used to determine the fair value of the options granted, using the Black-Scholes options pricing model are as follows:

---

| | | |
|:---|:---|:---|
| For the year ended, December 31, | **2022** | **2021** |
| Fair value of options granted | N/A | 2.21 |
| Valuation assumptions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected life (years) | 5.55 | 5.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk-free interest rate | 1.27% | 1.27% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Average forfeiture rate | 0.00% | 0.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected dividend yield | 0.00% | 0.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected volatility | 71.62% | 71.62% |

---

The Company incurred share-based compensation expense related to the stock options of $2,046,166 during the year ended December 31, 2022 (December 31, 2021 - $2,858,702). As of December 31, 2022, the Company had $1,293,484 of unrecognized compensation expense related to non-vested stock options. The remaining expense is expected to be recognized over a weighted average period of approximately 1.4 years.

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<u>*Restricted Share Units*</u>

As of December 31, 2022, the Company's nonvested RSUs outstanding are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Restricted<br>Share Units** | **Weighted-<br>average grant<br>date fair value** | **Weighted average<br>remaining<br>contractual term<br>(years)** | **Aggregate<br>Intrinsic<br>Value** |
| **Nonvested, January 1, 2022** | 892580 | $3.56 |  |  |
| Granted<sup>1</sup> | 1214321 | 5.75 |  |  |
| Forfeited |  |  |  |  |
| Vested and settled<sup>2</sup> | (2024401) | 4.78 |  |  |
| **Nonvested, December 31, 2022** | **82500** | $**5.75** | **0.67** | $**414975** |

---

<sup>*1*</sup>*The weighted-average grant-date fair value of the RSUs granted in 2021 was $3.56 per unit.*

<sup>*2*</sup>*The settlement date fair value of the RSUs that vested and settled during the years ended December 31, 2022 and 2021 was $11,609,135 and $nil, respectively.*

The Company incurred share-based compensation expense related to the RSUs of $7,415,252 during the year ended December 31, 2022 (December 31, 2021 - $2,488,955). As of December 31, 2022, the Company had $252,724 of unrecognized compensation expense related to non-vested RSUs. The expense is expected to be recognized over a weighted average period of approximately 0.67 years.

*Deferred Share Units*

As of December 31, 2022, the Company's DSUs outstanding are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Deferred<br>Share Units** | **Weighted-<br>**average grant<br>date fair value** | **Weighted average<br>remaining<br>contractual term<br>(years)** | **Aggregate<br>Intrinsic<br>Value** |
| **Outstanding, January 1, 2022** | 137641 | $3.56 |  |  |
| Granted<sup>1</sup> | 88694 | 5.75 |  |  |
| Forfeited |  |  |  |  |
| Settled | - | - |  |  |
| **Outstanding, December 31, 2022** | **226335** | $**4.42** | **0.42** | $**1138465** |
| **Vested**<sup>2</sup>**, December 31, 2022** | **137641** | $**3.56** | **N/A** | $**692334** |

---

<sup>*1*</sup>*The weighted-average grant-date fair value of the DSUs granted in 2021 was $3.56 per unit.*

<sup>*2*</sup>*The fair value of the DSUs that vested during the years ended December 31, 2022 and 2021 was $490,002 and $nil, respectively.*

The Company incurred share-based compensation expense related to the DSUs of $736,302 during the year ended December 31, 2022 (December 31, 2021 - $51,891). As of December 31, 2022, the Company had $211,800 of unrecognized compensation expense related to non-vested DSUs. The expense is expected to be recognized within one year of grant.

**13. EARNINGS PER SHARE**

The Company's common shares consist of SVS, MVS, and PVS. Subject to certain restrictions set out in the Company's articles, the SVS, MVS, and PVS rank equally and are entitled to equal distributions, except for the MVS which receives 100 times the distribution entitlement.

As all three classes of common shares were determined to individually have the same entitlement to income (loss) per share on a basic and diluted basis, the below summarizes the amounts on an as-converted basis. The as-converted basis assumes the conversion of the PVS on a 1:1 basis into SVS, and the MVS on a 1:100 basis into SVS.

*Basic EPS*

The basic net income (loss) per share attributable to common shareholders for SVS, MVS, and PVS is determined using the two-class method.

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The basic income (loss) per share on an as-converted basis to SVS is as follows:

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| | | |
|:---|:---|:---|
| For the year ended, December 31, | **2022** | 2021 |
| Net income (loss) attributable to common shareholders | $**7428135** | $(**32344428**) |
| Weighted average number of common shares outstanding (as-converted) | **34453696** | 42596264 |
| **Income (loss) per share - basic** | $**0.22** | $(0.76) |

---

*Diluted EPS*

Diluted net income (loss) per share attributable to SVS shareholders is computed using the more dilutive of the if-converted or treasury stock method, whereas diluted net income (loss) per share attributable to MVS and PVS shareholders is computed using the two-class method.

The diluted income (loss) per share on an as-converted basis to SVS is as follows:

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| | | |
|:---|:---|:---|
| For the year ended, December 31, | **2022** | 2021 |
| Net income (loss) attributable to common shareholders | $**7428135** | $(32344428) |
| Plus: Effect of dilutive items | **3189196** |  |
|  | $**10617331** | $(32344424) |
| Weighted average number of common shares outstanding (as-converted) | **34453696** | 42596264 |
| Plus: Effect for conversion of Origination Class B into SVS | **18203421** |  |
| Plus: Effect for dilutive share-based compensation awards | **929210** |  |
|  | **53586327** | 42596264 |
| **Income (loss) per share - diluted** | $**0.20** | $(0.76) |

---

As for the year ended December 31, 2021 the Company reported a net loss, the potentially dilutive securities are antidilutive and accordingly, basic net loss per share equals diluted net loss per share for the year ended December 31, 2021.

**14. REVENUE FROM CONTRACTS WITH CUSTOMERS**

The amount of each significant category of revenue is as follows:

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| | | |
|:---|:---|:---|
| For the year ended, December 31, | **2022** | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Crude oil | $**97438790** | $50868794 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas | **77966801** | 10286929 |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural gas liquids | **20243366** | 9641067 |
| **Total operating revenues** | $**195648957** | $70796790 |

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**15. INCOME TAX**

Prior to the RTO, Origination was not subject to U.S. income taxes because, as a limited liability company classified as a partnership for U.S. federal income tax purposes, it was treated as a pass-through entity for income tax purposes. As such the members of Origination were subject to income tax with respect to each such member's allocable share of Origination's taxable income. Subsequent to the RTO, while Origination remains classified as a partnership for U.S. federal income tax purposes, the Company is taxed as a United States corporation and is subject to U.S. federal (and applicable state) income tax on its allocable share of pass-through taxable income from Origination. Thus, any tax effects related to the Company, together with its share of Origination's activity, are included in these consolidated financial statements. Any taxable income or loss of Origination that is attributed to its other members is not taxable by the Company. The Company is also taxed as a Canadian corporation and is subject to Canada federal and provincial income tax for its share of Origination's taxable income combined with its own activity.

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The Company's effective income tax rates (benefits) were (4.5%) and 5.9% for the years ended December 31, 2022, and 2021, respectively. The overall change in the Company's effective tax rate for the year ended December 31, 2022, from the previous year is primarily due to: (i) changes in amounts of income (loss) not subject to corporate tax and, (ii) current year activity causing the reversal of a previously recorded deferred tax expense resulting from temporary differences in items related to cost recovery of oil and natural gas properties.

For the years ended December 31, 2022, and 2021, the Company recorded income tax expense (benefit) of ($1,928,319) and $1,928,319, respectively. The Company's provision for income taxes is comprised of the following items for the period indicated.

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| | | |
|:---|:---|:---|
| Year ended December 31, | **2022** | **2021** |
| Current income tax expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;United States federal | $**-** | $**-** |
| &nbsp;&nbsp;&nbsp;&nbsp;State | **-** | **-** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current income tax expense | **-** | **-** |
| Deferred income tax expense (benefit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;United States federal | $**(1928319)** | $1928319 |
| &nbsp;&nbsp;&nbsp;&nbsp;State | **-** | **-** |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deferred income tax expense (benefit) | $**(1928319)** | $1928319 |
| Total income tax expense (benefit) | $**(1928319)** | $1928319 |

---

The difference in the Company's income tax provision calculated using its effective tax rates (benefits) of (4.5%) and 5.9% for the years ended December 31, 2022, and 2021, respectively, from the amounts calculated by applying the U.S. federal income tax rate of 21% to its pretax income (loss) from continuing operations were due to the following items for the periods indicated:

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| | | |
|:---|:---|:---|
| Year ended December 31, | **2022** | **2021** |
| Net income (loss) before taxes | $**42485033** | $(30654438) |
| U. S. federal statutory income tax rate | **21%** | 21% |
| Expected federal taxes at statutory rate | **8921857** | (6437432) |
| Increase (decrease) resulting from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Canadian income tax | **-** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests | **(7766896)** | 54250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) not subject to corporate income taxes | **(1154961)** | 6383182 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in tax status | **-** | 1928319 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in valuation allowance - federal | **(1928319)** |  |
| Income tax expense (recovery) | $**(1928319)** | $1928319 |

---

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Deferred income taxes primarily represent the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the Company's net deferred tax asset and liability were as follows for the periods indicated:

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| | | |
|:---|:---|:---|
| Year ended December 31, | **2022** | 2021 |
| **Deferred tax liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in Origination | $**-** | $(3437344) |
| **Total deferred tax liabilities** |  | (3437344) |
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment in Origination | $**10518502** | $1509025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Canadian federal tax loss carryforwards | **339501** | 334198 |
| &nbsp;&nbsp;&nbsp;&nbsp;US federal tax loss carryforwards | **9361332** |  |
| **Total deferred tax assets, gross** | **20219335** | 1843223 |
| Less: Valuation allowance | **(20219335)** | (334198) |
| **Total deferred tax assets, net** | **-** | 1509025 |
| **Net deferred tax assets (liabilities)** | **-** | (1928319) |
| Presented as follows: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax liabilities |  | (1928319) |
| **Net deferred tax assets (liabilities)** | $**-** | $(1928319) |

---

The tax years ended December 31, 2019, through December 31, 2022, remain open to examination under the applicable statute of limitations in the United States and other jurisdictions in which the Company and its subsidiaries file income tax returns. In some instances, state statutes of limitations are longer than those under United States federal tax law. The Company believes that it is more likely than not that the benefit from the investment in Origination and its federal loss carryforward will not be realized. In recognitions of this risk, the Company has provided a valuation allowance as of December 31, 2022 and 2021 of $20,219,335 and $334,198, respectively.

The Canadian federal tax losses will expire after 20 years from the date incurred. The US federal tax loss carryforwards do not expire.

**16. RELATED PARTY TRANSACTIONS**

The Company's related parties consist of directors and officers of the Company, their immediate families, and companies that are controlled or significantly influenced by directors and officers of the Company.

*<u>Management Services Agreements & Other Related Party Balances</u>*

On December 22, 2020, the Company entered into a Management Services Agreement (the "MSA") with an entity related by virtue of common equity holders, directors and officers. Under this MSA, the related entity provided management, finance, operations and administrative services. The MSA had an initial period of 11 years with a 90 day cancellation notice. The Company was obligated to pay for these services on a quarterly basis amounting to the lesser of; i) $2.00 per produced barrel of oil equivalent (converting natural gas to BOE equivalent of 6:1), and ii) 0.375% of measured assets as defined in the credit agreement. During the year ended December 31, 2021, the Company incurred and paid fees of $287,126, recognized in in general and administrative expenses. In the second quarter of 2021, the MSA was effectively terminated, by assigning the MSA to one of the Company's subsidiaries. Therefore, no fees were incurred in connection with the MSA in the year ended December 31, 2022.

As part of terminating the MSA, the Company entered into a new Letter Agreement (the "Letter") in the second quarter of 2021, with the same related entity by virtue of common equity holders, directors and officers. The Letter requires the Company to hire its own employees, obtain its own office lease and assume certain management obligations. In exchange, the Company is paid an annual fee of $1,000,000 on a quarterly basis.

During the third quarter of 2022, the Letter was terminated by the Company.

During the year ended December 31, 2022, the Company received $916,667 (December 31, 2021 - $416,666 in connection with the Letter, which is included in general and administrative expenses in the consolidated statements of operations and comprehensive income (loss). As at December 31, 2022, amounts receivable of $nil (December 31, 2021 - $120,501) were included in accounts receivable, net on the consolidated balance sheets.

*<u>Other Related Party Balances</u>*

As at December 31, 2022, accounts payable and accrued liabilities included $143,572 (December 31, 2021 -$120,501) due from a company related by virtue of common equity holders, officers and directors under normal credit terms.

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**17. FAIR VALUE MEASUREMENTS**

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

Hierarchy levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value. The Company classifies fair values according to the following hierarchy based on the inputs used to value the instruments:

* Level 1: Reflects inputs that are based on unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

* Level 2: Reflects inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. 

* Level 3: Reflects inputs that are both significant to the fair value measurement and less observable from objective sources.

*Financial Assets and Liabilities*

The Company's financial instruments are cash and cash equivalents, restricted cash, account receivable, net, derivative assets and liabilities, accounts payable and accrued liabilities, long term debt, corporate credit facility and the asset backed preferred instrument.

As required, financial assets and liabilities are classified in their entirety 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 requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

The Company classifies its financial assets and liabilities as follows within the hierarchy:

* **Derivatives:**

Derivatives are financial instruments measured at fair value on a recurring basis.

*Commodity derivatives*

The fair value of the commodity derivative instruments is determined using observable market data for similar instruments, which resulted in the Company reporting its commodity derivatives as Level 2 on the fair value hierarchy. This observable data includes the forward curves for commodity prices based on quoted market prices and implied volatility factors related to changes in the forward curves. Counterparty statements are utilized to determine the value of the commodity derivative instruments and are reviewed and corroborated using various methodologies and significant observable inputs.

*Interest rate derivatives*

The fair value of the interest rate derivative instruments is determined using observable market data for forward curves for the benchmark interest rates, as well as time to maturity, contractual notional amounts, amongst other factors. The Company reports its interest rate derivatives as Level 2 on the fair value hierarchy. Counterparty statements are utilized to determine the value of the interest rate derivative instruments and are reviewed and corroborated using various methodologies and significant observable inputs.

* **Cash, cash equivalents and restricted cash:** The fair value of cash, cash equivalents and restricted cash approximates its carrying value due to the short-term to maturity, and is considered a Level 1 measurement.

* **Accounts receivable, net, and accounts payable and accrued liabilities:** The fair value of accounts receivable, net, and accounts payable and accrued liabilities approximate their carrying value due to their short term to maturity.

* **Long term debt:** The fair value of long-term debt approximates its carrying value as it in-part bears a floating rate of interest and is of a shorter duration of up to 2 years.

------

* **Corporate Credit Facility:** The recorded value of the corporate credit facility approximates its fair value, due to its floating rate structure based on prime plus a spread, secured interest, and short term to maturity.

There were no transfers between levels of the fair value measurement hierarchy during the year.

The following tables set forth by level within the fair value hierarchy the Company's financial instruments, which were accounted for at fair value on a recurring basis as of December 31, 2022 and 2021:

---

| | | | |
|:---|:---|:---|:---|
|  | **Fair Value Measurements as at**<br>**December 31, 2022 using** | **Fair Value Measurements as at**<br>**December 31, 2022 using** | **Fair Value Measurements as at**<br>**December 31, 2022 using** |
|  | Level 1 | Level 2 | Level 3 |
| Assets (liabilities): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives |  | $**3077079** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate derivatives |  | **-** |  |
| Total |  | $**3077079** |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Fair Value Measurements as at**<br>**December 31, 2021 using** | **Fair Value Measurements as at**<br>**December 31, 2021 using** | **Fair Value Measurements as at**<br>**December 31, 2021 using** |
|  | Level 1 | Level 2 | Level 3 |
| Assets (liabilities): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commodity derivatives |  | $**(20424601)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate derivatives |  | **43421** |  |
| Total |  | $**(20381180)** |  |

---

*Non-Financial Assets and Liabilities*

Certain non-financial assets and liabilities are subject to fair value measurements. In those cases, the fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two as considered appropriate based on the circumstances.

For the impairment assessment of evaluated oil and gas properties, the ceiling test requires an estimate of the fair value of the unevaluated and unproved properties that are included in costs being amortized (Note 2). The fair value may be estimated using comparable market data, forecasted cashflows, or a combination of both as considered appropriate based on the circumstances. Given the significance of the unobservable nature of a number of the inputs, these are considered Level 3 on the fair value hierarchy.

Fair values are also estimated in connection with the initial measurement of ARO. Given the significance of the unobservable nature of a number of the inputs, this measurement is considered Level 3 on the fair value hierarchy (Note 2).

While the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in a different estimate of fair value.

**18. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS**

The future results of the Company's crude oil and natural gas operations will be affected by market prices of crude oil and natural gas which is affected by numerous factors beyond the control of the Company, including weather, imports, marketing of competitive fuels, proximity and capacity of crude oil and natural gas pipelines and other transportation facilities, any oversupply or undersupply of crude oil, natural gas and natural gas liquid products, economic disruptions, the regulatory environment, the economic environment, and other regional and political events, none of which can be predicted with certainty.

The Company's operations are also subject to concentration risk due to the fact that all of its oil and natural gas revenue is sourced from its operations in the United States. Further, three of the Company's customers reflect 91.25% of its oil and gas revenues, with each of these customers representing 49.8%, 31.4%, and 10.0% of the revenues, which represents further concentration risk in specific customers.

*Credit Risks*

Financial instruments which potentially subject the Company to credit risk consist principally of cash balances, accounts receivable, and derivatives.

The Company maintains cash balances at financial institutions, which may at times exceed the federally insured limits. The Company has not experienced any significant losses from such investments, and the Company believes the credit quality of the financial institutions to be high.

The Company's accounts receivables are subject to normal industry credit risk. The accounts receivables are mainly due from participants in the oil and gas industry, who may be affected by periodic downturns in the economy, in general, or in their specific segment of the crude oil or natural gas industry. The Company believes that its level of credit-related losses due to such economic fluctuations have been immaterial.

The Company's derivative contracts are with established financial institutions with investment grade credit ratings which are believed to have minimal credit risk. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties in the derivative contracts; however, the Company does not anticipate such nonperformance.

*Commodity Price Risk and Interest Rate Risk*

The Company utilizes various commodity price derivative instruments to reduce commodity price risk being the risk that future cash flows will fluctuate as a result of changes in commodity prices. In addition, from time to time the Company utilizes interest rate swaps to mitigate exposure to changes in interest rates on the Company's variable rate indebtedness.

------

All derivative instruments are recorded in the Company's consolidated balance sheet as either assets or liabilities measured at their fair value (Note 2). The Company has not designated any derivative instruments as hedges for accounting purposes and does not enter into such instruments for speculative trading purposes. The changes in the fair value are recognized in the Company's consolidated statements of operations and comprehensive income (loss).

The location and amounts of the Company's realized and unrealized gains and losses on derivative contracts in the Company's consolidated statements of operations and comprehensive income (loss) are as follows:

---

| | | | |
|:---|:---|:---|:---|
| Year ended December 31, | &nbsp;&nbsp;Statements of Operations Location | **2022** | 2021 |
| Commodity derivative contracts |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) | Gain / (loss) on derivative instruments | $**26246351** | $(15903217) |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gain (loss) | Gain / (loss) on derivative instruments | **(36269846**) | (17622236) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total gain (loss), net |  | $**(10023495)** | $(33525453) |
| Interest rate derivative contracts |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain | Finance and interest expense | $**-** | $43421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gain | Finance and interest expense | **623579** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total gain (loss), net |  | $**623579** | $43421 |

---

Gains and losses on derivative instruments are included in the operating section of the consolidated statements of cash flows.

------

The open commodity derivative positions as at December 31, 2022, are as follows, for the settlement periods presented:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 2023 | 2024 | 2025 | Total Volumes |
| **Crude Oil:** |  |  |  |  |
| WTI NYMEX - Swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volumes (Bbl) | 542548 | 286150 | 129642 | 958340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Price ($/Bbl) | $69.79 | $65.97 | $58.98 |  |
| **Natural Gas and Natural Gas Liquids:** |  |  |  |  |
| Natural Gas NYMEX - Swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volumes (MMBtu) | 5306902 | 2606643 | 1331415 | 9244960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Price ($/MMBtu) | $5.43 | $5.43 | $5.33 |  |
| Natural Gas NYMEX vs. Houston Ship Channel - Basis Swaps: | Natural Gas NYMEX vs. Houston Ship Channel - Basis Swaps: | Natural Gas NYMEX vs. Houston Ship Channel - Basis Swaps: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volumes (MMBtu) | 465214 | 325088 | 177009 | 967311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Price ($/MMBtu) | $(0.07) | $(0.07) | $(0.07) |  |
| Mont Belvieu Natural Gas - Swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volumes (Gal) | 1560711 | 857027 | 326472 | 2744210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Price ($/Gal) | $1.30 | $1.57 | $1.65 |  |
| Mont Belvieu Ethane - Swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volumes (Gal) | 5818913 | 3195317 | 1217209 | 10231439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Price ($/Gal) | $0.30 | $0.34 | $0.36 |  |
| Mont Belvieu Propane - Swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volumes (Gal) | 3466691 | 1903650 | 725170 | 6095511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Price ($/Gal) | $0.80 | $0.92 | $0.95 |  |
| Mont Belvieu Isobutane - Swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volumes | 673486 | 369828 | 140880 | 1184194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Price ($/Gal) | $0.89 | $1.06 | $1.10 |  |
| Mont Belvieu N. Butane - Swaps |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Volumes | 1426461 | 783308 | 298388 | 2508157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average Price ($/Gal) | $0.87 | $1.04 | $1.08 |  |

---

The Company uses interest rate swaps to effectively convert a portion of its variable rate indebtedness to fixed rate indebtedness. As of December 31, 2022, the Company had interest rate swaps with a total notional amount of $nil (December 31, 2021 - $25,237,409).

The asset and liability fair values of the Company's derivative assets (liabilities), presented on the consolidated balance sheets is as follows:

---

| | | |
|:---|:---|:---|
| As at December 31, | **2022** | 2021 |
| Derivative Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current assets | $**2019600** | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncurrent assets | **1057479** |  |
| Total Derivative Assets: | $**3077079** | $- |
| Derivative Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current liabilities | $**-** | $6479508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncurrent liabilities | **-** | 13901672 |
| Total Derivative Liabilities: | $**-** | $20381180 |

---

------

*Liquidity Risk*

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with the financial liabilities as they become due.

At December 31, 2022 the Company had negative working capital of $162,980,101. The Company expects to repay its financial liabilities in the normal course of operations and to fund future operational and capital requirements through operating cash flows and through issuance of debt and/or equity.

The Company may need to conduct asset sales and/or issuances of debt and/or equity if liquidity risk increases in a given period. The Company believes it has sufficient funds to meet foreseeable obligations by actively monitoring its credit facilities through use of the loans, asset sales, and coordinating payment and revenue cycles.

The Company is required to meet certain financial covenants under its debt facilities (Note 7). As at December 31, 2022, the Company was not in breach of financial covenants.

**19. COMMITMENTS AND CONTINGENCIES**

In the ordinary course of business, the Company may be involved in various legal proceedings and subject to claims that arise. Although the results of litigation and claims are inherently unpredictable and uncertain, we are not currently a party to any legal proceedings the outcome of which, if determined adversely to us, are believed to, either individually or taken together, have a material adverse effect on our business, financial condition or results of operations.

The Company has certain commitments under leases as outlined in Note 5. The Company also entered into a transportation agreement in 2022 for the transport of natural gas on a take-or-pay basis for a minimum agreed on volume, reflecting fees of approximately $11,000 per day.

**20. FINANCE AND INTEREST EXPENSE**

The amount of each significant category of finance and interest expense recognized, are as follows:

---

| | | |
|:---|:---|:---|
| Year ended December 31, | **2022** | 2021 |
| Interest expense on long term debt | $**11389415** | $3612929 |
| Interest expense for Corporate Credit Facility | **1736868** |  |
| Interest on asset back preferred | **658047** | 1857351 |
| Interest on promissory notes | **-** | 300685 |
| Interest rate derivative loss (gain) | **(623579)** | (43421) |
| Interest income | **(14966)** |  |
| Bank fees and other | **282548** |  |
| **Total finance and interest expense** | $**13428333** | $5727544 |

---

**21. GENERAL AND ADMINISTRATIVE EXPENSE**

The amount of each significant category of general and administrative expense recognized, are as follows:

---

| | | |
|:---|:---|:---|
| Year ended December 31, | **2022** | 2021 |
| Stock based compensation expense | $**10197720** | $14478776 |
| Employee salaries and benefits | **10193583** | 6483720 |
| Professional, legal, and advisory | **4672072** | 3629525 |
| Travel and accommodation | **278653** | 174769 |
| Software | **462754** | 344577 |
| Operating lease and variable lease costs | **215487** | 75170 |
| Office and administration | **986558** | 251246 |
| Recoveries | **(916667)** | (416666) |
| **Total general and administrative expense** | $**26090160** | $25021117 |

---

------

**22. SUPPLEMENTAL CASH FLOW DISCLOSURES** 

---

| | | |
|:---|:---|:---|
| Year ended December 31, | **2022** | 2021 |
| **Supplementary cash flow information** |  |  |
| Cash paid for interest | $**7903446** | $2278570 |
| Cash paid for income taxes | **-** |  |
| **Non-Cash Investing Activities** |  |  |
| Property, plant and equipment non-cash accruals | $**43487444** | $15752315 |
| Capitalized asset retirement obligations | **110480** | 217471 |
| Acquisition of oil and natural gas properties via share issuance | **-** | 3499995 |
|  | $**43597924** | $19469781 |
| **Non-Cash Financing Activities** |  |  |
| Redemption of Redeemable NCI via issuance of Redeemable NCI | $**100727774** | $14095702 |
| Redemption of Redeemable NCI via issuance of Origination Member Units | **15581968** | 1192893 |
| Redemption of Redeemable NCI via oil and gas property disposition | **542584** |  |
| Redemption of promissory notes vis equity issuance | **-** | 6775000 |
|  | $**116852326** | $22063595 |
| **Changes in Operating Assets and Liabilities** |  |  |
| Accounts receivable, net | $**(7668573)** | $(12675672) |
| Prepaid expenses | **(540223)** | (510063) |
| Accounts payable and accrued liabilities | **4699365** | 19986246 |
| Asset backed preferred instrument accrued interest | **-** | 1857351 |
| Asset retirement obligation settlements | **(127862)** |  |
| Operating lease asset | **(235564)** |  |
| Operating leases liability | **103302** | 9542 |
|  | $***(*** **3769555**<br>*)* | $8667404 |

---

**23. SUBSEQUENT EVENTS**

*Completion of DP5 and Creation of Development Partnership 7 ("DP7")*

On January 20, 2023, the Company redeemed redeemable non-controlling interests with a redemption value of $36,354,869. In connection with this redemption, DP5 units with a redemption value of $2,505,631 were exchanged for 499,794 Class B non-voting units of Origination.

On January 20, 2023, the Company also formed DP7, with 24 external limited partners and Origination as a limited partner and the general partner. The intention of the DP7 is to finance the drilling and completion of five wells, with external partners funding approximately 60% and the Company funding 40%. The Company raised $34,262,236 from external limited partners of which $4,946,981 was raised from officers and directors of the Company. Investors participated $20,478,084 in Flat Payout Units and $13,784,152 in IRR Payout Units.

------

*Dividends:*

On January 3, 2023, the Company's board of directors declared a dividend of $0.0315 per SVS and PVS, and $3.15 per MVS. Payable on January 31, 2023, to shareholders of record on the close of business on January 17, 2023.

On February 1, 2023, the Company's board of directors declared a dividend of $0.0315 per SVS and PVS, and $3.15 per MVS. Payable on February 28, 2023, to shareholders of record on the close of business on February 14, 2023.

*<u>Corporate Credit Facility Covenant Waiver</u>*

In March 2023, the Company received a waiver of all covenants on the Corporate Credit Facility until July 1, 2023, and received a waiver on certain covenants on the ABS Facility until July 1, 2023. The Company also received an extension on the initial maturity date of Tranche 1 under the ABS Facility until July 1, 2023. In the absence of a covenant waiver, a breach of the covenant would result in the Corporate Credit Facility and/or ABS Facility to be due on demand.

------

**SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED)**

**Results of Operations**

Oil and natural gas sales reflect the market prices of net production sold or transferred with appropriate adjustments for royalties, net profits interest, and other contractual provisions. Production expenses include lifting costs incurred to operate and maintain productive wells and related equipment including such costs as operating labor, repairs and maintenance, materials, supplies, and fuel consumed. Production taxes include production and severance taxes. Depletion of crude oil and natural gas properties relates to capitalized costs incurred in acquisition, exploration, and development activities. Results of operations do not include interest expense and general corporate amounts. The results of operations for the Company's oil and natural gas production activities are provided in the Company's related statements of operations and comprehensive income (loss).

**Costs Incurred and Capitalized Costs**

The costs incurred in oil, natural gas, and NGL acquisition, exploration and development activities are as follows:

---

| | | |
|:---|:---|:---|
| For the year ended December 31, | **2022** | 2021 |
| Unevaluated property acquisition | $**2244517** | $6200745 |
| Development | **248185340** | 68323942 |
| Exploration costs | **5179046** | 1406101 |
| Total | $**255608903** | $75930788 |

---

Capitalized costs for unproved and unevaluated properties that are excluded from depletion is disclosed in Financial Statement Note 4 Oil and Natural Gas Properties, Net.

**Oil and Natural Gas Reserves Data**

Information with respect to the Company's oil and natural gas producing activities is presented in the following tables. Reserve quantities, as well as certain information regarding future production and discounted cash flows, were determined by W.D. Von Gonten Engineering LLC as of January 1, 2023, the Company's third-party independent reserve engineers, based on information provided by the Company.

The following tables present the Company's estimates of its proved oil and natural gas reserves, net of royalties. The Company emphasizes that reserves are approximations and are expected to change as additional information becomes available. Reservoir engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Oils** | **Natural Gas** | **NGLs** | **Total** |
|  | **(Mbbl)** | **(MMcf)** | **(Mbbl)** | **MBOE** |
| **Total proved reserves at December 31, 2020** | 5209 | 23505 | 5156 | 14283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revisions of previous estimates, and other | (2445) | 5415 | (3550) | (5093) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Improved recovery | 1715 | 6201 | 1220 | 3969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production | (743) | (2398) | (358) | (1501) |
| **Total proved reserves at December 31, 2021** | 3735 | 32724 | 2469 | 11658 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revisions of previous estimates, and other | (1850) | (27505) | (1271) | (7705) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extensions, discoveries and other additions | 2281 | 93381 | 1930 | 19775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Improved recovery | 1111 | 14069 | 671 | 4127 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production | (1030) | (13317) | (588) | (3838) |
| **Total proved reserves at December 31, 2022** | 4247 | 99352 | 3211 | 24017 |
| **Proved Developed Reserves:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2020 | 2275 | 6672 | 1692 | 5079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2021 | 2137 | 7468 | 1041 | 4423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2022 | 3973 | 70480 | 2962 | 18682 |
| **Proved Undeveloped Reserves:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2020 | 2934 | 16833 | 3464 | 9204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2021 | 1598 | 25256 | 1428 | 7235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2022 | 274 | 28872 | 249 | 5335 |

---

------

Proved reserves are estimated quantities of crude oil and natural gas, which geological and engineering data indicate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Proved undeveloped reserves are included for reserves for which there is a high degree of confidence in their recoverability and they are scheduled to be drilled within the next five years.

Notable changes in proved reserves for the year ended December 31, 2022 included the following:

* Extensions and Discoveries: In 2022, total extensions and discoveries of 19.78 million BOE were primarily attributable to successful drilling in the Giddings Field, Austin Chalk and Hawkville Field, Austin Chalk, as well as the addition of proved locations. Included in these discoveries were 5.60 million BOE as a result of successful drilling in the Giddings Austin Chalk, the addition of 1.16 million BOE of additional proved locations and 7.25 million BOE attributable to the successful drilling in the Hawkville Austin Chalk and Eagle Ford and the addition of 5.70 million BOE as a result of additional proved locations.

* Improved Recoveries: In 2022, additions of proved reserves of 3.97 million BOE were primarily due to the managing of existing proved developed locations and an increase of projected recoverable volumes.

Notable changes in proved reserves for the year ended December 31, 2021 included the following:

* Revisions to Previous Estimates - In 2021, revisions to previous estimates decreased proved reserves. These revisions were adjusted downward caused by the removal of undeveloped locations from the previous year's development schedule in the Giddings Austin Chalk area.

* Improved Recovery - In 2021, additions to proved reserves of 4.13 million BOE were primarily due to the optimization of existing proved developed locations, via additional improvement projects, and an increase of projected recoverable volumes.

**Standardized Measure of Discounted Future Cash Flows**

The following table presents a standardized measure of discounted future net cash flows relating to proved crude oil and natural gas reserves. The changes in the standardized measure of discounted future net cash flows relating to proved crude oil and natural gas were prepared in accordance with the provisions of ASC 932 *Extractive Activities - Oil and Gas*.

The standardized measure of discounted future net cash flows is computed by applying average prices for the last 12 months to estimated future production, year-end costs and legislated tax rates and a discount factor of 10 percent to net proved reserves. The Company believes the standardized measure does not provide a reliable estimate of the Company's expected future cash flows to be obtained from the development and production of its oil and gas properties or of the value of its proved oil and gas reserves. Actual future cash inflows may vary considerably.

---

| | | |
|:---|:---|:---|
| For the year ended December 31, | **2022** | 2021 |
| Future cash inflows | $1092307120 | $247313824 |
| Future production costs | (136423094) | (53266494) |
| Future development and abandonment costs | (75501920) | (3124700) |
| Future income tax expense | (98092314) | (24496630) |
| Future net cash inflows | $782289792 | $166426000 |
| 10% annual discount for estimated timing of cash flows | (303833120) | (55888400) |
| Standardized measure of discounted future net cash flows | $478456672 | $110537600 |

---

------

The twelve-month average prices were adjusted to reflect applicable transportation and quality differentials on a well-by-well basis to arrive at realized sales prices used to estimate the Company's reserves. The price of other liquids is included in natural gas. The prices for the Company's reserve estimates were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Oil** | **Natural Gas** | **NGLs** |
|  | **(Mbbl)** | **(MMcf)** | **(Mbbl)** |
| December 31, 2022 | $94.49 | $6.25 | $32.62 |
| December 31, 2021 | $66.55 | $3.64 | $27.29 |

---

Changes in the standardized measure of discounted future net cash flows at 10% per annum are estimated as follows:

---

| | | |
|:---|:---|:---|
| For the year ended December 31, | **2022** | **2021** |
| Beginning of period | $110537600 | $82028564 |
| Sales of oil and natural gas produced, net of production costs | (81065058) | (26623743) |
| Extensions, discoveries and other additions | 200494177 | (12803556) |
| Previously estimated development cost incurred during the period | (3124700) | 14038000 |
| Net change of prices and production costs | 139967308 | 114050543 |
| Change in future development and abandonment costs | (57466319) | 48932984 |
| Revisions of quantity and timing estimates | 225544516 | (120961889) |
| Accretion of discount | (760264) | 18575522 |
| Change in income taxes | (55419410) | 8768285 |
| Other | (251178) | (15467110) |
| End of period | $478456672 | $110537600 |

---

------

## Exhibit 2.1

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**EXECUTION VERSION**

**BUSINESS COMBINATION AGREEMENT<br>**

<br> **AMONG<br>**

<br> **RED PINE PETROLEUM LTD.**

**- and -**

**HB2 ORIGINATION, LLC**

**- and -**

**ALPINE SUMMIT ENERGY PARTNERS FINCO, INC.**

**- and -**

**RED PINE PETROLEUM SUBCO LTD.**

**- and -**

**ALPINE SUMMIT ENERGY INVESTORS, INC.**

**DATED: APRIL 8, 2021**

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**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | <u>Page</u> |
| [**ARTICLE I GENERAL**](#page_5) | [**2**](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.1 Defined Terms](#page_5) | [2](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.2 Business Combination - Reorganization and HB2 Recapitalization](#page_5) | [2](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.3 Business Combination - Financing of Finco](#page_5) | [2](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.4 Business Combination - Exchange of Subscription Receipts](#page_5) | [2](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.5 Business Combination - Amalgamation](#page_6) | [3](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.6 Business Combination - Wind up of Amalco](#page_8) | [5](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.7 Business Combination - Share Exchange](#page_8) | [5](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.8 Business Combination - Subscription of Proportionate Voting Shares](#page_8) | [5](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.9 Business Combination - Contribution of Financing Proceeds](#page_8) | [5](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.10 Business Combination - Adoption of Amended and Restated LLC Agreement](#page_9) | [6](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.11 Business Combination - Ancillary Agreements](#page_9) | [6](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.12 Business Combination - Comprehensive Transaction](#page_9) | [6](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.13 U.S. Tax Matters](#page_9) | [6](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.14 Canadian Tax Election](#page_10) | [7](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;[1.15 Board of Directors and Officers](#page_10) | [7](#page_10) |
| [**ARTICLE II REPRESENTATIONS AND WARRANTIES OF HB2 AND BLOCKER**](#page_10) | [**7**](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;[2.1 Organization and Good Standing](#page_10) | [7](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;[2.2 Consents, Authorizations, and Binding Effect](#page_11) | [8](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;[2.3 Litigation and Compliance](#page_11) | [8](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;[2.4 Financial Statements](#page_12) | [9](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;[2.5 Taxes](#page_12) | [9](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;[2.6 Brokers](#page_13) | [10](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;[2.7 Anti-Bribery Laws](#page_13) | [10](#page_13) |
| [**ARTICLE III REPRESENTATIONS AND WARRANTIES OF FINCO**](#page_13) | [**10**](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;[3.1 Organization and Good Standing](#page_13) | [10](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;[3.2 Consents, Authorizations, and Binding Effect](#page_14) | [11](#page_14) |
| [**ARTICLE IV REPRESENTATIONS AND WARRANTIES OF RED PINE AND SUBCO**](#page_15) | [**12**](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.1 Organization and Good Standing](#page_15) | [12](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.2 Consents, Authorizations, and Binding Effect](#page_15) | [12](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.3 Litigation and Compliance](#page_16) | [13](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.4 Public Filings; Financial Statements](#page_17) | [14](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.5 Taxes](#page_18) | [15](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.6 Pension and Other Employee Plans and Agreement](#page_18) | [15](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.7 Labour Relations](#page_19) | [16](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.8 Contracts](#page_19) | [16](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.9 Absence of Certain Changes, Etc.](#page_19) | [16](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.10 Subsidiaries](#page_20) | [17](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.11 Capitalization](#page_20) | [17](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.12 Environmental Matters](#page_21) | [18](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.13 Licence and Title](#page_21) | [18](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.14 Indebtedness](#page_21) | [18](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.15 Undisclosed Liabilities](#page_21) | [18](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.16 Due Diligence Investigations](#page_22) | [19](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.17 Brokers](#page_22) | [19](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;[4.18 Anti-Bribery Laws](#page_22) | [19](#page_22) |

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i

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**TABLE OF CONTENTS**<br> (continued)

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| | |
|:---|:---|
|  | <u>Page</u> |
| [**ARTICLE V CONDITIONS TO OBLIGATIONS OF RED PINE**](#page_22) | [**19**](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;[5.1 Conditions Precedent to Completion of the Business Combination](#page_22) | [19](#page_22) |
| [**ARTICLE VI CONDITIONS TO OBLIGATIONS OF HB2, BLOCKER AND FINCO**](#page_23) | [**20**](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;[6.1 Conditions Precedent to Completion of the Business Combination](#page_23) | [20](#page_23) |
| [**ARTICLE VII MUTUAL CONDITIONS PRECEDENT**](#page_24) | [**21**](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;[7.1 Mutual Conditions Precedent](#page_24) | [21](#page_24) |
| [**ARTICLE VIII CLOSING**](#page_25) | [**22**](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;[8.1 Closing](#page_25) | [22](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;[8.2 Termination of this Agreement](#page_25) | [22](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;[8.3 Survival of Representations and Warranties; Limitation](#page_25) | [22](#page_25) |
| [**ARTICLE IX MISCELLANEOUS**](#page_25) | [**22**](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.1 Further Actions](#page_25) | [22](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.2 Entire Agreement](#page_26) | [23](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.3 Descriptive Headings](#page_26) | [23](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.4 Notices](#page_26) | [23](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.5 Governing Law](#page_27) | [24](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.6 Enurement and Assignability](#page_27) | [24](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.7 Confidentiality](#page_27) | [24](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.8 Remedies](#page_27) | [24](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.9 Costs and Expenses](#page_27) | [24](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.10 Waivers and Amendments](#page_28) | [25](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.11 Illegalities](#page_28) | [25](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.12 Currency](#page_28) | [25](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;[9.13 Counterparts](#page_28) | [25](#page_28) |
| [**SCHEDULE A DEFINITIONS**](#page_30) | [**A-1**](#page_4) |
| [**SCHEDULE B FORM OF THE AMALGAMATION AGREEMENT**](#page_37) | [**B-1**](#page_4) |
| [**SCHEDULE C SHARE PROVISIONS FOR THE SHARE AMENDMENTS**](#page_43) | [**C-1**](#page_4) |

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ii

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**BUSINESS COMBINATION AGREEMENT**

**THIS AGREEMENT**, dated April 8, 2021, is made

**AMONG:**

**RED PINE PETROLEUM LTD.**, a corporation existing under the laws of the Province of British Columbia,

(hereinafter referred to as "**Red Pine**"),

- and -

**HB2 ORIGINATION, LLC**, a limited liability company existing under the laws of Delaware,

(hereinafter referred to as "**HB2**"),

- and -

**ALPINE SUMMIT ENERGY PARTNERS FINCO, INC.**, a corporation existing under the laws of the Province of British Columbia,

(hereinafter referred to as "**Finco**"),

- and -

**RED PINE PETROLEUM SUBCO LTD.**, a corporation existing under the laws of the Province of British Columbia,

(hereinafter referred to as "**Subco**"),

- and -

**ALPINE SUMMIT ENERGY INVESTORS, INC.**, a corporation existing under the laws of Nevada,

(hereinafter referred to as "**Blocker**").

**WHEREAS** Red Pine proposes to complete a reorganization comprised of (i) the Consolidation (as hereinafter defined); (ii) the Cancellation (as hereinafter defined); (iii) the Share Amendments (as hereinafter defined), which, among other things, amend its authorized share capital to consist of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares (as such terms are hereinafter defined); and (iv) the Name Change (as hereinafter defined) (collectively, the "**Reorganization**");

**AND WHEREAS** the Parties (as hereinafter defined) have agreed, subject to the satisfaction of certain conditions precedent, that Red Pine (following completion of the Reorganization), Finco and Subco will carry out a three-cornered Amalgamation (as hereinafter defined) pursuant to the statutory procedure under Section 269 of the BCBCA (as hereinafter defined) pursuant to which, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each Subco Share (as hereinafter defined) will be exchanged for one Amalco Share (as hereinafter defined); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each Class A Finco Share (as hereinafter defined) held by Finco Shareholders (as hereinafter defined), after redemption of the Initial Finco Share (as hereinafter defined), will be exchanged for one Subordinate Voting Share and each Class B Finco Share (as hereinafter defined) will be exchange for one Multiple Voting Share;

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**AND WHEREAS** the Parties have agreed, subject to the satisfaction of certain conditions precedent, to, in connection with the Amalgamation and following completion by HB2 of the HB2 Recapitalization (as defined below), carry out a share exchange (the "**Share Exchange**") pursuant to which (i) certain members of HB2 will contribute their membership interests of HB2 to Red Pine in exchange for Subordinate Voting Shares and Multiple Voting Shares, and (ii) all common shares of Blocker will be contributed to Red Pine in exchange for Subordinate Voting Shares;

**AND WHEREAS**, immediately following the Effective Time (as hereinafter defined), (i) the changes to the board of directors of Red Pine contemplated in Section 1.15, and (ii) the New Equity Incentive Plan (as hereinafter defined) will become effective;

**NOW THEREFORE**, in consideration of the mutual benefits to be derived from the Business Combination and the representations and warranties, conditions and promises herein contained and other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged) and intending to be legally bound hereby, the Parties agree as follows:

**ARTICLE I**<br>**GENERAL**

**1.1** **Defined Terms**

Capitalized terms used herein and not otherwise defined have the meanings ascribed to such terms in <u>Schedule A</u>.

**1.2** **Business Combination - Reorganization and HB2 Recapitalization**

Prior to the Effective Time and as soon as reasonably practicable, Red Pine shall take all necessary steps to give effect to and implement the Reorganization upon and subject to the terms of this Agreement and HB2 shall take all necessary steps to give effect to and implement the HB2 Recapitalization upon and subject to the terms of this Agreement.

**1.3** **Business Combination - Financing of Finco**

Immediately following the actions set forth in Section 1.2, Finco proposes to complete an offering of subscription receipts (the SVS Subscription Receipts and the MVS Subscription Receipts being collectively referred to as the "**Subscription Receipts**") for gross proceeds of the Canadian dollar equivalent of approximately US$3 million. Certain investors will invest cash for the Subscription Receipts, with each SVS Subscription Receipt representing the right of the holder thereof to receive, in certain circumstances set forth in the terms attached to the SVS Subscription Receipts, one Class A Finco Share, without any further act or formality, and for no additional consideration, and each MVS Subscription Receipt representing the right of the holder thereof to receive, in certain circumstances set forth in the terms attached to the MVS Subscription Receipts, one Class B Finco Share, without any further act or formality, and for no additional consideration.

**1.4** **Business Combination - Exchange of Subscription Receipts**

Immediately following the actions set forth in Section 1.3:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the SVS Subscription Receipts will automatically be exchanged for Class A Finco Shares pursuant to the terms and conditions of the SVS Subscription Receipts and the Subscription Receipt Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the MVS Subscription Receipts will automatically be exchanged for Class B Finco Shares pursuant to the terms and conditions of the MVS Subscription Receipts and the Subscription Receipt Agreement.

**1.5** **Business Combination - Amalgamation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Finco and Subco agree to effect the combination of their respective businesses and assets by way of a "three-cornered amalgamation" among Red Pine, Subco and Finco, pursuant to a statutory amalgamation under Section 269 of the BCBCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Red Pine will call the Red Pine Meeting and will prepare and mail the Red Pine Circular, in a form, and with content, acceptable to HB2, to the Red Pine Shareholders. Red Pine shall not amend or supplement the Red Pine Circular without the prior written consent of HB2, with such consent not to be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) Finco will obtain the written consent resolution of the Finco Shareholder approving the Amalgamation; and (ii) Red Pine will execute a written consent resolution approving the Subco Amalgamation Resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Following the Reorganization as set forth in Section 1.2 and immediately following the actions set forth in Section 1.4, Subco and Finco shall jointly complete and file the Amalgamation Application with the British Columbia Registrar of Companies under the BCBCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon the issue of a Certificate of Amalgamation giving effect to the Amalgamation, Subco and Finco shall be amalgamated and shall continue as one corporation effective on the date of the Certificate of Amalgamation (the "**Effective Date**") under the terms and conditions prescribed in the Amalgamation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) At the Effective Time and in connection with the Amalgamation:

&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 Initial Finco Share will be redeemed for a cash purchase price equal to the initial subscription price;

&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) each holder of Class B Finco Shares shall receive one fully paid and non-assessable Multiple Voting Share for each Class B Finco Share held and each holder of Class A Finco Shares shall receive one fully paid and non-assessable Subordinate Voting Share for each Class A Finco Share held, following which all such Finco Shares shall be cancelled;

&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) Red Pine shall receive one fully paid and non-assessable Amalco Share for each one Subco Share held by Red Pine, following which all such Subco Shares shall be cancelled;

&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) if any Finco Broker Warrants are outstanding, each holder of Finco Broker Warrants shall receive one Red Pine Broker Warrant for each Finco Broker Warrant held, following which all such Finco Broker Warrants shall be cancelled;

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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;(v) in consideration of the issuance of Subordinate Voting Shares and Multiple Voting Shares pursuant to Section 1.5(f)(ii), Amalco shall issue to Red Pine one Amalco Share for each Subordinate Voting Share issued and 100 Amalco Shares for each Multiple Voting Share issued;

&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) Red Pine shall add to the capital maintained in respect of the Subordinated Voting Shares and Multiple Voting Shares an amount equal to the aggregate paid-up capital for purposes of the ITA of the Finco Shares immediately prior to the Effective Time;

&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) Amalco shall add to the capital maintained in respect of the Amalco Shares an amount such that the stated capital of the Amalco Shares shall be equal to the aggregate paid-up capital for purposes of the ITA of the Subco Shares and the Finco Shares immediately prior to the Amalgamation;

&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) no fractional Subordinate Voting Shares or Multiple Voting Shares shall be issued to holders of Class A Finco Shares or Class B Finco Shares, as applicable. In lieu of any fractional entitlement, the number of Subordinate Voting Shares or Multiple Voting Shares issued to each former holder of Class A Finco Shares or Class B Finco Shares, as applicable, shall be rounded down to the next lesser whole number of Subordinate Voting Shares or Multiple Voting Shares without any payment in respect of such fractional Subordinate Voting Share or Multiple Voting Share;

&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) Red Pine shall be entitled to deduct and withhold from any consideration otherwise payable pursuant to the transactions contemplated by this Agreement to any holder of Class A Finco Shares or Class B Finco Shares such amounts as are required to be deducted and withheld with respect to such payment under the ITA or any provision of provincial, state, local or foreign tax law, in each case as amended; to the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes hereof as having been paid to the holder of the Class A Finco Shares or Class B Finco Shares in respect of which such deduction and withholding was made, provided that such withheld amounts are actually remitted to the appropriate taxing authority; 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;(x) Amalco will become a wholly-owned subsidiary of Red Pine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) At the Effective Time:

&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 Section 1.5(f)(ii), the registered holders of Class A Finco Shares shall become the registered holders of the Subordinate Voting Shares and the registered holders of Class B Finco Shares shall become the registered holders of the Multiple Voting Shares to which they are entitled, as applicable, calculated in accordance with the provisions hereof. Red Pine shall deliver the Subordinate Voting Shares or Multiple Voting Shares to former holders of Class A Finco Shares and Class B Finco Shares, respectively, electronically or in physical form in accordance with the instructions of the former holder thereof, without the need for such holder to surrender certificates representing the Class A Finco Shares or Class B Finco Shares, as applicable. Absent such instructions, Red Pine shall provide the Subordinate Voting Shares or Multiple Voting Shares in the same form as such holder previously held the SVS Subscription Receipts or MVS Subscription Receipts, as applicable; 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Red Pine shall become the registered holder of the Amalco Shares to which it is entitled, calculated in accordance with the provisions hereof, and shall be entitled to receive a share certificate representing the number of Amalco Shares to which it is entitled, calculated in accordance with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) At the Effective Time, if any Finco Broker Warrants are outstanding, the registered holders of Finco Broker Warrants shall become the registered holders of Red Pine Broker Warrants to which they are entitled in accordance with the provisions hereof. Red Pine shall deliver certificates representing the Red Pine Broker Warrants to former holders of Finco Broker Warrants in accordance with the instructions of former holders thereof.

**1.6** **Business Combination - Wind up of Amalco**

Immediately following the actions set forth in Section 1.5, Amalco will be wound up into Red Pine and the assets of Amalco (which will consist of the funds invested by the investors in the Subscription Receipts, net of expenses) will be transferred to Red Pine by operation of Law.

**1.7** **Business Combination - Share Exchange**

Immediately following the actions set forth in Section 1.6, the Share Exchange shall be completed through the following steps in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) first, certain U.S. holders of Units in HB2 (other than Blocker) shall contribute their Units in HB2 to Red Pine in exchange for Multiple Voting Shares on a one-hundred (post-HB2 Recapitalization) Units for one Multiple Voting Share basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) second, certain of the non-U.S. holders of Units in HB2 shall contribute their Units in HB2 to Red Pine in exchange for Subordinate Voting Shares on a one (post-HB2 Recapitalization) Unit for one Subordinate Voting Share basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) third, each holder of Blocker Shares shall contribute their Blocker Shares to Red Pine in exchange for Subordinate Voting Shares of Red Pine on a one Blocker Share for three Subordinate Voting Shares basis.

**1.8** **Business Combination - Subscription of Proportionate Voting Shares**

Immediately following the actions set forth in Section 1.7, Craig Perry will subscribe for Proportionate Voting Shares carrying voting rights that would, in the aggregate, represent approximately 40% of the voting rights of Red Pine upon completion of the Business Combination on a fully diluted basis for a purchase price equivalent to their fair market value.

**1.9** **Business Combination - Contribution of Financing Proceeds**

Immediately following the actions set forth in Section 1.8, Red Pine shall use certain proceeds of the Financing received by it and the Units of HB2 acquired by it pursuant to Section 1.8 to subscribe for common shares of Blocker (the "**Subscription**").

Following the Subscription, the proceeds of the Financing received by Blocker pursuant to the Subscription shall be contributed to HB2 in exchange for Units of HB2.

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**1.10** **Business Combination - Adoption of Amended and Restated LLC Agreement**

Immediately following the actions set forth in Section 1.9, the then-current members of HB2 shall adopt an Amended and Restated Limited Liability Company Agreement of HB2 providing for, among other things, Class A Voting Units of HB2 and Class B Non-Voting Units of HB2, unit transfer restrictions and other provisions that are necessary or desirable in connection with the Business Combination. Units held by Blocker shall be redesignated as Class A Voting Units of HB2 and Units held by other remaining members of HB2 shall be redesignated as Class B Non-Voting Units of HB2.

**1.11** **Business Combination - Ancillary Agreements**

Immediately following the actions set forth in Section 1.10, (a) Red Pine, Blocker and HB2 shall enter into a Support Agreement providing for support and cooperation with respect to future securities changes, and (b) Blocker, HB2 and certain members of HB2 shall enter into a Tax Receivables Agreement relating to the treatment of certain future tax attributes.

**1.12** **Business Combination - Comprehensive Transaction**

The Parties intend and agree that the transactions set forth in Sections 1.2 through 1.11 shall be completed as specified and that no single transaction of Sections 1.2 through 1.11 shall be completed without the intent of the Parties to complete the remaining transactions.

**1.13** **U.S. Tax Matters**

Each Party agrees that: (a) the transactions set forth in Section 1.3, Section 1.4, Section 1.5, Section 1.6, Section 1.7 and Section 1.8 are intended to constitute a single integrated transaction qualifying as a tax-deferred contribution pursuant to Section 351 of the Code; (b) such Party shall retain such records and file such information as is required to be retained and filed pursuant to Treasury Regulations section 1.351-3 in connection with each of the transactions set forth in subsection (a); and (c) such Party shall otherwise use its best efforts to cause the transactions set forth in subsection (a) to qualify as a tax-deferred contribution, in each case pursuant to Section 351 of the Code. In connection with the transactions described in subsection (a), the Parties agree to treat Red Pine as a United States domestic corporation for U.S. federal income tax purposes under Section 7874(b) of the Code. Except as otherwise required by this Agreement, no Party shall take any action, fail to take any action, cause any action to be taken or cause any action to fail to be taken that could reasonably be expected to prevent (1) the transactions described in subsection (a) from each qualifying as a tax-deferred contribution within the meaning of Section 351 of the Code, or (2) Red Pine from being treated as a United States domestic corporation for U.S. federal income tax purposes under Section 7874(b) of the Code. Each Party hereto agrees to act in good faith, consistent with the terms of this Agreement and the intent of the Parties and the intended treatment of such transactions as set forth in this Section 1.13. Notwithstanding the foregoing, no Party makes any representation, warranty or covenant to any other Party or to any HB2 unitholder, Blocker shareholder or other holder of HB2 or Blocker securities (including, without limitation, stock options, warrants, subscription receipts, debt instruments or other similar rights or instruments) regarding the tax treatment of the transactions contemplated by this Agreement, including, but not limited to, whether the transactions described in subsection (a) will constitute a single integrated transaction qualifying as a tax-deferred contribution within the meaning of Section 351 of the Code or whether Red Pine will be treated as a United States domestic corporation for U.S. federal income tax purposes under Section 7874(b) of the Code as a result of the transactions set forth in subsection (a).

HB2, Blocker and Red Pine shall each be entitled to deduct and withhold from any consideration otherwise payable pursuant to the transactions contemplated by this Agreement to any person such amounts as are required to be deducted and withheld with respect to such payment under the Code, the ITA or any provision of provincial, state, local or foreign tax law, in each case as amended; to the extent that amounts are so withheld, such withheld amounts shall be treated for all purposes hereof as having been paid to the person in respect of which such deduction and withholding was made, provided that such withheld amounts are actually remitted to the appropriate taxing authority.

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**1.14** **Canadian Tax Election**

Red Pine will jointly elect with each Canadian Resident Shareholder who requests that Red Pine do so, in the form and within the time limits prescribed for such purposes, that the Canadian Resident Shareholder will be deemed pursuant to section 85 of the ITA to have disposed of his, her or its shares of Blocker at an elected amount to be determined by the Canadian Resident Shareholder. Red Pine shall not be responsible for the proper completion of any section 85 election form nor, except for the obligation to sign and return duly completed election forms which are received within ninety (90) days after the Effective Date, for any taxes, interest or penalties resulting from the failure of a Canadian Resident Shareholder to complete or file such election forms properly in the form and manner and within the time prescribed by the ITA (or any applicable provincial legislation). In its sole discretion, Red Pine may choose to sign and return an election form received by it more than ninety (90) days following the Effective Date, but will have no obligation to do so.

**1.15** **Board of Directors and Officers**

Each of the Parties hereby agrees that concurrently with the completion of the Business Combination, all of the current directors and officers of Red Pine shall resign without payment by or any liability to Red Pine or Amalco, and each such director and officer shall execute and deliver a release in favour of Red Pine, HB2 and Amalco, in a form acceptable to Red Pine and HB2, each acting reasonably, and the board of directors of Red Pine shall consist of five, and the directors of Red Pine shall be the persons nominated by HB2 and conditionally elected at the Red Pine Meeting (collectively, the "**New Red Pine Directors**").

**ARTICLE II**<br>**REPRESENTATIONS AND WARRANTIES OF HB2 AND BLOCKER**

Each of HB2 and Blocker jointly and severally represents and warrants to and in favour of Red Pine and Subco and acknowledges that Red Pine and Subco are relying on such representations and warranties in connection with this Agreement and the transactions contemplated herein:

**2.1** **Organization and Good Standing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of HB2 and Blocker is an entity (a limited liability company in the case of HB2 and a corporation in the case of Blocker) organized, validly existing, and in good standing under the Laws of the jurisdiction of its formation and is qualified to transact business and is in good standing as a foreign company in the jurisdictions where it is required to qualify in order to conduct its business as presently conducted, except where the failure to be so qualified would not have a Material Adverse Effect on HB2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of HB2 and Blocker has the corporate power and authority to own, lease or operate its properties and to carry on its business as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither HB2 nor Blocker is or will be a reporting issuer or the equivalent in any jurisdiction at the Effective Time.

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**2.2** **Consents, Authorizations, and Binding Effect**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Other than the requisite approvals of the TSXV, each of HB2 and Blocker may execute, deliver and perform this Agreement without the necessity of obtaining any consent, approval, authorization or waiver, or giving any notice or otherwise, except:

&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) consents, approvals, authorizations and waivers which have been obtained (or will be obtained prior to the Effective Date) and are not subject to any unfulfilled conditions, and in full force and effect, and notices which have been given on a timely basis; 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;(ii) those which, if not obtained or made, would not (A) prevent or materially delay the consummation of the Amalgamation or otherwise prevent HB2 from performing, in all material respects, its obligations under this Agreement, and (B) result in a Material Adverse Effect on HB2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of HB2 and Blocker has full corporate 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;(c) This Agreement has been duly executed and delivered by each of HB2 and Blocker and constitutes a legal, valid, and binding obligation of each, enforceable against it in accordance with its terms, except as may be limited by bankruptcy, reorganization, insolvency and similar Laws of general application relating to or affecting the enforcement of creditors' rights or the relief of debtors; and that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The execution, delivery, and performance of this Agreement will not:

&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) constitute a violation of the constating documents of HB2 or Blocker;

&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) conflict with in a material respect, result in the breach of, or constitute a default or give to others a right of termination, cancellation, creation or acceleration of any material obligation under or the loss of any material benefit under or the creation of any benefit or right of any third party under any material Contract, material permit or material lease to which HB2 or Blocker is a party or as to which any of its property is subject which in any such case would have a Material Adverse Effect on HB2; 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;(iii) constitute a violation of any Law applicable or relating to HB2 or Blocker or its business except for such violations which would not have a Material Adverse Effect on HB2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The manager of HB2 has approved the Business Combination and the execution, delivery and performance of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The sole director of Blocker has approved the Business Combination and the execution, delivery and performance of this Agreement.

**2.3** **Litigation and Compliance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no proceedings or Governmental investigations pending or, to the knowledge of HB2, threatened:

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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;(i) against or affecting HB2 or Blocker or with respect to or affecting any asset or property owned, leased or used by HB2 or Blocker; 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;(ii) which question or challenge the validity of this Agreement, the Business Combination or the Amalgamation or any action taken or to be taken pursuant to this Agreement, the Business Combination or the Amalgamation,

except for actions, suits, claims or proceedings which would not, in the aggregate, have a Material Adverse Effect on HB2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise disclosed to Red Pine, each of HB2 and Blocker has conducted and is conducting its business in compliance with, and is not in default or violation under, and has not received notice asserting the existence of any default or violation under, any Law applicable to its business or operations, except for non-compliance, defaults and violations which would not, in the aggregate, have a Material Adverse Effect on HB2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither HB2, nor any asset of HB2 is subject to any judgment, order or decree entered in any lawsuit or proceeding which has had, or which is reasonably likely to have, a Material Adverse Effect on HB2 or which is reasonably likely to prevent HB2 from performing its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) HB2 has duly filed or made all reports and returns required to be filed by it with any Governmental Authority and has obtained all permits, licenses, consents, approvals, certificates, registrations and authorizations (whether Governmental, regulatory or otherwise) which are required in connection with its business and operations, except where the failure to do so has not had and would not reasonably have a Material Adverse Effect on HB2.

**2.4** **Financial Statements**

The financial statements (including, in each case, any notes thereto) of HB2, based on the current drafts thereof as of the date hereof, for the years ended December 31, 2020, 2019 and 2018 were prepared in accordance with IFRS, applied on a consistent basis during the periods involved and fairly presented in all material respects the consolidated assets, liabilities and financial condition of HB2 as of the respective dates thereof and the consolidated earnings, results of operations and changes in financial position of HB2 for the periods then ended.

**2.5** **Taxes**

HB2 has timely filed, or has caused to be timely filed on its behalf, all material Tax Returns required to be filed by it prior to the date hereof, all such Tax Returns are complete and accurate in all material respects. All material Taxes shown to be due on such Tax Returns, or otherwise owed, have been timely paid, other than those which are being contested in good faith and in respect of which adequate reserves have been provided in the financial statements of HB2. No deficiency with respect to any Taxes has been proposed, asserted or assessed in writing against HB2, there are no actions, suits, proceedings, investigations or claims pending or threatened against HB2 in respect of Taxes or any matters under discussion with any Government relating to Taxes, in each case which are likely to have a Material Adverse Effect on HB2. HB2 has withheld from each payment made to any of their past or present employees, officers or directors, and to any non-resident of Canada, the amount of all material Taxes required to be withheld therefrom and have paid the same to the proper tax or receiving officers within the time required under applicable Law. HB2 has remitted to the appropriate tax authorities within the time limits required all material amounts collected by it in respect of Taxes. There are no material Liens for Taxes upon any asset of HB2 except Liens for Taxes not yet due.

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**2.6** **Brokers**

Other than in connection with the Financing, neither HB2 nor, to the knowledge of HB2, any of its Associates, Affiliates or Representatives has retained or intends to retain any broker or finder in connection with the Amalgamation or the other transactions contemplated hereby, nor have any of the foregoing incurred any liability to any broker or finder by reason of any such transaction.

**2.7** **Anti-Bribery Laws**

Neither HB2 nor Blocker, nor to the knowledge of HB2 or Blocker, any Representative of HB2 or Blocker, has (i) violated any anti-bribery or anti-corruption laws applicable to HB2 or Blocker, including but not limited to the *U.S. Foreign Corrupt Practices Act* and Canada's *Corruption of Foreign Public Officials Act*, or (ii) offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give, or authorized the giving of anything of value, that goes beyond what is reasonable and customary and/or of modest value: (X) to any Government Official, whether directly or through any other person, for the purpose of influencing any act or decision of a Government Official in his or her official capacity; inducing a Government Official to do or omit to do any act in violation of his or her lawful duties; securing any improper advantage; inducing a Government Official to influence or affect any act or decision of any Governmental Authority; or assisting any Representative of HB2 or Blocker in obtaining or retaining business for or with, or directing business to, any person; or (Y) to any person, in a manner which would constitute or have the purpose or effect of public or commercial bribery, or the acceptance of or acquiescence in extortion, kickbacks, or other unlawful or improper means of obtaining business or any improper advantage. Neither HB2 nor Blocker, nor to the knowledge of HB2 or Blocker, or any director, officer, employee, consultant, Representative or agent of HB2 or Blocker, has (i) conducted or initiated any review, audit, or internal investigation that concluded HB2 or Blocker or any director, officer, employee, consultant, Representative or agent of HB2 or Blocker violated such laws or committed any material wrongdoing, or (ii) made a voluntary, directed, or involuntary disclosure to any Governmental Authority responsible for enforcing anti-bribery or anti-corruption Laws, in each case with respect to any alleged act or omission arising under or relating to non-compliance with any such Laws, or received any notice, request, or citation from any person alleging non-compliance with any such Laws.

**ARTICLE III**<br>**REPRESENTATIONS AND WARRANTIES OF FINCO**

Finco represents and warrants to and in favour of Red Pine and Subco and acknowledges that Red Pine and Subco are relying on such representations and warranties in connection with this Agreement and the transactions contemplated herein:

**3.1** **Organization and Good Standing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Finco is a corporation duly organized, validly existing, and in good standing under the Laws of the jurisdiction of its incorporation and is qualified to transact business and is in good standing as a foreign corporation in the jurisdictions where it is required to qualify in order to conduct its business as presently conducted, except where the failure to be so qualified would not have a Material Adverse Effect on Finco. There are no subsidiaries of Finco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Finco has the corporate power and authority to own, lease or operate its properties and to carry on its business as currently conducted.

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**3.2** **Consents, Authorizations, and Binding Effect**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Finco may execute, deliver and perform this Agreement without the necessity of obtaining any consent, approval, authorization or waiver, or giving any notice or otherwise, except:

&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) consents, approvals, authorizations and waivers which have been obtained (or will be obtained prior to the Effective Date) and are unconditional, and in full force and effect, and notices which have been given on a timely basis;

&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 approval of the Finco Amalgamation Resolution by the holders of the Finco Shares;

&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 filing of a Form 13 (Amalgamation Application) with the British Columbia Registrar of Companies under the BCBCA; 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;(iv) those which, if not obtained or made, would not prevent or delay the consummation of the Amalgamation or otherwise prevent Finco from performing its obligations under this Agreement and would not be reasonably likely to have a Material Adverse Effect on Finco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Finco has full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder and to complete the Amalgamation, subject to the approval of the Finco Amalgamation Resolution by the Finco Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The sole director of Finco has: (i) approved the Business Combination and the execution, delivery and performance of this Agreement, and (ii) directed that the Finco Amalgamation Resolution be submitted to the Finco Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement has been duly executed and delivered by Finco and constitutes a legal, valid, and binding obligation of Finco, enforceable against it in accordance with its terms, except as may be limited by bankruptcy, reorganization, insolvency and similar Laws of general application relating to or affecting the enforcement of creditors' rights or the relief of debtors; and that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution, delivery, and performance of this Agreement will not:

&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) constitute a violation of the notice of articles or articles, as amended, of Finco;

&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) conflict with, result in the breach of or constitute a default or give to others a right of termination, cancellation, creation or acceleration of any obligation under or the loss of any material benefit under or the creation of any benefit or right of any third party under any material Contract, material permit or material license to which Finco is a party or as to which any of its property is subject which in any such case would have a Material Adverse Effect on Finco; 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;(iii) constitute a violation of any Law applicable or relating to Finco or its business except for such violations which would not have a Material Adverse Effect on Finco.

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**ARTICLE IV**<br>**REPRESENTATIONS AND WARRANTIES OF RED PINE AND SUBCO**

Each of Red Pine and Subco hereby represents and warrants to HB2, Blocker and Finco as follows and acknowledges that each of HB2, Blocker and Finco is relying on such representations and warranties in entering into this Agreement and completing the transactions contemplated herein:

**4.1** **Organization and Good Standing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of Red Pine and Subco is a corporation duly organized, validly existing, and in good standing under the Laws of the jurisdiction of its incorporation and is qualified to transact business and is in good standing as a foreign corporation (or the equivalent) in the jurisdictions where it is required to qualify in order to conduct its business as presently conducted, except where the failure to be so qualified would not have a Material Adverse Effect on Red Pine or Subco. Except for Subco, there are no other subsidiaries of Red Pine and Red Pine does not have any equity or other interest or any rights convertible or exchangeable for, or otherwise entitling it to, any equity interests in any Person other than its holders of Subco Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of Red Pine and Subco has the corporate power and authority to own, lease, or operate its properties and to carry on its business as now conducted.

**4.2** **Consents, Authorizations, and Binding Effect**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Red Pine and Subco may execute, deliver, and perform this Agreement without the necessity of obtaining any consent, approval, authorization or waiver, or giving any notice or otherwise, except:

&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 approval of the Subco Amalgamation Resolution by Red Pine as sole shareholder of Subco;

&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 approval of the TSXV for the listing of the Subordinate Voting Shares and, to the extent required, the other transactions contemplated hereby;

&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) consents, approvals, authorizations and waivers, which have been obtained (or will be obtained prior to the Effective Date), and are unconditional and in full force and effect and notices which have been given on a timely basis;

&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 approval of the Reorganization from Red Pine Shareholders and the filings required to complete the Reorganization (including the Form 11 (Alteration Notice) under the BCBCA);

&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 filing of Articles and a Form 13 (Amalgamation Application) with the British Columbia Registrar of Companies under the BCBCA;

&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 filing of the documents prescribed under the BCBCA to effect the appointment of the New Red Pine Directors and the New Red Pine Management; 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;(vii) those which, if not obtained or made, would not prevent or delay the consummation of the Amalgamation or otherwise prevent Red Pine from performing its obligations under this Agreement and would not be reasonably likely to have a Material Adverse Effect on Red Pine or Subco.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of Red Pine and Subco has full corporate power and authority to execute and deliver this Agreement and to perform its respective obligations hereunder and to complete the Business Combination and the Amalgamation, subject to the approval of the matters set out in the Red Pine Circular by Red Pine Shareholders at the Red Pine Meeting and the Subco Amalgamation Resolution by Red Pine by written consent resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The board of directors of Red Pine have unanimously: (i) approved the Business Combination and the execution, delivery and performance of this Agreement; (ii) directed that the matters to be approved at the Red Pine Meeting be submitted to the Red Pine Shareholders at the Red Pine Meeting, and unanimously recommended approval thereof and (iii) approved the execution and delivery of the Subco Amalgamation Resolution by Red Pine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The board of directors of Subco has unanimously approved the Amalgamation and the execution, delivery and performance of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Agreement has been duly executed and delivered by Red Pine and Subco and constitutes a legal, valid, and binding obligation of Red Pine and Subco enforceable against each of them in accordance with its terms, except as may be limited by bankruptcy, reorganization, insolvency and similar Laws of general application relating to or affecting the enforcement of creditors' rights or the relief of debtors; and that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defences and to the discretion of the court before which any proceeding therefor may be brought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The execution, delivery, and performance of this Agreement will not:

&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) constitute a violation of the notice of articles or articles of Red Pine or the notice of articles or articles of Subco;

&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) conflict with, result in the breach of or constitute a default or give to others a right of termination, cancellation, creation or acceleration of any material obligation under, or the loss of any material benefit under or the creation of any benefit or right of any third party under any Contract, permit or license to which either Red Pine or Subco is a party to or bound by or as to which any of its property is subject;

&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) constitute a violation of any Law applicable or relating to Red Pine or Subco or their respective businesses; 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;(iv) result in the creation of any Lien upon any of the assets of Red Pine or Subco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Neither Red Pine or Subco nor any Affiliate or Associate thereof, nor to the knowledge of Red Pine, any Representative of Red Pine or Subco, beneficially owns or has the right to acquire a beneficial interest in any Finco Shares.

**4.3** **Litigation and Compliance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no actions, suits, claims or proceedings, whether in equity or at law, or any Governmental investigations pending or, to the knowledge of Red Pine, threatened:

&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) against or affecting Red Pine or Subco or with respect to or affecting any asset or property owned, leased or used by Red Pine or Subco; 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;(ii) which question or challenge the validity of this Agreement, the Business Combination or the Amalgamation or any action taken or to be taken pursuant to this Agreement, the Business Combination or the Amalgamation,

and, to the knowledge of Red Pine, there is no basis for any such action, suit, claim, proceeding or investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of Red Pine and Subco has conducted and is conducting its business in compliance with, and is not in default or violation under, and has not received notice asserting the existence of any default or violation under, any Law applicable to the businesses or operations of Red Pine and Subco. Neither Red Pine nor Subco currently carries on any active business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Red Pine nor Subco nor any assets of Red Pine or Subco, is subject to any judgment, order or decree entered in any Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each of Red Pine and Subco has duly filed or made all reports and returns required to be filed by it with any Government and has obtained all permits, licenses, consents, approvals, certificates, registrations and authorizations (whether Governmental, regulatory or otherwise) which are required in connection with the business and operations of Red Pine and Subco.

**4.4** **Public Filings; Financial Statements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise disclosed to HB2, Red Pine has filed all documents required pursuant to applicable Canadian Securities Laws (the "**Red Pine Securities Documents**"). As of their respective dates, the Red Pine Securities Documents complied with the then applicable requirements of the Canadian Securities Laws (and all other applicable securities laws) and, at the respective times they were filed, none of the Red Pine Securities Documents contained any untrue statement of a material fact (as defined in Canadian Securities Laws) or omitted to state a material fact required to be stated therein or necessary to make any statement therein, in light of the circumstances under which it was made, not misleading. Red Pine has not filed any confidential filings which have not at the date hereof become publicly available under Red Pine's profile on SEDAR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The consolidated financial statements (including, in each case, any notes thereto) of Red Pine for the years ended March 31, 2020 and 2019 and for the three and nine months ended December 31, 2020 included in the Red Pine Securities Documents were prepared in accordance with IFRS applied on a consistent basis during the periods involved (except as may be indicated therein or in the notes thereto) and fairly present in all material respects the consolidated assets, liabilities and financial condition of Red Pine and its consolidated subsidiaries as of the respective dates thereof and the consolidated earnings, results of operations and changes in financial position of Red Pine and its consolidated subsidiaries for the periods then ended (subject, in the case of unaudited statements, to the absence of footnote disclosure and to customary year-end audit adjustments and to any other adjustments described therein). Except as disclosed in the Red Pine Securities Documents, Red Pine has not, since March 31, 2020, made any change in the accounting practices or policies applied in the preparation of its financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Red Pine is now, and on the Effective Date will be, a "reporting issuer" (or its equivalent) under Canadian Securities Laws in the Provinces of British Columbia and Alberta. Red Pine is not currently in default in any material respect of any requirement of Canadian Securities Laws and Red Pine is not included on a list of defaulting reporting issuers maintained by any of the securities commissions or similar regulatory authorities in each of such Provinces.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There has not been any reportable event (within the meaning of National Instrument 51-102 - *Continuous Disclosure Obligations* of the Canadian Securities Administrators) since March 31, 2020 with the present or former auditors of Red Pine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No order ceasing or suspending trading in securities of Red Pine or Subco or prohibiting the sale of securities by Red Pine or Subco has been issued that remains outstanding and, to the knowledge of Red Pine, no proceedings for this purpose have been instituted, are pending, contemplated or threatened by any securities commission, self-regulatory organization, stock exchange or other Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Red Pine maintains a system of internal accounting controls sufficient to provide reasonable assurance that: (i) transactions are executed in accordance with management's general or specific authorizations; (ii) access to assets is permitted only in accordance with management's general or specific authorization; and (iii) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Except as disclosed in the Red Pine Securities Documents, there are no contracts with Red Pine or Subco, on the one hand, and: (i) any officer or director of Red Pine or Subco; (ii) any holder of 5% or more of the equity securities of Red Pine; or (iii) an Associate or Affiliate of a person in (i) or (ii), on the other hand.

**4.5** **Taxes**

Each of Red Pine and Subco has timely filed, or has caused to be timely filed on its behalf, all Tax Returns required to be filed by it prior to the date hereof, all such Tax Returns are complete and accurate in all material respects. All Taxes shown to be due on such Tax Returns, or otherwise owed, have been timely paid, other than those which are being contested in good faith and in respect of which adequate reserves have been provided in the most recently published financial statements of Red Pine. Red Pine's audited consolidated financial statements for the period ended March 31, 2020 reflect a reserve in accordance with IFRS for all Taxes payable by Red Pine for all taxable periods and portions thereof through the date of such financial statements. No deficiency with respect to any Taxes has been proposed, asserted or assessed in writing against Red Pine or Subco, there are no actions, suits, proceedings, investigations or claims pending or threatened against Red Pine or Subco in respect of Taxes or any matters under discussion with any Government relating to Taxes, and no waivers or written requests for waivers of the time to assess any such Taxes are outstanding or pending. Each of Red Pine and Subco has withheld from each payment made to any of their past or present employees, officers or directors, and to any non-resident of Canada, the amount of all Taxes required to be withheld therefrom and have paid the same to the proper tax or receiving officers within the time required under applicable Law. Each of Red Pine and Subco has remitted to the appropriate tax authorities within the time limits required all amounts collected by it in respect of Taxes. There are no Liens for Taxes upon any asset of Red Pine or Subco except Liens for Taxes not yet due.

**4.6** **Pension and Other Employee Plans and Agreement**

Other than the Red Pine Stock Option Plan, Red Pine does not maintain or contribute to any Employee Plan. The Red Pine Stock Option Plan was approved by Red Pine Shareholders and there are currently no stock options outstanding under the Red Pine Stock Option Plan.

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**4.7** **Labour Relations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Red Pine has no employees and other than as disclosed to HB2, has not engaged any independent contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There are no representation questions, arbitration proceedings, labour strikes, slow-downs or stoppages, material grievances, or other labour troubles pending or, to the knowledge of Red Pine, threatened with respect to former employees of Red Pine; and, to the knowledge of Red Pine, there are no present or pending applications for certification (or the equivalent procedure under any applicable Law) of any union as the bargaining agent for any employees of Red Pine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subco has no employees and has not engaged any independent contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As of the Effective Date, neither Red Pine nor Subco shall have any employees or independent contractors, and neither shall have any liabilities in respect to any former employees or independent contractors.

**4.8** **Contracts**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither Red Pine nor Subco is a party to or bound by any Contract other than as set out on Schedule 4.8 hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of Red Pine and Subco and, to the knowledge of Red Pine and Subco, each of the other parties thereto, is in material compliance with all covenants under all Contracts it has entered into, and no default has occurred which, with notice or lapse of time or both, would directly or indirectly constitute such a default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No payment is required to be made, or obligation accrued that, if paid, by Red Pine as a result of the consummation of any of the matters contemplated by this Agreement that would result in Red Pine having a cash balance of less than $500,000 at the time of the completion of the Business Combination.

**4.9** **Absence of Certain Changes, Etc.**

Since April 1, 2019, other than as disclosed in the Red Pine Securities Documents filed on SEDAR since such date and except as contemplated by the Business Combination and this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) there has been no Material Adverse Change to Red Pine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Red Pine has not:

&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) sold, transferred, distributed, or otherwise disposed of or acquired a material amount of its assets, or agreed to do any of the foregoing, except in the ordinary course of 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;(ii) incurred any Liability (whether absolute, accrued, contingent or otherwise);

&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) prior to the date hereof, made or agreed to make any capital expenditure or commitment for additions to property, plant, or equipment;

&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) made or agreed to make any material increase in the compensation payable to any employee or director except for increases made in the ordinary course of business and consistent with presently existing policies or agreement or past practice;

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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;(v) conducted its operations other than in all material respects in the normal course of 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;(vi) entered into any transaction or Contract, or amended or terminated any transaction or Contract, except transactions or Contracts entered into in connection with the Business Combination or in respect of Permitted Debt;

&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) agreed or committed to do any of the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there has not been any declaration, setting aside or payment of any dividend or other distribution to Red Pine Shareholders.

**4.10** **Subsidiaries**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All of the outstanding shares in the capital of Subco are owned of record and beneficially by Red Pine free and clear of all Liens. Red Pine does not own, directly or indirectly, any equity interest of or in any entity or enterprise other than Subco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All outstanding Subco Shares have been duly authorized and are validly issued, fully paid and non-assessable.

**4.11** **Capitalization**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The authorized capital of Red Pine consists of an unlimited number of common shares. As of the date hereof, there are 334,332,402 common shares issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All issued and outstanding shares in the capital of Red Pine have been duly authorized and are validly issued, fully paid and non-assessable, free of pre-emptive rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Other than the Red Pine Warrants, there are no authorized, outstanding or existing:

&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) voting trusts or other agreements or understandings with respect to the voting of any Red Pine Shares to which Red Pine or Subco is a party;

&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) securities issued by Red Pine or Subco that are convertible into or exchangeable for any Red Pine Shares;

&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) agreements, options, warrants, or other rights capable of becoming agreements, options or warrants to purchase or subscribe for any Red Pine Shares or securities convertible into or exchangeable or exercisable for any such shares, in each case granted, extended or entered into by Red Pine or Subco;

&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) agreements of any kind to which either Red Pine or Subco is party relating to the issuance or sale of any Red Pine Shares, or any securities convertible into or exchangeable or exercisable for any Red Pine Shares or requiring Red Pine to qualify securities of for distribution by prospectus under Canadian Securities Laws; 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;(v) agreements of any kind which may obligate Red Pine to issue or purchase any of its securities.

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**4.12** **Environmental Matters**

Each of Red Pine and Subco is in compliance with all applicable Environmental Laws and has not violated, at any time, any Environmental Laws. All operations of Red Pine, past or present, conducted on any real property, leased or owned by Red Pine or any entity in which Red Pine directs or indirectly has any interest, past or present, and such properties themselves while occupied by Red Pine or any entity in which Red Pine directs or indirectly has any interest, have been and are in compliance with all Environmental Laws. Red Pine is not is the subject of: (i) any proceeding, application, order or directive which relates to any environmental, health or safety matter; or (ii) any demand or notice with respect to any Environmental Laws, and no set of circumstances exists pursuant to which Red Pine may, directly or indirectly, have any liability for any such matters. Red Pine has no reclamation obligations and is not required to make any reserves for reclamation obligations pursuant to IFRS. Neither Red Pine nor any entity in which Red Pine has, directly or indirectly, had any interest, has caused or permitted the release of any hazardous substances on or to any of the assets or any other real property owned or leased or occupied, either past or present, (including underlying soils and substrata, surface water and groundwater) in such a manner as: (A) would be reasonably likely to impose liability for cleanup, natural resource damages, loss of life, personal injury, nuisance or damage to other property; (B) would be reasonably likely to result in imposition of a Lien, charge or other encumbrance on or the expropriation of any of the assets; or (C) at levels which exceed remediation and/or reclamation standards under any Environmental Laws or standards published or administered by those Governmental Authorities responsible for establishing or applying such standards. There is no environmental liability or factors likely to give rise to any environmental liability (i) affecting Red Pine; or (ii) retained in any manner by Red Pine in connection with any activities conducted prior to the date hereof.

**4.13** **Licence and Title**

Red Pine is the absolute legal and beneficial owner of, and has good and marketable title to, all of its property or assets (real and personal, tangible and intangible, including leasehold interests) including all the properties and assets reflected in the balance sheet forming part of Red Pine's financial statements for the year ended March 31, 2020, except as indicated in the notes thereto, and such properties and assets are not subject to any mortgages, Liens, charges, pledges, security interests, claims, demands or defect in title of any kind except as is reflected in the balance sheets forming part of such financial statements and in the notes thereto and Red Pine owns, possesses, or has obtained and is in compliance in all material respects with, all licences, permits, certificates, orders, grants and other authorizations of or from any Governmental Authority necessary to conduct its business as currently conducted, in accordance in all material respects with applicable Laws.

**4.14** **Indebtedness**

As at the date of this Agreement, no indebtedness for borrowed money was owing or guaranteed by Red Pine or Subco and neither Red Pine nor Subco has any Liabilities (contingent or otherwise) other than obligations for the payment of Liabilities incurred in connection with the transactions contemplated by this Agreement.

**4.15** **Undisclosed Liabilities**

There are no Liabilities of Red Pine, Subco or Amalco of any kind whatsoever, whether or not accrued and whether or not determined or determinable, in respect of which either Red Pine or Subco may become liable on or after the consummation of the transactions contemplated hereby.

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**4.16** **Due Diligence Investigations**

All information relating to the business, assets, liabilities, properties, capitalization or financial condition of Red Pine or Subco provided by Red Pine or its Representatives to HB2, Blocker or Finco is true, accurate and complete in all material respects and Red Pine has not omitted to disclose in writing and provide materials in respect of any material fact or which would otherwise cause information provided to be untrue or incomplete.

**4.17** **Brokers**

Neither Red Pine nor Subco or, to the knowledge of Red Pine, any of their respective Associates, Affiliates or Representatives have retained any broker or finder in connection with the transactions contemplated hereby, nor have any of the foregoing incurred any Liability to any broker or finder by reason of any such transaction.

**4.18** **Anti-Bribery Laws**

Neither Red Pine nor Subco nor to the knowledge of Red Pine or Subco, any Representative of the foregoing, has (i) violated any anti-bribery or anti-corruption laws applicable to Red Pine or Subco, including but not limited to the *U.S. Foreign Corrupt Practices Act* and Canada's *Corruption of Foreign Public Officials Act*, or (ii) offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give, or authorized the giving of anything of value, that goes beyond what is reasonable and customary and/or of modest value: (X) to any Government Official, whether directly or through any other person, for the purpose of influencing any act or decision of a Government Official in his or her official capacity; inducing a Government Official to do or omit to do any act in violation of his or her lawful duties; securing any improper advantage; inducing a Government Official to influence or affect any act or decision of any Governmental Authority; or assisting any Representative of Red Pine or Subco in obtaining or retaining business for or with, or directing business to, any person; or (Y) to any person, in a manner which would constitute or have the purpose or effect of public or commercial bribery, or the acceptance of or acquiescence in extortion, kickbacks, or other unlawful or improper means of obtaining business or any improper advantage. Neither Red Pine nor Subco nor to the knowledge of Red Pine, any director, officer, employee, consultant, Representative or agent of foregoing, has (i) conducted or initiated any review, audit, or internal investigation that concluded Red Pine or Subco or any director, officer, employee, consultant, Representative or agent of the foregoing violated such laws or committed any material wrongdoing, or (ii) made a voluntary, directed, or involuntary disclosure to any Governmental Authority responsible for enforcing anti-bribery or anti-corruption Laws, in each case with respect to any alleged act or omission arising under or relating to non-compliance with any such Laws, or received any notice, request, or citation from any person alleging non-compliance with any such Laws.

**ARTICLE V**<br>**CONDITIONS TO OBLIGATIONS OF RED PINE**

**5.1** **Conditions Precedent to Completion of the Business Combination**

The obligation of Red Pine and Subco to complete the Business Combination is subject to the satisfaction of the following conditions on or prior to the Effective Date, each of which may be waived by Red Pine and Subco:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The representations and warranties of HB2 and Blocker set forth in Article II and of Finco set forth in Article III qualified as to materiality shall be true and correct, and the representations and warranties not so qualified shall be true and correct in all material respects as of the date of this Agreement and on the Effective Date as if made on the Effective Date, except for such representations and warranties made expressly as of a specified date which shall be true and correct in all material respects as of such date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) HB2, Blocker and Finco shall have performed and complied in all material respects with all covenants and agreements required by this Agreement to be performed or complied with by them prior to or on the Effective Date and Red Pine shall have received a certificate signed on behalf of HB2 by an executive officer thereof to such effect dated as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There shall not have occurred any Material Adverse Change in HB2 since the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Red Pine Shareholders shall have approved the matters to be set out in the Red Pine Circular at the Red Pine Meeting.

**ARTICLE VI**<br>**CONDITIONS TO OBLIGATIONS OF HB2, BLOCKER AND FINCO**

**6.1** **Conditions Precedent to Completion of the Business Combination**

The obligation of HB2, Blocker and Finco to complete the Business Combination is subject to the satisfaction of the following conditions on or prior to the Effective Date, each of which may be waived by HB2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The representations and warranties of Red Pine and Subco set forth in Article IV qualified as to materiality shall be true and correct, and the representations and warranties not so qualified shall be true and correct in all material respects as of the date hereof and on the Effective Date as if made on the Effective Date, except for such representations and warranties made expressly as of a specified date which shall be true and correct in all material respects as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Red Pine and Subco shall have performed and complied in all material respects with all covenants and agreements required by this Agreement to be performed or complied with by Red Pine and Subco, respectively, prior to or on the Effective Date and HB2 shall have received certificates signed on behalf of Red Pine and Subco, respectively, by an executive officer thereof to such effect dated as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There shall not have occurred any Material Adverse Change to Red Pine or Subco since the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Red Pine Shareholders shall have approved the matters to be set out in the Red Pine Circular to be approved at the Red Pine Meeting, including the approval of the Reorganization, the election of the New Red Pine Directors, the approval of the New Equity Incentive Plan and the election of the new auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Red Pine shall have completed and filed all necessary documents in accordance with the BCBCA in respect of the matters to be set out in the Red Pine Circular to be approved at the Red Pine Meeting, and the Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares shall have been duly and validly created and the Name Change shall be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All of the current directors and officers of Red Pine and Subco shall have resigned without payment by or any liability to Red Pine, HB2, Blocker, Finco, Subco or Amalco, and each such director and officer shall have executed and delivered a release in favour of Red Pine, Subco, HB2, Blocker, Finco and Amalco, in a form acceptable to HB2, acting reasonably.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The TSXV shall not have objected to the New Red Pine Directors as directors of Red Pine upon closing of the Business Combination or to the officers proposed by HB2 as officers of Red Pine upon closing of the Business Combination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Reorganization shall have been completed in a manner satisfactory to HB2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The securityholders of HB2 shall have entered into a contribution agreement providing for the contribution of their interests to Blocker to the extent contemplated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) HB2 shall be satisfied in its sole discretion that: (A) at the time of the completion of the Business Combination, Red Pine has a cash balance of not less than $500,000; and (B) Red Pine and Subco have no Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Financing, if being undertaken, shall have been completed.

**ARTICLE VII**<br>**MUTUAL CONDITIONS PRECEDENT**

**7.1** **Mutual Conditions Precedent**

The obligations of Red Pine, Subco, HB2, Blocker and Finco to complete the Business Combination are subject to the satisfaction of the following conditions on or prior to the Effective Date, each of which may be waived only with the consent in writing of Red Pine and HB2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All consents, waivers, permits, exemptions, orders, consents and approvals required to permit the completion of the Business Combination, the failure of which to obtain could reasonably be expected to have a Material Adverse Effect on HB2 or Red Pine or materially impede the completion of the Business Combination, shall have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No temporary restraining order, preliminary injunction, permanent injunction or other order preventing the consummation of the Business Combination shall have been issued by any federal, state, or provincial court (whether domestic or foreign) having jurisdiction and remain in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Subordinate Voting Shares to be issued pursuant to the Business Combination shall have been conditionally approved for listing on the TSXV, subject to standard conditions on the Effective Date or as soon as practicable thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the Effective Date, no cease trade order or similar restraining order of any other provincial securities administrator relating to the Red Pine Shares, the Subordinate Voting Shares, the Multiple Voting Shares, the Proportionate Voting Shares, the Finco Shares, the HB2 membership units, the Blocker shares or the Amalco Shares shall be in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There shall not be pending or threatened any suit, action or proceeding by any Governmental Entity, before any court or Governmental Authority, agency or tribunal, domestic or foreign, that has a significant likelihood of success, seeking to restrain or prohibit the consummation of the Business Combination or any of the other transactions contemplated by this Agreement or seeking to obtain from any Party any damages that are material in relation to such Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The distribution of Amalco Shares, Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares pursuant to the Business Combination shall be exempt from the prospectus and registration requirements of applicable Canadian Securities Law either by virtue of exemptive relief from the securities regulatory authorities of each of the provinces of Canada or by virtue of applicable exemptions under Canadian Securities Laws and shall not be subject to resale restrictions under applicable Canadian Securities Laws (other than as applicable to control persons) or pursuant to Section 2.6 of National Instrument 45-102 - *Resale of Securities of the Canadian Securities Administrator*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Agreement shall not have been terminated in accordance with its terms.

**ARTICLE VIII**<br>**CLOSING**

**8.1** **Closing**

Subject to the satisfaction or waiver of the conditions in Article V, Article VI and Article VII, the Closing shall take place by the electronic exchange of documents at 8:00 a.m. (Toronto time) on the Effective Date or on such other date and time as HB2 and Red Pine may agree.

**8.2** **Termination of this Agreement**

This Agreement may be terminated at any time prior to the Effective Time, whether before or after approval of the matters to be set out in the Red Pine Circular to be approved by the Red Pine Shareholders or any other matters presented in connection with the Business Combination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by mutual written consent of the Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by Red Pine or HB2 if there has been a breach of any of the representations, warranties, covenants and agreements on the part of the other Party (the "**Breaching Party**") set forth in this Agreement, which breach has or is likely to result in the failure of the conditions set forth in Section 5.1, 6.1 or 7.1, as the case may, to be satisfied and in each case has not been cured within ten (10) Business Days following receipt by the Breaching Party of written notice of such breach from the non-Breaching Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by any Party if any permanent order, decree, ruling or other action of a court or other competent authority restraining, enjoining or otherwise preventing the consummation of the Business Combination shall have become final and non-appealable;

**8.3** **Survival of Representations and Warranties; Limitation**

The representations and warranties set forth in herein shall expire and be terminated on the earlier of the Effective Date or the termination of this Agreement.

**ARTICLE IX**<br>**MISCELLANEOUS**

**9.1** **Further Actions**

Each of the Parties shall use its commercially reasonable efforts to properly satisfy all of the conditions set out in this Agreement, take all actions to cause the transactions contemplated herein to be implemented and not take any action that would, directly or indirectly, cause any of the conditions set out in this Agreement to fail to be satisfied at or prior to the Effective Time. From time to time, as and when requested by any Party, the other Parties shall execute and deliver, and use all commercially reasonable efforts to cause to be executed and delivered, such documents and instruments and shall take, or cause to be taken, such further or other actions as may be reasonably requested in order to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) carry out the intent and purposes of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) effect the Amalgamation (or to evidence the foregoing); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consummate and give effect to the other transactions, covenants and agreements contemplated by this Agreement.

**9.2** **Entire Agreement**

This Agreement, which includes the Schedules hereto and the other documents, agreements, and instruments executed and delivered pursuant to or in connection with this Agreement, contains the entire Agreement between the Parties with respect to matters dealt within herein and, except as expressly provided herein, supersedes all prior arrangements or understandings with respect thereto, including the Letter of Intent.

**9.3** **Descriptive Headings**

The descriptive headings of this Agreement are for convenience only and shall not control or affect the meaning or construction of any provision of this Agreement.

**9.4** **Notices**

All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if delivered personally or sent by electronic mail, nationally recognized overnight courier, or registered or certified mail, postage prepaid, addressed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Red Pine:

310 - 6 Adelaide Street East<br>Toronto, ON M5C 1H6

E-mail: richard@paolonelew.ca<br>Attention: Chief Executive Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If to HB2, Blocker or Finco:

HB2 Origination, LLC<br>3322 West End Avenue, Suite 450<br>Nashville, TN 37203

E-mail: cholmstrom@ae-cap.com<br>Attention: Chrystie Holmstrom

With a copy (which shall not constitute notice) to:

Cassels Brock & Blackwell LLP<br>Suite 2100, Scotia Plaza, 40 King St. W.<br>Toronto, ON M5H 3C2 Canada

E-mail: lclements@cassels.com<br>Attention: Lindsay Clements

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Any such notices or communications shall be deemed to have been received: (i) if delivered personally or sent by nationally recognized overnight courier or by electronic mail, on the date of such delivery; or (ii) if sent by registered or certified mail, on the third Business Day following the date on which such mailing was postmarked. Any Party may by notice change the address to which notices or other communications to it are to be delivered or mailed.

**9.5** **Governing Law**

This Agreement shall be governed by and construed in accordance with the Laws of the Province of Ontario and the federal laws of Canada applicable therein, but references to such laws shall not, by conflict of laws, rules or otherwise require application of the law of any jurisdiction other than the Province of Ontario and the Parties hereby further irrevocably attorn to the jurisdiction of the Courts of the Province of Ontario in respect of any matter arising hereunder or in connection with the transactions contemplated in this Agreement.

**9.6** **Enurement and Assignability**

This Agreement shall be binding upon and shall enure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns, provided that this Agreement shall not be assignable otherwise than by operation of law by any Party without the prior written consent of the other Parties, and any purported assignment by any Party without the prior written consent of the other Parties shall be void.

**9.7** **Confidentiality**

The Parties agree that no disclosure or announcement, public or otherwise, in respect of the Business Combination, this Agreement or the transactions contemplated herein shall be made by any Party or its Representatives without the prior agreement of the other Parties as to timing, content and method, hereto, provided that the obligations herein will not prevent any Party from making, after consultation with the other Parties, such disclosure as its counsel advises is required by applicable Law or the rules and policies of the TSXV (or any other relevant stock exchange). If any of Red Pine, HB2, Blocker, Finco or Subco is required by applicable Law or regulatory instrument, rule or policy to make a public announcement with respect to the Business Combination, such Party hereto will provide as much notice to the other of them as reasonably possible, including the proposed text of the announcement.

Except as and only to the extent required by applicable Law, the Receiving Party will not disclose or use, and it will cause its Representatives not to disclose or use, any Confidential Information furnished by a Disclosing Party or its Representatives to the Receiving Party or its Representatives at any time or in any manner, other than for the purposes of evaluating the Business Combination.

**9.8** **Remedies**

The Parties acknowledge that an award of money damages may be inadequate for any breach of the obligations undertaken by the Parties and that the Parties shall be entitled to seek equitable relief, in addition to remedies at law. In the event of any action to enforce the provisions of this Agreement, each of the Parties waive the defense that there is an adequate remedy at law. Without limiting any remedies any Party may otherwise have, in the event any Party refuses to perform its obligations under this Agreement, the other Party shall have, in addition to any other remedy at law or in equity, the right to specific performance.

**9.9** **Costs and Expenses**

The Parties acknowledge and agree that all costs and expenses relating to such transactions will by paid by the Party incurring same, provided that HB2 and its counsel shall be primarily responsible for the preparation, printing and mailing of all documentation and filings in connection with the Business Combination and the payment of all related costs and fees, all shareholder meetings and the application to the TSXV for the listing of the Subordinate Voting Shares following completion of the Business Combination, while Red Pine and its counsel shall perform a review function and cooperate and assist in the preparation of such documentation and required filings; however, each Party shall permit the other Party and its counsel to review the preparation of all documentation to be sent to Red Pine Shareholders or otherwise used in connection with the approval of the Business Combination and the listing of the Subordinate Voting Shares on the TSXV.

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**9.10** **Waivers and Amendments**

Any waiver of any term or condition of this Agreement, or any amendment or supplementation of this Agreement, shall be effective only if in writing. A waiver of any breach or failure to enforce any of the terms or conditions of this Agreement shall not in any way affect, limit, or waive a Party's rights hereunder at any time to enforce strict compliance thereafter with every term or condition of this Agreement.

**9.11** **Illegalities**

In the event that any provision contained in this Agreement shall be determined to be invalid, illegal, or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and the remaining provisions of this Agreement shall not, at the election of the Party for whose benefit the provision exists, be in any way impaired.

**9.12** **Currency**

Except as otherwise set forth herein, all references to amounts of money in this Agreement are to Canadian Dollars.

**9.13** **Counterparts**

This Agreement may be executed in counterparts by original or facsimile signature, each of which will be an original as regards any party whose signature appears thereon and all of which together will constitute one and the same instrument. This Agreement will become binding when one or more counterparts hereof, individually or taken together, bears the signatures of all the parties reflected hereon as signatories.

***[Remainder of page intentionally left blank. Signature page follows.]***

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**IN WITNESS WHEREOF**, the undersigned have executed and delivered this Agreement as of the day and year first above written.

**RED PINE PETROLEUM LTD.**

By: <u>/s/ Richard Paolone____</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Richard Paolone

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Executive Officer

**HB2 ORIGINATION, LLC**

By: <u>/s/ Craig Perry_________</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Craig Perry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Executive Officer

**ALPINE SUMMIT ENERGY PARTNERS FINCO, INC.**

By: <u>/s/ Craig Perry___________</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Craig Perry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: President

**RED PINE PETROLEUM SUBCO LTD.**

By: <u>/s/ Richard Paolone________</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Richard Paolone

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: President

**ALPINE SUMMIT ENERGY INVESTORS, INC.**

By: <u>/s/ Craig Perry______________</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Craig Perry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Executive Officer

[Signature Page to Business Combination Agreement]

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**SCHEDULE A**<br>**DEFINITIONS**

"**Affiliate**" has the meaning ascribed to such term in National Instrument 45-106 - *Prospectus Exemptions* of the Canadian Securities Administrators.

"**Agreement**" means this Business Combination Agreement, as it may be amended or supplemented at any time and from time to time after the date hereof.

"**Amalco**" means the corporation resulting from Amalgamation.

"**Amalco Shares**" means common shares in the capital of Amalco.

"**Amalgamation**" means an amalgamation of Subco and Finco pursuant to Section 269 of the BCBCA, on the terms and subject to the conditions set out in the Amalgamation Agreement and this Agreement, subject to any amendments or variations thereto made in accordance with the provisions of the Amalgamation Agreement and this Agreement.

"**Amalgamation Agreement**" means the amalgamation agreement in the form attached as Schedule B hereto to be entered into between Red Pine, Subco and Finco pursuant to Section 269 of the BCBCA, to effect the Amalgamation.

"**Amalgamation Application**" means the Form 13 to be jointly completed and filed by Red Pine and Finco with the Registrar of Companies under the BCBCA, substantially in the form set forth in Schedule B hereto giving effect to the Amalgamation of Subco and Finco upon and subject to the terms of this Agreement.

"**Associate**" has the meaning ascribed to such term in the *Securities Act* (British Columbia).

"**BCBCA**" means the *Business Corporations Act* (British Columbia), as amended.

"**Blocker Shares**" means the common shares of Blocker;

"**Breaching Party**" has the meaning ascribed to such term in Section 8.2(b).

"**Business Combination**" means the completion of the steps set out in Article I on the basis set out in this Agreement.

"**Business Day**" means any day other than a Saturday or Sunday or other day on which Canadian Chartered Banks located in the City of Toronto or the City of Vancouver are required or permitted to close.

"**Canadian Resident Shareholder**" means a beneficial holder of shares of Blocker who, for purposes of the ITA is either resident in Canada or a "Canadian partnership".

"**Canadian Securities Laws**" means the *Securities Act* (or equivalent legislation) in each of the provinces and territories of Canada and the respective regulations under such legislation together with applicable published rules, regulations, policy statements, national instruments and memoranda of understanding of the Canadian Provincial Securities Administrators and the securities regulatory authorities in such provinces and territories.

"**Cancellation**" means the cancellation of the Red Pine Warrants.

"**Certificate of Amalgamation**" means the certificate of amalgamation to be used by the Registrar of Companies under the BCBCA pursuant to section 281 of the BCBCA following the following the filing of the Amalgamation Application.

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"**Class A Finco Share**" means a Class A common share in the capital of Finco, which shall entitle the holder to receive one Subordinate Voting Share pursuant to the Amalgamation.

"**Class B Finco Share**" means a Class B common share in the capital of Finco, which shall entitle the holder to receive one Multiple Voting Share pursuant to the Amalgamation.

"**Class A Voting Units of HB2**" means the "Class A Units" as defined in the Amended and Restated LLC Agreement of HB2 to be adopted pursuant to Section 1.10 with such terms, rights, privileges, and obligations as provided for in such Amended and Restated LLC Agreement of HB2.

"**Class B Non-Voting Units of HB2**" means the "Class B Units" as defined in the Amended and Restated LLC Agreement of HB2 to be adopted pursuant to Section 1.10 with such terms, rights, privileges, and obligations as provided for in such Amended and Restated LLC Agreement of HB2.

"**Code**" means the U.S. Internal Revenue Code of 1986, as amended.

"**Confidential Information**" means any information concerning the Disclosing Party or its business, properties and assets made available to the Receiving Party; provided that it does not include information which: (a) is generally available to or known by the public other than as a result of improper disclosure by the Receiving Party or pursuant to a breach of Section 9.7 by the Receiving Party; (b) is obtained by the Receiving Party from a source other than the Disclosing Party, provided that, to the reasonable knowledge of the Receiving Party, such source was not bound by a duty of confidentiality to the Disclosing Party or another party with respect to such information; (c) is developed by the Receiving Party independently of any disclosure by the Disclosing Party; or (d) was in the Receiving Party's possession prior to its disclosure by the Disclosing Party.

"**Consolidation**" means the consolidation of the Red Pine Shares on the basis of one Red Pine Share for 625.5882 existing Red Pine Shares or such other number of resulting Red Pine Shares as is determined by the board of directors of Red Pine with the consent of HB2.

"**Contract**" means any contract, lease, agreement, instrument, license, commitment, order, or quotation, written or oral.

"**Disclosing Party**" means any Party or its representatives disclosing Confidential Information to the Receiving Party.

"**Effective Date**" has the meaning ascribed to such term in Section 1.5(e).

"**Effective Time**" means the time of filing of the Amalgamation Application with the British Columbia Registrar of Companies under the BCBCA on the Effective Date.

"**Employee Plans**" means all plans, arrangements, agreements, programs, policies or practices, whether oral or written, formal or informal, funded or unfunded, maintained for employees, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any employee benefit plan or material fringe benefit plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any retirement savings plan, pension plan or compensation plan, including, without limitation, any defined benefit pension plan, defined contribution pension plan, group registered retirement savings plan or supplemental pension or retirement income plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any bonus, profit sharing, deferred compensation, incentive compensation, stock compensation, stock purchase, hospitalization, health, drug, dental, legal disability, insurance (including without limitation unemployment insurance), vacation pay, severance pay or other benefit plan, arrangement or practice with respect to employees or former employees, individuals working on contract, or other individuals providing services of a kind normally provided by employees; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) where applicable, all statutory plans, including, without limitation, the Canada or Québec Pension Plans.

"**Environmental Laws**" means Laws regulating or pertaining to the generation, discharge, emission or release into the environment (including without limitation ambient air, surface water, groundwater or land), spill, receiving, handling, use, storage, containment, treatment, transportation, shipment, disposition or remediation or clean-up of any Hazardous Substance, as such Laws are amended and in effect as of the date hereof.

"**Financing**" means the private placement of Subscription Receipts prior to the Effective Date.

"**Finco Broker Warrants**" means warrants to acquire securities of Finco that may be granted to certain agents as compensation pursuant to the Financing.

"**Finco Shareholders**" means the holders of the issued and outstanding Finco Shares.

"**Finco Shares**" means collectively, the Initial Finco Share, the Class A Finco Shares and the Class B Finco Shares.

"**Government**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the government of Canada, the United States or any other foreign country;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the government of any Province, State, county, municipality, city, town, or district of Canada, the United States or any other foreign country; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any ministry, agency, department, authority, commission, administration, corporation, bank, court, magistrate, tribunal, arbitrator, instrumentality, or political subdivision of, or within the geographical jurisdiction of, any government described in the foregoing clauses (a) and (b), and for greater certainty, includes the TSXV.

"**Government Official**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any official, officer, employee, or representative of, or any person acting in an official capacity for or on behalf of, any Governmental Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any salaried political party official, elected member of political office or candidate for political office; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any company, business, enterprise or other entity owned or controlled by any person described in the foregoing clauses.

"**Governmental**" means pertaining to any Government.

"**Governmental Authority**" means and includes, without limitation, any Government or other political subdivision of any Government, judicial, public or statutory instrumentality, court, tribunal, commission, board, agency (including those pertaining to health, safety or the environment), authority, body or entity, or other regulatory bureau, authority, body or entity having legal jurisdiction over the activity or Person in question and, for greater certainty, includes the TSXV.

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"**Hazardous Substance**" means any pollutant, contaminant, waste or chemical or any toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous or deleterious substance, waste or material, including hydrogen sulphide, arsenic, cadmium, copper, lead, mercury, petroleum, polychlorinated biphenyls, asbestos and urea-formaldehyde insulation, and any other material, substance, pollutant or contaminant regulated or defined pursuant to, or that could result in liability under, any applicable Environmental Law.

"**HB2 Recapitalization**" means the recapitalization of HB2 whereby each Membership Unit (as defined in the Amended and Restated Limited Liability Company Agreement of HB2 dated as of August 30, 2019) of HB2 outstanding immediately prior to the HB2 Recapitalization will be automatically converted into three Membership Units of HB2.

"**IFRS**" means International Financial Reporting Standards.

"**Initial Finco Share**" means the initial common share in the capital of Finco issued to Craig Perry in connection with the incorporation and organization of Finco.

"**Income Tax**" means any Tax based on or measured by income (including without limitation, based on net income, gross income, income as specifically defined, earnings, profits or selected items of income, earnings or profits); and any interest, penalties and additions to tax with respect to any such tax (or any estimate or payment thereof).

"**ITA**" means the *Income Tax Act* (Canada), as amended and all regulations thereunder.

"**knowledge of HB2**" means the actual knowledge of the Craig Perry, Michael McCoy, Reagan Brown and Chrystie Holmstrom, without additional inquiry.

"**Law**" means any of the following of, or issued by, any Government, in effect on or prior to the date hereof, including any amendment, modification or supplementation of any of the following from time to time subsequent to the original enactment, adoption, issuance, announcement, promulgation or granting thereof and prior to the date hereof: any statute, law, act, ordinance, code, rule or regulation of any writ, injunction, award, decree, judgment or order.

"**Letter of Intent**" means the letter of intent, dated January 6, 2021, between HB2 and Red Pine related to the Business Combination, as amended.

"**Liability**" of any Person means and include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any right against such Person to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any right against such Person to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to any equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any obligation of such Person for the performance of any covenant or agreement (whether for the payment of money or otherwise).

"**Lien**" means any mortgage, deed of trust, pledge, hypothecation, option, easement, encroachment, right of way, right of first refusal, security interest, encumbrance, claim, lien or charge of any kind.

"**Material Adverse Change**" or "**Material Adverse Effect**" means, with respect to any Party any change, event, effect, occurrence or state of facts that has, or could reasonably be expected to constitute a material adverse change in respect of or to have a material adverse effect on, the business, properties, assets, liabilities (including contingent liabilities), results of operations or financial condition of the party and its subsidiaries, as applicable, taken as a whole. The foregoing shall not include any change or effects attributable to: (i) any matter that has been disclosed in writing to the other Party or any of its advisers by a Party or any of its advisers in connection with this Agreement; (ii) changes relating to general economic, political or financial conditions; or (iii) relating to the state of securities markets in general.

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"**Multiple Voting Shares**" means the Multiple Voting Shares of Red Pine having the terms and conditions substantially in the form set out in Schedule C hereto.

"**MVS Subscription Receipts**" means the Subscription Receipts that are exchangeable into Class B Finco Shares;

"**Name Change**" means the change of Red Pine's name to "Alpine Summit Energy Partners, Inc.", or such other name designated by HB2 and that is acceptable to the regulatory authorities.

"**New Equity Incentive Plan**" means the equity incentive plan to replace the Red Pine Option Plan, to be approved by Red Pine Shareholders at the Red Pine Meeting.

"**New Red Pine Directors**" has the meaning ascribed to such term in Section 1.15.

"**Parties**" and "**Party**" means the parties to this Agreement.

"**penalty**" means any civil or criminal penalty (including any interest thereon), fine, levy, lien, assessment, charge, monetary sanction or payment, or any payment in the nature thereof, of any kind, required to be made to any Government under any Law.

"**Person**" means any corporation, partnership, limited liability company or partnership, joint venture, trust, unincorporated association or organization, business, enterprise or other entity; any individual; and any Government.

"**Proceeding**" means any action, arbitration, claim, complaint, criminal prosecution, demand letter, governmental or other examination or investigation, hearing, inquiry, administrative or other proceeding.

"**Receiving Party**" means any Party or its representatives receiving Confidential Information from a Disclosing Party.

"**Red Pine**" means Red Pine Petroleum, Ltd., a corporation existing under the laws of the Province of British Columbia.

"**Red Pine Broker Warrants**" means (if applicable) warrants to acquire securities of Red Pine to be issued to former holders of Finco Broker Warrants, which warrants will be substantially on the same terms and conditions as the Finco Broker Warrants except for the right to receive Subordinate Voting Shares in lieu of common shares of Finco upon, among other things, payment of the applicable exercise price.

"**Red Pine Circular**" means the management information circular of Red Pine in respect of the Red Pine Meeting.

"**Red Pine Meeting**" means the annual and special meeting of the Red Pine Shareholders to be held as soon as is reasonably practicable after the date of this Agreement to approve the matters to be approved by the Red Pine Shareholders, which shall include the Reorganization, the changes to the board of directors of Red Pine contemplated herein, the approval of the New Equity Plan, and the appointment of new auditors, and any and all adjournments or postponements of such meeting.

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"**Red Pine Securities Documents**" has the meaning ascribed to such term in Section 4.4(a).

"**Red Pine Shareholders**" means the holders of Red Pine Shares.

"**Red Pine Shares**" means, collectively, the 334,332,402 common shares in the capital of Red Pine prior to giving effect to the Consolidation, the Cancellation and the Share Amendments.

"**Red Pine Stock Option Plan**" means the current stock option plan of Red Pine.

"**Red Pine Warrants**" means the 40,000,000 outstanding warrants to purchase Red Pine Shares, each with an exercise price of $0.005 and expiry date of January 15, 2025.

"**Reorganization**" has the meaning ascribed to such term in the Recitals.

"**Related to the Business**" means, directly or indirectly, used in, arising from, or relating in any manner to the business of HB2.

"**Representatives**" when used with respect to any Person, shall mean such Person's directors, officers, employees, representatives, agents, counsel, accountants, advisers, engineers, and consultants.

"**Share Amendments**" means the amendments to Red Pine's current Articles to: (i) amend the terms of Red Pine's existing common shares to become an unlimited number of "Subordinate Voting Shares" having the special rights and restrictions substantially in the form set out in Schedule C hereto; (ii) create a new class of shares consisting of an unlimited number of "Multiple Voting Shares" having the special rights and restrictions substantially in the form set out in Schedule C hereto; and (iii) create a new class of shares consisting of an unlimited number of "Proportionate Voting Shares" having the special rights and restrictions substantially in the form set out in Schedule C hereto.

"**Share Exchange**" has the meaning ascribed to such term in the recitals to this Agreement.

"**Proportionate Voting Shares**" means the Proportionate Voting Shares of Red Pine having the terms and conditions substantially in the form set out in Schedule C hereto.

"**Subco**" means Red Pine Petroleum Subco Ltd., a wholly-owned subsidiary of Red Pine, created for the purpose of effecting the Business Combination.

"**Subco Amalgamation Resolution**" means the resolution of Red Pine, as sole shareholder of Subco, approving the Amalgamation and adopting the Amalgamation Agreement.

"**Subco Shares**" means the common shares in the capital of Subco.

"**Subordinate Voting Share**s" means the Subordinate Voting Shares into which the Red Pine Shares will be reclassified, having the terms and conditions substantially in the form set out in Schedule C hereto.

"**Subscription Receipt Agreement**" means the subscription receipt agreement to be entered into in connection with the Financing, setting out the terms and conditions of the Subscription Receipts.

"**Subscription Receipts**" has the meaning ascribed to such term in Section 1.3.

"**subsidiary**" means, with respect to a specified corporation, any corporation of which more than fifty per cent (50%) of the outstanding shares ordinarily entitled to elect a majority of the board of directors thereof (whether or not shares of any other class or classes shall or might be entitled to vote upon the happening of any event or contingency) are at the time owned directly or indirectly by such specified corporation, and shall include any corporation in like relation to a subsidiary.

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"**Support Agreement**" means agreement to be entered into by Red Pine, Blocker and HB2 providing for support and cooperation with respect to future securities changes.

"**SVS Subscription Receipts**" means the Subscription Receipts that are exchangeable into Class A Finco Shares.

"**Tax**" means any tax, levy, charge or assessment imposed by or due any Government, together with any interest, penalties, and additions to tax relating thereto, including without limitation, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Income Tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any franchise, sales, use and value added tax or any license or withholding tax; any payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, alternative or add-on minimum tax; and any customs duties or other taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any tax on property (real or personal, tangible or intangible, based on transfer or gains);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any estimate or payment of any of tax described in the foregoing clauses (a) through (d); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any interest, penalties and additions to tax with respect to any tax (or any estimate or payment thereof) described in the foregoing clauses (a) through (e).

"**Tax Receivables Agreement**" means agreement to be entered into by Blocker, HB2 and certain members of HB2 relating to the treatment of certain future tax attributes.

"**Tax Return**" means all returns, amended returns and reports (including elections, declarations, disclosures, schedules, estimates and information returns) required to be supplied to a Tax authority with jurisdiction over the applicable party.

"**TSXV**" means the TSX Venture Exchange.

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**SCHEDULE B**<br>**FORM OF THE AMALGAMATION AGREEMENT**

**THIS AGREEMENT** is made as of [●], 2021,

**AMONG:**

**RED PINE PETROLEUM LTD.**, a corporation existing under the laws of the Province of British Columbia,

(hereinafter referred to as "**Red Pine**"),

- and -

**ALPINE SUMMIT ENERGY PARTNERS FINCO, INC.**, a corporation existing under the laws of the Province of British Columbia,

(hereinafter referred to as "**Finco**"),

- and -

**RED PINE PETROLEUM SUBCO LTD.**, a corporation existing under the laws of the Province of British Columbia,

(hereinafter referred to as "**Subco**"),

**WHEREAS**

A. Finco and Subco (collectively, the "**Companies**"), acting under the authority set out in the *Business Corporations Act* (British Columbia) (the "**Act**"), have agreed to amalgamate on the terms and conditions set forth herein (the "**Amalgamation**").

B. Prior to the Amalgamation, (i) Red Pine is expected to change its name to "Alpine Summit Energy Partners, Inc." or such other name designated by the board of directors of Red Pine, and (ii) Red Pine will restructure its share capital to, among other things, consolidate its common shares on a three for one basis, re-designate its consolidated common shares as "**Subordinate Voting Shares**", create a new class of shares designated as "**Multiple Voting Shares**" and create another new class of shares designated as "**Proportionate Voting Shares**" (collectively, the "**Red Pine Shares**").

C. Pursuant to the Amalgamation, Red Pine will issue Subordinate Voting Shares to the holders of Class A common shares of Finco (the "**Class A Finco Shares**") and Multiple Voting Shares to the holders of Class B common shares of Finco (the "**Class B Finco Shares**", and together with the Class A Finco Shares, the "**Finco Shares**").

**NOW THEREFORE THIS AGREEMENT WITNESSES** that in consideration of the mutual agreements, covenants and conditions contained in this Agreement, each of the parties covenants and agrees with the other as follows:

1. In this Agreement, the expression "**Amalgamated Company**" shall mean the company continuing from the Amalgamation.

2. Each of the Companies agrees to amalgamate under the provisions of the Act and to continue as one company under the terms and conditions set out in this Agreement.

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3. The Amalgamated Company shall be a company under the provisions of the Act.

4. The name of the Amalgamated Company shall be Red Pine Petroleum Subco Ltd.

5. The Amalgamation Application (including the Notice of Articles of the Amalgamated Company) shall contain the information set out in <u>Schedule 1</u> to this Agreement and the Articles of the Amalgamated Company shall be in the form set out in <u>Schedule 2</u> to this Agreement, and the said Articles have been signed by the first director of the Amalgamated Company referred to in Section 7 of this Agreement.

6. The mailing and delivery addresses of the registered and records offices of the Amalgamated Company, until changed in accordance with the Act, shall be as set out in the Notice of Articles referred to in Section 5 of this Agreement.

7. The number of directors of the Amalgamated Company, until changed in accordance with the Act and the Articles of the Amalgamated Company, shall be one. The name and prescribed address of the first director of the Amalgamated Company is as follows:

<u>Full Name</u> <u>Prescribed Address</u> <br>Craig Perry 3322 West End Avenue, Suite 450<br>Nashville, TN 37203

8. The sole director shall hold office until he ceases to hold office as specified in the Act, or in the Articles of the Amalgamated Company. The sole director shall carry on and continue the operations of the Amalgamated Company in such manner as he shall determine, subject to and in accordance with the Articles of the Amalgamated Company and the Act.

9. The full name and office of the first officer of the Amalgamated Company is:

<u>Full Name</u> <u>Office</u> <br>Craig Perry President

10. The officer shall hold office at the pleasure of the sole director of the Amalgamated Company.

11. The issued shares of each of Finco and Subco shall be exchanged as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each outstanding Class B Finco Share shall be exchanged for one Multiple Voting Share, following which such Class B Finco Shares shall be cancelled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each outstanding Class A Finco Share shall be exchanged for one Subordinate Voting Share, following which such Class A Finco Shares shall be cancelled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each outstanding common share of Subco (a "**Subco Share**") shall be exchanged for one common share of the Amalgamated Company (an "**Amalco Share**"), following which such Subco Shares shall be cancelled; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in consideration for Red Pine issuing Subordinate Voting Shares to the holders of Class A Finco Shares and Multiple Voting Shares to the holders of Class B Finco Shares, the Amalgamated Company shall issue to Red Pine one Amalco Share for each Subordinate Voting Share issued to holders of Class A Finco Shares and 100 Amalco Shares for each Multiple Voting Share issued to holders of Class B Finco Shares.

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12. After the Amalgamation becomes effective, the shareholders of Finco entitled to receive Red Pine Shares in exchange for their Finco Shares shall receive a certificate or electronic confirmation representing the number of Red Pine Shares to which they are so entitled on the basis set out herein.

13. The financial year-end of the Amalgamated Company shall be December 31, until changed by the directors of the Amalgamated Company.

14. All obligations of each of the Companies immediately prior to the Amalgamation shall attach to and become obligations of the Amalgamated Company, and the Amalgamated Company shall continue to be liable for all such obligations.

15. Each of the Companies may, by unanimous resolution, assent to any alteration or modification of this Agreement which may be necessary or desirable in the opinion of the respective shareholders, as the case may be, of each of the Companies passing such resolution, and all alterations and modifications so assented to shall be binding upon the Companies.

16. The Amalgamation shall take effect at the time of filing of the amalgamation application on the date set out in the certificate of amalgamation issued by the British Columbia Registrar of Companies (the "**Registrar**") if this Agreement has been adopted as required by the Act and all necessary filings have been made with the Registrar and at the records office of the Companies on or before such time, or at such later time and date as may be determined by the directors of the Companies when this Agreement has been adopted as required by the Act; provided, however, that if the respective directors of Finco or Subco determine that it is in the best interests of the Companies, or any one of the Companies, or of the Amalgamated Company, not to proceed with the Amalgamation, then Finco or Subco may, by written notice to the other, terminate this Agreement at any time prior to the Amalgamation, and in such event, the Amalgamation shall not take place notwithstanding the fact that this Agreement may have been adopted by the shareholders of the Companies. If this Agreement is not adopted by the shareholders of the Companies as required by the Act, this Agreement shall terminate and become null and void at such time as written notice to that effect is given by Finco or Subco to the other.

17. Upon the Amalgamation taking effect and thereafter, the property, rights and interests of each of the Companies shall continue to be the property, rights and interests of the Amalgamated Company and the Amalgamated Company shall continue to be liable for all the obligations of each of the Companies, without any further deeds, transfers or conveyances, as fully and effectually and to all intents and purposes as the same are held or borne by each of the Companies, respectively, immediately prior to the Amalgamation, and the directors of the Amalgamated Company shall have full power to carry the Amalgamation into effect and to perform such acts as are necessary or proper for such purposes. The provisions of this paragraph shall not be deemed to exclude any of the effects, rights or privileges that at law may be incidental to or result from the Amalgamation, whether or not herein specifically mentioned. Each shareholder of each of the Companies shall be bound by the terms of this Agreement.

18. If this Agreement is adopted by the shareholders of each of the Companies as required by the Act, the Companies agree that they will file with the Registrar the Amalgamation Application containing the information set out in Schedule 1 to this Agreement.

19. Each of the parties agrees to do, execute and deliver, and cause to be done, executed and delivered, all such further acts, deeds, documents and instruments as are necessary or desirable to give full force and effect to this Agreement.

*[Remainder of page intentionally left blank. Signature page follows.]*

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**IN WITNESS WHEREOF** each of the parties has duly executed this Agreement the day and year first above written.

**RED PINE PETROLEUM LTD.**

By:_____________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:

**ALPINE SUMMIT ENERGY PARTNERS FINCO, INC.**

By:_____________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:

**RED PINE PETROLEUM SUBCO LTD.**

By:_____________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:

[Signature Page to Amalgamation Agreement]

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**SCHEDULE 1 TO AMALGAMATION AGREEMENT**

<u>**AMALGAMATION APPLICATION**</u>

(See attached.)

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**SCHEDULE 2 TO AMALGAMATION AGREEMENT**

<u>**ARTICLES**</u>

(See attached.)

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**SCHEDULE C**<br>**SHARE PROVISIONS FOR THE SHARE AMENDMENTS**

**ARTICLE 27** <br>**SPECIAL RIGHTS AND RESTRICTIONS ATTACHED TO** <br>**SUBORDINATE VOTING SHARES**

**27.1 Voting**

The holders of Class A subordinate voting shares ("**Subordinate Voting Shares**") shall be entitled to receive notice of and to attend and vote at all meetings of shareholders of the Company except a meeting at which only the holders of another class or series of shares is entitled to vote. Each Subordinate Voting Share shall entitle the holder thereof to one vote at each such meeting.

**27.2 Alteration to Rights of Subordinate Voting Shares**

So long as any Subordinate Voting Shares remain outstanding, the Company will not, without the consent of the holders of Subordinate Voting Shares expressed by separate special resolution, alter or amend these Articles if the result of such alteration or amendment would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prejudice or interfere with any right or special right attached to the Subordinate Voting Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) affect the rights or special rights of the holders of Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares (each as defined below) on a per share basis as provided for herein.

**27.3 Dividends**

The holders of Subordinate Voting Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared thereon by the directors from time to time. The directors may declare no dividend payable in cash or property on the Subordinate Voting Shares unless the directors simultaneously declare a dividend payable in cash or property on: (i) the Multiple Voting Shares, in an amount per Multiple Voting Share equal to the amount of the dividend declared per Subordinate Voting Share, multiplied by one hundred (100); and (ii) the Proportionate Voting Shares, in an amount per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share.

The directors may declare a stock dividend payable in Subordinate Voting Shares on the Subordinate Voting Shares, but only if the directors simultaneously declare a stock dividend payable in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) Multiple Voting Shares on the Multiple Voting Shares, in a number of shares per Multiple Voting Share equal to the amount of the dividend declared per Subordinate Voting Share; 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;(ii) Subordinate Voting Shares on the Multiple Voting Shares, in a number of shares per Multiple Voting Share equal to the amount of the dividend declared per Subordinate Voting Share, multiplied by one hundred (100); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Proportionate Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share divided by one thousand (1,000);

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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;(ii) Subordinate Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share; 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;(iii) Multiple Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share divided by one hundred (100).

**27.4 Liquidation Rights**

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company to its shareholders for the purposes of winding up its affairs, the holders of the Subordinate Voting Shares shall be entitled to participate *pari passu* with the holders of Multiple Voting Shares and Proportionate Voting Shares, with the amount of such distribution per Subordinate Voting Share equal to each of: (i) the amount of such distribution per Multiple Voting Share divided by one hundred (100); and (ii) the amount of such distribution per Proportionate Voting Share.

**27.5 Subdivision or Consolidation**

The Subordinate Voting Shares shall not be consolidated or subdivided unless the Multiple Voting Shares and the Proportionate Voting Shares are simultaneously consolidated or subdivided utilizing the same divisor or multiplier.

**27.6 Conversion of the Shares Upon An Offer**

In the event that an offer is made to purchase Multiple Voting Shares, and such offer is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Multiple Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Multiple Voting Shares in a province or territory of Canada to which the requirement applies (such offer to purchase, an "**Offer**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not made to the holders of Subordinate Voting Shares for consideration per Subordinate Voting Share equal to 0.01 of the consideration offered per Multiple Voting Share,

each Subordinate Voting Share shall become convertible at the option of the holder into Multiple Voting Shares on the basis of one hundred (100) Subordinate Voting Shares for one (1) Multiple Voting Share, at any time while the Offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to the Offer (the "**Subordinate Voting Share Conversion Right**"). For avoidance of doubt, fractions of Multiple Voting Shares may be issued in respect of any amount of Subordinate Voting Shares in respect of which the Subordinate Voting Share Conversion Right is exercised which is less than one hundred (100).

The Subordinate Voting Share Conversion Right may only be exercised for the purpose of depositing the Multiple Voting Shares acquired upon conversion under such Offer, and for no other reason. If the Subordinate Voting Share Conversion Right is exercised, the Company shall procure that the transfer agent for the Subordinate Voting Shares shall deposit under such Offer the Multiple Voting Shares acquired upon conversion, on behalf of the holder.

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To exercise the Subordinate Voting Share Conversion Right, a holder of Subordinate Voting Shares or his or her attorney, duly authorized in writing, shall:

&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) give written notice of exercise of the Subordinate Voting Share Conversion Right to the transfer agent for the Subordinate Voting Shares, and of the number of Subordinate Voting Shares in respect of which the Subordinate Voting Share Conversion Right is being exercised;

&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) deliver to the transfer agent for the Subordinate Voting Shares any share certificate or certificates representing the Subordinate Voting Shares in respect of which the Subordinate Voting Share Conversion Right is being exercised; 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;(iii) pay any applicable stamp tax or similar duty on or in respect of such conversion.

No certificates representing Multiple Voting Shares acquired upon exercise of the Subordinate Voting Share Conversion Right will be delivered to the holders of Subordinate Voting Shares. If Multiple Voting Shares issued upon such conversion and deposited under such Offer are withdrawn by such holder, or such Offer is abandoned, withdrawn or terminated by the offeror, or such Offer expires without the offeror taking up and paying for such Multiple Voting Shares, such Multiple Voting Shares and any fractions thereof issued shall automatically, without further action on the part of the holder thereof, be reconverted into Subordinate Voting Shares on the basis of one (1) Multiple Voting Share for one hundred (100) Subordinate Voting Shares, and the Company will procure that the transfer agent for the Subordinate Voting Shares shall send to such holder a direct registration statement, certificate or certificates representing the Subordinate Voting Shares acquired upon such reconversion. If the offeror under such Offer takes up and pays for the Multiple Voting Shares acquired upon exercise of the Subordinate Voting Share Conversion Right, the Company shall procure that the transfer agent for the Subordinate Voting Shares shall deliver to the holders of such Multiple Voting Shares the consideration paid for such Multiple Voting Shares by such Offeror.

**ARTICLE 28** <br>**SPECIAL RIGHTS AND RESTRICTIONS ATTACHED TO** <br>**MULTIPLE VOTING SHARES**

**28.1 Voting**

The holders of Class B multiple voting shares ("**Multiple Voting Shares**") shall be entitled to receive notice of and to attend and vote at all meetings of shareholders of the Company except a meeting at which only the holders of another class or series of shares is entitled to vote. Subject to Articles 28.2 and 28.3, each Multiple Voting Share shall entitle the holder to one hundred (100) votes and each fraction of a Multiple Voting Share shall entitle the holder to the number of votes calculated by multiplying the fraction by one hundred (100) and rounding the product down to the nearest whole number, at each such meeting.

**28.2 Alteration to Rights of Multiple Voting Shares**

So long as any Multiple Voting Shares remain outstanding, the Company will not, without the consent of the holders of Multiple Voting Shares and Proportionate Voting Shares expressed by separate special resolution alter or amend these Articles if the result of such alteration or amendment would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prejudice or interfere with any right or special right attached to the Multiple Voting Shares; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) affect the rights or special rights of the holders of Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares on a per share basis as provided for herein.

At any meeting of holders of Multiple Voting Shares and Proportionate Voting Shares called to consider such a separate special resolution, each Multiple Voting Share and Proportionate Voting Share shall entitle the holder to one (1) vote and each fraction of a Multiple Voting Share or Proportionate Voting Share will entitle the holder to the corresponding fraction of one (1) vote.

**28.3 Shares Superior to Multiple Voting Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may take no action which would authorize or create shares of any class or series having preferences superior to or on a parity with the Multiple Voting Shares without the consent of the holders of a majority of the Multiple Voting Shares and Proportionate Voting Shares expressed by separate ordinary resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any meeting of holders of Multiple Voting Shares and Proportionate Voting Shares called to consider such a separate ordinary resolution, each Multiple Voting Share and Proportionate Voting Share will entitle the holder to one (1) vote and each fraction of a Multiple Voting Share and Proportionate Voting Share shall entitle the holder to the corresponding fraction of one (1) vote.

**28.4 Dividends**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The holders of Multiple Voting Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared by the directors from time to time. The directors may declare no dividend payable in cash or property on the Multiple Voting Shares unless the directors simultaneously declare a dividend payable in cash or property on: (i) the Subordinate Voting Shares, in an amount equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100); and (ii) on the Proportionate Voting Shares in an amount equal to the dividend declared per Multiple Voting Share divided by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The directors may declare a stock dividend payable in Multiple Voting Shares on the Multiple Voting Shares, but only if the directors simultaneously declare a stock dividend payable in: (i) Multiple Voting Shares on the Subordinate Voting Shares, in a number of shares per Subordinate Voting Share equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100); and (ii) Multiple Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Share equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The directors may declare a stock dividend payable in Subordinate Voting Shares on the Multiple Voting Shares, but only if the directors simultaneously declare a stock dividend payable in: (i) Subordinate Voting Shares on the Subordinate Voting Shares, in a number of shares per Subordinate Voting Share equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100); and (ii) Subordinate Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Shares equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Holders of fractional Multiple Voting Shares shall be entitled to receive any dividend declared on the Multiple Voting Shares, in an amount equal to the dividend per Multiple Voting Share multiplied by the fraction thereof held by such holder.

**28.5 Liquidation Rights**

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company to its shareholders for the purpose of winding up its affairs, the holders of the Multiple Voting Shares shall be entitled to participate *pari passu* with the holders of Subordinate Voting Shares and Proportionate Voting Shares, with the amount of such distribution per Multiple Voting Share equal to each of: (i) the amount of such distribution per Subordinate Voting Share multiplied by one hundred (100); and (ii) the amount of such distribution per Proportionate Voting Share multiplied by one hundred (100); and each fraction of a Multiple Voting Share will be entitled to the amount calculated by multiplying the fraction by the amount payable per whole Multiple Voting Share.

**28.6 Subdivision or Consolidation**

The Multiple Voting Shares shall not be consolidated or subdivided unless the Subordinate Voting Shares and the Proportionate Voting Shares are simultaneously consolidated or subdivided utilizing the same divisor or multiplier.

**28.7 Voluntary Conversion**

Subject to the Conversion Limitation set forth in this Article 28.7, holders of Multiple Voting Shares and Proportionate Voting Shares shall have the following rights of conversion (the "**Share Conversion Right**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Right to Convert Multiple Voting Shares.** Each Multiple Voting Share shall be convertible at the option of the holder into such number of Subordinate Voting Shares as is determined by multiplying the number of Multiple Voting Shares in respect of which the Share Conversion Right is exercised by one hundred (100). Fractions of Multiple Voting Shares may be converted into such number of Subordinate Voting Shares as is determined by multiplying the fraction by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Right to Convert Proportionate Voting Shares.** Each Proportionate Voting Share shall be convertible at the option of the holder into such number of Subordinate Voting Shares as is determined by multiplying the number of Proportionate Voting Shares in respect of which the Share Conversion Right is exercised by one (1). Fractions of Proportionate Voting Shares may be converted into such number of Subordinated Voting Shares as is determined by multiplying the fraction by one (1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Conversion Limitation.** Unless already appointed, upon receipt of a Conversion Notice (as defined below), the directors (or a committee thereof) shall designate an officer of the Company who shall determine whether the Conversion Limitation set forth in this Article shall apply to the conversion referred to therein (the "**Conversion Limitation Officer**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Foreign Private Issuer Status.** The Company shall use commercially reasonable efforts to maintain its status as a "foreign private issuer" (as determined in accordance with Rule 3b-4 under the *Securities Exchange Act* of 1934, as amended (the "**Exchange Act**"). Accordingly, the Company shall not give effect to any voluntary conversion of Multiple Voting Shares or Proportionate Voting Shares pursuant to this Article 28.7 or otherwise, and the Share Conversion Right will not apply, to the extent that after giving effect to all permitted issuances after such conversion of Multiple Voting Shares or Proportionate Voting Shares, the aggregate number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares (calculated on the basis that each Subordinate Voting Share, Multiple Voting Share and Proportionate Voting Share is counted once, without regard to the number of votes carried by such share) held of record, directly or indirectly, by residents of the United States (as determined in accordance with Rules 3b-4 and 12g3-2(a) under the Exchange Act ("**U.S. Residents**") would exceed forty percent (40%) (the "**40% Threshold**") of the aggregate number of Subordinate Voting Shares, Proportionate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares (calculated on the same basis) issued and outstanding (the "**FPI Restriction**"). The directors may by resolution increase the 40% Threshold to a number not to exceed fifty percent (50%), and if any such resolution is adopted, all references to the 40% Threshold herein shall refer instead to the amended percentage threshold set by the directors in such resolution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Conversion Limitation.** In order to give effect to the FPI Restriction, the number of Subordinate Voting Shares issuable to a holder of Multiple Voting Shares or Proportionate Voting Shares upon exercise by such holder of the Share Conversion Right will be subject to the 40% Threshold based on the number of Multiple Voting Shares or Proportionate Voting Shares held by such holder as of the date of issuance of Multiple Voting Shares or Proportionate Voting Shares to such holder, and thereafter at the end of each of the Company's subsequent fiscal quarters (each, a "**Determination Date**"), calculated as follows:

X = [A x 40% - B] x (C/D)

Where, on the Determination Date:

X = Maximum Number of Subordinate Voting Shares which may be issued upon exercise of the Share Conversion Right.

A = Aggregate number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares issued and outstanding.

B = Aggregate number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares held of record, directly or indirectly, by U.S. Residents.

C = Aggregate Number of Multiple Voting Shares and Proportionate Voting Shares held by such holder.

D = Aggregate Number of All Multiple Voting Shares and Proportionate Voting Shares.

The Conversion Limitation Officer shall determine as of each Determination Date, in his or her sole discretion acting reasonably, the aggregate number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares held of record, directly or indirectly, by U.S. Residents, the maximum number of Subordinate Voting Shares which may be issued upon exercise of the Share Conversion Right, generally in accordance with the formula set forth immediately above. Upon request by a holder of Multiple Voting Shares or Proportionate Voting Shares, the Company will provide each holder of Multiple Voting Shares or Proportionate Voting Shares with notice of such maximum number as at the most recent Determination Date, or a more recent date as may be determined by the Conversion Limitation Officer in its discretion. To the extent that issuances of Subordinate Voting Shares on exercise of the Share Conversion Right would result in the 40% Threshold being exceeded, the number of Subordinate Voting Shares to be issued will be pro-rated among each holder of Multiple Voting Shares or Proportionate Voting Shares exercising the Share Conversion Right.

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Notwithstanding the provisions of Article 28.7(d) and (e), the directors may by resolution waive the application of the Conversion Restriction to any exercise or exercises of the Share Conversion Right to which the Conversion Restriction would otherwise apply, or to future Conversion Restrictions generally, including with respect to a period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Disputes.**

&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) Any holder of Multiple Voting Shares or Proportionate Voting Shares who beneficially owns more than 5% of the issued and outstanding Multiple Voting Shares or Proportionate Voting Shares may submit a written dispute as to the calculation of the 40% Threshold or the FPI Restriction by the Conversion Limitation Officer to the directors with the basis for the disputed calculations. The Company shall respond to the holder within five (5) business days of receipt of the notice of such dispute with a written calculation of the 40% Threshold or the FPI Restriction, as applicable. If the holder and the Company are unable to agree upon such calculation of the 40% Threshold or the FPI Restriction, as applicable, within five (5) business days of such response, then the Company and the holder shall, within one (1) business day thereafter submit the disputed calculation of the 40% Threshold or the FPI Restriction to the Company's independent auditor. The Company, at the Company's expense, shall cause the auditor to perform the calculations in dispute and notify the Company and the holder of the results no later than five (5) business days from the time it receives the disputed calculations. The auditor's calculations shall be final and binding on all parties, absent demonstrable error.

&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 event of a dispute as to the number of Subordinate Voting Shares issuable to a holder of Multiple Voting Shares or Proportionate Voting Shares in connection with a voluntary conversion of Multiple Voting Shares or Proportionate Voting Shares, the Company shall issue to the holder of Multiple Voting Shares or Proportionate Voting Shares the number of Subordinate Voting Shares not in dispute, and resolve such dispute in accordance with Article 28.7(f)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Mechanics of Conversion.** Before any holder of Multiple Voting Shares or Proportionate Voting Shares shall be entitled to voluntarily convert Multiple Voting Shares or Proportionate Voting Shares into Subordinate Voting Shares in accordance with Articles 28.7(a) or (b), the holder shall surrender the certificate or certificates representing the Multiple Voting Shares or Proportionate Voting Shares to be converted at the head office of the Company, or the office of any transfer agent for the Multiple Voting Shares or Proportionate Voting Shares, and shall give written notice to the Company at its head office of his or her election to convert such Multiple Voting Shares or Proportionate Voting Shares and shall state therein the name or names in which the certificate or certificates representing the Subordinate Voting Shares are to be issued (a "**Conversion Notice**"). The Company shall (or shall cause its transfer agent to) as soon as practicable thereafter, issue to such holder or his or her nominee, a certificate or certificates or direct registration statement representing the number of Subordinate Voting Shares to which such holder is entitled upon conversion. Such conversion shall be deemed to have taken place immediately prior to the close of business on the day on which the certificate or certificates representing the Multiple Voting Shares or Proportionate Voting Shares to be converted is surrendered and the Conversion Notice is delivered, and the person or persons entitled to receive the Subordinate Voting Shares issuable upon such conversion shall be treated for all purposes as the holder or holders of record of such Subordinate Voting Shares as of such date.

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**ARTICLE 29** <br>**SPECIAL RIGHTS AND RESTRICTIONS ATTACHED TO** <br>**PROPORTIONATE VOTING SHARES**

**29.1 Voting**

The holders of Class C proportionate voting shares ("**Proportionate Voting Shares**") shall be entitled to receive notice of and to attend and vote at all meetings of shareholders of the Company except a meeting at which only the holders of another class or series of shares is entitled to vote. Subject to Articles 29.2 and 29.3, each Proportionate Voting Share shall entitle the holder to one thousand (1,000) votes and each fraction of a Proportionate Voting Share shall entitle the holder to the number of votes calculated by multiplying the fraction by one thousand (1,000) and rounding the product down to the nearest whole number, at each such meeting.

**29.2 Alteration to Rights of Proportionate Voting Shares**

So long as any Proportionate Voting Shares remain outstanding, the Company will not, without the consent of the holders of Proportionate Voting Shares expressed by separate special resolution alter or amend these Articles if the result of such alteration or amendment would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prejudice or interfere with any right or special right attached to the Proportionate Voting Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) affect the rights or special rights of the holders of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares on a per share basis as provided for herein.

At any meeting of holders of Proportionate Voting Shares called to consider such a separate special resolution, each Proportionate Voting Share shall entitle the holder to one (1) vote and each fraction of a Proportionate Voting Share will entitle the holder to the corresponding fraction of one (1) vote.

**29.3 Shares Superior to Proportionate Voting Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may take no action which would authorize or create shares of any class or series having preferences superior to or on a parity with the Proportionate Voting Shares without the consent of the holders of a majority of the Proportionate Voting Shares expressed by separate ordinary resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any meeting of holders of Proportionate Voting Shares called to consider such a separate ordinary resolution, each Proportionate Voting Share will entitle the holder to one (1) vote and each fraction of a Proportionate Voting Share shall entitle the holder to the corresponding fraction of one (1) vote.

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**29.4 Dividends**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The holders of Proportionate Voting Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared by the directors from time to time. The directors may declare no dividend payable in cash or property on the Proportionate Voting Shares unless the directors simultaneously declare a dividend payable in cash or property on: (i) the Subordinate Voting Shares, in an amount equal to the amount of the dividend declared per Proportionate Voting Share; and (ii) on the Multiple Voting Shares in an amount equal to the dividend declared per Proportionate Voting Share multiplied by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The directors may declare a stock dividend payable in Multiple Voting Shares on the Proportionate Voting Shares, but only if the directors simultaneously declare a stock dividend payable in: (i) Multiple Voting Shares on the Subordinate Voting Shares, in a number of shares per Subordinate Voting Share equal to the amount of the dividend declared per Proportionate Voting Share; and (ii) Multiple Voting Shares on the Multiple Voting Shares, in a number of shares per Multiple Voting Share equal to the amount of the dividend declared per Proportionate Voting Share multiplied by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The directors may declare a stock dividend payable in Subordinate Voting Shares on the Proportionate Voting Shares, but only if the directors simultaneously declare a stock dividend payable in: (i) Subordinate Voting Shares on the Subordinate Voting Shares, in a number of shares per Subordinate Voting Share equal to the amount of the dividend declared per Proportionate Voting Share; and (ii) Subordinate Voting Shares on the Multiple Voting Shares, in a number of shares per Multiple Voting Shares equal to the amount of the dividend declared per Proportionate Voting Share multiplied by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Holders of fractional Proportionate Voting Shares shall be entitled to receive any dividend declared on the Proportionate Voting Shares, in an amount equal to the dividend per Proportionate Voting Share multiplied by the fraction thereof held by such holder.

**29.5 Liquidation Rights**

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company to its shareholders for the purpose of winding up its affairs, the holders of the Proportionate Voting Shares shall be entitled to participate *pari passu* with the holders of Subordinate Voting Shares and Multiple Voting Shares, with the amount of such distribution per Proportionate Voting Share equal to each of: (i) the amount of such distribution per Subordinate Voting Share; and (ii) the amount of such distribution per Multiple Voting Share divided by one hundred (100); and each fraction of a Proportionate Voting Share will be entitled to the amount calculated by multiplying the fraction by the amount payable per whole Proportionate Voting Share.

**29.6 Subdivision or Consolidation**

The Proportionate Voting Shares shall not be consolidated or subdivided unless the Subordinate Voting Shares and the Multiple Voting Shares are simultaneously consolidated or subdivided utilizing the same divisor or multiplier.

------

**29.7 Transfer of Proportionate Voting Shares**

No Proportionate Voting Share may be sold, transferred, assigned, pledged or otherwise disposed of, whether voluntarily or involuntarily, by operation of law or otherwise, without the written consent of the directors, and the directors are not required to give any reason for refusing to consent to any such Transfer.

**29.8 Mandatory Conversion of Proportionate Voting Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Definitions.** In this Article 29.8:

&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) "**Blocker**" means Alpine Summit Energy Investors, Inc., a corporation existing under the laws of the state of Nevada;

&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) "**Definitive Agreement**" means the business combination agreement between, *inter alia*, the Company, HB2, Finco, Subco and Blocker dated April 8, 2021;

&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) "**Finco**" means Alpine Summit Energy Partners Finco, Inc., a corporation existing under the laws of the province of British Columbia;

&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) "**HB2**" means HB2 Origination, LLC, a limited liability company existing under the laws of the state of Delaware;

&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) "**Initial Holder**" means the holder of Proportionate Voting Shares as of the date of initial issuance of Proportionate Voting Shares.

&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) "**Membership Interests**" means the membership interests of HB2;

&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) "**Subco**" means Red Pine Petroleum Subco Ltd., a wholly-owned subsidiary of the Company existing under the laws of the province of British Columbia; 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;(viii) "**Reverse Takeover**" means the completion of the combination of the businesses of the Company, HB2, Finco, Subco and Blocker pursuant to the Definitive 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;(ix) "**RTO Closing Date**" means the date of completion of the Reverse Takeover.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Mandatory Conversion.** All issued and outstanding Proportionate Voting Shares will automatically, without any action on the part of the holder, be converted into Subordinate Voting Shares on the basis of one (1) Subordinate Voting Share for one (1) Proportionate Voting Share upon the date that is the first day when the Initial Holder owns, directly or indirectly, less than seventy-five per cent (75%) of the Membership Interests as such Initial Holder held on the RTO Closing Date (the "**Mandatory Conversion Record Date**"). On the Mandatory Conversion Record Date, each certificate representing Proportionate Voting Shares shall thenceforth be null and void. Within twenty (20) days of the Mandatory Conversion Record Date, the Company will send, or cause its transfer agent to send, notice thereof to the former holder of Proportionate Voting Shares (a "**Mandatory Conversion Notice**") specifying:

&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 Mandatory Conversion Record 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;(ii) the number of Subordinate Voting Shares into which the Proportionate Voting Shares held by such holder have been converted; 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;(iii) the address of record of such holder.

As soon as practicable after the sending of the Mandatory Conversion Notice, the Company shall issue or shall cause its transfer agent to issue to each holder of Proportionate Voting Shares certificates representing the number of Subordinate Voting Shares into which the Proportionate Voting Shares have been converted.

From the Mandatory Conversion Record Date, the directors shall no longer be entitled to issue any further Proportionate Voting Shares whatsoever.

------

## Exhibit 3.1

------

These Articles have been amended pursuant to special resolutions passed at a Meeting on May 25, 2021 and notice of alteration filed with the BC Registrar on September 7, 2021.

**BC0831488**

ALPINE SUMMIT ENERGY PARTNERS, INC.

**RED PINE PETROLEUM LTD.**

**(the "Company")**

**Table of Contents**

---

| | |
|:---|:---|
| [**1. INTERPRETATION**](#page_6) | [**6**](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.1 Definitions](#page_6) | [6](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.2 *Business Corporations Act* and *Interpretation Act Definitions Applicable*](#page_6) | [6](#page_6) |
| [**2. SHARES AND SHARE CERTIFICATES**](#page_6) | [**6**](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.1 Authorized Share Structure](#page_6) | [6](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.2 Form of Share Certificate](#page_6) | [6](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.3 Shareholder Entitled to Share Certificate or Acknowledgement](#page_6) | [6](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.4 Delivery by Mail](#page_7) | [7](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.5 Replacement of Worn Out or Defaced Share Certificate or Acknowledgement](#page_7) | [7](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.6 Replacement of Lost, Stolen or Destroyed Share Certificate or Acknowledgement](#page_7) | [7](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.7 Splitting Share Certificates](#page_7) | [7](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.8 Share Certificate Fee](#page_7) | [7](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.9 Recognition of Trusts](#page_7) | [7](#page_7) |
| [**3. ISSUE OF SHARES**](#page_7) | [**7**](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.1 Directors Authorized](#page_7) | [7](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.2 Commissions and Discounts](#page_8) | [8](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.3 Brokerage](#page_8) | [8](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.4 Conditions of Issue](#page_8) | [8](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.5 Share Purchase Warrants and Rights](#page_8) | [8](#page_8) |
| [**4. SECURITIES REGISTERS**](#page_8) | [**8**](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.1 Central Securities Register](#page_8) | [8](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.2 Closing Register](#page_9) | [9](#page_9) |
| [**5. SHARE TRANSFERS**](#page_9) | [**9**](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.1 Registering Transfers](#page_9) | [9](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.2 Form of Instrument of Transfer](#page_9) | [9](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.3 Transferor Remains Shareholder](#page_9) | [9](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.4 Signing of Instrument of Transfer](#page_9) | [9](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.5 Enquiry as to Title Not Required](#page_9) | [9](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.6 Transfer Fee](#page_10) | [10](#page_10) |
| [**6. TRANSMISSION OF SHARES**](#page_10) | [**10**](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.1 Legal Personal Representative Recognized on Death](#page_10) | [10](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.2 Rights of Legal Personal Representative](#page_10) | [10](#page_10) |
| [**7. PURCHASE OF SHARES**](#page_10) | [**10**](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.1 Company Authorized to Purchase Shares](#page_10) | [10](#page_10) |

---

------

- 2 - <br>

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.2 Purchase When Insolvent](#page_10) | [10](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.3 Sale and Voting of Purchased Shares](#page_10) | [10](#page_10) |
| [**8. BORROWING POWERS**](#page_11) | [**11**](#page_11) |
| [**9. ALTERATIONS**](#page_11) | [**11**](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.1 Alteration of Authorized Share Structure](#page_11) | [11](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.2 Special Rights and Restrictions](#page_11) | [11](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.3 Change of Name](#page_12) | [12](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.4 Other Alterations](#page_12) | [12](#page_12) |
| [**10. MEETINGS OF SHAREHOLDERS**](#page_12) | [**12**](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.1 Annual General Meetings](#page_12) | [12](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.2 Resolution Instead of Annual General Meeting](#page_12) | [12](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.3 Calling of Meetings of Shareholders](#page_12) | [12](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.4 Location of Meeting](#page_12) | [12](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.6 RECORD DATE FOR NOTICE](#page_13) | [13](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.7 Record Date for Voting](#page_13) | [13](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.8 Failure to Give Notice and Waiver of Notice](#page_13) | [13](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.9 Notice of Special Business at Meetings of Shareholders](#page_13) | [13](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.10 Meetings by Telephone or Other Communications Medium](#page_13) | [13](#page_13) |
| [**11. PROCEEDINGS AT MEETINGS OF SHAREHOLDERS**](#page_14) | [**14**](#page_14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.1 Special Business](#page_14) | [14](#page_14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.2 Special Majority](#page_14) | [14](#page_14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.3 Quorum](#page_14) | [14](#page_14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.4 One Shareholder May Constitute Quorum](#page_14) | [14](#page_14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.5 Other Persons May Attend](#page_15) | [15](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.6 Requirement of Quorum](#page_15) | [15](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.7 Lack of Quorum](#page_15) | [15](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.8 Lack of Quorum at Succeeding Meeting](#page_15) | [15](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.9 Chair](#page_15) | [15](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.10 Selection of Alternate Chair](#page_15) | [15](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.11 Adjournments](#page_15) | [15](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.12 Notice of Adjourned Meeting](#page_16) | [16](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.13 Decision by Show of Hands or Poll](#page_16) | [16](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.14 Declaration of Result](#page_16) | [16](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.15 Motion Need Not be Seconded](#page_16) | [16](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.16 Casting Vote](#page_16) | [16](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.17 Manner of Taking Poll](#page_16) | [16](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.18 Demand for Poll on Adjournment](#page_16) | [16](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.19 Chair Must Resolve Dispute](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.20 20 Casting of Votes](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.21 Poll not Available in respect of Election of Chair](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.22 Demand for Poll Not to Prevent Continuance of Meeting](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.23 Retention of Ballots and Proxies](#page_17) | [17](#page_17) |
| [**12. VOTES OF SHAREHOLDERS**](#page_17) | [**17**](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.1 Number of Votes by Shareholder or by Shares](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.2 Votes of Persons in Representative Capacity](#page_17) | [17](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.3 Votes by Joint Holders](#page_17) | [17](#page_17) |

---

------

- 3 - <br>

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.4 Legal Personal Representatives as Joint Shareholders](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.5 Representative of a Corporate Shareholder](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.6 Proxy Provisions do not Apply to Public Companies](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.7 Appointment of Proxy Holders](#page_18) | [18](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.8 Alternate Proxy Holders](#page_19) | [19](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.9 When Proxy Holder Need Not be Shareholder](#page_19) | [19](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.10 Deposit of Proxy](#page_19) | [19](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.11 Validity of Proxy Vote](#page_19) | [19](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.12 Form of Proxy](#page_19) | [19](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.13 Revocation of Proxy](#page_20) | [20](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.14 Revocation of Proxy Must be Signed](#page_20) | [20](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.15 Production of Evidence of Authority to Vote](#page_20) | [20](#page_20) |
| [**13. DIRECTORS**](#page_21) | [**21**](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.1 First Directors; Number of Directors](#page_21) | [21](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.2 Change in Number of Directors](#page_21) | [21](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.3 Directors' Acts Valid Despite Vacancy](#page_21) | [21](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.4 Qualifications of Directors](#page_21) | [21](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.5 Remuneration of Directors](#page_21) | [21](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.6 Reimbursement of Expenses of Directors](#page_21) | [21](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.7 Special Remuneration for Directors](#page_22) | [22](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[13.8 Gratuity, Pension or Allowance on Retirement of Director](#page_22) | [22](#page_22) |
| [**14. ELECTION AND REMOVAL OF DIRECTORS**](#page_22) | [**22**](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.1 Election at Annual General Meeting](#page_22) | [22](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.2 Consent to be a Director](#page_22) | [22](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.3 Failure to Elect or Appoint Directors](#page_22) | [22](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.4 Places of Retiring Directors Not Filled](#page_23) | [23](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.5 Directors May Fill Casual Vacancies](#page_23) | [23](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.6 Remaining Directors Power to Act](#page_23) | [23](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.7 Shareholders May Fill Vacancies](#page_23) | [23](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.8 Additional Directors](#page_23) | [23](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.9 Ceasing to be a Director](#page_24) | [24](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.10 Removal of Director by Shareholders](#page_24) | [24](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[14.11 Removal of Director by Directors](#page_24) | [24](#page_24) |
| [**15. ALTERNATE DIRECTORS**](#page_24) | [**24**](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.1 Appointment of Alternate Director](#page_24) | [24](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.2 Notice of Meetings](#page_24) | [24](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.3 Alternate for More than One Director Attending Meetings](#page_24) | [24](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.4 Consent Resolutions](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.5 Alternate Director Not an Agent](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.6 Revocation of Appointment of Alternate Director](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.7 Ceasing to be an Alternate Director](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[15.8 Remuneration of Expenses of Alternate Director](#page_25) | [25](#page_25) |
| [**16. POWERS AND DUTIES OF DIRECTORS**](#page_25) | [**25**](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[16.1 Powers of Management](#page_25) | [25](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[16.2 Appointment of Attorney of Company](#page_26) | [26](#page_26) |

---

------

- 4 - <br>

---

| | |
|:---|:---|
| [**17. DISCLOSURE OF INTEREST OF DIRECTORS**](#page_26) | [**26**](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[17.1 Obligation to Account for Profits](#page_26) | [26](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[17.2 Restrictions on Voting by Reason of Interest](#page_26) | [26](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[17.3 Interested Director Counted in Quorum](#page_26) | [26](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[17.4 Disclosure of Conflict of Interest or Property](#page_26) | [26](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[17.5 Director Holding Other Office in the Company](#page_26) | [26](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[17.6 No Disqualification](#page_26) | [26](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[17.7 Professional Services by Director or Officer](#page_27) | [27](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[17.8 Director of Officer in Other Corporations](#page_27) | [27](#page_27) |
| [**18. PROCEEDINGS OF DIRECTORS**](#page_27) | [**27**](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.1 Meetings of Directors](#page_27) | [27](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.2 Voting at Meetings](#page_27) | [27](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.3 Chair of Meetings](#page_27) | [27](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.4 Meetings by Telephone or Other Communications Medium](#page_27) | [27](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.5 Calling of Meetings](#page_28) | [28](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.6 Notice of Meetings](#page_28) | [28](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.7 When Notice not Required](#page_28) | [28](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.8 Meeting Valid Despite Failure to Give Notice](#page_28) | [28](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.9 Waiver of Notice of Meetings](#page_28) | [28](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.10 Quorum](#page_28) | [28](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.11 Validity of Acts Where Appointment Defective](#page_28) | [28](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[18.12 Consent Resolution in Writing](#page_29) | [29](#page_29) |
| [**19. EXECUTIVE AND OTHER COMMITTEES**](#page_29) | [**29**](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[19.1 Appointment and Powers of Executive Committee](#page_29) | [29](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[19.2 Appointment and Powers of Other Committees](#page_29) | [29](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[19.3 Obligations of Committees](#page_30) | [30](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[19.4 Powers of Board](#page_30) | [30](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[19.5 Committee Meetings](#page_30) | [30](#page_30) |
| [**20. OFFICERS**](#page_30) | [**30**](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[20.1 Directors May Appoint Officers](#page_30) | [30](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[20.2 Functions, Duties and Powers of Officers](#page_30) | [30](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[20.3 Qualifications](#page_31) | [31](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[20.4 20.4 Remuneration and Terms of Appointment](#page_31) | [31](#page_31) |
| [**21. INDEMNIFICATION**](#page_31) | [**31**](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[21.1 Definitions](#page_31) | [31](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[21.2 Mandatory Indemnification of Directors and Former Directors](#page_31) | [31](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[21.3 Indemnification of Other Persons](#page_31) | [31](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[21.4 Non-Compliance with Business Corporations Act](#page_32) | [32](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[21.5 Company May Purchase Insurance](#page_32) | [32](#page_32) |
| [**22. DIVIDENDS**](#page_32) | [**32**](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.1 Payment of Dividends Subject to Special Rights](#page_32) | [32](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.2 Declaration of Dividends](#page_32) | [32](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.3 No Notice Required](#page_32) | [32](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.4 Record Date](#page_32) | [32](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.5 Manner of Paying Dividend](#page_32) | [32](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.6 Settlement of Difficulties](#page_33) | [33](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.7 When Dividend Payable](#page_33) | [33](#page_33) |

---

------

- 5 - <br>

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.8 Dividends to be Paid in Accordance with Number of Shares](#page_33) | [33](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.9 Receipt by Joint Shareholders](#page_33) | [33](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.10 Dividend Bears No Interest](#page_33) | [33](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.11 Fractional Dividends](#page_33) | [33](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.12 Payment of Dividends](#page_33) | [33](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[22.13 Capitalization of Surplus](#page_33) | [33](#page_33) |
| [**23. DOCUMENTS, RECORDS AND REPORTS**](#page_34) | [**34**](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[23.1 Recording of Financial Affairs](#page_34) | [34](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[23.2 Inspection of Accounting Records](#page_34) | [34](#page_34) |
| [**24. NOTICES**](#page_34) | [**34**](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[24.1 Method of Giving Notice](#page_34) | [34](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[24.2 Deemed Receipt of Mailing](#page_34) | [34](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[24.3 Certificate of Sending](#page_34) | [34](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[24.4 Notice to Joint Shareholders](#page_35) | [35](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[24.5 Notice to Trustees](#page_35) | [35](#page_35) |
| [**25. SEAL**](#page_35) | [**35**](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[25.1 Who May Attest to Seal](#page_35) | [35](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[25.2 Sealing Copies](#page_35) | [35](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[25.3 Mechanical Reproduction of Seal](#page_35) | [35](#page_35) |
| [**26. PROHIBITIONS**](#page_36) | [**36**](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[26.1 Definitions](#page_36) | [36](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[26.2 Application](#page_36) | [36](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[26.3 Consent Required for Transfer of Shares or Designated Securities](#page_36) | [36](#page_36) |
| [**27. Special Rights and Restrictions attached to Subordinate Voting Shares**](#page_37) | [**37**](#page_37) |
| [**28. Special Rights and Restrictions attached to Multiple Voting Shares**](#page_41) | [41](#page_41) |
| [**29. Special Rights and Restrictions attached to Proportionate Voting Shares**](#page_49) | [49](#page_49) |
| [**30. Advance Notice Provisions**](#page_55) | [55](#page_55) |

---

------

**1. INTERPRETATION**

**1.1 Definitions**

In these articles, unless the context otherwise requires:

(1) "**board of directors**", "**directors**" and "**board**" mean the directors or sole director of the Company for the time being;

(2) "***Business Corporations Act***" means the *Business Corporations Act* (British Columbia) from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to the Act;

(3) "***Interpretation Act***" means the *Interpretation Act* (British Columbia) from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to the Act;

(4) "**legal personal representative**" means the personal or other legal representative of the shareholder;

(5) "**registered address**" of a shareholder means the shareholder's address as recorded in the central securities register;

(6) "**seal**" means the seal of the Company;

**1.2 Business Corporations Act and Interpretation Act Definitions Applicable**

The definitions in the *Business Corporations Act* and the definitions and rules of construction in the *Interpretation Act*, with the necessary changes, and unless the context requires otherwise, apply to these Articles as if the Articles were an enactment. If there is a conflict between a definition in the *Business Corporations Act* and a definition or rule in the *Interpretation Act* relating to a term in these Articles, the definition in the Business Corporations Act will prevail in relation to the use of the term in these Articles. If there is a conflict between these Articles and the *Business Corporations Act*, the *Business Corporations Act* will prevail

**2. SHARES AND SHARE CERTIFICATES**

**2.1 Authorized Share Structure**

The authorized share structure of the Company consists of shares of the class or classes and series, if any described in the Notice of Articles of the Company.

**2.2 Form of Share Certificate**

Each share certificate issued by the Company must comply with, and be signed as required by, the *Business Corporations Act*.

**2.3 Shareholder Entitled to Share Certificate or Acknowledgement**

Each shareholder is entitled, without charge, to (a) one share certificate representing the shares of each class or series of shares registered in the shareholder's name or (b) a non-transferable written acknowledgement of the shareholder's right to obtain such a share certificate, provided that in respect of a share held jointly by several persons, the Company is not bound to issue more than one share certificate and delivery of a share certificate or acknowledgment for a share to one of several joint shareholders or to one of the shareholders' duly authorized agents will be sufficient for delivery to all.

------

**2.4 Delivery by Mail**

Any share certificate or non-transferable written acknowledgment of a shareholder's right to obtain a share certificate may be by mail at the shareholder's registered address and neither the Company nor any director, officer or agent of the Company is liable for any loss to the shareholder because the share certificate or acknowledgement is lost in the mail or stolen.

**2.5 Replacement of Worn Out or Defaced Share Certificate or Acknowledgement**

If the directors are satisfied that a share certificate or a non-transferable written acknowledgment of the shareholder's right to obtain a share certificate is worn out or defaced, the director must, on production of the share certificate or acknowledgement, as the case may be, and on such other terms, if any, as the directors think fit:

(1) order the share certificate or acknowledgment, as the case may be, to be cancelled; and

(2) issue a replacement share certificate or acknowledgement, as the case may be.

**2.6 Replacement of Lost, Stolen or Destroyed Share Certificate or Acknowledgement**

If a share certificate or a non-transferable written acknowledgment of a shareholder's right to obtain a share certificate is lost, stolen or destroyed, a replacement share certificate or acknowledgement, as the case may be, must be issued to the person entitled to that share certificate or acknowledgment, as the case may be, if the directors receive:

(1) proof satisfactory to the directors that the share certificate or acknowledgement is lost, stolen or destroyed; and

(2) any indemnity the directors consider adequate.

**2.7 Splitting Share Certificates**

If a shareholder surrenders a share certificate to the Company with a written request that the Company issue in the shareholder's name two or more share certificates, each representing a specified number of shares and in the aggregate representing the same number of shares as the share certificate so surrendered, the Company must cancel the surrendered share certificate and issue replacement share certificates in accordance with that request.

**2.8 Share Certificate Fee**

There must be paid to the Company, in relation to the issue of any share certificate under Articles 2.5, 2.6 or 2.7, the amount, if any and which must not exceed the amount prescribed under the *Business Corporations Act*, determined by the directors.

**2.9 Recognition of Trusts**

Except as required by law or statute or these Articles, no person will be recognized by the Company as holding any share upon any trust, and the Company is not bound by or compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share or fraction of a share or (except as by law or statute or these Articles provided or as ordered by a court of competent jurisdiction) any other rights in respect of any share except an absolute right to the entirety thereof in the shareholder.

**3. ISSUE OF SHARES**

**3.1 Directors Authorized**

Subject to the Business Corporations Act and the rights of the holders of issued shares of the Company, the Company may issue, allot, sell or otherwise dispose of the unissued shares, and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms and conditions and for the issue prices (including any premium at which shares with par value may be issued) that the directors may determine. The issue price for a share with par value must be equal to or greater than the par value of the share.

------

**3.2 Commissions and Discounts**

The Company may at any time, pay a reasonable commission or allow a reasonable discount to any person in consideration of that person purchasing or agreeing to purchase shares of the Company from the Company or any other person or procuring or agreeing to procure purchasers for shares of the Company.

**3.3 Brokerage**

The Company may pay such brokerage fee or other consideration as may be lawful for or in connection with the sale or placement of its securities.

**3.4 Conditions of Issue**

Except as provided for by the *Business Corporations Act*, no share may be issued until it is fully paid. A share is fully paid when:

(1) consideration is provided to the Company for the issue of the share by one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) past services performed for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) money; and

(2) the value of the consideration received by the Company equals or exceeds the issue price set for the share under Article 3.1.

**3.5 Share Purchase Warrants and Rights**

**4. SECURITIES REGISTERS**

**4.1 Central Securities Register**

As required by and subject to the *Business Corporations Act*, the Company must maintain in British Columbia a central securities register. The directors may, subject to the Business Corporations Act, appoint an agent to maintain the central securities register. The directors may also appoint one or more agents, including the agent which keeps the central securities register, as transfer agent for its shares or any class or series of its shares, as the case may be, and the same or another agent as registrar for its shares or such class or series of its shares, as the case may be. The directors may terminate such appointment of any agent at any time and may appoint another agent in its place.

------

**4.2 Closing Register**

The Company must not at any time close its central securities register.

**5. SHARE TRANSFERS**

**5.1 Registering Transfers**

A transfer of a share of the Company must not be registered unless:

(1) a duly signed instrument of transfer in respect of the share has been received by the Company;

(2) if a share certificate has been issued by the Company in respect of the share to be transferred, that share certificate has been surrendered to the Company; and

(3) if a non-transferable written acknowledgement of the shareholder's right to obtain a share certificate has been issued by the Company in respect of the share to be transferred, that acknowledgement has been surrendered to the Company;

**5.2 Form of Instrument of Transfer**

The instrument of transfer in respect of any share of the Company must be either in the form, if any, on the back of the Company's share certificates or in any other form that may be approved by the directors from time to time.

**5.3 Transferor Remains Shareholder**

Except to the extent that the *Business Corporations Act* otherwise provides, a transferor of shares is deemed to remain the holder of the shares until the name of the transferee is entered in a securities register of the Company in respect of the transfer.

**5.4 Signing of Instrument of Transfer**

If a shareholder, or his or her duly authorized attorney, signs an instrument of transfer in respect of shares registered in the name of the shareholder, the signed instrument of transfer constitutes a complete and sufficient authority to the Company and its directors, officers and agents to register the number of shares specified in the instrument of transfer or specified in any other manner, or, if no number is specified, all the shares represented by the share certificates or set out in the written acknowledgements deposited with the instrument of transfer:

(1) in the name of the person named as transferee in that instrument of transfer; or

(2) if no person is named as transferee in that instrument of transfer, in the name of the person on whose behalf the instrument is deposited for the purpose of having the transfer registered.

**5.5 Enquiry as to Title Not Required**

Neither the Company nor any director, officer or agent of the Company is bound to inquire into title of the person named in the instrument of transfer as transferee or, if no person is named as transferee in the instrument of transfer, of the person on whose behalf the instrument is deposited for the purpose of having the transfer registered or is liable for any claim related to registering the transfer by the shareholder or by any intermediate owner or holder of the shares, of any interest in the shares, of any share certificate representing such shares or of any written acknowledgement of a right to obtain a share certificate for such shares.

------

**5.6 Transfer Fee**

There must be paid to the Company, in relation to the registration of any transfer, the amount, if any, determined by the directors.

**6. TRANSMISSION OF SHARES**

**6.1 Legal Personal Representative Recognized on Death**

In the case of the death of a shareholder, the legal personal representative, or if the shareholder was a joint holder, the surviving joint holder, will be the only person recognized by the Company as having any title to the shareholder's interest in the shares. Before recognizing a person as a legal personal representative, the director may require proof of appointment by a court of competent jurisdiction, a grant of letters probate, letters of administration or such other evidence or documents as the directors consider appropriate.

**6.2 Rights of Legal Personal Representative**

The legal personal representative of a shareholder has the same rights, privileges and obligations that attach to the shares held by the shareholder, including the right to transfer the shares in accordance with these Articles, provided the documents required by the Business Corporations Act and the directors have been deposited with the Company.

**7. PURCHASE OF SHARES**

**7.1 Company Authorized to Purchase Shares**

Subject to Article 7.2, the special rights and restrictions attached to the share of any class or series and the *Business Corporations Act*, the Company may, if authorized by the directors, purchase or otherwise acquire any of its shares at the price and upon the terms specified in such resolution.

**7.2 Purchase When Insolvent**

The Company must not make a payment or provide any other consideration to purchase or otherwise acquire any of its shares if there are reasonable grounds for believing that:

(1) the Company is insolvent; or

(2) making the payment or providing the consideration would render the Company insolvent.

**7.3 Sale and Voting of Purchased Shares**

If the Company retains a share redeemed, purchased or otherwise acquired by it, the Company may sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it:

(1) is not entitled to vote the share at a meeting of its shareholders;

(2) must not pay a dividend in respect of the share; and

(3) must not make any other distribution in respect of the share.

------

**8. BORROWING POWERS**

The Company, if authorized by the directors, may:

(1) borrow money in the manner and amount, on the security, from the sources and on the terms and conditions that the directors consider appropriate;

(2) issue bonds, debentures and other debt obligations either outright or as security for any liability or obligation of the Company or any other person and at such discounts or premiums and on such other terms as the directors consider appropriate;

(3) guarantee the repayment of money by any other person or the performance of any obligation of any other person; and

(4) mortgage, charge, whether by way of specific or floating charge, grant a security interest in, or give other security on, the whole or any part of the present and future assets and undertaking of the Company.

**9. ALTERATIONS**

**9.1 Alteration of Authorized Share Structure**

Subject to Article 9.2 and the *Business Corporations Act*, the Company may by ordinary resolution:

(1) create one or more classes or series of shares or, if none of the shares of a class or series of shares are allotted or issued, eliminate that class or series of shares;

(2) increase, reduce or eliminate the maximum number of shares that the Company is authorized to issue out of any class or series of shares or establish a maximum number of shares that the Company is authorized to issue out of any class or series of shares for which no maximum is established;

(3) subdivide or consolidate all or any of its unissued, or fully paid issued, shares;

(4) if the Company is authorized to issue shares of a class of shares with par value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) decrease the par value of those shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if none of the shares of that class of shares are allotted or issued, increase the par value of those shares;

(5) change all or any of its unissued, or fully paid issued, shares with par value into shares without par value or any of its unissued shares without par value into shares with par value;

(6) alter the identifying name of any of its shares; or

(7) otherwise alter its shares or authorized share structure when required or permitted to do so by the Business Corporations Act.

**9.2 Special Rights and Restrictions** 

The Company may be special resolution:

------

(1) create special rights or restrictions for, and attach those special rights or restrictions to, the shares of any class or series of shares, whether or not any or all of those shares have been issued; or

(2) vary or delete any special rights or restrictions attached to the shares of any class or series of shares, whether or not any or all of those shares have been issued.

**9.3 Change of Name**

The Company may by directors' resolution or ordinary resolution authorize an alteration of its Notice of Articles in order to change its name.

**9.4 Other Alterations**

If the *Business Corporations Act* does not specify the type of resolution and these Articles do not specify another type of resolution, the Company may by ordinary resolution alter these Articles.

**10. MEETINGS OF SHAREHOLDERS** 

**10.1 Annual General Meetings**

Unless an annual general meeting is deferred or waived in accordance with the *Business Corporations Act,* the Company must hold its first annual general meeting within 18 months after the date on which it was incorporated or otherwise recognized, and after that must hold an annual general meeting at least once in each calendar year and not more than 15 months after the last annual reference date at such time and place as may be determined by the directors.

**10.2 Resolution Instead of Annual General Meeting**

If all the shareholders who are entitled to vote at an annual general meeting consent by a unanimous resolution to all of the business that is required to be transacted at that annual general meeting, the annual general meeting is deemed to have been held on the date of the unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article 10.2, select as the Company's annual reference date, a date that would be appropriate for the holding of the applicable annual general meeting.

**10.3 Calling of Meetings of Shareholders**

The directors may, whenever the directors think fit, call a meeting of shareholders.

**10.4 Location of Meeting**

A general meeting of the Company may be held anywhere in North America, as determined by the directors.

**10.5 Notice of Meeting of Shareholders**

The Company must send notice of the date, time and location of any meeting of shareholders, in the manner provided in these Articles, or in such other manner, if any, as may be prescribed by ordinary resolution (whether previous notice of the resolution has been given or not), to each shareholder entitled to attend the meeting, to each director of the Company, unless these Articles otherwise provide, at least the following number of days before the meeting:

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(1) if and for so long as the Company is a public company, twenty-one days;

(2) otherwise, ten days.

**10.6 Record Date for Notice**

The directors may set a date as the record date for the purpose of determining shareholders entitled to notice of any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the *Business Corporations Act*, by more than four months. The record date must not precede the date on which the meeting is held by fewer than:

(1) if and for so long as the Company is a public company, twenty-one days;

(2) otherwise ten days.

**10.7 Record Date for Voting**

The directors may set a date as the record date for the purpose of determining shareholders entitled to vote at any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months, or, in the case of a general meeting requisitioned by shareholders under the *Business Corporations Act*, by more than four months. If no record date is set, the record date is 5:00 p.m. on the date immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

**10.8 Failure to Give Notice and Waiver of Notice**

The accidental omission to send notice of any meeting of shareholders to, or the non-receipt of any notice by, any of the persons entitled to notice does not invalidate any proceedings at that meeting. Any persons entitled to notice of a meeting of shareholders may, in writing or otherwise, waive or reduce the period of notice of such meeting.

**10.9 Notice of Special Business at Meetings of Shareholders**

If a meeting of shareholders is to consider special business within the meaning of Article 11.1, the notice of meeting must:

(1) state the general nature of the special business; and

(2) if the special business includes considering, approving, ratifying, adopting or authorizing any document or the signing of or giving of effect to any document, have attached to it a copy of the document or state that a copy of the document will be available for inspection by shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the Company's records office, or at such other reasonably accessible location in British Columbia as is specified in the notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) during statutory business hours on any one or more specified days before the day set for the holding of the meeting.

**10.10 Meetings by Telephone or Other Communications Medium**

A shareholder may participate in a meeting of the shareholders in person or by telephone, if all shareholders participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other and if all shareholders who wish to participate in the meeting agree to such participation. A shareholder who participates in a meeting in a manner contemplated by this Article 10.10 is deemed for all purposes of the Business Corporations Act and these Articles to be present at the meeting and to have agreed to participate in that manner,

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**11. PROCEEDINGS AT MEETINGS OF SHAREHOLDERS**

**11.1 Special Business**

At a meeting of shareholders, the following business is special business:

(1) at a meeting of shareholders that is not an annual general meeting, all business is special business except business relating to the conduct of or voting at the meeting;

(2) at an annual general meeting, all business is special business except for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) business relating to the conduct of or voting at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consideration of any financial statements of the Company presented to the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consideration of any reports of the directors or auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the setting or changing of the number of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the election or appointment of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the appointment of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the setting of the remuneration of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) business arising out of a report of the directors not requiring the passing of a special resolution or an exceptional resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any other business which, under these Articles or the *Business Corporations Act*, may be transacted at a meeting of shareholders without prior notice of the business being given to the shareholders.

**11.2 Special Majority**

The majority of votes required for the Company to pass a special resolution at a meeting of shareholders is two-thirds, of the votes cast on the resolution.

**11.3 Quorum**

Subject to the special rights and restrictions attached to the shares of any class or series of shares, the quorum for the transaction of business at a meeting of shareholders is two persons who are, or represent by proxy, shareholders holding, in the aggregate, at least five percent of the issued shares entitled to be voted at the meeting.

**11.4 One Shareholder May Constitute Quorum**

If there is only one shareholder entitled to vote at a meeting of shareholders:

(1) the quorum is one person who is, or who represents by proxy, that shareholder, and

(2) that shareholder, present in person or by proxy, may constitute the meeting.

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**11.5 Other Persons May Attend**

The directors, the president (if any), the secretary (if any), the assistant secretary (if any), the auditor of the Company and any other persons invited by the directors are entitled to attend any meeting of shareholders, but if any of those persons does attend a meeting of shareholders, that person is not to be counted in the quorum and is not entitled to vote at the meeting unless that person is a shareholder or proxy holder entitled to vote at the meeting.

**11.6 Requirement of Quorum**

No business, other than the election of a chair of the meeting and the adjournment of the meeting, may be transacted at any meeting of shareholders unless a quorum of shareholders entitled to vote is present at the commencement of the meeting, but such quorum need not be present throughout the meeting.

**11.7 Lack of Quorum**

If, within 1/2 hour from the time set for the holding of a meeting of shareholders, a quorum is not present:

(1) in the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and

(2) in the case of any other meeting of shareholders, the meeting stands adjourned to the same day in the next week at the same time and place.

**11.8 Lack of Quorum at Succeeding Meeting**

If, at the meeting to which the meeting referred to in Article 11.8(2) was adjourned, a quorum is not present within 1/2 hour from the time set for the holding of the meeting, the person or persons present and being, or representing by proxy, one or more shareholders entitled to attend and vote at the meeting constitute a quorum.

**11.9 Chair**

The following individual is entitled to preside as chair at a meeting of shareholders:

(1) the chair of the board, if any; or

(2) if the chair of the board is absent or unwilling to act as chair of the meeting, the president, if any.

**11.10 Selection of Alternate Chair**

If, at any meeting of shareholders, there is no chair of the board or president present within fifteen minutes after the time set for holding the meeting, or if the chair of the board and the president have advised the secretary, if any, or any director present at the meeting, that the chair of the board and the president will not be present at the meeting, the directors present must choose one of their number to be chair of the meeting or if all of the directors present decline to take the chair or fail to so choose or if no director is present, the shareholders entitled to vote at the meeting who are present in person or by proxy may choose any person present at the meeting to chair the meeting.

**11.11 Adjournments**

The chair of a meeting of shareholders may, and if so directed by the meeting must, adjourn the meeting from time to time and from place to place, but no business may be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

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**11.12 Notice of Adjourned Meeting**

It is not necessary to give any notice of an adjourned meeting or of the business to be transacted at an adjourned meeting of shareholders except that, when a meeting is adjourned for thirty days or more, notice of the adjourned meeting must be given as in the case of the original meeting.

**11.13 Decision by Show of Hands or Poll**

Every motion put to a vote at a meeting of shareholders will be decided on a show of hand unless a poll, before or on the declaration of the result of the vote by show of hands, is directed by the chair or demanded by at least one shareholder entitled to vote who is present in person or by proxy.

**11.14 Declaration of Result**

The chair of a meeting of shareholders must declare to the meeting the decision on every question in accordance with the result of the show of hands or the poll, as the case may be, and that decision must be entered in the minutes of the meeting. A declaration of the chair that a resolution is carried by the necessary majority or is defeated is, unless a poll is directed by the chair or demanded under Article 11.13, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or against the resolution.

**11.15 Motion Need Not be Seconded**

No motion proposed at a meeting of shareholders need be seconded unless the chair of the meeting rules otherwise, and the chair of any meeting of shareholders is entitled to propose or second a motion.

**11.16 Casting Vote**

In case of an equality of votes, the chair of a meeting of shareholders does not, either on a show of hands or on a poll, have a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder.

**11.17 Manner of Taking Poll**

Subject to Article 11.19, if a poll is duly demanded at a meeting of shareholders:

(1) the poll must be taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the meeting, or within seven days after the date of the meeting, as the chair of the meeting directs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the manner, at the time and at the place that the chair of the meeting directs.

(2) the result of the poll is deemed to be the decision of the meeting at which the poll is demanded; and

(3) the demand for the poll may be withdrawn by the person who demanded it.

**11.18 Demand for Poll on Adjournment**

A poll demanded at a meeting of shareholders on a question of adjournment must be taken immediately at the meeting.

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**11.19 Chair Must Resolve Dispute**

In the case of any dispute as to the admission or rejection of a vote given on a poll, the chair of a meeting of the shareholders must determine the dispute, and his or her determination made in good faith is final and conclusive.

**11.20 Casting of Votes**

On a poll, a shareholder is not entitled to more than one vote by which a chair of a meeting of shareholders is elected.

**11.21 Poll not Available in respect of Election of Chair**

No poll may be demanded in respect of the vote by which a chair of a meeting of shareholders is elected.

**11.22 Demand for Poll Not to Prevent Continuance of Meeting**

The demand for a poll at a meeting of shareholders does not, unless the chair of the meeting so rules, prevent the continuation of a meeting for the transaction of any business other than the question on which a poll has been demanded.

**11.23 Retention of Ballots and Proxies**

The Company must, for at least three months after a meeting of shareholders, keep each ballot cast on a poll and each proxy at the meeting, and, during that period, make such ballots and proxies available for inspection during normal business hours by any shareholder or proxyholder entitled to vote at the meeting. At the end of such three-month period, the Company may destroy such ballots and proxies.

**12. VOTES OF SHAREHOLDERS**

**12.1 Number of Votes by Shareholder or by Shares**

Subject to any special rights or restrictions attached to any shares and to the restrictions imposed on joint shareholders under Article 12.3:

(1) on a vote by show of hands, every person present who is a shareholder or proxy holder and entitled to vote on the matter has one vote; and

(2) on a poll, every shareholder entitled to vote on the matter has one vote in respect of each share entitled to be voted on the matter and held by that shareholder and may exercise that vote either in person or by proxy.

**12.2 Votes of Persons in Representative Capacity**

A person who is not a shareholder may vote at a meeting of shareholders, whether on a show of hands or on a poll, and may appoint a proxy holder to act at the meeting, if, before doing so, the person satisfies the chair of the meeting, or the directors, that the person is a legal personal representative or a trustee in bankruptcy for a shareholder who is entitled to vote at the meeting.

**12.3 Votes by Joint Holders**

If there are joint shareholders registered in respect of any share:

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(1) any one of the joint shareholders may vote at any meeting of shareholders, either personally or by proxy, in respect of the share as if that joint shareholder were solely entitled to it; or

(2) if more than one of the joint shareholders is present at any meeting of shareholders, personally or by proxy, and more than one of the joint shareholders votes in respect of that share, then only the vote of the joint shareholder present whose name stands first in the central securities register in respect of the share will be counted.

**12.4 Legal Personal Representatives as Joint Shareholders**

Two or more legal personal representatives of a shareholder in whose sole name any share is registered are, for the purposes of Article 12.3, deemed to be joint shareholders.

**12.5 Representative of a Corporate Shareholder**

If a corporation, that is not a subsidiary of the Company, is a shareholder, that corporation may appoint a person to act as its representative at any meeting of shareholders of the Company, and:

(1) for that purpose, the instrument appointing a representative must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be received at the registered office of the Company or at any other place specified, in the notice calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice for the receipt of proxies, or if no number of days is specified, two business days before the day set for the holding of the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be provided at the meeting, to the chair of the meeting or to a person designated by the chair of the meeting.

(2) if a representative is appointed under this Article 12.5:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the representative is entitled to exercise in respect of and at that meeting the same rights on behalf of the corporation that the representative represents as that corporation could exercise if it were a shareholder who is an individual, including, without limitation, the right to appoint a proxy holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the representative, if present at the meeting, is to be counted for the purpose of forming a quorum and is deemed to be a shareholder present in person at the meeting.

Evidence of the appointment of any such representative may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.

**12.6 Proxy Provisions do not Apply to Public Companies**

Articles 12.7 to 12.15 do not apply to the Company if and for so long as it is a public company or pre-existing reporting company which has the Statutory Reporting Company Provisions as part of its articles or to which the Statutory Reporting Company Provisions apply.

**12.7 Appointment of Proxy Holders**

Every shareholder of the Company, including a corporation that is a shareholder but not a subsidiary of the Company, entitled to vote at a meeting of shareholders of the Company may, by proxy, appoint one or more (but not more than five) proxy holders to attend and act at the meeting in the manner, to the extent and with the powers conferred by the proxy.

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**12.8 Alternate Proxy Holders**

A shareholder may appoint one or more proxy holders to act in the place of an absent proxy holder.

**12.9 When Proxy Holder Need Not be Shareholder**

A person must not be appointed as proxy holder unless the person is a shareholder, although a person who is not a shareholder may be appointed as a proxy holder if:

(1) the person appointing the proxy holder is a corporation or a representative of a corporation appointed under Article 12.5;

(2) the Company has at the time of the meeting for which the proxy holder is to be appointed only one shareholder entitled to vote at the meeting; or

(3) the shareholders present in person or by proxy at and entitled to vote at the meeting for which the proxy holder is to be appointed, by a resolution on which the proxy holder is not entitled to vote but in respect of which the proxy holder is to be counted in the quorum, permit the proxy holder to attend and vote at the meeting.

**12.10 Deposit of Proxy**

A proxy for a meeting of shareholders must:

(1) be received at the registered office of the Company or at any other place specified, in the notice calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice, or if no number of days is specified, two business days before the day set for the holding of the meeting; or

(2) unless the notice provides otherwise, be provided, at the meeting, to the chair of the meeting or to a person designated by the chair of the meeting.

A proxy may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.

**12.11 Validity of Proxy Vote**

A vote given in accordance with the terms of a proxy is valid notwithstanding the death or incapacity of the shareholder giving the proxy and despite the revocation of the proxy or the revocation of the authority under which the proxy is given, unless notice in writing of that death, incapacity or revocation is received:

(1) at the registered office of the Company, at any time up to and including the last business day before the day set for the holding of the meeting at which the proxy is to be used; or

(2) by the chair of the meeting, before the vote is taken.

**12.12 Form of Proxy**

A proxy, whether for a specified meeting or otherwise, must be either in the following form or in any other form approved by the directors or the chair of the meeting:

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*[name of the company]* 

*(the "Company")*

The undersigned, being a shareholder of the Company, hereby appoint [name] or, failing that person, [name], as proxy holder for the undersigned to attend, act and vote for and on behalf of the undersigned at the meeting of shareholders of the Company to be held on [month, day, year] and at any adjournment of that meeting.

Number of shares in respect of which this proxy is given (if no number is specified, then this proxy if given in respect of all shares registered in the name of the shareholder): ___________________________________

<u> Signed [month, day, year] </u> <br> <u> Signature of shareholder </u> <br> Name of shareholder - [printed]

**12.13 Revocation of Proxy**

Subject to Article 12.14, every proxy may be revoked by an instrument in writing that is:

(1) received at the registered office of the Company at any time up to and including the last business day before the day set for the holding of the meeting at which the proxy is to be used; or

(2) provided, at the meeting, to the chair of the meeting.

**12.14 Revocation of Proxy Must be Signed**

An instrument referred to in Article 12.13 must be signed as follows:

(1) if the shareholder for whom the proxy holder is appointed is an individual, the instrument must be signed by the shareholder or his or her legal personal representative or trustee in bankruptcy;

(2) if the shareholder for whom the proxy holder is appointed is a corporation, the instrument must be signed by the corporation or by a representative appointed for the corporation under Article 12.5.

**12.15 Production of Evidence of Authority to Vote**

The chair of any meeting of shareholders may, but need not, inquire into the authority of any person to vote at the meeting and may, but need not, demand from that person production of evidence as to the existence of the authority to vote.

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**13. DIRECTORS**

**13.1 First Directors; Number of Directors**

The first directors are the persons designated as directors of the Company in the Notice of Articles that applies to the Company when it is recognized under the Business Corporations Act. The number of directors, excluding additional directors appointed under Article 14.8, is set at:

(1) subject to paragraphs (2) and (3), the number of directors that is equal to the number of the Company's first directors;

(2) if the Company is a public company, the greater of three and the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of directors set by ordinary resolution (whether or not previous notice of the resolution was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of directors set under Article 14.4;

(3) if the Company is not a public company, the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of directors set by ordinary resolution (whether or not previous notice of the resolution was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of directors set under Article 14.4;

**13.2 Change in Number of Directors**

If the number of directors is set under Articles 13.1(2)(a) or 13.1(3)(a):

(1) the shareholders may elect or appoint the directors needed to fill any vacancies in the board of directors up to that number;

(2) if the shareholders do not elect or appoint the directors needed to fill any vacancies in the board of directors up to that number contemporaneously with the setting of that number, then the directors may appoint, or the shareholders may elect or appoint, directors to fill those vacancies.

**13.3 Directors' Acts Valid Despite Vacancy**

An act or proceeding of the directors is not invalid merely because fewer than the number of directors set or otherwise required under these Articles is in office.

**13.4 Qualifications of Directors**

A director is not required to hold a share in the capital of the Company as qualification for his or her office but must be qualified as required by the *Business Corporations Act* to become, act or continue to act as a director.

**13.5 Remuneration of Directors**

The directors are entitled to the remuneration for acting as directors, if any, as the directors may from time to time determine. If the directors so decide, the remuneration of the directors, if any, will be determined by the shareholders. That remuneration may be in addition to any salary or other remuneration paid to any officer or employee of the Company as such, who is also a director.

**13.6 Reimbursement of Expenses of Directors**

The Company must reimburse each director for the reasonable expenses that he or she may incur in and about the business of the Company.

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**13.7 Special Remuneration for Directors**

If any director performs any professional or other services for the Company that in the opinion of the directors are outside the ordinary duties of a director, or if any director is otherwise specially occupied in or about the Company's business, he or she may be paid remuneration fixed by the directors, or, at the option of that director, fixed by ordinary resolution, and such remuneration may be either in addition to, or in substitution for, any other remuneration that he or she may be entitled to receive.

**13.8 Gratuity, Pension or Allowance on Retirement of Director**

Unless otherwise determined by ordinary resolution, the directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any director who held any salaried office or place of profit with the Company or to his or her spouse or dependants and may make contributions to any fund and pay premium for the purchase or provision of any such gratuity, pension or allowance.

**14. ELECTION AND REMOVAL OF DIRECTORS**

**14.1 Election at Annual General Meeting**

At every annual general meeting and in every unanimous resolution contemplated by Article 10.2:

(1) the shareholders entitled to vote at the annual general meeting for the election of directors must elect, or in the unanimous resolution appoint, a board of directors consisting of the number of directors for the time being set under these Articles; and

(2) all the directors cease to hold office immediately before the election or appointment of directors under paragraph (1), but are eligible for re-election or re-appointment.

**14.2 Consent to be a Director**

No election, appointment or designation of an individual as a director is valid unless:

(1) that individual consents to be a director in the manner provided for in the *Business Corporations Act*;

(2) that individual is elected or appointed at a meeting at which the individual does not refuse, at the meeting, to be a director; or

(3) with respect to first directors, the designation is otherwise valid under the *Business Corporations Act*.

**14.3 Failure to Elect or Appoint Directors** 

If:

(1) the Company fails to hold an annual general meeting, and all the shareholders who are entitled to vote at an annual general meeting fail to pass the unanimous resolution contemplated by Article 10.2, on or before the date by which the annual general meeting is required to be held under the *Business Corporations Act*; or

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(2) the shareholders fail, at the annual general meeting or in the unanimous resolution contemplated by Article 10.2, to elect or appoint any directors.

(3) then each of the directors then in office continues to hold office until the earlier of:

(4) the date on which his or her successor is elected or appointed; and

(5) the date on which he or she otherwise ceases to hold office under the *Business Corporations Act* or these Articles.

**14.4 Places of Retiring Directors Not Filled**

If, at any meeting of shareholders at which there should be an election of directors, the places of any of the retiring directors are not filled by that election, those retiring directors who are not reelected and who are asked by the newly elected directors to continue in office will, if willing to do so, continue in office to complete the number of directors for the time being set pursuant to these Articles until further new directors are elected at a meeting of shareholders convened for that purpose. If any such election or continuance of directors does not result in the election or continuance of the number of directors for the time being set pursuant to these Article, the number of directors of the Company is deemed to be set at the number of directors actually elected or continued in office.

**14.5 Directors May Fill Casual Vacancies**

Any casual vacancy occurring in the board of directors may be filled by the directors.

**14.6 Remaining Directors Power to Act**

The directors may act notwithstanding any vacancy in the board of directors, but if the Company has fewer directors in office than the number set pursuant to these Articles as the quorum of directors, the directors may only act for the purpose of appointing directors up to that number or of summoning a meeting of shareholders for the purpose of filling any vacancies on the board of directors or, subject to the Business Corporations Act, for any other purpose.

**14.7 Shareholders May Fill Vacancies**

If the Company has no directors or fewer directors in office than the number set pursuant to these Articles as the quorum of directors, the shareholders may elect or appoint directors to fill any vacancies on the board of directors.

**14.8 Additional Directors**

Notwithstanding Article 13.1 and 13.2, between annual general meetings or unanimous resolutions, contemplated by Article 10.2, the directors may appoint one or more additional directors, but the number of additional directors appointed under this Article 14.8 must not at any time exceed:

(1) one-third of the number of first directors, if, at the time of the appointments, one or more of the first directors have not yet completed their first term of office; or

(2) in any other case, one-third of the number of the current directors who were elected or appointed as directors other than pursuant to this Article 14.8.

Any director so appointed ceases to hold office immediately before the next election or appointment of directors under Article 14.1(1), but is eligible for re-election or re-appointment.

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**14.9 Ceasing to be a Director**

A director ceases to be a director when:

(1) the term of office of the director expires;

(2) the director dies;

(3) the director resigns as a director by notice in writing provided to the Company or a lawyer for the Company; or

(4) the director is removed from office pursuant to Articles 14.10 or 14.11.

**14.10 Removal of Director by Shareholders**

The Company may remove any director before the expiration of his or her term of office by ordinary resolution. In that event, the shareholders may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy. If the shareholders do not elect or appoint a director to fill the resulting vacancy contemporaneously with the removal, then the directors may appoint or the shareholders may elect, or appoint by ordinary resolution, a director to fill that vacancy.

**14.11 Removal of Director by Directors**

The directors may remove any director before the expiration of his or her term of office if the director is convicted of an indictable offence, or if the director ceases to be qualified to act as a director of a company and does not promptly resign, and the directors may appoint a director to fill the resulting vacancy.

**15. ALTERNATE DIRECTORS**

**15.1 Appointment of Alternate Director**

Any director (an "**appointor**") may by notice in writing received by the Company appoint any person (an "appointee") who is qualified to act as a director to be his or her alternate to act in his or her place at meetings of the directors or committees of the directors at which the appointor is not present unless (in the case of an appointee who is not a director) the directors have reasonably disapproved the appointment of such person as an alternate director and have given notice to that effect to his or her appointor within a reasonable time after the notice of appointment is received by the Company.

**15.2 Notice of Meetings**

Every alternate director so appointed is entitled to notice of meetings of the directors and of committees of the directors of which his or her appointor is a member and to attend and vote as a director at any such meetings at which his or her appointor is not present.

**15.3 Alternate for More than One Director Attending Meetings**

A person may be appointed as an alternate director by more than one director, and an alternate director:

(1) will be counted in determining the quorum for a meeting of directors once for each of his or her appointors and, in the case of an appointee who is also a director, once more in that capacity;

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(2) has a separate vote at a meeting of directors for each of his or her appointors and, in the case of an appointee who is also a director, an additional vote in that capacity;

(3) will be counted in determining the quorum for a meeting of a committee of directors once for each of his or her appointors who is a member of that committee and, in the case of an appointee who is also a member of that committee as a director, once more in that capacity;

(4) has a separate vote at a meeting of a committee of directors for each of his or her appointors who is a member of that committee and, in the case of an appointee who is also a member of that committee as a director, an additional vote in that capacity.

**15.4 Consent Resolutions**

Every alternate director, if authorized by the notice appointing him or her, may sign in place of his or her appointor any resolutions to be consented to in writing.

**15.5 Alternate Director Not an Agent**

Every alternate director is deemed not to be the agent of his or her appointor.

**15.6 Revocation of Appointment of Alternate Director**

An appointor may at any time, by notice in writing received by the Company, revoke the appointment of an alternate director appointed by him or her.

**15.7 Ceasing to be an Alternate Director**

The appointment of an alternate director ceases when:

(1) his or her appointor ceases to be a director and is not promptly re-elected or re-appointed;

(2) the alternate director dies;

(3) the alternate director resigns as an alternate director by notice in writing provided to the Company or a lawyer for the Company;

(4) the alternate director ceases to be qualified to act as a director; or

(5) his or her appointor revokes the appointment of the alternate director.

**15.8 Remuneration of Expenses of Alternate Director**

The Company may reimburse an alternate director for the reasonable expenses that would be properly reimbursed if he or she were a director, and the alternate director is entitled to receive from the Company, such proportion, if any, of the remuneration otherwise payable to the appointor as the appointor may from time to time direct.

**16. POWERS AND DUTIES OF DIRECTORS** 

**16.1 Powers of Management**

The directors, must, subject to the *Business Corporations Act* and these Articles, manage or supervise the management of the business and affairs of the Company and have the authority to exercise all such powers of the Company as are not, by the *Business Corporations Act* or by these Articles, required to be exercised by the shareholders of the Company.

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**16.2 Appointment of Attorney of Company**

The directors may from time to time, by power of attorney or other instrument, under seal if so required by law, appoint any person to be the attorney of the Company for such purposes, and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the directors under these Articles and excepting the power to fill vacancies in the board of directors, to remove a director, to change the membership of, or fill vacancies in, any committee of the directors, to appoint or remove officers appointed by the directors and to declare dividends) and for such period, and with such remuneration and subject to such conditions as the directors may think fit. Any such power of attorney may contain such provisions for the protection or convenience of persons dealing with such attorney as the directors think fit. Any such attorney may be authorized by the directors to sub-delegate all or any of the powers, authorities and discretions for the time being vested in him or her.

**17. DISCLOSURE OF INTEREST OF DIRECTORS** 

**17.1 Obligation to Account for Profits**

A director or senior officer who holds a disclosable interest (as that term is defined in the *Business Corporations Act*) in a contract or transaction into which the Company has entered or proposes to enter is liable to account to the Company for any profit that accrues to the director or senior officer under or as a result of the contract or transaction only if and to the extent provided in the *Business Corporations Act*.

**17.2 Restrictions on Voting by Reason of Interest**

A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter is not entitled to vote on any directors' resolution to approve that contract or transaction, unless all the directors have disclosable interest in that contract or transaction, in which case any or all of those directors may vote on such resolution.

**17.3 Interested Director Counted in Quorum**

A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter and who is present at the meeting of directors at which the contract or transaction is considered for approval may be counted in the quorum at the meeting whether or not the director votes on any or all of the resolutions considered at the meeting.

**17.4 Disclosure of Conflict of Interest or Property**

A director or senior officer who holds any office or possesses any property, right or interest that could result directly or indirectly, in the creation of a duty or interest that materially conflicts with that individual's duty or interest as a director or senior officer, must disclose the nature and extent of the conflict as required by the Business Corporations Act.

**17.5 Director Holding Other Office in the Company**

A director may hold any office or place of profit with the Company, other than the office of auditor of the Company, in addition to his or her office of director for the period and on the terms (as to remuneration or otherwise) that the directors may determine.

**17.6 No Disqualification**

No director or intended director is disqualified by his or her office from contracting with the Company either with regard to the holding of any office or place of profit the director holds with the Company or as vendor, purchaser or otherwise, and no contract or transaction entered into by or on behalf of the Company in which a director is in any way interested is liable to be voided for that reason.

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**17.7 Professional Services by Director or Officer**

Subject to the *Business Corporations Act*, a director or officer, or any person in which a director or officer has an interest, may act in a professional capacity for the Company, except as auditor of the Company, and the director or officer or such person is entitled to remuneration for professional services as if that director or officer were not a director or officer.

**17.8 Director of Officer in Other Corporations**

A director or officer may be or become a director, officer or employee of, or otherwise interested in, any person in which the Company may be interested as a shareholder or otherwise, and subject to the *Business Corporations Act*, the director or officer is not accountable to the Company for any remuneration or other benefits received by him or her as director, officer or employee of, or from his or her interest in, such other person.

**18. PROCEEDINGS OF DIRECTORS** 

**18.1 Meetings of Directors**

The directors may meet together for the conduct of business, adjourn and otherwise regulate their meetings as they think fit, and meetings of the directors held at regular intervals may be held at the place, at the time and on the notice, if any, as the directors may from time to time determine.

**18.2 Voting at Meetings**

Questions arising at any meeting of directors are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the meeting does not have a second or casting vote.

**18.3 Chair of Meetings**

The following individual is entitled to preside as chair at a meeting of directors:

(1) the chair of the board, if any;

(2) in the absence of the chair of the board, the president, if any, if the president is a director; or

(3) any other director chosen by the directors if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) neither the chair of the board nor the president, if a director, is present at the meeting within 15 minutes after the time set for holding the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) neither the chair of the board nor the president, if a director, is willing to chair the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the chair of the board and the president, if a director, have advised the secretary, if any, or any other director, that they will not be present at the meeting;

**18.4 Meetings by Telephone or Other Communications Medium**

A director may participate in a meeting of the directors or of any committee of the directors by a communications medium other than telephone if all directors participating in the meeting, whetherin person or by telephone or other communications medium, are able to communicate with each other and if all directors who wish to participate in the meeting agree to such participation. A director who participates in a meeting in a manner contemplated by this Article 18.4 is deemed for all purposes of the *Business Corporations Act* and these Articles to be present at the meeting and to have agreed to participate in that manner,

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**18.5 Calling of Meetings**

A director may, and the secretary or an assistant secretary of the Company if any, on the request of a director must, call a meeting of the directors at any time.

**18.6 Notice of Meetings**

Other than for meetings held at regular intervals as determined by the directors pursuant to Article 18.1, reasonable notice of each meeting of the directors, specifying the place, day and time of that meeting must be given to each of the directors and the alternate directors by any method set out in Article 24.1 or orally or by telephone.

**18.7 When Notice not Required**

It is not necessary to give notice of a meeting of the directors to a director or an alternate director if:

(1) the meeting is to be held immediately following a meeting of shareholders at which that director was elected or appointed, or is the meeting of the directors at which that director is appointed; or

(2) the director or alternate director, as the case may be, has waived notice of the meeting.

**18.8 Meeting Valid Despite Failure to Give Notice**

The accidental omission to give notice of any meeting of directors to, or the non-receipt of any notice by, any director or alternate director, does not invalidate any proceedings at that meeting.

**18.9 Waiver of Notice of Meetings**

Any director or alternate director may send to the Company a document signed by him or her waiving notice of any past, present or future meeting or meetings of the directors and may at any time withdraw that waiver with respect to meetings held after that withdrawal. After sending a waiver with respect to all future meetings and until that waiver is withdrawn, no notice of any meeting of the directors need be given to that director and, unless the director otherwise requires by notice in writing to the Company, to his or her alternate director, and all meetings of the directors so held are deemed not to be improperly called or constituted by reason of notice not having been given to such director or alternate director.

**18.10 Quorum**

The quorum necessary for the transaction of the business of the directors may be set by the directors and, if not so set, is deemed to be set at two directors or, if the number of directors is set at one, is deemed to be set at one director, and that director may constitute a meeting.

**18.11 Validity of Acts Where Appointment Defective**

Subject to the *Business Corporations Act*, an act of a director or officer is not invalid merely because of an irregularity in the election or appointment or a defect in the qualification of that director or officer.

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**18.12 Consent Resolution in Writing**

A resolution of the directors or of any committee of the directors consented to in writing by all of the directors entitled to vote on it, whether by signed document, fax, email or any other method of transmitting legibly recorded messages, is as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors duly called and held. Such resolution may be in two or more counterparts which together are deemed to constitute one resolution in writing. A resolution passed in that manner is effective on the date stated in the resolution or on the latest date stated on any counterpart. A resolution of the directors or any committee of the directors passed in accordance with this Article 18.12 is deemed to be a proceeding at a meeting of directors or of the committee of the directors and to be as valid and effective as if it has been passed at a meeting of the directors or of the committee of the directors that satisfies all the requirements of the Business Corporations Act and all the requirements of these Articles relating to meetings of the directors or of a committee of the directors.

**19. EXECUTIVE AND OTHER COMMITTEES**

**19.1 Appointment and Powers of Executive Committee**

The directors may, by resolution, appoint an executive committee consisting of the director or directors that they consider appropriate, and this committee has, during the intervals between meetings of the board of directors, all of the director's powers, except:

(1) the power to fill vacancies in the board of directors;

(2) the power to remove a director;

(3) the power to change the membership of, or fill vacancies in, any committee of the directors; and

(4) such other powers, if any, as may be set out in the resolution or any subsequent directors' resolution.

**19.2 Appointment and Powers of Other Committees** 

The directors may, by resolution:

(1) appoint one or more committees (other than the executive committee) consisting of the director or directors that they consider appropriate;

(2) delegate to a committee appointed under paragraph (1) any of the directors' powers, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the power to fill vacancies in the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the power to remove a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the power to change the membership of, or fill vacancies in, any committee of the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the power to appoint or remove officers appointed by the directors; and

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(3) make any delegation referred to in paragraph (2) subject to the conditions set out in the resolution or any subsequent directors' resolution.

**19.3 Obligations of Committees**

Any committee appointed under Articles 19.1 or 19.2, in the exercise of the powers delegated to it, must:

(1) conform to any rules that may from time to time be imposed on it by the directors; and

(2) report every act or thing done in exercise of those powers at such times as the directors may require.

**19.4 Powers of Board**

The directors may, at any time, with respect to a committee appointed under Articles 19.1 or 19.2:

(1) revoke or alter the authority given to the committee, or override a decision made by the committee, except as to acts done before such revocation, alteration or overriding;

(2) terminate the appointment of, or change the membership of, the committee; and

(3) fill vacancies in the committee.

**19.5 Committee Meetings**

Subject to Article 19.3(1) and unless the directors otherwise provide in the resolution appointing the committee or in any subsequent resolution, with respect to a committee appointed under Articles 19.1 or 19.2:

(1) the committee may meet and adjourn as it thinks proper;

(2) the committee may elect a chair of its meeting but, if no chair of a meeting is elected, or if at a meeting the chair of the meeting is not present within 15 minutes after the time set for holding the meeting, the directors present who are members of the committee may choose one of their number to chair the meeting;

(3) a majority of the members of the committee constitutes a quorum of the committee; and

(4) questions arising at any meeting of the committee are determined by a majority of votes of the members present, and in the case of an equality of votes, the chair of the meeting does not have a second or casting vote.

**20. OFFICERS**

**20.1 Directors May Appoint Officers**

The directors, may, from time to time, appoint such officers, if any, as the directors determine and the directors may, at any time, terminate any such appointment.

**20.2 Functions, Duties and Powers of Officers** 

The directors may, for each officer:

(1) determine the functions and duties of the officer;

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(2) entrust to and confer on the officer any of the powers exercisable by the directors on such terms and conditions and with such restrictions as the directors think fit; and

(3) revoke, withdraw, alter or vary all or any of the functions, duties and powers of the officer.

**20.3 Qualifications**

No officers may be appointed unless that officer is qualified in accordance with the Business Corporations Act. One person may hold more than one position as an officer of the Company. Any person appointed as the chair of the board or as a managing director must be a director. Any other officer need not be a director.

**20.4 Remuneration and Terms of Appointment**

All appointments of officers are to be made on the terms and conditions and at the remuneration (whether by way of salary, fee, commission, participation in profits or otherwise) that the directors think fit and are subject to termination at the pleasure of the directors, and an officer may in addition to such remuneration be entitled to receive, after he or she ceases to hold such office or leaves the employment of the Company, a pension or gratuity.

**21. INDEMNIFICATION**

**21.1 Definitions**

In this Article 21:

(1) "**eligible penalty**" means a judgment, penalty or fine awarded or imposed in, or an amount paid in settlement of, an eligible proceeding;

(2) "**eligible proceeding**" means a legal proceeding or investigative action, whether current or threatened, pending or completed, in which a director, former director or alternate director of the Company (an "**eligible party**") or any of the heirs and legal personal representatives of the eligible party, by reason of the eligible party being or having been a director or alternate director of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is or may be joined as a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is or may be liable for or in respect of a judgment, penalty or fine in , or expenses related to, the proceeding;

(3) "**expenses**" has the meaning set out in the *Business Corporations Act*.

**21.2 Mandatory Indemnification of Directors and Former Directors**

Subject to the Business Corporations Act, the Company must indemnify a director, former director or alternate director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. Each director and alternate director is deemed to have contracted with the Company on the terms of the indemnity contained in this Article 21.2

**21.3 Indemnification of Other Persons**

Subject to any restrictions in the *Business Corporations Act*, the Company may indemnify any person.

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**21.4 Non-Compliance with Business Corporations Act**

The failure of a director, alternate director or officer of the Company to comply with the *Business Corporations Act* or these Articles does not invalidate any indemnity to which he or she is entitled under this Part.

**21.5 Company May Purchase Insurance**

The Company may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who:

(1) is or was a director, alternate director, officer, employee or agent of the Company;

(2) is or was a director, alternate director, officer, employee or agent of a corporation at a time when the corporation is or was an affiliate of the Company;

(3) at the request of the Company, is or was a director, alternate director, officer, employee or agent of a corporation or of a partnership, trust, joint venture or other unincorporated entity;

(4) at the request of the Company, holds or held a position equivalent to that of a director, alternate director or officer of a partnership, trust or joint venture or other unincorporated entity;

against any liability incurred by him or her as such director, alternate director, officer, employee or agent or person who holds or held such equivalent position.

**22. DIVIDENDS**

**22.1 Payment of Dividends Subject to Special Rights**

The provisions of this Article 22 are subject to the rights, if any, of shareholders holding shares with special rights as to dividends.

**22.2 Declaration of Dividends**

Subject to the *Business Corporations Act*, the directors may from time to time declare and authorize payment of such dividends as they may deem advisable.

**22.3 No Notice Required**

The directors need not give notice to any shareholder of any declaration under Article 22.2.

**22.4 Record Date**

The directors may set a date as the record date for the purpose of determining shareholders entitled to receive a payment of a dividend. The record date must not precede the date on which the dividend is to be paid by more than two months. If no record date is set, the record date is 5 p.m. on the date on which the directors pass the resolution declaring the dividend.

**22.5 Manner of Paying Dividend**

A resolution declaring a dividend may direct payment of the dividend wholly or partly by the distribution of specific assets or of fully paid shares or of bonds, debentures or other securities of the Company, or in any one or more of those ways.

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**22.6 Settlement of Difficulties**

If any difficulty arises in regard to a distribution under Article 22.5, the directors may settle the difficulty as they deem advisable, and, in particular, may:

(1) set the value for distribution of specific assets;

(2) determine that cash payments in substitution for all or any part of the specific assets to which any shareholders are entitled may be made to any shareholders on the basis of the value so fixed in order to adjust the rights of all parties; and

(3) vest any such specific assets in trustees for the persons entitled to the dividend.

**22.7 When Dividend Payable**

Any dividend may be made payable on such date as is fixed by the directors.

**22.8 Dividends to be Paid in Accordance with Number of Shares**

Subject to the rights of shareholders, if any, holding shares with special rights as to dividends, all dividends on shares of any class or series of shares must be declared and paid according to the number of such shares held.

**22.9 Receipt by Joint Shareholders**

If several persons are joint shareholders of any share, any one of them may give an effective receipt for any dividend, bonus or other money payable in respect of the share.

**22.10 Dividend Bears No Interest**

No dividend bears interest against the Company.

**22.11 Fractional Dividends**

If a dividend to which a shareholder is entitled includes a fraction of the smallest monetary unit of the currency of the dividend, that fraction may be disregarded in making payment of the dividend and that payment represents full payment of the dividend.

**22.12 Payment of Dividends**

Any dividend or other distribution payable in cash in respect of shares may be paid by cheque, made payable to the order of the person to whom it is sent, and mailed to the address of the shareholder, or in the case of joint shareholders, to the address of the joint shareholder who is first named on the central securities register, or to the person and to the address the shareholder or joint shareholders may direct in writing. The mailing of such cheque will, to the extent of the sum represented by the cheque (plus the amount of the tax required by law to be deducted), discharge all liability for the dividend unless such cheque is not paid on presentation or the amount of tax so deducted is not paid to the appropriate taxing authority.

**22.13 Capitalization of Surplus**

Notwithstanding anything contained in these Articles, the directors may from time to time capitalize any surplus of the Company and may from time to time issue, as fully paid, shares or any bonds, debentures, or other securities of the Company as a dividend representing the surplus or any part of the surplus.

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**23. DOCUMENTS, RECORDS AND REPORTS** 

**23.1 Recording of Financial Affairs**

The directors must cause adequate accounting records to be kept to record properly the financial affairs and condition of the Company and to comply with the *Business Corporations Act*.

**23.2 Inspection of Accounting Records**

Unless the directors determine otherwise, or unless otherwise determined by ordinary resolution, no shareholder of the Company is entitled to inspect or obtain a copy of any accounting records of the Company.

**24. NOTICES**

**24.1 Method of Giving Notice**

Unless the *Business Corporations Act* or these Articles provide otherwise, a notice, statement, report or other record required or permitted by the *Business Corporations Act* or these Articles to be sent by or to a person may be sent by any one of the following methods:

(1) mailing addressed to the person at the applicable address for that person as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for a record mailed to a shareholder, the shareholder's registered address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for a record mailed to a director or officer, the prescribed address for mailing shown for the director or officer in the records kept by the Company or the mailing address provided by the recipient for the sending of that record or records of that class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other case, the mailing address of the intended recipient;

(2) delivery at the applicable address for that person, as follows, addressed to the person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for a record delivered to a shareholder, the shareholder's registered address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for a record delivered to a director or officer, the prescribed address for delivery shown for the director or officer in the records kept by the Company or the delivery address provided by the recipient for the sending of that record or records of that class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other case, the delivery address of the intended recipient;

(3) sending the record by fax to the fax number provided by the intended recipient for the sending of that record or records of that class;

(4) sending the record by email to the email address provided by the intended recipient for the sending of that record or records of that class;

(5) physical delivery to the intended recipient.

**24.2 Deemed Receipt of Mailing**

A record that is mailed to a person by ordinary mail to the applicable address for that person referred to in Article 24.1 is deemed to be received by the person to whom it was mailed on the day, Saturdays, Sundays and holidays excepted, following the date of mailing.

**24.3 Certificate of Sending**

A certificate signed by the secretary, if any, or other officer of the Company or of any other corporation acting in that behalf for the Company stating that a notice, statement, report or other record was addressed as required by Article 24.1, prepaid and mailed or otherwise sent as permitted by Article 24.1 is conclusive evidence of that fact.

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**24.4 Notice to Joint Shareholders**

A notice, statement, report or other record may be provided by the Company to the joint shareholders of a share by providing the notice to the joint shareholder first named in the central securities register in respect of the share.

**24.5 Notice to Trustees**

A notice, statement, report or other record may be provided by the Company to the persons entitled to a share in consequence of the death, bankruptcy or incapacity of a shareholder by:

(1) mailing the record addressed to them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by name, by the title of the legal personal representative of the deceased or incapacitated shareholder, by the title of trustee of the bankrupt shareholder or by any similar description; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at the address, if any, supplied to the Company for that purpose by the persons claiming to be so entitled; or

(2) if an address referred to in paragraph 24.5(1)(b) has not been supplied to the Company, by giving the notice in a manner in which it might have been given if the death, bankruptcy or incapacity had not occurred.

**25. SEAL**

**25.1 Who May Attest to Seal**

Except as provided in Articles 25.2 and 25.3, the Company's seal, if any, must not be impressed on any record except when that impression is attested by the signatures of:

(1) any two directors;

(2) any officer, together with any director;

(3) if the Company only has one director, that director; or

(4) any one or more directors or officers or persons as may be determined by the directors.

**25.2 Sealing Copies**

For the purposes of certifying under seal a certificate of incumbency of the directors or officers of the Company or a true copy of any resolution or other document, despite Article 25.1, the impression of the seal may be attested by the signature of any director or officer.

**25.3 Mechanical Reproduction of Seal**

The directors may authorize the seal to be impressed by third parties on share certificates or bonds, debentures or other securities of the Company as they may determine appropriate from time to time. To enable the seal to be impressed on any share certificates or bonds, debentures or other securities of the Company, whether in definitive or interim form, on which facsimiles of any of the signatures of the directors or officers of the Company, are, in accordance with the *Business Corporations Act* or these Articles, printed or otherwise mechanically reproduced, there may be delivered to the person employed to engrave, lithograph or print such definitive or interim share certificate or bonds, debentures or other securities one or more unmounted dies reproducing the seal and the chair of the board or any senior officer together with the secretary, treasurer, secretary-treasurer may in writing authorize such person to cause the seal to be impressed on such definitive or interim share certificates or bonds, debentures or other securities by the use of such dies. Share certificates or bonds, debentures or other securities to which the seal has been so impressed are for all purposes deemed to be under and to bear the seal impressed on them.

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**26. PROHIBITIONS**

**26.1 Definitions**

In this Article 26:

(1) "**designated securities**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a voting security of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a security of the Company that is not a debt security and that carries a residual right to participate in the earnings of the Company or, on the liquidation or winding up of the Company, in its assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a security of the Company convertible, directly or indirectly, into a security described in paragraph (a) or (b);

(2) "**security**" has the meaning assigned in the *Securities Act* (British Columbia);

(3) "**voting security**" means a security of the Company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is not a debt security, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) carries a voting right either under all circumstances or under some circumstances that have occurred and are continuing.

**26.2 Application**

Article 26.3 does not apply to the Company if and for so long as it is public company or a preexisting reporting company which has the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions apply.

**26.3 Consent Required for Transfer of Shares or Designated Securities**

No share or designated security may be sold, transferred or otherwise disposed of without the consent of the directors and the directors are not required to give any reason for refusing to consent to any such sale, transfer or other disposition.

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| | | |
|:---|:---|:---|
| Full name and signature of Director |  | Date of Signing |
| *"Paul Chung"* |  | January 17, 2014 |
| *(Signature of Director)* |  |  |
| Paul Chung |  |  |
| Name of Director |  |  |

---

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**ARTICLE 27**<br>**SPECIAL RIGHTS AND RESTRICTIONS ATTACHEDTO** <br>**SUBORDINATE VOTING SHARES**

**27.1 Voting**

The holders of Class A subordinate voting shares ("**Subordinate Voting Shares**") shall be entitled to receive notice of and to attend and vote at all meetings of shareholders of the Company except a meeting at which only the holders of another class or series of shares is entitled to vote. Each Subordinate Voting Share shall entitle the holder thereof to one vote at each such meeting.

**27.2 Alteration to Rights of Subordinate Voting Shares**

So long as any Subordinate Voting Shares remain outstanding, the Company will not, without the consent of the holders of Subordinate Voting Shares expressed by separate special resolution, alter or amend these Articles if the result of such alteration or amendment would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prejudice or interfere with any right or special right attached to the Subordinate Voting Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) affect the rights or special rights of the holders of Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares (each as defined below) on a per share basis as provided for herein.

**27.3 Dividends**

The holders of Subordinate Voting Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared thereon by the directors from time to time. The directors may declare no dividend payable in cash or property on the Subordinate Voting Shares unless the directors simultaneously declare a dividend payable in cash or property on: (i) the Multiple Voting Shares, in an amount per Multiple Voting Share equal to the amount of the dividend declared per Subordinate Voting Share, multiplied by one hundred (100); and (ii) the Proportionate Voting Shares, in an amount per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share.

The directors may declare a stock dividend payable in Subordinate Voting Shares on the Subordinate Voting Shares, but only if the directors simultaneously declare a stock dividend payable in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) Multiple Voting Shares on the Multiple Voting Shares, in a number of shares per Multiple Voting Share equal to the amount of the dividend declared per Subordinate Voting Share; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) Subordinate Voting Shares on the Multiple Voting Shares, in a number of shares per Multiple Voting Share equal to the amount of the dividend declared per Subordinate Voting Share, multiplied by one hundred (100); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Proportionate Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share divided by one thousand (1,000);

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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;(ii) Subordinate Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share; 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;(iii) Multiple Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share divided by one hundred (100).

**27.4 Liquidation Rights**

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company to its shareholders for the purposes of winding up its affairs, the holders of the Subordinate Voting Shares shall be entitled to participate *pari passu* with the holders of Multiple Voting Shares and Proportionate Voting Shares, with the amount of such distribution per Subordinate Voting Share equal to each of: (i) the amount of such distribution per Multiple Voting Share divided by one hundred (100); and (ii) the amount of such distribution per Proportionate Voting Share.

**27.5 Subdivision or Consolidation**

The Subordinate Voting Shares shall not be consolidated or subdivided unless the Multiple Voting Shares and the Proportionate Voting Shares are simultaneously consolidated or subdivided utilizing the same divisor or multiplier.

**27.6 Conversion of the Shares Upon an Offer to Acquire Multiple Voting Shares** 

In the event that an offer is made to purchase Multiple Voting Shares, and such offer is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Multiple Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Multiple Voting Shares in a province or territory of Canada to which the requirement applies (such offer to purchase in this Article 27.6, an "**Offer**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not made to the holders of Subordinate Voting Shares for consideration per Subordinate Voting Share equal to 0.01 of the consideration offered per Multiple Voting Share,

each Subordinate Voting Share shall become convertible at the option of the holder into Multiple Voting Shares on the basis of one hundred (100) Subordinate Voting Shares for one (1) Multiple Voting Share, at any time while the Offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to the Offer (the "**Subordinate Voting Share MVS Offer Conversion Right**"). For avoidance of doubt, fractions of Multiple Voting Shares may be issued in respect of any amount of Subordinate Voting Shares in respect of which the Subordinate Voting Share MVS Offer Conversion Right is exercised which is less than one hundred (100).

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The Subordinate Voting Share MVS Offer Conversion Right may only be exercised for the purpose of depositing the Multiple Voting Shares acquired upon conversion under such Offer, and for no other reason. If the Subordinate Voting Share MVS Offer Conversion Right is exercised, the Company shall procure that the transfer agent for the Subordinate Voting Shares shall deposit under such Offer the Multiple Voting Shares acquired upon conversion, on behalf of the holder.

To exercise the Subordinate Voting Share MVS Offer Conversion Right, a holder of Subordinate Voting Shares or his or her attorney, duly authorized in writing, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) give written notice of exercise of the Subordinate Voting Share MVS Offer Conversion Right to the transfer agent for the Subordinate Voting Shares, and of the number of Subordinate Voting Shares in respect of which the Subordinate Voting Share MVS Offer Conversion Right is being exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to the transfer agent for the Subordinate Voting Shares any share certificate or certificates representing the Subordinate Voting Shares in respect of which the Subordinate Voting Share MVS Offer Conversion Right is being exercised; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pay any applicable stamp tax or similar duty on or in respect of such conversion.

No certificates representing Multiple Voting Shares acquired upon exercise of the Subordinate Voting Share MVS Offer Conversion Right will be delivered to the holders of Subordinate Voting Shares. If Multiple Voting Shares issued upon such conversion and deposited under such Offer are withdrawn by such holder, or such Offer is abandoned, withdrawn or terminated by the offeror, or such Offer expires without the offeror taking up and paying for such Multiple Voting Shares, such Multiple Voting Shares and any fractions thereof issued shall automatically, without further action on the part of the holder thereof, be reconverted into Subordinate Voting Shares on the basis of one (1) Multiple Voting Share for one hundred (100) Subordinate Voting Shares, and the Company will procure that the transfer agent for the Subordinate Voting Shares shall send to such holder a direct registration statement, certificate or certificates representing the Subordinate Voting Shares acquired upon such reconversion. If the offeror under such Offer takes up and pays for the Multiple Voting Shares acquired upon exercise of the Subordinate Voting Share MVS Offer Conversion Right, the Company shall procure that the transfer agent for the Subordinate Voting Shares shall deliver to the holders of such Multiple Voting Shares the consideration paid for such Multiple Voting Shares by such offeror.

**27.7 Conversion of the Shares Upon an Offer to Acquire Proportionate Voting Shares** 

In the event that an offer is made to purchase Proportionate Voting Shares, and such offer is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Proportionate Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Proportionate Voting Shares; may then be listed, to be made to all or substantially all of the holders of Proportionate Voting Shares in a province or territory of Canada to which the requirement applies (such offer to purchase in this Article 27.7, an "Offer"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not made to the holders of Subordinate Voting Shares for consideration per Subordinate Voting Share equal to the consideration offered per Proportionate Voting Share,

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each Subordinate Voting Share shall become convertible at the option of the holder into a Proportionate Voting Share on the basis of one (1) Subordinate Voting Share for one (1) Proportionate Voting Share, at any time while the Offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to the Offer (the "**Subordinate Voting Share PVS Offer Conversion Right**").

The Subordinate Voting Share PVS Offer Conversion Right may only be exercised for the purpose of depositing the Proportionate Voting Shares acquired upon conversion under such Offer, and for no other reason. If the Subordinate Voting Share PVS Offer Conversion Right is exercised, the Company shall procure that the transfer agent for the Subordinate Voting Shares shall deposit under such Offer the Proportionate Voting Shares acquired upon conversion, on behalf of the holder.

To exercise the Subordinate Voting Share PVS Offer Conversion Right, a holder of Subordinate Voting Shares or his or her attorney, duly authorized in writing, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) give written notice of exercise of the Subordinate Voting Share PVS Offer Conversion Right to the transfer agent for the Subordinate Voting Shares, and of the number of Subordinate Voting Shares in respect of which the Subordinate Voting Share PVS Offer Conversion Right is being exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to the transfer agent for the Subordinate Voting Shares any share certificate or certificates representing the Subordinate Voting Shares in respect of which the Subordinate Voting Share PVS Offer Conversion Right is being exercised; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pay any applicable stamp tax or similar duty on or in respect of such conversion.

No certificates representing Proportionate Voting Shares acquired upon exercise of the Subordinate Voting Share PVS Offer Conversion Right will be delivered to the holders of Subordinate Voting Shares. If Proportionate Voting Shares issued upon such conversion and deposited under such Offer are withdrawn by such holder, or such Offer is abandoned, withdrawn or terminated by the offeror, or such Offer expires without the offeror taking up and paying for such Proportionate Voting Shares, such Proportionate Voting Shares and any fractions thereof issued shall automatically, without further action on the part of the holder thereof, be reconverted into Subordinate Voting Shares on the basis of one (1) Proportionate Voting Share for one (1) Subordinate Voting Share, and the Company will procure that the transfer agent for the Subordinate Voting Shares shall send to such holder a direct registration statement, certificate or certificates representing the Subordinate Voting Shares acquired upon such reconversion. If the offeror under such Offer takes up and pays for the Proportionate Voting Shares acquired upon exercise of the Subordinate Voting Share PVS Offer Conversion Right, the Company shall procure that the transfer agent for the Subordinate Voting Shares shall deliver to the holders of such Proportionate Voting Shares the consideration paid for such Proportionate Voting Shares by such offeror.

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**ARTICLE 28**<br>**SPECIAL RIGHTS AND RESTRICTIONS ATTACHED TO** <br>**MULTIPLE VOTING SHARES**

**28.1 Voting**

The holders of Class B multiple voting shares ("**Multiple Voting Shares**") shall be entitled to receive notice of and to attend and vote at all meetings of shareholders of the Company except a meeting at which only the holders of another class or series of shares is entitled to vote. Subject to Articles 28.2 and 28.3, each Multiple Voting Share shall entitle the holder to one hundred (100) votes and each fraction of a Multiple Voting Share shall entitle the holder to the number of votes calculated by multiplying the fraction by one hundred (100) and rounding the product down to the nearest whole number, at each such meeting.

**28.2 Alteration to Rights of Multiple Voting Shares**

So long as any Multiple Voting Shares remain outstanding, the Company will not, without the consent of the holders of Multiple Voting Shares and Proportionate Voting Shares expressed by separate special resolution alter or amend these Articles if the result of such alteration or amendment would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prejudice or interfere with any right or special right attached to the Multiple Voting Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) affect the rights or special rights of the holders of Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares on a per share basis as provided for herein.

At any meeting of holders of Multiple Voting Shares and Proportionate Voting Shares called to consider such a separate special resolution, each Multiple Voting Share and Proportionate Voting Share shall entitle the holder to one (1) vote and each fraction of a Multiple Voting Share or Proportionate Voting Share will entitle the holder to the corresponding fraction of one (1) vote.

**28.3 Shares Superior to Multiple Voting Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may take no action which would authorize or create shares of any class or series having preferences superior to or on a parity with the Multiple Voting Shares without the consent of the holders of a majority of the Multiple Voting Shares and Proportionate Voting Shares expressed by separate ordinary resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any meeting of holders of Multiple Voting Shares and Proportionate Voting Shares called to consider such a separate ordinary resolution, each Multiple Voting Share and Proportionate Voting Share will entitle the holder to one (1) vote and each fraction of a Multiple Voting Share and Proportionate Voting Share shall entitle the holder to the corresponding fraction of one (1) vote.

**28.4 Dividends**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The holders of Multiple Voting Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared by the directors from time to time. The directors may declare no dividend payable in cash or property on the Multiple Voting Shares unless the directors simultaneously declare a dividend payable in cash or property on: (i) the Subordinate Voting Shares, in an amount equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100); and (ii) on the Proportionate Voting Shares in an amount equal to the dividend declared per Multiple Voting Share divided by one hundred (100).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The directors may declare a stock dividend payable in Multiple Voting Shares on the Multiple Voting Shares, but only if the directors simultaneously declare a stock dividend payable in: (i) Multiple Voting Shares on the Subordinate Voting Shares, in a number of shares per Subordinate Voting Share equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100); and (ii) Multiple Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Share equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The directors may declare a stock dividend payable in Subordinate Voting Shares on the Multiple Voting Shares, but only if the directors simultaneously declare a stock dividend payable in: (i) Subordinate Voting Shares on the Subordinate Voting Shares, in a number of shares per Subordinate Voting Share equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100); and (ii) Subordinate Voting Shares on the Proportionate Voting Shares, in a number of shares per Proportionate Voting Shares equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Holders of fractional Multiple Voting Shares shall be entitled to receive any dividend declared on the Multiple Voting Shares, in an amount equal to the dividend per Multiple Voting Share multiplied by the fraction thereof held by such holder.

**28.5 Liquidation Rights**

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company to its shareholders for the purpose of winding up its affairs, the holders of the Multiple Voting Shares shall be entitled to participate *pari passu* with the holders of Subordinate Voting Shares and Proportionate Voting Shares, with the amount of such distribution per Multiple Voting Share equal to each of: (i) the amount of such distribution per Subordinate Voting Share multiplied by one hundred (100); and (ii) the amount of such distribution per Proportionate Voting Share multiplied by one hundred (100); and each fraction of a Multiple Voting Share will be entitled to the amount calculated by multiplying the fraction by the amount payable per whole Multiple Voting Share.

**28.6 Subdivision or Consolidation**

The Multiple Voting Shares shall not be consolidated or subdivided unless the Subordinate Voting Shares and the Proportionate Voting Shares are simultaneously consolidated or subdivided utilizing the same divisor or multiplier.

**28.7 Voluntary Conversion**

Subject to the Conversion Limitation set forth in this Article 28.7, holders of Multiple Voting Shares and Proportionate Voting Shares shall have the following rights of conversion (the "**Share Conversion Right**"):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Right to Convert Multiple Voting Shares.** Each Multiple Voting Share shall be convertible at the option of the holder into such number of Subordinate Voting Shares as is determined by multiplying the number of Multiple Voting Shares in respect of which the Share Conversion Right is exercised by one hundred (100). Fractions of Multiple Voting Shares may be converted into such number of Subordinate Voting Shares as is determined by multiplying the fraction by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Right to Convert Proportionate Voting Shares.** Each Proportionate Voting Share shall be convertible at the option of the holder into such number of Subordinate Voting Shares as is determined by multiplying the number of Proportionate Voting Shares in respect of which the Share Conversion Right is exercised by one (1). Fractions of Proportionate Voting Shares may be converted into such number of Subordinated Voting Shares as is determined by multiplying the fraction by one (1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Conversion Limitation.** Unless already appointed, upon receipt of a Conversion Notice (as defined below), the directors (or a committee thereof) shall designate an officer of the Company who shall determine whether the Conversion Limitation set forth in this Article shall apply to the conversion referred to therein (the "**Conversion Limitation Officer**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Foreign Private Issuer Status.** The Company shall use commercially reasonable efforts to maintain its status as a "foreign private issuer" (as determined in accordance with Rule 3b-4 under the *Securities Exchange Act* of 1934, as amended (the "**Exchange Act**"). Accordingly, the Company shall not give effect to any voluntary conversion of Multiple Voting Shares or Proportionate Voting Shares pursuant to this Article 28.7 or otherwise, and the Share Conversion Right will not apply, to the extent that after giving effect to all permitted issuances after such conversion of Multiple Voting Shares or Proportionate Voting Shares, the aggregate number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares (calculated on the basis that each Subordinate Voting Share, Multiple Voting Share and Proportionate Voting Share is counted once, without regard to the number of votes carried by such share) held of record, directly or indirectly, by residents of the United States (as determined in accordance with Rules 3b-4 and 12g3-2(a) under the Exchange Act ("**U.S. Residents**") would exceed forty percent (40%) (the "**40% Threshold**") of the aggregate number of Subordinate Voting Shares, Proportionate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares (calculated on the same basis) issued and outstanding (the "**FPI Restriction**"). The directors may by resolution increase the 40% Threshold to a number not to exceed fifty percent (50%), and if any such resolution is adopted, all references to the 40% Threshold herein shall refer instead to the amended percentage threshold set by the directors in such resolution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Conversion Limitation.** In order to give effect to the FPI Restriction, the number of Subordinate Voting Shares issuable to a holder of Multiple Voting Shares or Proportionate Voting Shares upon exercise by such holder of the Share Conversion Right will be subject to the 40% Threshold based on the number of Multiple Voting Shares or Proportionate Voting Shares held by such holder as of the date of issuance of Multiple Voting Shares or Proportionate Voting Shares to such holder, and thereafter at the end of each of the Company's subsequent fiscal quarters (each, a "**Determination Date**"), calculated as follows:

X = [A x 40% - B] x (C/D)

Where, on the Determination Date:

X = Maximum Number of Subordinate Voting Shares which may be issued upon exercise of the Share Conversion Right.

A = Aggregate number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares issued and outstanding.

B = Aggregate number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares held of record, directly or indirectly, by U.S. Residents.

C = Aggregate Number of Multiple Voting Shares and Proportionate Voting Shares held by such holder.

D = Aggregate Number of All Multiple Voting Shares and Proportionate Voting Shares.

The Conversion Limitation Officer shall determine as of each Determination Date, in his or her sole discretion acting reasonably, the aggregate number of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares held of record, directly or indirectly, by U.S. Residents, the maximum number of Subordinate Voting Shares which may be issued upon exercise of the Share Conversion Right, generally in accordance with the formula set forth immediately above. Upon request by a holder of Multiple Voting Shares or Proportionate Voting Shares, the Company will provide each holder of Multiple Voting Shares or Proportionate Voting Shares with notice of such maximum number as at the most recent Determination Date, or a more recent date as may be determined by the Conversion Limitation Officer in its discretion. To the extent that issuances of Subordinate Voting Shares on exercise of the Share Conversion Right would result in the 40% Threshold being exceeded, the number of Subordinate Voting Shares to be issued will be pro-rated among each holder of Multiple Voting Shares or Proportionate Voting Shares exercising the Share Conversion Right.

Notwithstanding the provisions of Article 28.7(d) and (e), the directors may by resolution waive the application of the Conversion Restriction to any exercise or exercises of the Share Conversion Right to which the Conversion Restriction would otherwise apply, or to future Conversion Restrictions generally, including with respect to a period of time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Disputes.**

&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) Any holder of Multiple Voting Shares or Proportionate Voting Shares who beneficially owns more than 5% of the issued and outstanding Multiple Voting Shares or Proportionate Voting Shares may submit a written dispute as to the calculation of the 40% Threshold or the FPI Restriction by the Conversion Limitation Officer to the directors with the basis for the disputed calculations. The Company shall respond to the holder within five (5) business days of receipt of the notice of such dispute with a written calculation of the 40% Threshold or the FPI Restriction, as applicable. If the holder and the Company are unable to agree upon such calculation of the 40% Threshold or the FPI Restriction, as applicable, within five (5) business days of such response, then the Company and the holder shall, within one (1) business day thereafter submit the disputed calculation of the 40% Threshold or the FPI Restriction to the Company's independent auditor. The Company, at the Company's expense, shall cause the auditor to perform the calculations in dispute and notify the Company and the holder of the results no later than five (5) business days from the time it receives the disputed calculations. The auditor's calculations shall be final and binding on all parties, absent demonstrable error.

&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 event of a dispute as to the number of Subordinate Voting Shares issuable to a holder of Multiple Voting Shares or Proportionate Voting Shares in connection with a voluntary conversion of Multiple Voting Shares or Proportionate Voting Shares, the Company shall issue to the holder of Multiple Voting Shares or Proportionate Voting Shares the number of Subordinate Voting Shares not in dispute, and resolve such dispute in accordance with Article 28.7(f)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Mechanics of Conversion.** Before any holder of Multiple Voting Shares or Proportionate Voting Shares shall be entitled to voluntarily convert Multiple Voting Shares or Proportionate Voting Shares into Subordinate Voting Shares in accordance with Articles 28.7(a) or (b), the holder shall surrender the certificate or certificates representing the Multiple Voting Shares or Proportionate Voting Shares to be converted at the head office of the Company, or the office of any transfer agent for the Multiple Voting Shares or Proportionate Voting Shares, and shall give written notice to the Company at its head office of his or her election to convert such Multiple Voting Shares or Proportionate Voting Shares and shall state therein the name or names in which the certificate or certificates representing the Subordinate Voting Shares are to be issued (a "**Conversion Notice**"). The Company shall (or shall cause its transfer agent to) as soon as practicable thereafter, issue to such holder or his or her nominee, a certificate or certificates or direct registration statement representing the number of Subordinate Voting Shares to which such holder is entitled upon conversion. Such conversion shall be deemed to have taken place immediately prior to the close of business on the day on which the certificate or certificates representing the Multiple Voting Shares or Proportionate Voting Shares to be converted is surrendered and the Conversion Notice is delivered, and the person or persons entitled to receive the Subordinate Voting Shares issuable upon such conversion shall be treated for all purposes as the holder or holders of record of such Subordinate Voting Shares as of such date.

**28.8 Conversion of the Shares Upon an Offer to Acquire Subordinate Voting Shares**

In the event that an offer is made to purchase Subordinate Voting Shares, and such offer is:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Multiple Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Subordinate Voting Shares in a province or territory of Canada to which the requirement applies (such offer to purchase in this Article 28.8, an "**Offer**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not made to the holders of Multiple Voting Shares for consideration per Multiple Voting Share equal to 100 times the consideration offered per Subordinate Voting Share,

each Multiple Voting Share shall become convertible at the option of the holder into Subordinate Voting Shares on the basis of one hundred (100) Subordinate Voting Shares for one (1) Multiple Voting Share, at any time while the Offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to the Offer (the "**Multiple Voting Share SVS Offer Conversion Right**").

The Multiple Voting Share SVS Offer Conversion Right may only be exercised for the purpose of depositing the Subordinate Voting Shares acquired upon conversion under such Offer, and for no other reason. If the Multiple Voting Share SVS Offer Conversion Right is exercised, the Company shall procure that the transfer agent for the Multiple Voting Shares shall deposit under such Offer the Subordinate Voting Shares acquired upon conversion, on behalf of the holder.

To exercise the Multiple Voting Share SVS Offer Conversion Right, a holder of Multiple Voting Shares or his or her attorney, duly authorized in writing, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) give written notice of exercise of the Multiple Voting Share SVS Offer Conversion Right to the transfer agent for the Multiple Voting Shares, and of the number of Multiple Voting Shares in respect of which the Multiple Voting Share SVS Offer Conversion Right is being exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to the transfer agent for the Multiple Voting Shares any share certificate or certificates representing the Multiple Voting Shares in respect of which the Multiple Voting Share SVS Offer Conversion Right is being exercised; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pay any applicable stamp tax or similar duty on or in respect of such conversion.

No certificates representing Subordinate Voting Shares acquired upon exercise of the Multiple Voting Share SVS Offer Conversion Right will be delivered to the holders of Multiple Voting Shares. If Subordinate Voting Shares issued upon such conversion and deposited under such Offer are withdrawn by such holder, or such Offer is abandoned, withdrawn or terminated by the offeror, or such Offer expires without the offeror taking up and paying for such Subordinate Voting Shares, such Subordinate Voting Shares issued shall automatically, without further action on the part of the holder thereof, be reconverted into Multiple Voting Shares on the basis of one (1) Multiple Voting Share for one hundred (100) Subordinate Voting Shares, and the Company will procure that the transfer agent for the Multiple Voting Shares shall send to such holder a direct registration statement, certificate or certificates representing the Multiple Voting Shares acquired upon such reconversion. If the offeror under such Offer takes up and pays for the Subordinate Voting Shares acquired upon exercise of the Multiple Voting Share SVS Offer Conversion Right, the Company shall procure that the transfer agent for the Multiple Voting Shares shall deliver to the holders of such Subordinate Voting Shares the consideration paid for such Subordinate Voting Shares by such offeror.

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**28.9 Conversion of the Shares Upon an Offer to Acquire Proportionate Voting Shares**

In the event that an offer is made to purchase Proportionate Voting Shares, and such offer is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Proportionate Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Proportionate Voting Shares; may then be listed, to be made to all or substantially all of the holders of Proportionate Voting Shares in a province or territory of Canada to which the requirement applies (such offer to purchase in this Article 28.9, an "**Offer**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not made to the holders of Multiple Voting Shares for consideration per Multiple Voting Share equal to 100 times the consideration offered per Proportionate Voting Share,

each Multiple Voting Share shall become convertible at the option of the holder into Proportionate Voting Shares on the basis of one hundred (100) Proportionate Voting Shares for one (1) Multiple Voting Share, at any time while the Offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to the Offer (the "**Multiple Voting Share PVS Offer Conversion Right**").

The Multiple Voting Share PVS Offer Conversion Right may only be exercised for the purpose of depositing the Proportionate Voting Shares acquired upon conversion under such Offer, and for no other reason. If the Multiple Voting Share PVS Offer Conversion Right is exercised, the Company shall procure that the transfer agent for the Multiple Voting Shares shall deposit under such Offer the Proportionate Voting Shares acquired upon conversion, on behalf of the holder.

To exercise the Multiple Voting Share PVS Offer Conversion Right, a holder of Multiple Voting Shares or his or her attorney, duly authorized in writing, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) give written notice of exercise of the Multiple Voting Share PVS Offer Conversion Right to the transfer agent for the Multiple Voting Shares, and of the number of Multiple Voting Shares in respect of which the Multiple Voting Share PVS Offer Conversion Right is being exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to the transfer agent for the Multiple Voting Shares any share certificate or certificates representing the Multiple Voting Shares in respect of which the Multiple Voting Share PVS Offer Conversion Right is being exercised; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pay any applicable stamp tax or similar duty on or in respect of such conversion.

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No certificates representing Proportionate Voting Shares acquired upon exercise of the Multiple Voting Share PVS Offer Conversion Right will be delivered to the holders of Multiple Voting Shares. If Proportionate Voting Shares issued upon such conversion and deposited under such Offer are withdrawn by such holder, or such Offer is abandoned, withdrawn or terminated by the offeror, or such Offer expires without the offeror taking up and paying for such Proportionate Voting Shares, such Proportionate Voting Shares shall automatically, without further action on the part of the holder thereof, be reconverted into Multiple Voting Shares on the basis of one (1) Multiple Voting Share for one hundred (100) Proportionate Voting Shares, and the Company will procure that the transfer agent for the Multiple Voting Shares shall send to such holder a direct registration statement, certificate or certificates representing the Multiple Voting Shares acquired upon such reconversion. If the offeror under such Offer takes up and pays for the Proportionate Voting Shares acquired upon exercise of the Multiple Voting Share PVS Offer Conversion Right, the Company shall procure that the transfer agent for the Multiple Voting Shares shall deliver to the holders of such Proportionate Voting Shares the consideration paid for such Proportionate Voting Shares by such offeror.

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**ARTICLE 29**<br>**SPECIAL RIGHTS AND RESTRICTIONS ATTACHED TO** <br>**PROPORTIONATE VOTING SHARES**

**29.1 Voting**

The holders of Class C proportionate voting shares ("**Proportionate Voting Shares**") shall be entitled to receive notice of and to attend and vote at all meetings of shareholders of the Company except a meeting at which only the holders of another class or series of shares is entitled to vote. Subject to Articles 29.2 and 29.3, each Proportionate Voting Share shall entitle the holder to one thousand (1,000) votes and each fraction of a Proportionate Voting Share shall entitle the holder to the number of votes calculated by multiplying the fraction by one thousand (1,000) and rounding the product down to the nearest whole number, at each such meeting.

**29.2 Alteration to Rights of Proportionate Voting Shares**

So long as any Proportionate Voting Shares remain outstanding, the Company will not, without the consent of the holders of Proportionate Voting Shares expressed by separate special resolution alter or amend these Articles if the result of such alteration or amendment would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prejudice or interfere with any right or special right attached to the Proportionate Voting Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) affect the rights or special rights of the holders of Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares on a per share basis as provided for herein.

At any meeting of holders of Proportionate Voting Shares called to consider such a separate special resolution, each Proportionate Voting Share shall entitle the holder to one (1) vote and each fraction of a Proportionate Voting Share will entitle the holder to the corresponding fraction of one (1) vote.

**29.3 Shares Superior to Proportionate Voting Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may take no action which would authorize or create shares of any class or series having preferences superior to or on a parity with the Proportionate Voting Shares without the consent of the holders of a majority of the Proportionate Voting Shares expressed by separate ordinary resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any meeting of holders of Proportionate Voting Shares called to consider such a separate ordinary resolution, each Proportionate Voting Share will entitle the holder to one (1) vote and each fraction of a Proportionate Voting Share shall entitle the holder to the corresponding fraction of one (1) vote.

**29.4 Dividends**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The holders of Proportionate Voting Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared by the directors from time to time. The directors may declare no dividend payable in cash or property on the Proportionate Voting Shares unless the directors simultaneously declare a dividend payable in cash or property on: (i) the Subordinate Voting Shares, in an amount equal to the amount of the dividend declared per Proportionate Voting Share; and (ii) on the Multiple Voting Shares in an amount equal to the dividend declared per Proportionate Voting Share multiplied by one hundred (100).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The directors may declare a stock dividend payable in Multiple Voting Shares on the Proportionate Voting Shares, but only if the directors simultaneously declare a stock dividend payable in: (i) Multiple Voting Shares on the Subordinate Voting Shares, in a number of shares per Subordinate Voting Share equal to the amount of the dividend declared per Proportionate Voting Share; and (ii) Multiple Voting Shares on the Multiple Voting Shares, in a number of shares per Multiple Voting Share equal to the amount of the dividend declared per Proportionate Voting Share multiplied by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The directors may declare a stock dividend payable in Subordinate Voting Shares on the Proportionate Voting Shares, but only if the directors simultaneously declare a stock dividend payable in: (i) Subordinate Voting Shares on the Subordinate Voting Shares, in a number of shares per Subordinate Voting Share equal to the amount of the dividend declared per Proportionate Voting Share; and (ii) Subordinate Voting Shares on the Multiple Voting Shares, in a number of shares per Multiple Voting Shares equal to the amount of the dividend declared per Proportionate Voting Share multiplied by one hundred (100).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Holders of fractional Proportionate Voting Shares shall be entitled to receive any dividend declared on the Proportionate Voting Shares, in an amount equal to the dividend per Proportionate Voting Share multiplied by the fraction thereof held by such holder.

**29.5 Liquidation Rights**

In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company to its shareholders for the purpose of winding up its affairs, the holders of the Proportionate Voting Shares shall be entitled to participate *pari passu* with the holders of Subordinate Voting Shares and Multiple Voting Shares, with the amount of such distribution per Proportionate Voting Share equal to each of: (i) the amount of such distribution per Subordinate Voting Share; and (ii) the amount of such distribution per Multiple Voting Share divided by one hundred (100); and each fraction of a Proportionate Voting Share will be entitled to the amount calculated by multiplying the fraction by the amount payable per whole Proportionate Voting Share.

**29.6 Subdivision or Consolidation**

The Proportionate Voting Shares shall not be consolidated or subdivided unless the Subordinate Voting Shares and the Multiple Voting Shares are simultaneously consolidated or subdivided utilizing the same divisor or multiplier.

**29.7 Transfer of Proportionate Voting Shares**

No Proportionate Voting Share may be sold, transferred, assigned, pledged or otherwise disposed of, whether voluntarily or involuntarily, by operation of law or otherwise, without the written consent of the directors, and the directors are not required to give any reason for refusing to consent to any such Transfer.

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**29.8 Mandatory Conversion of Proportionate Voting Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Definitions.** In this Article 29.8:

&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) "**Blocker**" means Alpine Summit Energy Investors, Inc., a corporation existing under the laws of the state of Nevada;

&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) "**Definitive Agreement**" means the business combination agreement between, *inter alia*, the Company, Origination, Finco, Subco and Blocker dated April 8, 2021;

&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) "**Finco**" means Alpine Summit Energy Partners Finco, Inc., a corporation existing under the laws of the province of British Columbia;

&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) "**Initial Holder**" means the holder of Proportionate Voting Shares as of the date of initial issuance of Proportionate Voting Shares.

&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) "**Membership Interests**" means the membership interests of Origination;

&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) "**Origination**" means HB2 Origination, LLC, a limited liability company existing under the laws of the state of Delaware;

&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) "**Subco**" means Red Pine Petroleum Subco Ltd., a wholly-owned subsidiary of the Company existing under the laws of the province of British Columbia;

&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) "**Reverse Takeover**" means the completion of the combination of the businesses of the Company, Origination, Finco, Subco and Blocker pursuant to the Definitive 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;(ix) "**RTO Closing Date**" means the date of completion of the Reverse Takeover.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Mandatory Conversion.** All issued and outstanding Proportionate Voting Shares will automatically, without any action on the part of the holder, be converted into Subordinate Voting Shares on the basis of one (1) Subordinate Voting Share for one (1) Proportionate Voting Share upon the date that is the first day when the Initial Holder owns, directly or indirectly, less than seventy-five per cent (75%) of the Membership Interests as they collectively did on the RTO Closing Date (the "**Mandatory Conversion Record Date**"). On the Mandatory Conversion Record Date, each certificate representing Proportionate Voting Shares shall thenceforth be null and void. Within twenty (20) days of the Mandatory Conversion Record Date, the Company will send, or cause its transfer agent to send, notice thereof to the former holder of Proportionate Voting Shares (a "**Mandatory Conversion Notice**") specifying:

&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 Mandatory Conversion 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the number of Subordinate Voting Shares into which the Proportionate Voting Shares held by such holder have been converted; 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;(iii) the address of record of such holder.

As soon as practicable after the sending of the Mandatory Conversion Notice, the Company shall issue or shall cause its transfer agent to issue to each holder of Proportionate Voting Shares certificates representing the number of Subordinate Voting Shares into which the Proportionate Voting Shares have been converted.

From the Mandatory Conversion Record Date, the directors shall no longer be entitled to issue any further Proportionate Voting Shares whatsoever.

**29.9 Conversion of the Shares Upon an Offer to Acquire Subordinate Voting Shares** 

In the event that an offer is made to purchase Subordinate Voting Shares, and such offer is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Proportionate Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Subordinate Voting Shares in a province or territory of Canada to which the requirement applies (such offer to purchase in this Article 29.9, an "**Offer**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not made to the holders of Proportionate Voting Shares for consideration per Proportionate Voting Share equal to the consideration offered per Subordinate Voting Share,

each Proportionate Voting Share shall become convertible at the option of the holder into a Subordinate Voting Share on the basis of one (1) Subordinate Voting Share for one (1) Proportionate Voting Share, at any time while the Offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to the Offer (the "**Proportionate Voting Share SVS Offer Conversion Right**").

The Proportionate Voting Share SVS Offer Conversion Right may only be exercised for the purpose of depositing the Proportionate Voting Shares acquired upon conversion under such Offer, and for no other reason. If the Proportionate Voting Share SVS Offer Conversion Right is exercised, the Company shall procure that the transfer agent for the Proportionate Voting Shares shall deposit under such Offer the Subordinate Voting Shares acquired upon conversion, on behalf of the holder.

To exercise the Proportionate Voting Share SVS Offer Conversion Right, a holder of Proportionate Voting Shares or his or her attorney, duly authorized in writing, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) give written notice of exercise of the Proportionate Voting Share SVS Offer Conversion Right to the transfer agent for the Proportionate Voting Shares, and of the number of Proportionate Voting Shares in respect of which the Proportionate Voting Share SVS Offer Conversion Right is being exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to the transfer agent for the Proportionate Voting Shares any share certificate or certificates representing the Proportionate Voting Shares in respect of which the Proportionate Voting Share SVS Offer Conversion Right is being exercised; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pay any applicable stamp tax or similar duty on or in respect of such conversion.

No certificates representing Subordinate Voting Shares acquired upon exercise of the Proportionate Voting Share SVS Offer Conversion Right will be delivered to the holders of Proportionate Voting Shares. If Subordinate Voting Shares issued upon such conversion and deposited under such Offer are withdrawn by such holder, or such Offer is abandoned, withdrawn or terminated by the offeror, or such Offer expires without the offeror taking up and paying for such Subordinate Voting Shares, such Subordinate Voting Shares issued shall automatically, without further action on the part of the holder thereof, be reconverted into Proportionate Voting Shares on the basis of one (1) Proportionate Voting Share for one (1) Subordinate Voting Share, and the Company will procure that the transfer agent for the Proportionate Voting Shares shall send to such holder a direct registration statement, certificate or certificates representing the Proportionate Voting Shares acquired upon such reconversion. If the offeror under such Offer takes up and pays for the Subordinate Voting Shares acquired upon exercise of the Proportionate Voting Share SVS Offer Conversion Right, the Company shall procure that the transfer agent for the Proportionate Voting Shares shall deliver to the holders of such Subordinate Voting Shares the consideration paid for such Subordinate Voting Shares by such offeror.

**29.10 Conversion of the Shares Upon an Offer to Acquire Multiple Voting Shares**

In the event that an offer is made to purchase Multiple Voting Shares, and such offer is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Multiple Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Multiple Voting Shares in a province or territory of Canada to which the requirement applies (such offer to purchase in this Article 29.10, an "**Offer**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not made to the holders of Proportionate Voting Shares for consideration per Proportionate Voting Share equal to 0.01 of the consideration offered per Multiple Voting Share,

each Proportionate Voting Share shall become convertible at the option of the holder into Multiple Voting Shares on the basis of one hundred (100) Proportionate Voting Shares for one (1) Multiple Voting Share, at any time while the Offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to the Offer (the "**Proportionate Voting Share MVS Offer Conversion Right**"). For avoidance of doubt, fractions of Multiple Voting Shares may be issued in respect of any amount of Proportionate Voting Shares in respect of which the Proportionate Voting Share MVS Offer Conversion Right is exercised which is less than one hundred (100).

The Proportionate Voting Share MVS Offer Conversion Right may only be exercised for the purpose of depositing the Multiple Voting Shares acquired upon conversion under such Offer, and for no other reason. If the Proportionate Voting Share MVS Offer Conversion Right is exercised, the Company shall procure that the transfer agent for the Proportionate Voting Shares shall deposit under such Offer the Multiple Voting Shares acquired upon conversion, on behalf of the holder.

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To exercise the Proportionate Voting Share MVS Offer Conversion Right, a holder of Proportionate Voting Shares or his or her attorney, duly authorized in writing, shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) give written notice of exercise of the Proportionate Voting Share MVS Offer Conversion Right to the transfer agent for the Proportionate Voting Shares, and of the number of Proportionate Voting Shares in respect of which the Proportionate Voting Share MVS Offer Conversion Right is being exercised;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to the transfer agent for the Proportionate Voting Shares any share certificate or certificates representing the Proportionate Voting Shares in respect of which the Proportionate Voting Share MVS Offer Conversion Right is being exercised; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pay any applicable stamp tax or similar duty on or in respect of such conversion.

No certificates representing Multiple Voting Shares acquired upon exercise of the Proportionate Voting Share MVS Offer Conversion Right will be delivered to the holders of Proportionate Voting Shares. If Multiple Voting Shares issued upon such conversion and deposited under such Offer are withdrawn by such holder, or such Offer is abandoned, withdrawn or terminated by the offeror, or such Offer expires without the offeror taking up and paying for such Multiple Voting Shares, such Multiple Voting Shares and any fractions thereof issued shall automatically, without further action on the part of the holder thereof, be reconverted into Proportionate Voting Shares on the basis of one (1) Multiple Voting Share for one hundred (100) Proportionate Voting Shares, and the Company will procure that the transfer agent for the Proportionate Voting Shares shall send to such holder a direct registration statement, certificate or certificates representing the Proportionate Voting Shares acquired upon such reconversion. If the offeror under such Offer takes up and pays for the Multiple Voting Shares acquired upon exercise of the Proportionate Voting Share MVS Offer Conversion Right, the Company shall procure that the transfer agent for the Proportionate Voting Shares shall deliver to the holders of such Multiple Voting Shares the consideration paid for such Multiple Voting Shares by such offeror.

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**ARTICLE 30**<br>**ADVANCE NOTICE PROVISIONS**

**30.1 Nomination of Directors**

Subject only to the *Business Corporations Act* and these Articles, only persons who are nominated in accordance with the procedures set out in this Article 0 shall be eligible for election as directors to the board of directors of the Company. Nominations of persons for election to the board may only be made at an annual meeting of shareholders, or at a special meeting of shareholders called for any purpose at which the election of directors is a matter specified in the notice of meeting, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by or at the direction of the board or an authorized officer of the Company, including pursuant to a notice of meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by or at the direction or request of one or more shareholders pursuant to a valid proposal made in accordance with the provisions of the *Business Corporations Act* or a valid requisition of shareholders made in accordance with the provisions of the *Business Corporations Act*; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by any person entitled to vote at such meeting (a "**Nominating Shareholder**"), who:

&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) is, at the close of business on the date of giving notice provided for in this Article 0 and on the record date for notice of such meeting, either entered in the securities register of the Company as a holder of one or more shares carrying the right to vote at such meeting or who beneficially owns shares that are entitled to be voted at such meeting and provides evidence of such beneficial ownership 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;(ii) has given timely notice in proper written form as set forth in this Article 0.

The holders of Class A subordinate voting shares ("**Subordinate Voting Shares**") shall be entitled to receive notice of and to attend and vote at all meetings of shareholders of the Company except a meeting at which only the holders of another class or series of shares is entitled to vote. Each Subordinate Voting Share shall entitle the holder thereof to one vote at each such meeting.

**30.2 Exclusive Means**

For the avoidance of doubt, this Article 0 shall be the exclusive means for any person to bring nominations for election to the board before any annual or special meeting of shareholders of the Company.

**30.3 Timely Notice**

In order for a nomination made by a Nominating Shareholder to be timely notice (a "**Timely Notice**"), the Nominating Shareholder's notice must be received by the corporate secretary of the Company at the principal executive offices or registered office of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an annual meeting of shareholders (including an annual and special meeting), not later than 5:00 p.m. (Vancouver time) on the 30<sup>th</sup> day before the date of the meeting; provided, however, if the first public announcement made by the Company of the date of the meeting (each such date being the "**Notice Date**") is less than 50 days before the meeting date, notice by the Nominating Shareholder may be given not later than the close of business on the 10th day following the Notice Date; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a special meeting (which is not also an annual meeting) of shareholders called for any purpose which includes the election of directors to the board, not later than the close of business on the 15<sup>th</sup> day following the Notice Date;

provided that, in either instance, if notice-and-access (as defined in National Instrument 54-101 - *Communication with Beneficial Owners of Securities of a Reporting Issuer*) is used for delivery of proxy related materials in respect of a meeting described in Article 30.3(a) or 30.3(b), and the Notice Date in respect of the meeting is not less than 50 days before the date of the applicable meeting, the notice must be received not later than the close of business on the 30th day before the date of the applicable meeting.

**30.4 Proper Form of Notice**

To be in proper written form, a Nominating Shareholder's notice to the corporate secretary must comply with all the provisions of this Article 0 and disclose or include, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as to each person whom the Nominating Shareholder proposes to nominate for election as a director (a "**Proposed Nominee**"):

&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 name, age, business and residential address of the Proposed Nominee;

&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 principal occupation/business or employment of the Proposed Nominee, both presently and for the past five years;

&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 number of securities of each class of securities of the Company or any of its subsidiaries beneficially owned, or controlled or directed, directly or indirectly, by the Proposed Nominee, as of the record date for the meeting of shareholders (if such date shall then have been made publicly available and shall have occurred) and as of the date of such notice;

&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) full particulars of any relationships, agreements, arrangements or understandings (including financial, compensation or indemnity related) between the Proposed Nominee and the Nominating Shareholder, or any affiliates or associates of, or any person or entity acting jointly or in concert with, the Proposed Nominee or the Nominating Shareholder;

&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) any other information that would be required to be disclosed in a dissident proxy circular or other filings required to be made in connection with the solicitation of proxies for election of directors pursuant to the Business Corporations Act or applicable securities law; 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;(vi) a written consent of each Proposed Nominee to being named as nominee and certifying that such Proposed Nominee is not disqualified from acting as director under the provisions of subsection 124(2) of the *Business Corporations Act*; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as to each Nominating Shareholder giving the notice, and each beneficial owner, if any, on whose behalf the nomination is made:

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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;(i) their name, business and residential address;

&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 number of securities of the Company or any of its subsidiaries beneficially owned, or controlled or directed, directly or indirectly, by the Nominating Shareholder or any other person with whom the Nominating Shareholder is acting jointly or in concert with respect to the Company or any of its securities, as of the record date for the meeting of shareholders (if such date shall then have been made publicly available and shall have occurred) and as of the date of such notice;

&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) their interests in, or rights or obligations associated with, any agreement, arrangement or understanding, the purpose or effect of which is to alter, directly or indirectly, the person's economic interest in a security of the Company or the person's economic exposure to 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;(iv) any relationships, agreements or arrangements, including financial, compensation and indemnity related relationships, agreements or arrangements, between the Nominating Shareholder or any affiliates or associates of, or any person or entity acting jointly or in concert with, the Nominating Shareholder and any Proposed Nominee;

&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) full particulars of any proxy, contract, relationship arrangement, agreement or understanding pursuant to which such person, or any of its affiliates or associates, or any person acting jointly or in concert with such person, has any interests, rights or obligations relating to the voting of any securities of the Company or the nomination of directors to the board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a representation as to whether or not such person intends to deliver a proxy circular and/or form of proxy to any shareholder of the Company in connection with such nomination or otherwise solicit proxies or votes from shareholders of the Company in support of such nomination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other information relating to such person that would be required to be included in a dissident proxy circular or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to the *Business Corporations Act* or as required by applicable securities law.

Reference to "**Nominating Shareholder**" in this Article 30.4 shall be deemed to refer to each shareholder that nominated or seeks to nominate a person for election as director in the case of a nomination proposal where more than one shareholder is involved in making the nomination proposal.

**30.5 Currency of Nominee Information**

All information to be provided in a Timely Notice pursuant to this Article 0 shall be provided as of the date of such notice. The Nominating Shareholder shall provide the Company with an update to such information forthwith so that it is true and correct in all material respects as of the date that is 10 business days before the date of the meeting, or any adjournment or postponement thereof.

**30.6 Delivery of Information**

Notwithstanding Part 24 of these Articles, any notice, or other document or information required to be given to the corporate secretary pursuant to this Article 0 may only be given by personal delivery or courier (but not by fax or email) to the corporate secretary at the address of the principal executive offices or registered office of the Company and shall be deemed to have been given and made on the date of delivery if it is a business day and the delivery was made prior to 5:00 p.m. in the city where the Company's principal executive offices are located and otherwise on the next business day.

------

**30.7 Defective Nomination Determination**

The chair of any meeting of shareholders of the Company shall have the power to determine whether any proposed nomination is made in accordance with the provisions of this Article 0, and if any proposed nomination is not in compliance with such provisions, must as soon as practicable following receipt of such nomination and prior to the meeting declare that such defective nomination shall not be considered at any meeting of shareholders.

**30.8 Waiver**

The board may, in its sole discretion, waive any requirement in this Article 0.

**30.9 Definitions**

For the purposes of this Article 0, "**public announcement**" means disclosure in a news release disseminated by the Company through a national news service in Canada, or in a document filed by the Company for public access under its profile on the System of Electronic Document Analysis and Retrieval at www.sedar.com.

------

## Exhibit 3.2

------

![](exhibit3-2xu001.jpg)

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![](exhibit3-2xu002.jpg)

------

![](exhibit3-2xu003.jpg)

------

## Exhibit 3.3

------

![](exhibit3-3x001.jpg)

**Alpine Summit Energy Partners, Inc.**

**Quorum Policy**

------

**1. Purpose**

------

This policy establishes the quorum to be applied to meetings of shareholders of Alpine Summit Energy Partners, Inc. (the "**Company**") as of January 1, 2023, notwithstanding Section 11.3 of the Articles of the Company.

The Company listed its Class A Subordinate Voting Shares on the Nasdaq Global Market on September 26, 2022 and as of January 1, 2023, the Company will no longer meet the definition of a "foreign private issuer" under the United States Securities Exchange Act of 1934, as amended. Accordingly, as of January 1, 2023, the Company will no longer be permitted to rely on certain home country exemptions under the Nasdaq Stock Market Rules and will be required to have a quorum for meetings of shareholders of the Company of at least 33 1/3% of the issued and outstanding shares of the Company, present in person or represented by proxy.

**2. Quorum for Meetings of Shareholders**

------

As of January 1, 2023, notwithstanding Section 11.3 of the Articles of the Company, the quorum for the transaction of business at a meeting of shareholders of the Company is two persons who are, or represent by proxy, shareholders holding, in the aggregate, at least 33 1/3% of the issued and outstanding shares entitled to be voted at the meeting.

Where a separate vote by class or series or classes or series of shares is required at a meeting of shareholders, the presence, in person or by proxy, of the holders of at least 33 1/3% of the issued and outstanding shares of each such class or series shall also be required to constitute a quorum.

A quorum, once established at a meeting, shall not be broken by the withdrawal of the holders of enough voting power to leave less than a quorum. If a quorum is present at an original meeting, a quorum need not be present at an adjourned session of that meeting.

**3. Approval**

------

Approved by the Board on December 12, 2022.

------

## Exhibit 4.1

------

**Exhibit 4.1**

**Description of Registrant's Securities**

*The following summary of the material terms of the Company's securities is not intended to be a complete summary of the rights and preferences of such securities, and is qualified by reference to the Company's notice of articles and articles ("**Notice and Articles**") and the provisions of applicable law, including the Business Corporations Act (British Columbia). Please refer to the Notice and Articles for a complete description of the rights and preferences of the Company's Voting Shares (as defined below).*

**Authorized Share Capital**

The authorized capital of the Company consists of (i) an unlimited number of Class A subordinate voting shares ("**Subordinate Voting Shares**"), (ii) an unlimited number of Class B multiple voting shares ("**Multiple Voting Shares**"), and (iii) an unlimited number of Class C proportionate voting shares ("**Proportionate Voting Shares**", and collectively with the Subordinate Voting Shares and Multiple Voting Shares, the "**Voting Shares**").

**Subordinate Voting Shares**

*Voting Rights*: Holders of Subordinate Voting Shares will be entitled to notice of and to attend any meeting of the shareholders of the Company, except a meeting at which only holders of another particular class or series of shares of the Company will have the right to vote. At each such meeting, holders of Subordinate Voting Shares will be entitled to one vote in respect of each Subordinate Voting Share held.

*Alteration of Rights*: As long as any Subordinate Voting Shares remain outstanding, the Company will not, without the consent of the holders of the Subordinate Voting Shares by separate special resolution, prejudice or interfere with any right or special right attached to the Subordinate Voting Shares.

*Dividends*: Holders of Subordinate Voting Shares will be entitled to receive as and when declared by the directors of the Company, dividends in cash or property of the Company. No dividend will be declared or paid on the Subordinate Voting Shares unless the Company simultaneously declares or pays: (i) a dividend on the Multiple Voting Shares in an amount per Multiple Voting Share equal to the amount of the dividend declared per Subordinate Voting Share, multiplied by one hundred (100); and (ii) a dividend on the Proportionate Voting Shares, in an amount per Proportionate Voting Share equal to the amount of the dividend declared per Subordinate Voting Share.

*Liquidation, Dissolution or Winding-Up*: In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs, the holders of Subordinate Voting Shares will, subject to the prior rights of the holders of any shares of the Company ranking in priority to the Subordinate Voting Shares, be entitled to participate rateably along with the holders of Multiple Voting Shares and Proportionate Voting Shares, with the amount of such distribution per Subordinate Voting Share equal to each of: (i) the amount of such distribution per Multiple Voting Share divided by one hundred (100); and (ii) the amount of such distribution per Proportionate Voting Share.

*Subdivision or Consolidation*: No subdivision or consolidation of the Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares shall occur unless, simultaneously, the Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares are simultaneously consolidated or subdivided utilizing the same divisor or multiplier.

As of [•], 2023, there were [•] Subordinate Voting Shares issued and outstanding, which represent approximately [•]% of the voting rights attached to outstanding securities of the Company.

**Multiple Voting Shares** 

*Voting Rights*: Holders of Multiple Voting Shares will be entitled to notice of and to attend any meeting of the shareholders of the Company, except a meeting at which only holders of another particular class or series of shares of the Company will have the right to vote. At each such meeting, holders of Multiple Voting Shares will be entitled to one hundred (100) votes per Multiple Voting Share held.

------

*Alteration of Rights*: As long as any Multiple Voting Shares remain outstanding, the Company will not, without the consent of the holders of the Multiple Voting Shares and Proportionate Voting Shares by separate special resolution, prejudice or interfere with any right or special right attached to the Multiple Voting Shares. Consent of the holders of a majority of the outstanding Multiple Voting Shares and Proportionate Voting Shares shall be required for any action that authorizes or creates shares of any class having preferences superior to or on a parity with the Multiple Voting Shares. In connection with the exercise of the voting rights in respect of any such approvals, each holder of Multiple Voting Shares will have one vote in respect of each Multiple Voting Share held.

*Dividends*: Holders of Multiple Voting Shares will be entitled to receive as and when declared by the directors of the Company, dividends, out of any cash or property, *pari passu* with the holders of Subordinate Voting Shares and Proportionate Voting Shares. The directors may declare no dividend payable in cash or property on the Multiple Voting Shares unless the directors simultaneously declare a dividend payable in cash or property on: (i) the Subordinate Voting Shares, in an amount equal to the amount of the dividend declared per Multiple Voting Share divided by one hundred (100); and (ii) on the Proportionate Voting Shares in an amount equal to the dividend declared per Multiple Voting Share divided by one hundred (100).

*Liquidation, Dissolution or Winding-Up*: In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs, the holders of Multiple Voting Shares will, subject to the prior rights of the holders of any shares of the Company ranking in priority to the Multiple Voting Shares, be entitled to participate rateably along with all other holders of Multiple Voting Shares, Subordinate Voting Shares and Proportionate Voting Shares (on an as-converted basis, assuming conversion of all Multiple Voting Shares and Proportionate Voting Shares into Subordinate Voting Shares at the applicable conversion ratio).

*Subdivision or Consolidation*: No subdivision or consolidation of the Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares shall occur unless, simultaneously, the Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares are subdivided or consolidated in the same manner, or such other adjustment is made so as to maintain and preserve the relative rights of the holders of the shares of each of the said classes.

*Conversion*: Each Multiple Voting Share shall be convertible, at the option of the holder thereof, at any time after the date of issuance of such share at the office of the Company or any transfer agent for such shares, into one hundred (100) Subordinate Voting Shares.

As of [•], 2023, there were [•] Multiple Voting Shares issued and outstanding, which represent approximately [•]% of the voting rights attached to outstanding securities of the Company.

**Proportionate Voting Shares** 

*Voting Rights:* Holders of Proportionate Voting Shares are entitled to notice of and to attend any meeting of the shareholders of the Company, except a meeting at which only holders of another particular class or series of shares of the Company will have the right to vote. At each such meeting, holders of Proportionate Voting Shares will be entitled to one thousand (1,000) votes in respect of each Proportionate Voting Share held.

*Alteration of Rights:* As long as any Proportionate Voting Shares remain outstanding, the Company will not, without the consent of the holders of the Proportionate Voting Shares by separate special resolution, prejudice or interfere with any right or special right attached to the Proportionate Voting Shares. Additionally, consent of the holders of a majority of the outstanding Proportionate Voting Shares will be required for any action that authorizes or creates shares of any class having preferences superior to or on a parity with the Proportionate Voting Shares. In connection with the exercise of the voting rights in respect of any such approvals, each holder of Proportionate Voting Shares will have one vote in respect of each Proportionate Voting Share held.

*Dividends:* Holders of Proportionate Voting Shares will be entitled to such dividends payable in cash or property of the Company as may be declared by the directors from time to time. The directors may declare no dividend payable in cash or property on the Proportionate Voting Shares unless the directors simultaneously declare a dividend payable in cash or property on: (i) the Subordinate Voting Shares, in an amount equal to the amount of the dividend declared per Proportionate Voting Share; and (ii) on the Multiple Voting Shares in an amount equal to the dividend declared per Proportionate Voting Share multiplied by one hundred (100).

------

*Liquidation, Dissolution or Winding-Up:* In the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other distribution of assets of the Company among its shareholders for the purpose of winding up its affairs, the holders of Proportionate Voting Shares will, subject to the prior rights of the holders of any shares of the Company ranking in priority to the Proportionate Voting Shares, be entitled to participate *pari passu* with the holders of Subordinate Voting Shares and Multiple Voting Shares, with the amount of such distribution per Proportionate Voting Share equal to each of: (i) the amount of such distribution per Subordinate Voting Share; and (ii) the amount of such distribution per Multiple Voting Share divided by one hundred (100).

*Transfers:* No Proportionate Voting Share will be permitted to be transferred by the holder thereof without the prior written consent of the Board of Directors.

*Subdivision or Consolidation:* No subdivision or consolidation of the Subordinate Voting Shares, Multiple Voting Shares or Proportionate Voting Shares shall occur unless, simultaneously, the Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares are simultaneously consolidated or subdivided utilizing the same divisor or multiplier.

*Conversion:* Each Proportionate Voting Share shall automatically convert, without any action on the part of the holder thereof, into Subordinate Voting Shares on the basis of one Subordinate Voting Share for one Proportionate Voting Share on the date that the aggregate number of membership interests of Origination held by the holder of Proportionate Voting Shares together with its affiliates are reduced to a number which is less than seventy-five per cent (75%) of the aggregate number of membership interests of Origination held by such holder together with its affiliates on the date of completion of the Business Combination (as such term is defined in the Articles of the Company).

As of [•], 2023, there are [•] Proportionate Voting Shares issued and outstanding, which represent approximately [•]% of the voting rights attached to outstanding securities of the Company.

**Coattail Provisions** 

As summarized below, the terms of the Subordinate Voting Shares, Multiple Voting Shares and Proportionate Voting Shares include take-over bid protective measures (i.e. coattail provisions).

***Subordinate Voting Shares***

In the event that an offer is made to purchase Multiple Voting Shares, and such offer is:

(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Multiple Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Multiple Voting Shares in a province or territory of Canada to which the requirement applies; and

(b) not made to the holders of Subordinate Voting Shares for consideration per Subordinate Voting Share equal to 0.01 of the consideration offered per Multiple Voting Share,

each Subordinate Voting Share shall become convertible at the option of the holder into Multiple Voting Shares on the basis of one hundred (100) Subordinate Voting Shares for one (1) Multiple Voting Share; at any time while such offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to such offer. Fractions of Multiple Voting Shares may be issued in respect of any amount of Subordinate Voting Shares in respect of which the conversion right is exercised which is less than one hundred (100). This conversion right may only be exercised for the purpose of depositing the Multiple Voting Shares acquired upon conversion under such offer, and for no other reason. If this conversion right is exercised, the Company will ensure that the transfer agent for the Subordinate Voting Shares shall deposit under such offer the Multiple Voting Shares acquired upon conversion, on behalf of the holder.

In the event that an offer is made to purchase Proportionate Voting Shares, and such offer is:

(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Proportionate Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Proportionate Voting Shares; may then be listed, to be made to all or substantially all of the holders of Proportionate Voting Shares in a province or territory of Canada to which the requirement applies; and

------

(b) not made to the holders of Subordinate Voting Shares for consideration per Subordinate Voting Share equal to the consideration offered per Proportionate Voting Share,

each Subordinate Voting Share shall become convertible at the option of the holder into a Proportionate Voting Share on the basis of one (1) Subordinate Voting Share for one (1) Proportionate Voting Share, at any time while such offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to such offer. This conversion right may only be exercised for the purpose of depositing the Proportionate Voting Shares acquired upon conversion under such offer, and for no other reason. If this conversion right is exercised, the Company will ensure that the transfer agent for the Subordinate Voting Shares shall deposit under such offer the Proportionate Voting Shares acquired upon conversion, on behalf of the holder.

***Multiple Voting Shares***

In the event that an offer is made to purchase Subordinate Voting Shares, and such offer is:

(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Multiple Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Subordinate Voting Shares in a province or territory of Canada to which the requirement applies; and

(b) not made to the holders of Multiple Voting Shares for consideration per Multiple Voting Share equal to 100 times the consideration offered per Subordinate Voting Share,

each Multiple Voting Share shall become convertible at the option of the holder into Subordinate Voting Shares on the basis of one hundred (100) Subordinate Voting Shares for one (1) Multiple Voting Share, at any time while such offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to such offer. This conversion right may only be exercised for the purpose of depositing the Subordinate Voting Shares acquired upon conversion under such offer, and for no other reason. If this conversion right is exercised, the Company will ensure that the transfer agent for the Multiple Voting Shares shall deposit under such offer the Subordinate Voting Shares acquired upon conversion, on behalf of the holder.

In the event that an offer is made to purchase Proportionate Voting Shares, and such offer is:

(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Proportionate Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Proportionate Voting Shares; may then be listed, to be made to all or substantially all of the holders of Proportionate Voting Shares in a province or territory of Canada to which the requirement applies; and

(b) not made to the holders of Multiple Voting Shares for consideration per Multiple Voting Share equal to 100 times the consideration offered per Proportionate Voting Share,

each Multiple Voting Share shall become convertible at the option of the holder into Proportionate Voting Shares on the basis of one hundred (100) Proportionate Voting Shares for one (1) Multiple Voting Share, at any time while such offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to such offer. This conversion right may only be exercised for the purpose of depositing the Proportionate Voting Shares acquired upon conversion under such offer, and for no other reason. If this conversion right is exercised, the Company will ensure that the transfer agent for the Multiple Voting Shares shall deposit under such offer the Proportionate Voting Shares acquired upon conversion, on behalf of the holder.

***Proportionate Voting Shares***

In the event that an offer is made to purchase Subordinate Voting Shares, and such offer is:

------

(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Proportionate Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Subordinate Voting Shares in a province or territory of Canada to which the requirement applies; and

(b) not made to the holders of Proportionate Voting Shares for consideration per Proportionate Voting Share equal to the consideration offered per Subordinate Voting Share,

each Proportionate Voting Share shall become convertible at the option of the holder into a Subordinate Voting Share on the basis of one (1) Subordinate Voting Share for one (1) Proportionate Voting Share, at any time while such offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to such offer. This conversion right may only be exercised for the purpose of depositing the Proportionate Voting Shares acquired upon conversion under such offer, and for no other reason. If this conversion right is exercised, the Company will ensure that the transfer agent for the Proportionate Voting Shares shall deposit under such offer the Subordinate Voting Shares acquired upon conversion, on behalf of the holder.

In the event that an offer is made to purchase Multiple Voting Shares, and such offer is:

(a) required, pursuant to applicable securities legislation or the rules of any stock exchange on which: (i) the Multiple Voting Shares; or (ii) the Subordinate Voting Shares which may be obtained upon conversion of the Multiple Voting Shares; may then be listed, to be made to all or substantially all of the holders of Multiple Voting Shares in a province or territory of Canada to which the requirement applies; and

(b) not made to the holders of Proportionate Voting Shares for consideration per Proportionate Voting Share equal to 0.01 of the consideration offered per Multiple Voting Share,

each Proportionate Voting Share shall become convertible at the option of the holder into Multiple Voting Shares on the basis of one hundred (100) Proportionate Voting Shares for one (1) Multiple Voting Share, at any time while the offer is in effect until one day after the time prescribed by applicable securities legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to such offer. Fractions of Multiple Voting Shares may be issued in respect of any amount of Proportionate Voting Shares in respect of which the conversion right is exercised which is less than one hundred (100). This conversion right may only be exercised for the purpose of depositing the Multiple Voting Shares acquired upon conversion under such offer, and for no other reason. If this conversion right is exercised, the Company will ensure that the transfer agent for the Proportionate Voting Shares shall deposit under such offer the Multiple Voting Shares acquired upon conversion, on behalf of the holder.

------

## Exhibit 10.1

------

***Execution Version***

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ALPINE SUMMIT FUNDING LLC

$80,000,000

Series 2022-1 Floating Rate Oil & Gas Asset-Backed Notes due April 2023

______________

Note Purchase Agreement

______________

Dated April 29, 2022

------

**Table of Contents**

Section Heading Page

---

| | |
|:---|:---|
| **[SECTION 1. AUTHORIZATION OF NOTES](#page_6)** | **[1](#page_6)** |
| **[SECTION 2. SALE AND PURCHASE OF NOTES](#page_6)** | **[1](#page_6)** |
| **[SECTION 3. CLOSING](#page_7)** | **[2](#page_7)** |
| **[SECTION 4. CONDITIONS TO FUNDING AND PURCHASERS' OBLIGATIONS](#page_7)** | **[2](#page_7)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.1. Representations and Warranties](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.2. Performance; No Default](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.3. Compliance Certificates](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.4. Opinions of Counsel](#page_8) | [3](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.5. Purchase Permitted By Applicable Law, Etc.](#page_8) | [3](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.6. Sale and Delivery of Notes](#page_8) | [3](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.7. Payment of Special Counsel Fees](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.8. Private Placement Numbers](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.9. Changes](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.10. Funding Instructions](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.11. Basic Documents](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.12. Proceedings and Documents](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.13. Interest Reserve Account Initial Deposit](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.14. Litigation](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.15. Material Adverse Change](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.16. USA PATRIOT Act](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.17. \[Reserved.\]](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.18. \[Reserved.\]](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.19. Security Interest](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.20. Hedge Agreements](#page_11) | [6](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.21. Foreign Qualifications](#page_11) | [6](#page_11) |
| **[SECTION 5. RESERVED](#page_11)** | **[6](#page_11)** |
| **[SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE ALPINE PARTIES](#page_11)** | **[6](#page_11)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.1. Organization; Power and Authority](#page_11) | [6](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.2. Authorization, Etc.](#page_11) | [6](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.3. Disclosure Materials; Financial Statements and Internal Control Framework](#page_12) | [7](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.4. Organization and Ownership of the Alpine Parties](#page_13) | [8](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.5. Compliance with Laws, Other Instruments, Etc.](#page_13) | [8](#page_13) |

---

i

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.6. Consents, Governmental Authorizations, Etc.](#page_14) | [9](#page_14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.7. Litigation; Observance of Agreements, Statutes and Orders](#page_14) | [9](#page_14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.8. Taxes](#page_15) | [10](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.9. Title to Property; Leases](#page_15) | [10](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.10. Licenses, Permits, Etc.](#page_15) | [10](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.11. Compliance with ERISA](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.12. Private Offering by the Issuer](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.13. Use of Proceeds; Margin Regulations](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.14. Existing Indebtedness; Future Liens](#page_17) | [12](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.15. Foreign Assets Control Regulations, Etc.](#page_17) | [12](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.16. No Election](#page_19) | [14](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.17. Investment Company; Volcker](#page_19) | [14](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.18. Environmental Matters](#page_19) | [14](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.19. Security Interest](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.20. Brokerage Fees, Etc.](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.21. Notes](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.22. Collateral](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.23. Trust Indenture Act](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.24. Factual Statements](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.25. Reserved.](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.26. Reserved.](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.27. Commission](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.28. Credit Risk Retention; Dodd Frank; Exchange Act](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.29. Register Notes](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.30. Solvency](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.31. Asset Purchase Representations](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.32. Commodity Pool Operator Representations](#page_21) | [16](#page_21) |
| **[SECTION 7. REPRESENTATIONS OF THE PURCHASERS](#page_21)** | **[16](#page_21)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 7.1. Purchase for Investment](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 7.2. Investment Risks](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 7.3. Source of Funds](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 7.4. Power and Authority](#page_24) | [19](#page_24) |
| **[SECTION 8. INFORMATION AS TO THE ALPINE PARTIES.](#page_24)** | **[19](#page_24)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 8.1. Financial and Business Information](#page_24) | [19](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 8.2. Officer's Certificate](#page_25) | [20](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 8.3. Visitation](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 8.4. Electronic Delivery](#page_26) | [21](#page_26) |
| **[SECTION 9. AFFIRMATIVE COVENANTS.](#page_26)** | **[21](#page_26)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.1. Compliance with Laws](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.2. Insurance](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.3. Maintenance of Properties](#page_27) | [22](#page_27) |

---

ii

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.4. Payment of Taxes and Claims](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.5. Corporate Existence, Etc.](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.6. Books and Records](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.7. Factual Statements](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.8. Closing Information](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.9. Qualifying the Notes](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.10. Additional Documentation](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.11. Transfer of Assets; Recordation](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.12. Restriction on Sale of Notes](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.13. Securities Act](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.14. Basic Documents](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.15. Sponsor](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.16. Ratings on the Notes](#page_29) | [24](#page_29) |
| **[SECTION 10. NEGATIVE COVENANTS](#page_30)** | **[25](#page_30)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.1. Transactions with Affiliates](#page_30) | [25](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.2. Merger, Transfer, Consolidation, Etc.](#page_30) | [25](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.3. Line of Business](#page_31) | [26](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.4. Terrorism Sanctions Regulations](#page_31) | [26](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.5. Liens](#page_32) | [27](#page_32) |
| **[SECTION 11. EXPENSES, INDEMNIFICATION, ETC.](#page_32)** | **[27](#page_32)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 11.1. Transaction Expenses](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 11.2. Certain Taxes](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 11.3. Indemnification](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 11.4. Survival; Remedies](#page_35) | [30](#page_35) |
| **[SECTION 12. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT](#page_35)** | **[30](#page_35)** |
| **[SECTION 13. AMENDMENT AND WAIVER](#page_35)** | **[30](#page_35)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 13.1. Requirements](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 13.2. Solicitation of Holders of Notes](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 13.3. Binding Effect, Etc.](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 13.4. Notes Held by any Alpine Party, Etc.](#page_36) | [31](#page_36) |
| **[SECTION 14. NOTICES.](#page_36)** | **[31](#page_36)** |
| **[SECTION 15. REPRODUCTION OF DOCUMENTS](#page_38)** | **[33](#page_38)** |
| **[SECTION 16. CONFIDENTIAL INFORMATION](#page_38)** | **[33](#page_38)** |
| **[SECTION 17. SUBSTITUTION OF PURCHASER](#page_39)** | **[34](#page_39)** |
| **[SECTION 18. MISCELLANEOUS](#page_40)** | **[35](#page_40)** |

---

iii

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.1. Successors and Assigns](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.2. Accounting Terms](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.3. Severability](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.4. Construction, Etc.](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.5. Counterparts; Electronic Contracting](#page_41) | [36](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.6. Governing Law](#page_42) | [37](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.7. Jurisdiction and Process; Waiver of Jury Trial](#page_42) | [37](#page_42) |
| **[SECTION 19. RIGHT OF FIRST REFUSAL](#page_43)** | **[38](#page_43)** |

---

---

| |
|:---|
| Schedule A - Defined Terms |
| Schedule 6.3(a) - Closing Information; Financial Statements; Disclosure Documents |
| Schedule 6.3(b) - Financial Statements |
| Schedule 6.4(a) - Organizational and Ownership of the Alpine Parties |
| Schedule 6.4(c) - Alpine Parties and Affiliates Organizational Chart |
| Schedule B - Information Relating to Purchasers |

---

iv

------

**ALPINE SUMMIT FUNDING LLC**

Series 2022-1 Floating Rate Oil & Gas Asset-Backed Notes due April 2023<br>

April 29, 2022

To Each of the Purchasers Listed in<br><u>Schedule B</u> Hereto:

Ladies and Gentlemen:

Alpine Summit Funding LLC, a Delaware limited liability company (the "**Issuer**"), Alpine Summit Energy Partners, Inc., a company incorporated under the Business Corporations Act (British Columbia) ("**Parent**"), HB2 Origination, LLC, a Delaware limited liability company ("**Manager**" and "**Seller**"), Ironroc Energy Partners LLC, a Texas limited liability company ("**Operator**"), Alpine Summit Funding Holdings LLC, a Delaware limited liability company ("**Holdings**" and, together with the Parent, the Manager, the Seller, the Operator and the Issuer, collectively, the "**Alpine Parties**"), agree with each of the Purchasers as follows:

**SECTION 1. AUTHORIZATION OF NOTES**.

The Issuer will authorize the issue and sale of $80,000,000 aggregate principal amount of its Series 2022-1 Floating Rate Oil & Gas Asset-Backed Notes due April 2023 (the "**Notes**"), in accordance with the terms set forth herein.

The Notes shall be issued pursuant to, and shall be substantially in the forms set forth in Exhibit A to, the indenture (as it may be amended, supplemented, restated or otherwise modified from time to time, the "**Indenture**"), to be dated April 29, 2022, by and between the Issuer, as issuer, and UMB Bank, N.A., as indenture trustee (in such capacity, the "**Indenture Trustee**"), as paying agent and as securities intermediary.

Certain capitalized and other terms used in this Note Purchase Agreement (this "**Agreement**") are defined in <u>Schedule A</u>. For purposes of this Agreement, the rules of construction set forth in <u>Section 18.4</u> shall govern.

**SECTION 2. SALE AND PURCHASE OF NOTES**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement and the Indenture and on the basis of the representations, warranties and agreements herein contained, the Issuer will issue and sell on the Closing Date to each Purchaser and each Purchaser, severally and not jointly, will purchase on the Closing Date from the Issuer, in accordance with <u>Section 3</u>, Notes in the principal amount specified for such Purchaser in <u>Schedule B</u>, at the purchase price (the "**Purchase Price**") of 100% of the principal amount thereof. The Purchasers' obligations hereunder are several and not joint obligations, and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Alpine Parties' respective obligations hereunder, including the obligation of the Issuer to issue and sell the Notes to the Purchasers on the Closing Date, are subject to the receipt by the Issuer on the Closing Date of the Purchase Price for the Notes from each of the applicable Purchasers.

**SECTION 3. CLOSING**.

The sale and purchase of the Notes to be purchased by each Purchaser shall occur on the Closing Date. On the Closing Date, the Issuer will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form set forth in Exhibit A to the Indenture (in such number and in such denominations of at least $250,000, as such Purchaser may request), dated the Closing Date and registered in such Purchaser's name (or in the name of its nominee), against delivery by such Purchaser to the Issuer of the Purchase Price therefor by wire transfer of immediately available funds.

**SECTION 4. CONDITIONS TO FUNDING AND PURCHASERS' OBLIGATIONS**.

Each Purchaser's obligation hereunder to purchase and pay for the Notes to be sold to such Purchaser on the Closing Date is subject to the fulfillment to such Purchaser's satisfaction of the following conditions (except to the extent such conditions are waived by such Purchaser in writing):

**Section 4.1. Representations and Warranties**. The representations and warranties of each of the Alpine Parties contained in this Agreement, the other Basic Documents and any certificate or document delivered pursuant thereto (as applicable) shall be true and correct as of the Closing Date, unless such representation or warranty expressly speaks as of an earlier date in which case such representation or warranty shall be true and correct as of such earlier date. The Indenture Trustee, for the benefit of each Secured Party, is entitled to rely on the representations and warranties of the Alpine Parties in the Basic Documents as though such representations and warranties were addressed to the Indenture Trustee for the benefit of each Secured Party.

**Section 4.2. Performance; No Default**. Each of the Alpine Parties shall have performed and complied with all of its respective agreements and covenants contained in this Agreement and the other Basic Documents required to be performed or complied with by it prior to the Closing Date. Before and after giving effect to the issuance and sale of the Notes by the Issuer (and the application of the proceeds thereof as contemplated by <u>Section 6.19</u> and the other Basic Documents), no Material Event shall have occurred and be continuing.

**Section 4.3. Compliance Certificates**.

&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) *Officer's Certificate*. Each of the Alpine Parties shall have delivered to the Purchasers an Officer's Certificate, dated the Closing Date, certifying that the conditions specified in <u>Section 4</u> have been fulfilled.

&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) *Secretary's or Director's Certificate*. Each of the Alpine Parties shall have delivered to the Purchasers a certificate of its Secretary, Assistant Secretary or other Authorized Officer, dated the Closing Date, certifying and attaching thereto (or specifying any condition that has been waived): (i) a copy of each Organizational Document of such Alpine Party, and to the extent applicable, certified as of the Closing Date or a recent date prior thereto by the appropriate Governmental Authority; (ii) the names and specimen signatures of the officers or other authorized signatories of such Alpine Party who are authorized to execute documents and certificates delivered under this Agreement (with such amendments or modifications as may be approved by the Purchasers); (iii) resolutions or similar written directions or comments of the board of directors or board of managers of such Alpine Party approving and authorizing the execution, delivery and performance of this Agreement by such Alpine Party and the other applicable Basic Documents to which it is a party and, as applicable, delivery of the Notes; (iv) a good standing certificate from the applicable Governmental Authority of such Alpine Party's jurisdiction of formation (and, if currently required to be qualified as a foreign corporation therein, the State of Texas) to do business, each dated the Closing Date or a recent date prior thereto; and (v) such other documents as the Purchasers may reasonably request.

------

**Section 4.4. Opinions of Counsel**. Each Purchaser shall have received in form and substance reasonably satisfactory to such Purchaser, dated the Closing Date and addressed to such Purchaser and the Indenture Trustee: (a) opinions from Porter Hedges LLP ("**Porter Hedges**"), counsel for the Alpine Parties, covering certain corporate matters, the enforceability of the Basic Documents under New York and Texas law, the creation of the security interests created thereby, perfection matters under New York and Texas law, true sale, absolute transfer and substantive consolidation matters, tax matters, securities law matters (including investment company and covered fund matters) and such other matters as each Purchaser may reasonably request; (b) memorandum of Porter Hedges regarding the U.S. Risk Retention Rules; (c) opinions from Alston and Bird, LLP, counsel for the Indenture Trustee, covering such matters as each Purchaser may reasonably request; (d) opinions from Willkie Farr & Gallagher LLP, counsel for the Back-up Manager, covering such matters as each Purchaser may reasonably request; and (e) opinions from Richards, Layton & Finger, P.A. ("**RLF**"), Delaware counsel for the Alpine Parties other than the Operator, covering certain corporate matters, the enforceability of the Holdings LLC Agreement and the Issuer LLC Agreement under Delaware law, perfection matters under Delaware law and such other matters as each Purchaser may reasonably request.

**Section 4.5. Purchase Permitted By Applicable Law, Etc.** On the Closing Date, such Purchaser's purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.

**Section 4.6. Sale and Delivery of Notes**. The Notes shall be sold by the Issuer to the Purchasers on the Closing Date in the manner set forth in <u>Section 3</u> hereof and shall be authenticated, executed and delivered by the Issuer to each Purchaser on the Closing Date. On the Closing Date, the Issuer shall sell to each Purchaser and each Purchaser shall, subject to the other terms of this Agreement, purchase the Notes to be purchased by it on the Closing Date as specified herein, including <u>Schedule B</u>.

------

**Section 4.7. Payment of Special Counsel Fees**; **Upfront Fee**. Without limiting <u>Section 6.19</u>, the Issuer shall have paid on or before the Closing Date, (i) the fees, charges and disbursements of the Purchasers' counsel and (ii) the fees required to be paid in accordance with the Alpine Side Letter.

**Section 4.8. Private Placement Numbers**. Private Placement Numbers issued by Standard & Poor's CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes.

**Section 4.9. Changes** Each of the Alpine Parties shall not have changed its jurisdiction of formation, incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in <u>Schedule 6.3(b)</u> attached hereto, or if later, its date of formation. Since December 31, 2021, (i) there shall not have occurred any suspension or limitation of trading in securities generally on the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade or any setting of minimum or maximum prices for trading on such exchange, or a material disruption in commercial banking or securities settlement or clearance services in the United States or with respect to Clearstream or Euroclear systems in Europe; (ii) there shall not have occurred any general commercial banking moratorium declared by Federal, Delaware or New York authorities; and (iii) there shall not have occurred any outbreak or escalation of major hostilities in which the United States is involved, any declaration of war by Congress, or any other substantial national or international calamity or emergency if, in the reasonable judgment of the Purchasers, the effect of any such outbreak, escalation, declaration, calamity or emergency on the U.S. financial markets makes it impractical or inadvisable to proceed with the offering, sale of and payment for the Notes.

**Section 4.10. Funding Instructions**. Prior to the Closing Date (or such shorter time frame as acceptable to each Purchaser), each Purchaser shall have received written instructions signed by an Authorized Officer on letterhead of the Parent confirming the wiring instructions for the Collection Account including (i) the name and address of the transferee bank, (ii) such transferee bank's ABA number/Swift Code/IBAN and (iii) the account name and number into which the Purchase Price for the Notes is to be deposited.

**Section 4.11. Basic Documents**. Each of the Basic Documents shall have been duly executed and delivered by the respective parties thereto.

**Section 4.12. Proceedings and Documents**. All corporate and other proceedings in connection with the consummation of the transactions contemplated by this Agreement and the other Basic Documents and all documents and instruments incident to the consummation of such transactions shall be satisfactory to such Purchaser and its counsel as of the Closing Date, and such Purchaser and its counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such counsel may reasonably request.

**Section 4.13. Interest Reserve Account Initial Deposit**. The amount deposited by the Issuer into the Interest Reserve Account after giving effect to the transactions contemplated on the Closing Date (which may be contemporaneously deducted from the Purchase Price with respect to the Notes and deposited into the Interest Reserve Account from the Collection Account) will be no less than the Interest Reserve Account Initial Deposit.

------

**Section 4.14. Litigation**. There shall not exist any claim, action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, investigative, or informal) pending or, to the Knowledge of any of the Alpine Parties, threatened in any court or before any arbitrator or Governmental Authority that, singly or in the aggregate, could, if determined adversely to any Alpine Party and after taking into effect applicable insurance coverage, reasonably be expected to Materially and adversely impact (i) the issuance of the Notes, (ii) the power or right of the parties to enter into or perform their obligations under the Basic Documents, (iii) the consummation of the transactions contemplated by the Basic Documents, (iv) the purchase by the Issuer of any Wellbore Interests, or (v) the financial condition, business, operations, regulatory obligations, creditworthiness, properties or affairs of any of the Alpine Parties.

**Section 4.15. Material Adverse Change**. There shall not exist any Material Adverse Effect on the financial condition, business, operations, regulatory obligations, creditworthiness, properties (including, as to the Seller, the Wellbore Interests), or affairs of any of the Alpine Parties since December 31, 2021.

**Section 4.16. USA PATRIOT Act**. At least five (5) days prior to the Closing Date (or such shorter time frame as acceptable to each Purchaser), such Purchaser shall have received all documentation and other information with respect to the Alpine Parties required by such Purchaser under applicable "know-your-customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act; *provided* that such Purchaser has provided at least ten (10) Business Day's prior written notice to the Issuer regarding the documentation and other information so required.

**Section 4.17. [Reserved.]**

**Section 4.18. [Reserved.]**

**Section 4.19. Security Interest**. Counsel to the Purchasers shall have received evidence satisfactory to them of the final executed copy of the Asset Purchase Agreement to effect the Seller's sale and transfer of its interests in the Wellbore Interests to the Issuer. Counsel to the Purchasers shall have received reasonably satisfactory copies of (i) UCC financing statements and final executed and recordable copies of all mortgages and deeds of trust and other instruments or documents necessary or advisable to perfect the Indenture Trustee's security interest in the Collateral and the proceeds thereof, (ii) any assignments, allonges, bond powers and other instruments or documents necessary or advisable to vest title in the Wellbore Interests to the Issuer and to grant a security interest in the Collateral to the Indenture Trustee, and (iii) UCC amendments and duly executed recordable release of any deeds of trust, mortgages, financing statements, fixture filings and security agreements, terminating any Liens, pledges or security interests in, to or under any of the Collateral (other than any Permitted Liens). The Issuer and Indenture Trustee shall enter into control agreements or take other actions for the Indenture Trustee to have a first priority perfected security interest in each of the Issuer Accounts, as provided in Section 9-104 and Section 9-106 of the UCC, as applicable.

------

**Section 4.20. Hedge Agreements**. The Purchasers shall have received evidence satisfactory to them of the final executed Hedge Agreements in form and substance acceptable to the Purchasers.

**Section 4.21. Foreign Qualifications**. The Issuer shall provide evidence to each Purchaser that the Issuer is qualified to conduct its business in the State of Texas. The Issuer is not required to obtain foreign qualifications in any other jurisdiction.

Delivery of an electronic counterpart of any documents by any Alpine Party under this <u>Section 4</u> (including e-mail transmission of a signed signature page of such documents) shall satisfy the requirements hereof.

**SECTION 5. RESERVED**

**SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE ALPINE PARTIES**

Each Alpine Party (both as to itself and as to each other Alpine Party, with respect to each of the representations and warranties contained in this Section 6), represents and warrants to each Purchaser that on and as of the Closing Date:

**Section 6.1. Organization; Power and Authority**.

&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) Each Alpine Party (i) is a corporation or limited liability company, as applicable, duly formed, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation, as applicable, and (ii) is duly qualified as a foreign corporation or limited liability company (as applicable) and is in good standing in each jurisdiction in which its ownership or lease of property or the conduct of its businesses requires such qualification or such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&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) Each Alpine Party has the corporate or other organizational power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement, each other Basic Document to which it is a party and the Notes (in the case of the Issuer) and to perform the provisions hereof and thereof.

**Section 6.2. Authorization, Etc.**

&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) This Agreement, the Notes and each other Basic Document to which any Alpine Party is a party have been duly authorized by all requisite corporate or company action on the part of such Alpine Party and have been duly executed and delivered by each such Alpine Party. This Agreement constitutes, and upon execution and delivery thereof each Note (assuming due authorization, execution and delivery thereof by the Indenture Trustee and upon authentication thereof by the Indenture Trustee at the direction of the Issuer) and each other Basic Document (assuming due authorization, execution and delivery thereof by any non-Alpine Party counterparties thereto) to which each Alpine Party is a party will constitute, a legal, valid and binding obligation of each Alpine Party, as applicable, enforceable against such Alpine Party, as applicable, in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution and delivery by each Alpine Party of this Agreement and the other Basic Documents to which it is a party, (in the case of the Issuer) the issuance and sale of the Notes by the Issuer in the manner contemplated herein, and the performance by the Alpine Parties of this Agreement and the other Basic Documents to which it is a party, as applicable, will not conflict with, result in any breach of any of the terms and provisions of or constitute (with or without notice or lapse of time) a default under the certificate of incorporation, certificate of formation, memorandum and articles of association or limited liability company agreement, as applicable, of such Alpine Party.

**Section 6.3. Disclosure Materials; Financial Statements and Internal Control Framework**.

&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) The Alpine Parties have caused to be delivered or made available to each Purchaser the information set forth on <u>Schedule 6.3(a)</u> (collectively, the "**Closing Information**"). The Closing Information fairly presents, in all material respects, as of the date thereof, the general nature of the business and principal properties of the Alpine Parties other than the Operator. The Closing Information and the financial statements listed in <u>Schedule 6.3(b)</u> (collectively, the "**Disclosure Documents**"), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. The Wellbore Interests conformed as of the date of such descriptions, including supplements or modifications to such descriptions, in all material respects with the descriptions thereof, if any, contained in the Closing Information. Except as disclosed in the Disclosure Documents, since December 31, 2021, there has been no development or change in the financial condition, operations, business, properties or prospects of the Alpine Parties other than the Operator except changes that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. With respect to the Operator, since December 31, 2021, there has been no development or change in the financial condition, operations, business, properties or prospects of the Operator except changes that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&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) The financial statements listed on <u>Schedule 6.3(b)</u> (including in each case the related schedules and notes) fairly present in all material respects the financial condition, financial performance and cash flows of the Parent and its Subsidiaries, as of the date of and for the periods presented, have been prepared in accordance with the applicable Accounting Standard consistently applied throughout the periods presented except as set forth in the notes thereto, and show all liabilities, direct and contingent, of the respective parties required to be shown in accordance with applicable Accounting Standard.

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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;(c) Parent maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with the Applicable Accounting Standard and to maintain asset accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. To the extent applicable to Parent, Parent is in compliance in all material respects with National Instrument 52-109 - Certification of Disclosure in Issuer's Annual and Interim Filings of the Canadian Securities Administrators, as applicable to the Parent.

**Section 6.4. Organization and Ownership of the Alpine Parties**.

&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) <u>Schedule 6.4(a)</u> contains (except as noted therein), as of the date hereof, complete and correct lists of (i) the Alpine Parties and (ii) the sole members, directors or managers, as applicable, and officers of each Alpine Party.

&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) The Issuer has no, and shall not have any, Subsidiaries. Holdings has no Subsidiaries other than the Issuer.

&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) Attached as <u>Schedule 6.4(c)</u> is a true and correct depiction of the corporate organizational ownership structure of the Parent and its Subsidiaries (with certain of such Subsidiaries being referred to summary form) as of the date hereof.

**Section 6.5. Compliance with Laws, Other Instruments, Etc.** 

&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) The execution and delivery by each Alpine Party of this Agreement and the other Basic Documents to which it is a party, (in the case of the Issuer) the issuance and sale of the Notes by the Issuer in the manner contemplated herein, and the performance by each of the Alpine Parties of this Agreement and the other Basic Documents to which it is a party, as applicable, will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of such Alpine Party under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease (other than any oil and gas lease), corporate charter, limited liability company agreement, memorandum of association, articles of association, regulations or by-laws, shareholders agreement or any other agreement or instrument to which such Alpine Party is bound or by which such Alpine Party or any of its properties may be bound or affected (other than pursuant to the Basic Documents), (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to such Alpine Party or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to such Alpine Party, except, in each case, as could not individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&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) The Issuer is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of any Alpine Party, any agreement relating thereto or any other contract or agreement (including its charter) which limits the amount of, or otherwise imposes restrictions on the incurrence of, Indebtedness of the Issuer of the type to be evidenced by the Notes (other than any such limitations or restrictions contained in the Basic Documents).

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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;(c) Each of the Alpine Parties carry, or are covered by, insurance from insurers of recognized financial responsibility (or self-insurance) in such amounts and covering such risks as is adequate for the conduct of their respective businesses and the value of its respective properties and as is customary for companies engaged in similar businesses in similar industries, except as would not reasonably be expected to have a Material Adverse Effect. All such policies of insurance of the Alpine Parties are in full force and effect, the Alpine Parties are in compliance with the terms of such policies in all material respects, and none of the Alpine Parties nor any of Affiliates has received notice from any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary to be made in order to continue such insurance, in each case, except as would not reasonably be expected to have a Material Adverse Effect. There are no claims by any Alpine Party under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause, except as would not reasonably be expected to have a Material Adverse Effect. No Alpine Party has any reason to believe that it will not be able to renew its existing insurance coverage, as when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not reasonably be expected to have a Material Adverse Effect.

**Section 6.6. Consents, Governmental Authorizations, Etc.** No consent, permit, approval or authorization of, or order, registration, filing, qualification or declaration with, any Governmental Authority is required of any Alpine Party in connection with the execution, delivery or performance by any Alpine Party of this Agreement and the other Basic Documents to which it is a party, (in the case of the Issuer) the issuance and sale of the Notes by the Issuer, or the performance by the Alpine Parties of the terms and provisions of this Agreement and the other Basic Documents to which it is a party, except for those that have been made or obtained or as required under Section 2(f) of the Management Services Agreement.

**Section 6.7. Litigation; Observance of Agreements, Statutes and Orders**.

&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) There are no actions, suits, investigations or proceedings pending or, to the Knowledge of any of the Alpine Parties, threatened against or affecting any Alpine Party or any property of any Alpine Party in any court or before any arbitrator of any kind or before or by any Governmental Authority (i) that asserts the invalidity of any Basic Document, (ii) that seeks to prevent the issuance of the Notes or transfer of any Wellbore Interests or the consummation of any of the transactions contemplated by any Basic Document, (iii) that may adversely affect the federal or state income, excise, franchise or similar tax attributes of the Issuer or the Notes, (iv) that seeks any determination or ruling that might Materially and adversely affect the performance by any of the Alpine Parties, as applicable, of its obligations under, or the validity or enforceability of, any Basic Document or (v) that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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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;(b) No Alpine Party is (i) in default (or any event that with notice, the passage of time or both would constitute a default) under any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority, (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in <u>Section 6.15</u>), or (iv) in default or in violation of its Organizational Documents, which, in each case, could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 6.8. Taxes**. Each of the Alpine Parties has filed all tax returns that are required to have been filed in any jurisdiction through the date hereof or has timely requested extensions thereof, and has paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which, individually or in the aggregate, is not Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the related Alpine Party has established adequate reserves in accordance with the applicable Accounting Standard. Such Alpine Party knows of no basis for any other tax or assessment that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of such Alpine Party in respect of U.S. federal, state or other taxes for all fiscal periods are adequate, in accordance with the applicable Accounting Standard, except to the extent of any inadequacy that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 6.9. Title to Property; Leases**. Each of the Alpine Parties has good and sufficient title to, leasehold interests in, or license or easement to use, its properties that individually or in the aggregate are Material, including all such properties (other than the Wellbore Interests) reflected in the most recent audited balance sheet referred to in <u>Section 6.3</u> or purported to have been acquired by such Alpine Party after such date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens other than Permitted Liens. All leases, licenses or easements of such Alpine Party that individually or in the aggregate are Material are valid and subsisting and are in full force and effect. Notwithstanding the foregoing or <u>Sections 6.19</u> or <u>6.22</u>, the Parties acknowledge and agree that (a) the parties to the Asset Purchase Agreement have agreed to a Title Failure (as defined in the Asset Purchase Agreement) mechanic set forth in Section 5.11 of the Asset Purchase Agreement to address any potential Title Failures identified with respect to the Wellbore Interests being conveyed to the Issuer and (b) the foregoing representations and warranties contained in this <u>Section 6.9</u> and the representations and warranties in <u>Sections 6.19</u> and <u>6.22</u> shall not be deemed to be, and the Alpine Parties make no, representations and warranties with respect to Title Failures or otherwise to title to the Wellbore Interests, and this <u>Section 6.9</u> does not and <u>Sections 6.19</u> and <u>6.22</u> do not, and shall not be construed to, expand, replace or otherwise affect the matters set forth in Section 5.11 of the Asset Purchase Agreement.

**Section 6.10. Licenses, Permits, Etc.** Each of the Alpine Parties owns or possesses all consents, licenses, certificates, authorizations, permits, franchises, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, necessary to conduct the business associated with such Alpine Party's assets, except where the failure to possess such licenses, certificates, authorizations, permits, franchises, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, could not individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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**Section 6.11. Compliance with ERISA**.

&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) Each of the Alpine Parties and each ERISA Affiliate thereof have operated and administered each of their ERISA Plans in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. None of the Alpine Parties nor any ERISA Affiliate thereof maintains or contributes to or has any obligation to maintain or contribute to, any Plan that is subject to Title IV of ERISA, nor (in the case of the Issuer) does the Issuer or any ERISA Affiliate thereof have any liability under Title IV of ERISA, including any liability with respect to any Multiemployer Plan, except where such could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&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) The expected post-retirement benefit obligation (determined as of the last day of the Issuer's most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 715-60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Issuer is not Material.

&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) The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the Issuer to each Purchaser in the first sentence of this <u>Section 6.11(c)</u> is made in reliance upon and subject to the accuracy of such Purchaser's representation in <u>Section 7.3</u> as to the sources of the funds to be used to pay the Purchase Price of the Notes to be purchased by such Purchaser.

**Section 6.12. Private Offering by the Issuer**. No Alpine Party nor anyone acting on its behalf has offered the Notes for sale to, or solicited any offer to buy the Notes from, or otherwise approached or negotiated in respect thereof with, any Person in a manner that would subject the issuance or sale of the Notes to the registration requirements of section 5 of the Securities Act or to the registration requirements of any Securities or blue sky laws of any applicable jurisdiction, including the jurisdiction of organization of the Issuer.

**Section 6.13. Use of Proceeds; Margin Regulations**. The Issuer will apply the proceeds of the issuance and sale of the Notes hereunder for the funding of the Interest Reserve Account, the payment of expenses and as partial consideration for the purchase of Wellbore Interests. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve any Alpine Party in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). As used in this <u>Section 6.19</u>, the terms "margin stock" and "purpose of buying or carrying" shall have the meanings assigned to them in said Regulation U.

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**Section 6.14. Existing Indebtedness; Future Liens**.

&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) The Issuer has no outstanding Indebtedness (other than Permitted Indebtedness and the obligations contemplated by the Basic Documents).

&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) Except as contemplated by the Basic Documents, the Issuer has not agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness (other than Permitted Liens) or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness (other than Permitted Liens).

&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) The Issuer is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Issuer, any agreement relating thereto or any other agreement (including, but not limited to, its charter or any other Organizational Document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Issuer, except as provided in the Basic Documents.

**Section 6.15. Foreign Assets Control Regulations, Etc.**

&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) None of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity with respect to each Alpine Party is (i) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by the OFAC (an "**OFAC Listed Person**"), (ii) an agent, department, or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person or (y) any Person, entity, organization, foreign country or regime that is subject to any OFAC Sanctions Program, or (iii) otherwise blocked, subject to sanctions under or engaged in any activity in violation of any U.S. Economic Sanctions Laws. None of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity with respect to any Alpine Party has been notified that its name appears or may in the future appear on a state list of Persons that engage in investment or other commercial activities in Iran or any other country that is subject to U.S. Economic Sanctions Laws.

&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) No part of the proceeds from the sale of the Notes hereunder: (A) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by such Alpine Party, any Alpine Party Affiliate or any Controlled Entity with respect to such Alpine Party, directly or indirectly, (i) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (ii) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (iii) otherwise in violation of any U.S. Economic Sanctions Laws; or (B) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws.

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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;(c) (i) None of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity with respect to any Alpine Party (A) has violated, been found in violation of, or been charged or convicted under, any U.S. Economic Sanctions Laws or Anti-Money Laundering Laws, (B) to the Knowledge of any of the Alpine Parties, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws or Anti-Money Laundering Laws, (C) has been assessed civil or criminal penalties under any Anti-Money Laundering Laws or any U.S. Economic Sanctions Laws, or (D) has had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Alpine Party has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Alpine Parties and each Controlled Entity with respect to any Alpine Party is and will continue to be in compliance with all applicable current and future Anti-Money Laundering Laws and U.S. Economic Sanctions Laws.

&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) (i) None of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity with respect to any Alpine Party (A) has violated, been found in violation of, or been charged or convicted under, any Anti-Corruption Laws, (B) to the Knowledge of any of the Alpine Parties, is under investigation by any U.S. or non-U.S. Governmental Authority for possible violation of Anti-Corruption Laws, (C) has been assessed civil or criminal penalties under any Anti-Corruption Laws or (D) has been or is a target of sanctions that have been imposed by the United Nations or the European Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To any of the Alpine Parties' Knowledge, none of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity has, within the last five years, directly or indirectly offered, promised, given, paid or authorized the offer, promise, giving or payment of anything of value to a Governmental Official or a commercial counterparty for the purposes of: (A) influencing any act, decision or failure to act by such Government Official in his or her official capacity or such commercial counterparty, (B) inducing a Governmental Official to do or omit to do any act in violation of the Governmental Official's lawful duty, or (C) inducing a Governmental Official or a commercial counterparty to use his or her influence with a government or instrumentality to affect any act or decision of such government or entity; in each case in order to obtain, retain or direct business or to otherwise secure an improper advantage in violation of any applicable law or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) No part of the proceeds from the sale of the Notes hereunder will be used by any Alpine Party, any Alpine Party Affiliate or any Controlled Entity with respect to such Alpine Party, directly or indirectly, for the purposes of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each Alpine Party has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Alpine Parties and each Controlled Entity with respect to any Alpine Party is and will continue to be in compliance with all applicable current and future Anti-Corruption Laws.

**Section 6.16. No Election**. No election has been, or will be, made or filed pursuant to which the Issuer is or will be classified as an association for U.S. federal income tax purposes under Treasury Regulation Section 301.7701-3(a).

**Section 6.17. Investment Company; Volcker**. No Alpine Party is required to be registered as an "investment company" under the 1940 Act as a result of relying on the exemption from registration set forth in Section 3(c)(9) thereunder, or other available exceptions or exclusions. Neither the Issuer nor the transactions contemplated under the Basic Documents constitute a "covered fund" for purposes of Section 619 of Dodd-Frank, otherwise known as the "Volcker Rule."

**Section 6.18. Environmental Matters**.

&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) (i) No Alpine Party has Knowledge of any claim or received any written notice of any claim and (ii) no proceeding has been instituted asserting any claim against any Alpine Party or any of their respective real properties or other assets now or formerly owned, leased or operated by it, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.

&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) No Alpine Party has Knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets of the Alpine Parties or their use, except, in each case, such as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&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) No Alpine Party has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them in a manner that constitutes a violation of any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&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) No Alpine Party has disposed of, nor to the Knowledge of the Alpine Party has any third-party retained by any Alpine Party disposed of, any Hazardous Materials on, in, or produced from any properties owned, leased or operated by such Alpine Party in a manner that constitutes a violation of any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&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) All buildings on all real properties now owned, leased or operated by any Alpine Party are in compliance with applicable Environmental Laws, except where failure to comply could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

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**Section 6.19. Security Interest**. After giving effect to the transactions contemplated by the Basic Documents on the Closing Date, the Issuer will have valid legal and beneficial title to the Collateral, free and clear of all Liens, security interests or encumbrances other than Permitted Liens and will not have assigned to any Person any of its right, title or interest in any such Collateral other than pursuant to the Basic Documents (other than Permitted Liens).

**Section 6.20. Brokerage Fees, Etc**. Other than as contemplated by this Agreement and the Alpine Side Letter and as agreed between the Alpine Parties, the Alpine Parties are not a party to any other contract, agreement or understanding with any person or entity that would give rise to a valid claim against the Alpine Parties for a brokerage commission, finder's fee or like payment in connection with the issuance and sale of the Notes.

**Section 6.21. Notes**. The Issuer has duly authorized, issued and executed, and shall have instructed the Indenture Trustee to authenticate, the Notes. When the Notes have been duly executed and delivered by the Issuer, authenticated by the Indenture Trustee in accordance with the Indenture and delivered and paid for pursuant to this Agreement, the Notes will be duly issued, will constitute legal, valid and binding obligations of the Issuer enforceable against the Issuer in accordance with their terms and will be entitled to the benefits and security afforded by the Indenture, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. On the Closing Date, the Notes will conform in all material respects to the description thereof in the Indenture.

**Section 6.22. Collateral**. The Issuer has duly authorized, executed and delivered the Indenture and the Issuer has granted a security interest in the Collateral together with any assignments, allonges, bond powers and other instruments or documents relating thereto to the Indenture Trustee in accordance with the terms of the applicable Basic Documents. The Issuer's grant of a security interest in the Collateral to the Indenture Trustee pursuant to the applicable Basic Documents and the filing of the UCC-1 financing statements and the Mortgages will vest in the Indenture Trustee, for the benefit of the Noteholders and the Hedge Counterparties, a first priority perfected security interest, mortgage or deed of trust therein, subject to no prior Lien, mortgage, security interest, pledge, adverse claim, charge or other encumbrance other than Permitted Liens.

**Section 6.23. Trust Indenture Act**. The Indenture is not required to be qualified under the Trust Indenture Act of 1939, as amended.

**Section 6.24. Factual Statements**. The factual statements contained in the opinions provided by Porter Hedges and RLF that are described in <u>Section 4.4</u> are true and correct as stated therein.

**Section 6.25. Reserved.**

**Section 6.26. Reserved.**

**Section 6.27. Commission**. None of such Alpine Party or any of its Affiliates has received an order from the Commission, any state securities commission or any foreign government or agency thereof preventing or suspending the offering of the Notes, and to the best of such Alpine Party's Knowledge, no such order has been issued and no proceedings for that purpose have been instituted.

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**Section 6.28. Credit Risk Retention; Dodd Frank; Exchange Act**. The Notes are not subject to the legal requirements imposed by Regulation RR of the Securities Act, 17 C.F.R. § 246.1, et seq. or by Dodd-Frank. The Issuer is not required to maintain a website pursuant to Rule 17g-5(a)(3)(iii) of the Exchange Act. The Issuer is not required to file any reports with the SEC pursuant to Rule 15Ga-2 under the Exchange Act.

**Section 6.29. Register Notes**. Subject to compliance by each Purchaser with its representations and warranties set forth in <u>Section 7</u>, it is not necessary in connection with the offer, sale and delivery of Notes to such Purchaser in the manner contemplated by the Indenture and this Agreement to register the offer and sale of such Notes under the Securities Act.

**Section 6.30. Solvency**. Each Alpine Party will be solvent at all relevant times prior to, and will not be rendered insolvent by, the transfer or sale of the Wellbore Interests to the Issuer under the Asset Purchase Agreement. The transfer of the Wellbore Interests under the Asset Purchase Agreement is not made in contemplation of insolvency and is not intended to defraud or disadvantage creditors of any Alpine Party.

**Section 6.31. Asset Purchase Representations**. Without representing or warranting as to Seller's title to the Wellbore Interests, Seller's sale of the Wellbore Interests to the Issuer on the Closing Date pursuant to the Asset Purchase Agreement, will vest in the Issuer all of Seller's right, title and interest in and to the Wellbore Interests, in each case subject to no prior Lien, mortgage, security interest, pledge, adverse claim, charge or other encumbrance other than Permitted Liens.

**Section 6.32. Commodity Pool Operator Representations**. The Issuer is not (i) a "commodity pool" as defined in Section 1a(10) of the Commodity Exchange Act or any rule or regulation relating thereto or any interpretation thereof by the Commodity Futures Trading Commission or (ii) a "financial end-user" as defined in either 17 CFR § 23.151 or 12 CFR § 349.2, in either such case, as such may be amended, modified or supplemented from time to time.

**SECTION 7. REPRESENTATIONS OF THE PURCHASERS**.

**Section 7.1. Purchase for Investment**. Each Purchaser severally and not jointly represents to each Alpine Party that it is (a) an "accredited investor" as defined in Rule 501(a)(1), (2), (3), or (7) of Regulation D under the Securities Act, and (b) a "qualified purchaser" (as defined in the 1940 Act) that is a "**qualified institutional buyer**" (as defined in Rule 144A under the Securities Act). Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts of qualified purchasers that are qualified institutional buyers maintained or managed by such Purchaser and not with a view to the distribution thereof, *provided* that the disposition of such Purchaser's or their property shall at all times be within such Purchaser's or their control. Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Alpine Parties are not required to register the Notes.

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**Section 7.2. Investment Risks**.

&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) Each Purchaser severally represents and warrants that: (i) such Purchaser, with the assistance of such Purchaser's advisors, understands the risks of an investment in the Notes; (ii) such Purchaser is aware that there are substantial risks incident to an investment in the Notes and such Purchaser has made an independent investment decision to purchase the Notes after conducting such investigation as such Purchaser has deemed appropriate, which has included a review of the terms of the Notes, the other Basic Documents and related matters, of the risks relating to an investment in the Notes, and of the tax, accounting and regulatory implications relating to an investment in the Notes; and (iii) such Purchaser severally represents that it has such knowledge and experience in investing in securities (including, without limitation, securities backed by commercial loan assets (including venture loans and sponsor finance loans) and related financial and business matters) and is capable of evaluating the merits and risks of investment in the Notes.

&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) Each Purchaser severally represents and warrants that: (i) such Purchaser has evaluated the risks of investing in the Notes; (ii) such Purchaser has sought such accounting, legal, tax, regulatory, business, financial and investment advice as it has considered necessary to make an informed investment decision; (iii) such Purchaser understands there are substantial risks of loss incidental to the purchase of the Notes and is able to bear such risks; (iv) can afford a complete loss of its investment in the Notes; and (v) has determined that the Notes are a suitable investment for it.

&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) Each Purchaser severally represents that (i) the Issuer and the other Alpine Parties (or one or more of their affiliates) have furnished or provided such Purchaser with access to, and such Purchaser has had an opportunity to review, (A) the Closing Information and (B) such other information concerning the Notes and the underlying assets as is relevant to its decision to purchase the Notes, including the Basic Documents, (ii) such Purchaser has had the opportunity to ask questions of the Issuer and the other Alpine Parties concerning the Alpine Parties, their respective business and the terms and conditions of the Notes and the other Basic Documents, (iii) any questions arising from such Purchaser's review of such information have been answered by the Issuer or another Alpine Party (or one or more of their affiliates) to such Purchaser's satisfaction and (iv) such Purchaser has received all information, including any information regarding the underlying assets, that such Purchaser believes to be necessary or appropriate in connection with its consideration of an investment in the Notes.

&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) Each Purchaser severally represents and warrants that it is not purchasing the Notes as a result of or subsequent to (i) any advertisement, article, notice or other communications published in any newspaper, magazine or similar media (including any internet site that is not password protected) or broadcast over television or radio or (ii) any seminar or meeting whose attendees, including such Purchaser, had been invited as a result of, subsequent to or pursuant to any of the foregoing.

**Section 7.3. Source of Funds**. Each Purchaser's acquisition and holding of Notes will not cause the Issuer or its managers or equity holders to be a fiduciary under ERISA. Each Purchaser severally and not jointly represents that at least one of the following statements is an accurate representation as to each source of funds (a "**Source**") to be used by such Purchaser to pay the Purchase Price of the Notes to be purchased by such Purchaser hereunder:

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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;(a) the Source is an "insurance company general account" (as the term is defined in the United States Department of Labor's Prohibited Transaction Exemption ("**PTE**") 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the "**NAIC Annual Statement**")) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser's state of domicile; 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;(b) the Source is a separate account that is maintained solely in connection with such Purchaser's fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account and do not constitute plan assets within the meaning of ERISA Section 3(42); 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;(c) the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Issuer in writing pursuant to this clause c, no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; 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;(d) the Source constitutes assets of an "investment fund" (within the meaning of Part VI of PTE 84-14 (the "**QPAM Exemption**")) managed by a "qualified professional asset manager" or "QPAM" (within the meaning of Part VI of the QPAM Exemption), no employee benefit plan's assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM maintains an ownership interest in the Issuer that would cause the QPAM and the Issuer to be "related" within the meaning of Part VI(h) of the QPAM Exemption, and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been disclosed to the Issuer in writing pursuant to this clause d; 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;(e) the Source constitutes assets of a "plan(s)" (within the meaning of Part IV(h) of PTE 96-23 (the "**INHAM Exemption**")) managed by an "in-house asset manager" or "INHAM" (within the meaning of Part IV(a) of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of "control" in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Issuer and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Issuer in writing pursuant to this clause e; 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;(f) the Source is a governmental plan; 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;(g) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Issuer in writing pursuant to this clause g; 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;(h) the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA or any plan subject to Section 4975 of the Code.

As used in this <u>Section 7.3</u>, the terms "**employee benefit plan,**" "**governmental plan,**" and "**separate account**" shall have the respective meanings assigned to such terms in section 3 of ERISA.

**Section 7.4. Power and Authority**. Each Purchaser severally represents and warrants that it has full power and authority (corporate, regulatory and other) to execute and deliver this Agreement and to purchase and hold the Notes.

**SECTION 8. INFORMATION AS TO THE ALPINE PARTIES.** 

**Section 8.1. Financial and Business Information**. The Issuer shall deliver or cause to be delivered to the Indenture Trustee on behalf each holder of a Note:

&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) Copies of the financials delivered pursuant to Section 7.01(a) and 7.01(b) of the Indenture*.*

&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) *[Reserved]*

&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) *[Reserved]*

&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) *Notice of Material Event* - copies of any notices delivered pursuant to Section 7.01(c) of the Indenture.

&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) *ERISA Matters* - promptly, and in any event within five (5) days after any Alpine Party becomes aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that such Alpine Party or an ERISA Affiliate thereof proposes to take with respect thereto:

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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;(i) with respect to any ERISA Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof that could reasonably be expected to have a Material Adverse Effect; 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;(ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any ERISA Plan, or the receipt by such Alpine Party or any ERISA Affiliate thereof of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; 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;(iii) any event, transaction or condition that could result in the incurrence of any liability by such Alpine Party or any ERISA Affiliate thereof pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Issuer or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse Effect;

&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) *Notices from Governmental Authority* - promptly, and in any event within thirty (30) days of receipt thereof, copies of any notice to an Alpine Party from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Resignation or Replacement of Auditors* - within ten (10) days following the date on which the Issuer's or Parent's auditors resign or the Issuer or Parent elects to change auditors, as the case may be, notification thereof, together with such further information as the Majority Noteholders may reasonably request; 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;(h) *Requested Information* - with reasonable promptness, on an annual basis (unless any Material Event has occurred and is continuing), such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Alpine Parties that relates to the ability of the Alpine Parties to perform their obligations hereunder and under the Notes as from time to time may be reasonably requested in writing by the Majority Noteholders.

**Section 8.2. Officer's Certificate**. Each set of financial statements delivered to the Indenture Trustee pursuant to <u>Section 8.1.a)</u> or <u>Section 11.2</u> shall be accompanied by a certificate of a Senior Financial Officer of Parent certifying that such individual has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Parent and its consolidated subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Material Event or, if any such condition or event existed or exists (including, to the Knowledge of any Alpine Party, any such event or condition resulting from the failure of an Alpine Party to comply with any Environmental Law, where such failure can reasonably be expected to constitute a Material Event), then specifying the nature and period of existence thereof and what action the Alpine Parties shall have taken or propose to take with respect thereto.

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**Section 8.3. Visitation**. Each Alpine Party shall permit the representatives of each Noteholder visitation and inspection in accordance with Section 7.02 of the Indenture.

**Section 8.4. Electronic Delivery**. Financial statements, opinions of independent certified public accountants, other information and Officer's Certificates that are required to be delivered pursuant to <u>Section 8.1</u> and <u>Section 8.2</u> shall be deemed to have been delivered if the applicable Alpine Parties satisfy any of the following requirements with respect thereto:

&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) such financial statements and related Officer's Certificate(s) satisfying the requirements of <u>Section 8.2</u> are delivered to the Indenture Trustee (for prompt further distribution to each Purchaser or any Holder of Notes) or as communicated from time to time in a separate writing delivered by the Indenture Trustee to the Alpine Parties; 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;(b) if applicable, such financial statements and related Officer's Certificate(s) satisfying the requirements of <u>Section 8.2</u> are timely posted by or on behalf of the Parent on IntraLinks or on any other similar website to which each holder of Notes has free access.

Notice or communications posted to an Internet or intranet website (including any data room containing information relating to the Alpine Parties) shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address of notification that such notice or communication is available and identifying the website address therefor.

**SECTION 9. AFFIRMATIVE COVENANTS.** 

Each Alpine Party covenants (as to itself), that from and after the date of execution of this Agreement and until no Note is outstanding:

**Section 9.1. Compliance with Laws**. Without limiting <u>Section 10.4</u>, the Issuer will comply with all laws, ordinances or governmental rules or regulations to which it is subject (including ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in <u>Section 6.15</u>), and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of its properties or to the conduct of its business, in each case, to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.2. Insurance**. The Issuer will maintain, either directly or with its Affiliates, with financially sound and reputable insurers, insurance with respect to its properties and business against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

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**Section 9.3. Maintenance of Properties**. The Issuer will maintain and keep, or cause to be maintained and kept, its properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, *provided* that this <u>Section 9.3</u> shall not prevent the Issuer from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Issuer has concluded that such discontinuance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.4. Payment of Taxes and Claims**. The Issuer will file all tax returns required to be filed by it in any jurisdiction or timely request extensions thereof and pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent, *provided* that the Issuer does not need to pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Issuer on a timely basis in good faith and in appropriate proceedings, and the Issuer has established adequate reserves therefor in accordance with the applicable Accounting Standard on the books of the Issuer, or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.5. Corporate Existence, Etc.** Subject to <u>Section 10.2</u>, the Issuer will at all times preserve and keep its company existence and all rights and franchises of the Issuer in full force and effect unless, in the good faith judgment of the Issuer, the termination of or failure to preserve and keep in full force and effect such company existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect.

**Section 9.6. Books and Records**. The Issuer will maintain proper books of record and account in conformity with the applicable Accounting Standard and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Issuer. The Issuer will keep books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets. The Issuer has devised a system of internal accounting controls sufficient to provide reasonable assurances that its books, records, and accounts accurately reflect all transactions and dispositions of assets and the Issuer will continue to maintain such system.

**Section 9.7. Factual Statements**. The factual statements contained in opinions provided by Porter Hedges and RLF that are described in <u>Section 4.4</u> shall remain true and correct as stated therein.

**Section 9.8. Closing Information**.

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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;(a) No Alpine Party will effect any amendments or supplements to the Closing Information prior to the date of this Agreement or the Closing Date without prompt written notice to each Purchaser of such amendment or supplement at least two (2) Business Days in advance thereof. The Issuer will promptly advise each Purchaser and its counsel of any order or communication suspending or preventing, or threatening to suspend or prevent, the offer and sale of the Notes or examinations that may lead to such an order or communication, by any authority administering any applicable laws, as soon as practicable after an Alpine Party obtains Knowledge thereof, and will use its reasonable efforts to prevent the issuance of any such order or communication or to obtain as soon as possible its lifting, if issued.

&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 any event occurs prior to the Closing Date as a result of which the Closing Information as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary prior to the Closing Date at any such time to amend the Closing Information to comply with applicable law, then the Issuer promptly will notify each Purchaser and the Issuer will promptly prepare and provide each Purchaser written information that will correct such statement or omission or an amendment that will effect such compliance. Neither the consent of any Purchaser to, nor the distribution by any Purchaser of, any amendment or supplement to the Closing Information shall operate as a waiver or limitation on any right or claim of such Purchaser hereunder.

&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) Each such Alpine Party will furnish or make available to each Purchaser copies of the Closing Information and all amendments and supplements to such documents, as soon as available and in such quantities as such Purchaser reasonably requests.

**Section 9.9. Qualifying the Notes.** Upon the request of the Purchasers, each Alpine Party will use commercially reasonable efforts to assist the Purchasers in arranging for the qualification of the Notes for sale and determination of their eligibility for investment under the laws of such jurisdictions in the United States, or as necessary to qualify for clearing through DTC, as the Purchasers shall reasonably designate from time to time and will continue to use commercially reasonable efforts to assist the Purchasers in maintaining such qualifications in effect so long as desirable for the resale thereof; provided, however, that no Alpine Party shall be required to register the Notes under the Securities Act or blue sky laws of any applicable jurisdiction or shall be required to qualify to do business in any jurisdiction where it is now not qualified or to take any action which would subject it to general or unlimited service of process in any jurisdiction in which it is now not subject to service of process.

**Section 9.10. Additional Documentation.** Each Alpine Party will (i) furnish or make available to each Purchaser such additional documents and information regarding itself and any of the other Alpine Parties and regarding their respective affairs as such Purchaser may from time to time reasonably request prior to the Closing Date, including any and all documentation reasonably requested in connection with its due diligence efforts regarding information in the Closing Information, and in order to evidence the accuracy or completeness of any of the representations and warranties or the satisfaction of the conditions contained in this Agreement and (ii) provide such Purchaser or its advisors, or both, prior to acceptance of its subscription, the opportunity to ask questions of, and receive answers with respect to such matters.

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**Section 9.11. Transfer of Assets; Recordation**. Effective as of the Closing Date, each Alpine Party will, as applicable, cause its books and records relating to the Collateral to be marked to show the transfers of the Wellbore Interests from the Seller to the Issuer, and the pledge of the Collateral by the Issuer to the Indenture Trustee under the Indenture, and from and after the Closing Date each Alpine Party shall not take any action inconsistent with the Issuer's ownership of the Wellbore Interests, other than as expressly permitted by the Basic Documents. Each Alpine Party shall cause the recordation of each of the documents required to be recorded under the Management Services Agreement to which it is a party, and shall provide or cause to be provided to the Purchasers evidence of recordation of such documents.

**Section 9.12. Restriction on Sale of Notes**. For the period beginning on the date of this Agreement and ending thirty (30) days after the Closing Date, unless waived by the Majority Noteholders, no Alpine Party or any of its respective Affiliates will offer to sell or sell notes (other than the Notes) collateralized by, or certificates evidencing an ownership or beneficial interest in, assets of the Issuer.

**Section 9.13. Securities Act**. No Alpine Party, nor any of its respective Affiliates or agents, will, directly or indirectly, make offers or sales of any Security, or solicit offers to buy any Security, under any circumstances that would require the registration of the Notes under the Securities Act. Without limitation of the foregoing, (i) no Alpine Party, nor any of its respective Affiliates or agents, will engage in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with any offer or sale of the Notes that would require the registration of the Notes under the Securities Act and (ii) no Alpine Party, nor any of its respective Affiliates or agents will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any Security (as defined in the Securities Act) the offering of which Security will be integrated with the sale of the Notes in a manner that would require the registration of the Notes under the Securities Act.

**Section 9.14. Basic Documents**. So long as any of the Notes are outstanding, notwithstanding anything else herein or in any Basic Document, no such Alpine Party shall, without the prior written consent of the Majority Noteholders, amend any of the Basic Documents in any material respect, unless such amendment is authorized and permitted under the terms of the Basic Documents, as evidenced by an Officer's Certificate of the Alpine Parties. For the avoidance of doubt, the consent right under this <u>Section 9.14</u> is in addition to any amendment requirements set forth in each Basic Document.

**Section 9.15. Sponsor**. If applicable, to the extent required, the Alpine Parties shall comply in all respects with the requirements of the U.S. Risk Retention Rules with respect to the Notes.

**Section 9.16. Ratings on the Notes**. To the extent the Purchasers shall pursue having the Notes rated by a Rating Agency, each such Alpine Party will use commercially reasonable efforts to assist the Purchasers in obtaining such ratings. In addition, to the extent the SVO requires additional information related to the Notes, each such Alpine Party will use commercially reasonable efforts to procure such information for the Purchasers.

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**SECTION 10. NEGATIVE COVENANTS**

Each Alpine Party covenants (as to itself), that from and after the date of execution of this Agreement and until no Note is outstanding:

**Section 10.1. Transactions with Affiliates**. Neither the Issuer nor Holdings will enter into directly or indirectly any transaction or group of related transactions (including, the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate, except as contemplated by the Basic Documents and except in the ordinary course and pursuant to the reasonable requirements of the Issuer's business and upon fair and reasonable terms no less favorable to the Issuer than would be obtainable in a comparable arm's length transaction with a Person not an Affiliate.

**Section 10.2. Merger, Transfer, Consolidation, Etc.**

&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) Neither the Issuer nor Holdings shall consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person (whether through a corporate distribution or otherwise), except pursuant to and in accordance with the repurchase rights under the Asset Purchase Agreement and the Management Services Agreement. Holdings shall at all times directly own all of the equity in the Issuer. At all times, all of the equity in Holdings shall be directly owned by one (and only one) of the Parent, the Manager or the Seller.

&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) Parent will not and no other Alpine Party will consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person, unless (other than with respect to the Issuer or Holdings):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease all or substantially all of the assets of such Alpine Party as an entirety, as the case may be, (a) with respect to any Alpine Party other than the Parent, shall be a solvent corporation or limited liability company organized and existing under the laws of the United States or any state thereof (including the District of Columbia), or with respect to Parent, shall be a solvent corporation or limited liability company, (b) shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of the Basic Documents to which such Alpine Party is a party, and (c) shall have caused to be delivered to each holder of any Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Majority Noteholders, to the effect that (1) all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof and that all conditions in the Indenture with respect to such merger, consolidation, conveyance, transfer, or lease have been satisfied and (2) such consolidation, merger, conveyance, transfer or lease of assets shall not have a Material Adverse Effect on the Notes;

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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;(ii) each Alpine Party shall reaffirm its obligations under the Basic Documents to which it is a party in writing at such time pursuant to documentation that is reasonably acceptable to the Purchasers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) immediately before and immediately after giving effect to such transaction or each transaction in any such series of transactions, no Material Event shall have occurred and be continuing; 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;(iv) no such conveyance, transfer or lease of substantially all of the assets of such Alpine Party shall have the effect of releasing any Alpine Party or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this <u>Section 10.2</u>, from its liability under this Agreement or the Notes;

provided, however, any change of ownership of the Operator that results in the Operator being a wholly owned, direct or indirect, subsidiary of HB2 shall not be subject to the provisions of this <u>Section 10.2(b)</u>.

**Section 10.3. Line of Business**. The Issuer shall not at any time engage in any business other than those related to the ownership of the Wellbore Interests and the transactions contemplated by the Indenture and the other Basic Documents to which it is a party and other activities reasonably related or incidental thereto; <u>provided</u>, <u>however</u>, that the Issuer shall not engage in any business or activity or enter into any contractual arrangement (other than any business or activity in which the Issuer is engaged on the Closing Date or any contractual arrangement provided for in, or as permitted by, the Basic Documents and arrangements entered into as a result thereof and each other document required to be executed and delivered by the Issuer in accordance with the provisions thereof) that would (i) subject the Noteholders to regulation or oversight by any Governmental Body (other than the Governmental Bodies which regulate insurance companies and, following foreclosure, regulations applicable to assets held as a result of such foreclosure) or cause the Noteholders to breach any Law or regulation or guideline of any Governmental Body or require holders to obtain a consent, waiver or clarification by any Governmental Body or (ii) cause any of the representations and warranties of the Issuer contained in any of the Basic Documents to be inaccurate as of the date made or deemed made.

**Section 10.4. Terrorism Sanctions Regulations**. No Alpine Party nor any Controlled Entity with respect to such Alpine Party will (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or any Person that is the target of sanctions imposed by the United Nations or by the European Union, (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any Noteholder or any affiliate of such holder to be in violation of, or subject to sanctions under, any U.S. Economic Sanctions Laws, Anti-Corruption Laws or Anti-Money Laundering Laws applicable to such Noteholder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws, Anti-Corruption Laws or Anti-Money Laundering Laws, or (c) engage, nor shall any Affiliate of either engage, in any activity that could subject such Person or any holder to sanctions under CISADA or any similar law or regulation with respect to Iran or any other country that is subject to U.S. Economic Sanctions Laws.

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**Section 10.5. Liens**. Neither the Issuer nor Holdings will, directly or indirectly, create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any of its property or assets (including the Collateral), whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, except for (i) Permitted Liens or (ii) in the case of Holdings, its pledge of the Membership Interests in the Issuer pursuant to the Holdings Pledge Agreement.

**SECTION 11. EXPENSES, INDEMNIFICATION, ETC.**

**Section 11.1. Transaction Expenses**. Each of the Issuer and Holdings agrees, jointly and severally, to pay: (i) all documented out-of-pocket fees, costs or expenses, if any, of brokers and finders related to any of the Collateral or the Notes in connection with the sale of the Notes (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes ("**Excluded Broker Fees**")), (ii) any other documented out-of-pocket cost, fee or expenses in connection with any amendments, waivers or consents requested by an Alpine Party under or in respect of this Agreement, any Basic Document or the Notes (whether or not such amendment, waiver or consent becomes effective), (iii) any and all wire transfer fees that any bank or other financial institution deducts from any payment under a Note to the holder thereof or otherwise charges to a holder of a Note with respect to a payment under such Note, (iv) the reasonable and document out-of-pocket costs and expenses (including the reasonable fees) of one financial adviser to all of the Purchasers, taken together, and the reasonable and documented fees of one special outside counsel to the financial advisor and, if reasonably required by the Purchasers, one local outside counsel in each relevant jurisdiction or otherwise retained with the Issuer's consent (such consent not to be unreasonably withheld or delayed), incurred in connection with the insolvency or bankruptcy of any Alpine Party and relating to, or in connection with any work-out or restructuring of, the transactions contemplated by any Basic Document, (v) any judgment, liability, obligation, claim, order, decree, fine, penalty, cost, fee, or expenses resulting from the consummation of the transactions contemplated hereby and by the other Basic Documents, including the use of the proceeds of the Notes by the Issuer, but excluding any Excluded Broker Fees, (vi) the documented out-of-pocket costs and expenses incurred by any Purchaser in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or any Basic Document or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or any Basic Document, or by reason of being a holder of any Note (it being understood that the Indenture Trustee shall act on behalf of each Secured Party in exercising any rights with respect to the Collateral in accordance with the terms of the Basic Documents), (vii) if reasonably required by the Purchasers, the reasonable and documented out-of-pocket costs and expenses of one local outside counsel in each relevant jurisdiction or otherwise retained with the Issuer's consent (such consent not to be unreasonably withheld or delayed) in connection with the closing of the sale of the Notes, and (viii) the documented out-of-pocket costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO. If required by the NAIC, the Issuer shall obtain and maintain at its own cost and expense a Legal Entity Identifier (LEI).

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All amounts payable pursuant to this <u>Section 6.22</u> shall be paid promptly following demand but in any event within thirty (30) days following delivery of an invoice therefor by any of the Purchasers or such holder of Notes to the applicable Alpine Party.

**Section 11.2. Certain Taxes**. Each Alpine Party agrees, jointly and severally, to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery of this Agreement or any Basic Document or the execution and delivery (but not the transfer) of any of the Notes in the United States or any other jurisdiction where any Alpine Party has assets and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Alpine Parties pursuant to this <u>Section 11.2</u>, and will save each holder of a Note to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by such Alpine Parties under this <u>Section 11.2</u>.

**Section 11.3. Indemnification**.

&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) Each of Holdings and the Issuer, jointly and severally, agrees to indemnify and hold harmless each Purchaser, their respective Affiliates and their respective officers, directors, employees, advisors and agents (each, an "**Indemnified Person**") from and against any and all actual and direct losses, claims, damages and liabilities (collectively, "**Losses**") incurred or suffered by any Indemnified Person to the extent relating to any of the following, including related to any claim, litigation, investigation or proceeding relating to any of the following (whether brought by a third-party or a party to this Agreement, and regardless of whether the Indemnified Person is a party thereto), and to reimburse each Indemnified Person within thirty (30) days after demand for any reasonable and documented out-of-pocket legal expenses of such Indemnified Person, and all other reasonable and documented out-of-pocket expenses incurred in connection with, investigating or defending against any claim with respect to any of the following: (A) any acts or omissions of any of the Alpine Parties, their Affiliates or their managers, members, officers, directors, agents, advisors or employees constituting negligence, gross negligence, willful misconduct or bad faith in the performance of any of their duties under this Agreement or any Basic Document, (B) any breach or alleged breach of any representations, warranties, covenants or agreements in this Agreement or any Basic Document by the Alpine Parties, or (C) any untrue statement or alleged untrue statement of a material fact contained in any of the Closing Information, or the omission or alleged omission therefrom of a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the foregoing indemnity will not, as to any Indemnified Person, apply to Losses or related legal or other expenses to the extent they (x) are found by a final, non-appealable judgment of a court of competent jurisdiction to have been caused by the bad faith, willful misconduct or negligence of such Indemnified Person or (y) result from a claim brought by the Issuer against any Indemnified Person for breach of such Indemnified Person's representations, warranties, or obligations hereunder or under applicable law, if the Issuer has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

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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;(b) Each of the Parent, the Manager, the Operator and the Seller, jointly and severally, agrees to indemnify and hold harmless each Indemnified Person from and against any and all Losses incurred or suffered by any Indemnified Person to the extent relating to any of the following, including related to any claim, litigation, investigation or proceeding relating to any of the following (whether brought by a third-party or a party to this Agreement, and regardless of whether the Indemnified Person is a party thereto), and to reimburse each Indemnified Person within thirty (30) days after demand for any reasonable and documented out-of-pocket legal expenses of such Indemnified Person, and all other reasonable and documented out-of-pocket expenses incurred in connection with, investigating or defending against any claim with respect to any of the following: (A) any acts or omissions of any of the Parent, the Manager, the Operator, or the Seller, their Affiliates (other than Holdings and the Issuer), or their managers, members, officers, directors, agents, advisors or employees constituting negligence, gross negligence, willful misconduct or bad faith in the performance of any of the duties of the Parent, the Manager, the Operator, or the Seller under this Agreement or any Basic Document, (B) any breach or alleged breach of any representations, warranties, covenants or agreements in this Agreement or any Basic Document by any of the Parent, the Manager, the Operator, or the Seller, or (C) any untrue statement or alleged untrue statement of a material fact contained in any of the Closing Information, or the omission or alleged omission therefrom of a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the foregoing indemnity will not, as to any Indemnified Person, apply to Losses or related legal or other expenses to the extent they (x) are found by a final, non-appealable judgment of a court of competent jurisdiction to have been caused by the bad faith, willful misconduct or negligence of such Indemnified Person or (y) result from a claim brought by such Alpine Party or the Issuer against any Indemnified Person for breach of such Indemnified Person's representations, warranties, or obligations hereunder or under applicable law, if such Alpine Party or the Issuer has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

&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) For purposes of this <u>Section 11.3</u>, any claim of, and Losses resulting from, any breach of any representation or warranty or covenant made by an Alpine Party in this Agreement or any Basic Document shall be determined without regard to any materiality, context of disclosure, knowledge or other similar qualification contained in or otherwise applicable to such representation, warranty or covenant.

&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) Notwithstanding anything to the contrary in this <u>Section 11</u> or any other provision of this Agreement, nothing herein shall be interpreted to provide any guaranty of payment or performance of the Notes by any Alpine Party other than Holdings and the Issuer and Losses shall not include, and no Alpine Party (other than Holdings and the Issuer) will have any obligation to repay or satisfy, any of the Secured 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;(e) Notwithstanding anything to the contrary in this <u>Section 11</u> or any other provision of this Agreement, no term, condition or other provision set forth in this Agreement shall limit or otherwise impair any right or remedy provided or available to the Indenture Trustee or any other Secured Party under the Indenture.

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**Section 11.4. Survival; Remedies**. The obligations of the Alpine Parties under this <u>Section 11</u> will survive the payment or transfer of any Note, the enforcement, amendment or (except as and to the extent expressly waived) waiver of any provision of this Agreement, the Indenture, any other Basic Document or the Notes, and the termination of this Agreement. The remedies provided for in this <u>Section 11</u> are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.

**SECTION 12. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT**

All indemnities and representations and warranties contained herein shall survive the execution and delivery of this Agreement, the Notes and the other Basic Documents, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note. All statements contained in any certificate or other instrument delivered by or on behalf of an Alpine Party pursuant to this Agreement shall be deemed representations and warranties of such Alpine Party under this Agreement. Subject to the preceding sentence, this Agreement, the Notes and the Basic Documents embody the entire agreement and understanding between each Purchaser and each other holder of a Note and the Alpine Parties with respect to the matters contemplated hereby and supersede all prior agreements and understandings relating to the subject matter hereof.

**SECTION 13. AMENDMENT AND WAIVER**

**Section 13.1. Requirements**. This Agreement may be amended, and the observance of any term hereof may be waived (either retroactively or prospectively), only with the written consent of the Alpine Parties and the Majority Noteholders. For the avoidance of doubt, the consent right under this <u>Section 13.1</u> regarding any amendment hereunder is in addition to any amendment requirements set forth in each Basic Document. Any draft of an amendment or waiver of this Agreement shall be provided in writing to each Purchaser.

**Section 13.2. Solicitation of Holders of Notes**.

&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) *Solicitation*. The Issuer will provide each holder of a Note with sufficient information, to enable such holder to make an informed and considered decision with respect to any amendment, waiver or consent proposed by an Alpine Party in respect of any of the provisions hereof. The Issuer will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this <u>Section 13</u> to each holder of a Note promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

&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) *Payment*. Except as provided in the Basic Documents, the Issuer will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an inducement to the entering into by such holder of any waiver or amendment of any of the terms and provisions hereof or of any Basic Document or any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of a Note even if such holder did not consent to such waiver or amendment.

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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;(c) *Consent in Contemplation of Transfer*. Any consent given pursuant to this <u>Section 13</u> or any Basic Document by a holder of a Note that has transferred or has agreed to transfer its Note to an Alpine Party, any Subsidiary or any other Affiliate of an Alpine Party in connection with such consent shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.

**Section 13.3. Binding Effect, Etc.** Any amendment or waiver consented to as provided in this <u>Section 13</u> or in any Basic Document (amended in accordance with its terms) applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Issuer without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Material Event not expressly amended or waived or impair any right consequent thereon. No course of dealing between the any Alpine Party and any holder of a Note and no delay in exercising any rights hereunder or under any Note or any other Basic Document shall operate as a waiver of any rights of any holder of such Note.

**Section 13.4. Notes Held by any Alpine Party, Etc.** Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, any Basic Document or the Notes, or have directed the taking of any action provided herein or in any Basic Document or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Alpine Parties or any of its Affiliates shall be deemed not to be outstanding.

**SECTION 14. NOTICES.**

Except to the extent otherwise provided in <u>Section 8.4</u>, all notices and communications provided for hereunder shall be in writing and sent (a) by registered or certified mail with return receipt requested (postage prepaid), or (b) by an internationally recognized overnight delivery service (with charges prepaid), or (c) by electronic delivery to the e-mail addresses set forth below. Any such notice must be sent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the Indenture Trustee, to:

UMB Bank, N.A.

100 William Street, Suite 1850

New York, NY 10038

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Attention:

E-Mail:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in <u>Schedule B</u>, or at such other address as such Purchaser or nominee shall have specified to the Issuer in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Issuer in writing; 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;(iv) if to the Operator, to:

Ironroc Energy Partners LLC

2445 Technology Forest Blvd, Suite 1010

The Woodlands, TX, 77381

Attention:

Email:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if to any Alpine Party other than the Operator, to:

Alpine Summit Energy Partners, Inc.

3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

With copies (which shall not constitute notice) to:

Porter Hedges LLP

1000 Main, 36<sup>th</sup> Floor

Houston, TX 77002

Attention: E. James Cowen

Email: jcowen@porterhedges.com

or, in each case, at such other address as the Issuer shall have specified to the holder of each Note in writing.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received. Unless the Indenture Trustee otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement, which acknowledgement the recipient shall be obligated to promptly provide), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or other communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

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**SECTION 15. REPRODUCTION OF DOCUMENTS**.

This Agreement and all documents relating thereto, including (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser on the Closing Date, and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced (except the Notes themselves). The Issuer agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This <u>Section 15</u> shall not prohibit the Issuer or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

**SECTION 16. CONFIDENTIAL INFORMATION**.

For the purposes of this <u>Section 16</u>, "**Confidential Information**" means information delivered to any Purchaser by or on behalf of the Alpine Parties in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Alpine Parties, *provided* that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser's behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Alpine Parties, provided that the source of such information is not known by such Purchaser receiving such information to be prohibited from transmitting such information to such Purchaser by a contractual, legal, fiduciary or other obligation, or (d) constitutes financial statements delivered to such Purchaser under <u>Section 8.1</u> that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, *provided* that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with this <u>Section 16</u>, (iii) any other holder of any Note, (iv) any qualified institutional buyer to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this <u>Section 16</u>), (v) any Person from which it offers to purchase any Security of the Issuer (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this <u>Section 16</u>), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser's investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) to the extent such Purchaser reasonably determines such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser's Notes, this Agreement or any other Basic Document. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this <u>Section 16</u> as though it were a party to this Agreement. On reasonable request by the Issuer in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Issuer embodying this <u>Section 16</u>. Notwithstanding anything to the contrary herein, each Purchaser may place customary advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of customary information on the Internet or worldwide web, and circulate similar promotional materials, in each case, after the Closing Date in the form of a "tombstone" or otherwise describing the names of the Alpine Parties and their affiliates, and the amount, type and closing date of the Notes and the Contemplated Transactions, at its own expense; provided, however, that no such tombstone, promotional announcement or other marketing material will disclose the name of any Purchaser without that Purchaser's prior written consent.

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In the event that as a condition to receiving access to information relating to any Alpine Party in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through a secure website, a secure virtual workspace or otherwise) which is different from this <u>Section 16</u>, this <u>Section 16</u> shall not be amended thereby and, as between such Purchaser or such holder and the Issuer, this <u>Section 16</u> shall supersede any such other confidentiality undertaking.

**SECTION 17. SUBSTITUTION OF PURCHASER**.

Subject to the provisions set forth in the Indenture, each Purchaser shall have the right to substitute any one of its Affiliates, Related Funds or another Purchaser or any one of such other Purchaser's Affiliates or Related Funds (a "**Substitute Purchaser**") as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Issuer, which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall contain such Substitute Purchaser's agreement to be bound by this Agreement and shall contain a confirmation by such Substitute Purchaser of the accuracy with respect to it of the representations set forth in <u>Section 7</u>. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this <u>Section 17</u>), shall be deemed to refer to such Substitute Purchaser in lieu of such original Purchaser. In the event that such Substitute Purchaser is so substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the Notes then held by such Substitute Purchaser, upon receipt by the Issuer of notice of such transfer, any reference to such Substitute Purchaser as a "Purchaser" in this Agreement (other than in this <u>Section 17</u>), shall no longer be deemed to refer to such Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

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**SECTION 18. MISCELLANEOUS**.

**Section 18.1. Successors and Assigns**. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including any subsequent holder of a Note) whether so expressed or not. Except for the Indemnified Persons and the parties hereto, nothing in this Agreement is intended or shall be construed to give any other Person any rights, powers, claims, remedies or privileges hereunder. Subject to <u>Section 10.2</u>, no Alpine Party may assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of the Majority Noteholders.

**Section 18.2. Accounting Terms**. All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with the applicable Accounting Standard. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with the applicable Accounting Standard, and (ii) all financial statements shall be prepared in accordance with the applicable Accounting Standard. For purposes of determining compliance with this Agreement (including <u>Section 9</u> and <u>Section 10</u>), any election by the Issuer to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic No. 825-10-25 - *Fair Value Option,* International Accounting Standard 39 - *Financial Instruments: Recognition and Measurement* or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.

**Section 18.3. Severability**. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

**Section 18.4. Construction, Etc.** Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

Defined terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) subject to <u>Section 18.1</u>, any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, unless otherwise specified, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

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**Section 18.5. Counterparts; Electronic Contracting**.

&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) This Agreement may be executed in any number of counterparts (including electronic PDF), each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. Each of the parties hereto agrees that the transaction consisting of this Agreement and the other Basic Documents may be conducted by electronic means (other than with respect to the Notes). Each party agrees, and acknowledges that it is such party's intent, that if such party signs this Agreement or the other Basic Documents (other than the Notes) using an electronic signature, it is signing, adopting, and accepting this Agreement and the other Basic Documents (other than the Notes), and that signing this Agreement and the other Basic Documents (other than the Notes) using an electronic signature is the legal equivalent of having placed its handwritten signature on this Agreement and the other Basic Documents (other than the Notes) on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Agreement in a usable format. Delivery of an electronic signature to, or a signed copy of, this Agreement and such other Basic Documents (other than the Notes) by facsimile, email or other electronic transmission (including Adobe "fill and sign" or such other provider as specified in writing by the Issuer) shall be fully binding on the parties to the same extent as the delivery of the signed originals and shall be admissible into evidence for all purposes. The words "execution," "execute," "signed," "signature," and words of like import in or related to any document to be signed in connection with this Agreement and the other Basic Documents (other than the Notes), or the keeping of records in electronic form, shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act of 2000, the New York State Electronic Signatures and Records Act, or any state laws based on the Uniform Electronic Transactions Act. Notwithstanding the foregoing, if any party shall request manually signed counterpart signatures to any Basic Document, each of the applicable Alpine Parties hereby agrees to use their reasonable endeavors to provide such manually signed signature pages as soon as reasonably practicable (but in any event within five days of such request or such longer period as the requesting Purchaser or other holder of a Note and the Alpine Parties may mutually agree).

&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) The parties agree to electronic contracting and signatures with respect to each Note delivered hereunder in registered form. Delivery of an electronic signature to, or a signed copy of, any Note in the name of a particular Purchaser or other holder of a Note by facsimile, email or other electronic transmission and shall be fully binding on the Issuer to the same extent as the delivery of the signed original of any such Note and shall be admissible into evidence for all purposes, and the Issuer hereby expressly waives any defense related to a Purchaser's or holder's failure to present an original Note resulting from the Purchaser's or holder's failure to receive an original Note. The Issuer further agrees that it shall produce a physical, manually signed Note for delivery to each Purchaser or other holder of a Note in accordance with the instructions provided by such Purchaser or such holder as soon as reasonably practicable (but in any event within two (2) Business Days of such request or such longer period as the requesting Purchaser or holder and the Issuer may mutually agree).

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**Section 18.6. Governing Law**. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD PERMIT THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

**Section 18.7. Jurisdiction and Process; Waiver of Jury Trial**. 

&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) Each party hereto irrevocably submits to the exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, each party hereto irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

&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) Each party hereto agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in <u>Section 18.7(a)</u> brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment.

&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) Each party hereto consents to process being served by or on behalf of any other party in any suit, action or proceeding of the nature referred to in <u>Section 18.7(a)</u> by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in <u>Section 14</u> or at such other address of which such holder shall then have been notified pursuant to said Section. Each party hereto agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

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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;(d) Nothing in this <u>Section 18.7</u> shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes hereto may have to bring proceedings against any other party hereto in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

&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 PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.**

**SECTION 19. RIGHT OF FIRST REFUSAL**.

So long as any of the Notes are outstanding (the "**ROFR Period**"), Kuvare shall be afforded a right of first refusal related to any transaction relating to an asset backed securitization of oil and gas wellbore interests utilizing bankruptcy remove special purpose vehicles with any Person by the Alpine Parties (including any affiliate) (a "**Restricted Transaction**"). If, at any time during the ROFR Period, an Alpine Party wishes to consummate a Restricted Transaction, the Alpine Parties shall provide written notice to Kuvare of the material financial and other terms and conditions agreed to for such Restricted Transaction (the "**ROFR Notice**"). Kuvare shall, within ten (10) Business Days of its receipt of such ROFR Notice, notify the Alpine Parties in writing of whether they want to enter into the Restricted Transaction identified in the ROFR Notice. If, by the expiration of the such ten (10) Business Day period, Kuvare has not accepted the ROFR Notice, at any time during the 180 day period following the expiration of such period, the Alpine Parties may consummate the Restricted Transaction with the counterparty identified in the ROFR Notice on the material financial and other terms and conditions that are the same or more favorable to the Alpine Parties the material financial and other terms and conditions set forth in the ROFR Notice.

\* \* \* \* \*

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If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Issuer, whereupon this Agreement shall become a binding agreement between you and the other parties hereto.

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| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **ALPINE SUMMIT FUNDING LLC** | **ALPINE SUMMIT FUNDING LLC** |
| By: | <u>/s/ Craig Perry</u><u> </u> |
|  | Name: Craig Perry |
|  | Title: President and Chief Executive Officer |

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| | |
|:---|:---|
| **HB2 ORIGINATION, LLC** | **HB2 ORIGINATION, LLC** |
| By: | <u>/s/ Craig Perry</u><u> </u> |
|  | Name: Craig Perry |
|  | Title: President and Chief Executive Officer |

---

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| | |
|:---|:---|
| **ALPINE SUMMIT ENERGY PARTNERS, INC.** | **ALPINE SUMMIT ENERGY PARTNERS, INC.** |
| By: | <u>/s/ Craig Perry</u><u> </u> |
|  | Name: Craig Perry |
|  | Title: President and Chief Executive Officer |

---

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| | |
|:---|:---|
| **ALPINE SUMMIT FUNDING HOLDINGS LLC** | **ALPINE SUMMIT FUNDING HOLDINGS LLC** |
| By: | <u>/s/ Craig Perry</u><u> </u> |
|  | Name: Craig Perry |
|  | Title: President and Chief Executive Officer |

---

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| | |
|:---|:---|
| **IRONROC ENERGY PARTNERS LLC** | **IRONROC ENERGY PARTNERS LLC** |
| By: | <u>/s/ Craig Perry</u><u> </u> |
|  | Name: Craig Perry |
|  | Title: Chief Executive Officer |

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*[Signature Page to Note Purchase Agreement]*

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This Agreement is hereby

accepted and agreed to as

of the date hereof.

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| |
|:---|
| **LINCOLN BENEFIT LIFE COMPANY** |
| By: Kuvare Insurance Services LP, its Investment Manager |
| By: <u>/s/ Faisal Kassam</u>_________________ |
| Name: Faisal Kassam |
| Title: Managing Director |

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| |
|:---|
| **GUARANTY INCOME LIFE INSURANCE COMPANY** |
| By: Kuvare Insurance Services LP, its Investment Manager |
| By: <u>/s/ Faisal Kassam</u>_________________ |
| Name: Faisal Kassam |
| Title: Managing Director |

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| |
|:---|
| **UNITED LIFE INSURANCE COMPANY** |
| By: Kuvare Insurance Services LP, its Investment Manager |
| By: <u>/s/ Faisal Kassam</u>_________________ |
| Name: Faisal Kassam |
| Title: Managing Director |

---

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| |
|:---|
| **KUVARE INSURANCE SERVICES LP, ON BEHALF OF NATIONAL GUARDIAN LIFE INSURANCE COMPANY, BY VIRTUE OF AUTHORITY GRANTED UNDER THE FUNDS WITHHELD COINSURANCE AGREEMENT DATED FEBRUARY 4, 2021** |
| By: <u>/s/ Faisal Kassam</u>_________________ |
| Name: Faisal Kassam |
| Title: Managing Director |

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*[Signature Page to Note Purchase Agreement]*

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<u>**SCHEDULE A**</u><br>**Defined Terms**

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term. Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the Indenture:

"**1940 Act**" means the Investment Company Act of 1940, as amended.

"**Agreement**" means this Agreement, including all Schedules attached to this Agreement, as it may be amended, restated, supplemented or otherwise modified from time to time.

"**Alpine Party**" as defined in the preamble.

"**Alpine Side Letter**" the Fee Letter dated as of the Closing Date by and between the Issuer and Kuvare Insurance Services LP and acknowledged by the Purchasers.

"**Anti-Corruption Laws**" means any Law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.

"**Anti-Money Laundering Laws**" means any Law or regulation in a U.S. or any non U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.

"**Applicable Accounting Standard**" shall have the meaning assigned to such term in the Indenture.

"**Asset Purchase Agreement**" shall have the meaning assigned to such term in the Indenture.

"**Authorized Officer**" means, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president, vice president (or the equivalent thereof), chief financial officer, treasurer, chief investment officer, chief operating officer, chief administrative officer or chief legal officer of such Person; provided that the secretary or assistant secretary of such Person shall have delivered an incumbency certificate to the Indenture Trustee as to the authority of such Authorized Officer.

"**Blocked Person**" means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under, or engaged in any activity in violation of, U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).

Schedule A-1

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"**Business Day**" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed.

"**CISADA**" means the Comprehensive Iran Sanctions, Accountability and Divestment Act.

"**Closing Date**" as defined in the Indenture.

"**Closing Information**" as defined in <u>Section 6.3</u>.

"**Code**" means the Internal Revenue Code of 1986, as amended from time to time, and Treasury Regulations promulgated thereunder.

"**Commission**" means the U.S. Securities and Exchange Commission.

"**Confidential Information**" as defined in <u>Section 16</u>.

"**Contemplated Transactions**" has the meaning assigned to such term in the Indenture.

"**Controlled Entity**" means (i) any of the Issuer's Controlled Affiliates and (ii) Parent and its Controlled Affiliates. As used in this definition, "**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms "**Controlled**" and "**Controlling**" shall have meanings correlative to the foregoing.

"**Disclosure Documents**" as defined in <u>Section 6.3</u>.

"**Dodd-Frank**" means the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Pub. L. No. 111-203, 124 Stat. 1376 (2010).

"**Environmental Laws**" shall have the meaning assigned to such term in the Asset Purchase Agreement.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

"**ERISA Affiliate**" means any trade or business (whether or not incorporated) that is treated as a single employer together with Parent or any of its Subsidiaries under section 414 of the Code.

"**Event of Default**" has the meaning specified in Section 5.01 of the Indenture.

"**Governmental Authority**" means: (a) the government of (i) the United States of America or any state or other political subdivision thereof, or (ii) any other jurisdiction in which any Alpine Party conducts all or any part of its business, or which asserts jurisdiction over any properties of any Alpine Party; or (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

"**Governmental Official**" means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.

Schedule A-2

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"**Hazardous Materials**" shall have the meaning assigned to the term "Hazardous Substance" in the Asset Purchase Agreement.

"**holder**" means, with respect to any Note, the Person in whose name such Note is registered in the Note Register; *provided, however,* that if such Person is a nominee, then for the purposes of <u>Section 8</u>, <u>Section 13.2</u> and <u>Section 14</u> and any related definitions in this <u>Schedule A</u>, "holder" shall also mean the beneficial owner of such Note.

"**Holdings**" as defined in the preamble.

"**Indemnified Person**" is defined in <u>Section 11.3</u>.

"**Indenture**" as defined in <u>Section 1</u>.

"**Indenture Trustee**" as defined in <u>Section 1</u>.

"**INHAM Exemption**" is defined in <u>Section 7.3(e)</u>.

"**Issuer**" as defined in the preamble.

"**Knowledge**" means, with respect to any Alpine Party, the actual knowledge (following reasonable inquiry of direct reports) of any Knowledge Person of such entity.

"**Knowledge Person**" means (a) with respect to Issuer and Holdings, any of the following Authorized Officers thereof (or, as applicable, their respective successors to such Authorized Officer positions): Craig Perry (President and Chief Executive Officer), Michael McCoy (Chief Operating Officer) and Darren Moulds (Chief Financial Officer), (b) with respect to the Parent, the Seller, and the Manager, any of the following Authorized Officers thereof (or, as applicable, their respective successors to such Authorized Officer positions): Craig Perry (Chairman and Chief Executive Officer), Michael McCoy (Chief Operating Officer), Darren Moulds (Chief Financial Officer), and Chris Nilan (Senior Managing Director), and (c) with respect to the Operator, any of the following Authorized Officers thereof (or, as applicable, their respective successors to such Authorized Officer positions): Craig Perry (Chief Executive Officer) and Michael McCoy (President and Chief Operating Officer).

"**Kuvare**" means Kuvare Insurance Services LP.

"**Losses**" is defined in <u>Section 11.3</u>.

"**Management Services Agreement**" shall have the meaning set forth in the Indenture.

"**Manager**" as defined in the preamble.

Schedule A-3

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"**Material**" means material in relation to the business, operations, affairs, condition (financial or otherwise), assets or properties of the applicable Alpine Parties, taken as a whole, or are necessary for the performance of obligations under the Basic Documents.

"**Material Adverse Effect**" means, with respect to a Person, a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of such Person, (b) the ability of such Person to perform its obligations under this Agreement, the Basic Documents and the Notes, or (c) the validity or enforceability of this Agreement, a Basic Document or the Notes.

"**Material Event**" shall have the meaning assigned to such term in the Indenture.

"**Multiemployer Plan**" means any ERISA Plan that is a "multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA).

"**NAIC**" means the National Association of Insurance Commissioners or any successor thereto.

"**NAIC Annual Statement**" is defined in <u>Section 7.3(a)</u>.

"**Notes**" as defined in <u>Section 1</u>.

"**OFAC Listed Person**" as defined in <u>Section 6.15(a)</u>.

"**OFAC**" means the Office of Foreign Assets Control of the United States Department of the Treasury.

"**OFAC Sanctions Program**" means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.

"**Office Notice**" as defined in <u>Section 4.4</u>.

"**Officer's Certificate**" means a certificate of a Senior Financial Officer or of any other officer of the applicable Alpine Party whose responsibilities extend to the subject matter of such certificate.

"**Operator**" as defined in the preamble.

"**Organizational Documents**" of any entity means (a) in the case of a corporation, the articles or certificate of incorporation (or the equivalent of such items under state applicable law) and the bylaws of such corporation, (b) in the case of a limited liability company, the certificate or articles of existence or formation and the operating agreement of such limited liability company, (c) in the case of a limited partnership, the certificate of formation and limited partnership agreement of such limited partnership and the Organizational Documents of the general partner of such limited partnership, and (d) any equivalent documents to the foregoing under the state applicable law where such entity was organized or formed.

"**Parent**" as defined in the preamble.

Schedule A-4

------

"**PBGC**" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.

‎"**Permitted Indebtedness**" shall have the meaning set forth in the ‎Indenture.‎

"**Permitted Lien**" shall have the meaning assigned to the term "Permitted Encumbrance" in the Asset Purchase Agreement.

"**Person**" means any individual, corporation, limited liability company, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization, business entity, Governmental Authority or government or any agency or political subdivision thereof.

"**property**" or "**properties**" means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

"**PTE**" as defined in <u>Section 7.3.a)</u>.

"**Purchase Price**" as defined in <u>Section 2(a)</u>.

"**Purchaser**" or "**Purchasers**" means each of the purchasers that has executed and delivered this Agreement to the Issuer, *provided, however,* that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to the Indenture shall cease to be included within the meaning of "Purchaser" of such Note for the purposes of this Agreement upon such transfer.

"**QPAM Exemption**" as defined in <u>Section 7.3.d)</u>.

"**Rating Agency**" as defined in the Indenture.

"**Porter Hedges**" as defined in <u>Section 4.4</u>.

"**Related Fund**" means, with respect to any holder of any Note, any fund or entity that (i) invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

"**Restricted Transaction**" as defined in <u>Section 19</u>.

"**ROFR Notice**" as defined in <u>Section 19</u>.

"**ROFR Period**" as defined in <u>Section 19</u>.

"**RLF**" as defined in <u>Section 4.4</u>.

"**Secured Parties**" shall have the meaning assigned to such term in the Indenture.

"**Securities**" or "**Security**" shall have the meaning specified in section 2(1) of the Securities Act.

Schedule A-5

------

"**Securities Act**" means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

"**Seller**" as defined in the preamble.

"**Senior Financial Officer**" means the chief financial officer, principal accounting officer, treasurer or comptroller of any Alpine Party (as applicable).

"**Source**" shall have the meaning assigned to such term in <u>Section 7.3</u>.

"**Substitute Purchaser**" as defined in <u>Section 17</u>.

"**SVO**" means the Securities Valuation Office of the NAIC or any successor to such Office.

"**Treasury Regulations**" shall mean regulations, including proposed or temporary regulations, promulgated under the Code. References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations.

"**U.S. Economic Sanctions Laws**" means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.

"**U.S. Risk Retention Rules**" means risk retention regulations in 17 C.F.R. Part 246 as such regulation may be amended from time to time and subject to such clarification and interpretation as have been provided by the Commission in an adopting release or by the staff of the Commission, or as may be provided in writing by the Commission or its staff from time to time.

"**USA PATRIOT Act**" means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (signed into law October 26, 2001), as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

"**Wellbore Interests**" shall have the meaning assigned to such term in the Indenture.

Schedule A-6

------

## Exhibit 10.2

------

***Execution Version***

**Asset Purchase Agreement**

**Dated April 29, 2022, By And Between**

**Alpine Summit funding LLC, and**

**HB2 Origination, LLC**

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [**ARTICLE 1 DEFINITIONS**](#page_5) | [**1**](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.01 Definitions](#page_5) | [1](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.02 Interpretation](#page_20) | [16](#page_20) |
| [**ARTICLE 2 SALE AND TRANSFER OF WELLBORE INTERESTS; CLOSING**](#page_20) | [**16**](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.01 Sale and Purchase](#page_20) | [16](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.02 Purchase Price; Closing Settlement Statement](#page_21) | [17](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.03 Costs and Expenses](#page_21) | [17](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.04 Intention of the Parties](#page_21) | [17](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.05 Closing](#page_21) | [17](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.06 Closing Obligations](#page_21) | [17](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.07 Allocations and Adjustments](#page_22) | [18](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.08 Assumption](#page_24) | [20](#page_24) |
| [**ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER**](#page_25) | [**21**](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.01 Organization and Good Standing](#page_25) | [21](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.02 Authority](#page_25) | [21](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.03 No Conflict](#page_26) | [22](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.04 Taxes](#page_27) | [23](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.05 Legal Proceedings; Orders](#page_27) | [23](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.06 Brokers](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.07 Compliance with Legal Requirements and Governmental Authorizations](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.08 Take-or-Pay Arrangements](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.09 Preferential Rights and Consents](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.10 Plugging and Abandonment](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.11 Timely Payment](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.12 Imbalances](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.13 Reserve Report](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.14 Environmental Matters](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.15 Wells](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.16 Compliance with Leases and Applicable Easements](#page_30) | [26](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.17 Material Contracts](#page_30) | [26](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.18 Compliance with Material Contracts; Necessary Contracts](#page_31) | [27](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.19 Non-Consent Operations](#page_31) | [27](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.20 Suspense Funds](#page_31) | [27](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.21 Hedges](#page_31) | [27](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.22 Bankruptcy](#page_31) | [27](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.23 Current Commitments](#page_32) | [28](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.24 Sufficiency of Assets](#page_32) | [28](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.25 Burdens](#page_32) | [28](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.26 Security Agreements](#page_32) | [28](#page_32) |
| [**ARTICLE 4 POST-CLOSING COVENANTS AND OBLIGATIONS**](#page_32) | [**28**](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.01 Books and Records](#page_32) | [28](#page_32) |
| [**ARTICLE 5 INDEMNIFICATION; REMEDIES**](#page_33) | [**29**](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.01 Survival](#page_33) | [29](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.02 Indemnification and Payment of Damages by Seller](#page_33) | [29](#page_33) |

---

i

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.03 Indemnification and Payment of Damages by Issuer](#page_33) | [29](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.04 Materiality and Knowledge; Limitations](#page_33) | [29](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.05 Exclusive Remedy](#page_34) | [30](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.06 Compliance with Express Negligence Rule](#page_34) | [30](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.07 Limitations of Liability](#page_34) | [30](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.08 No Duplication](#page_35) | [31](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.09 Third Party Claims](#page_35) | [31](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.10 Direct Claims.](#page_36) | [32](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.11 Title Matters](#page_36) | [32](#page_36) |
| [**ARTICLE 6 GENERAL PROVISIONS**](#page_39) | [**35**](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.01 Expenses.](#page_39) | [35](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.02 Notices.](#page_39) | [35](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.03 Jurisdiction; Service of Process](#page_40) | [36](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.04 Waiver of Jury Trial](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.05 Further Assurances](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.06 Waiver](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.07 Entire Agreement and Modification](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.08 Assignments, Successors, and Third-Party Rights](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.09 Severability](#page_42) | [38](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.10 Governing Law](#page_42) | [38](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.11 Counterparts](#page_42) | [38](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.12 Confidentiality](#page_42) | [38](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.13 No Recourse](#page_43) | [39](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.14 Issuer's Obligations](#page_43) | [39](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.15 No Petition](#page_43) | [39](#page_43) |

---

ii

------

<u>**EXHIBITS AND SCHEDULES**</u>

---

| |
|:---|
| Exhibit A Schedule of Wells |
| Exhibit B Schedule of Leases |
| Exhibit C Excluded Assets |
| Exhibit D Form of Assignment and Bill of Sale |
| Exhibit E Form of Management Services Agreement |
| Exhibit F Form of Joint Operating Agreement |
| Exhibit G Form of Precautionary Mortgage |
| Schedule 3.04 Taxes |
| Schedule 3.05 Legal Proceedings; Orders |
| Schedule 3.07 Compliance with Legal Requirements and Governmental Authorizations |
| Schedule 3.09 Preferential Rights; Consents |
| Schedule 3.12 Imbalances |
| Schedule 3.14 Environmental Matters |
| Schedule 3.15 Wells |
| Schedule 3.16 Compliance with Leases |
| Schedule 3.17 Material Contracts |
| Schedule 3.23 Current Commitments |
| Schedule 3.25 Burdens |

---

iii

------

<u>**ASSET PURCHASE AGREEMENT**</u>

This Asset Purchase Agreement (this "<u>**Agreement**</u>") is made as of April 29, 2022 (the "<u>**Closing Date**</u>"), by and between (i) HB2 Origination, LLC, a Delaware limited liability company ("<u>**Seller**</u>"), and (ii) Alpine Summit Funding LLC, a Delaware limited liability company ("<u>**Issuer**</u>"). Seller and Issuer are sometimes hereinafter referred to individually as a "<u>**Party**</u>" and collectively as the "<u>**Parties**</u>."

**RECITALS**

WHEREAS, immediately prior to the execution of this Agreement and the consummation of the Contemplated Transactions (as defined herein), Seller's wholly owned, indirect subsidiary, AIP Borrower, LP, a Delaware limited partnership (the "<u>**Subsidiary**</u>"), distributed, assigned, and conveyed to Seller all of the Subsidiary's right, title, and interest in and to certain properties and assets of the Subsidiary, including the Subsidiary's respective interests in and to the Wellbore Interests (as defined herein) (the "<u>**Subsidiary Transfer**</u>").

WHEREAS, Seller desires to sell to Issuer, and Issuer desires to purchase from Seller, the Wellbore Interests (including the interests therein assigned by the Subsidiary to Seller pursuant to the Subsidiary Transfer).

**AGREEMENT**

For and in consideration of the promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

**ARTICLE 1**<br>**DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.01 <u>**Definitions**</u> For purposes of this Agreement, in addition to other capitalized terms defined in this Agreement, the following terms have the meanings specified or referred to in this <u>ARTICLE 1</u> when capitalized:

"<u>**Affiliate**</u>" (including its derivatives and similar terms) means, when used with respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person. For purposes of this Agreement, (a) Seller and the Subsidiary are Affiliates of one another, (b) solely for purposes of this Agreement and the other applicable Basic Documents (and notwithstanding that such entities are not affiliates in fact of one another), Operator shall be deemed to be an Affiliate of Seller, and (c) Seller and its subsidiaries (including the Subsidiary), on the one hand, and Issuer and its subsidiaries, on the other hand, shall not be considered Affiliates of one another.

"<u>**Affiliate Contracts**</u>" means those Contracts between Issuer or Seller, on the one hand, and any Affiliate of Seller on the other hand, but excluding any Basic Documents.

"<u>**Agreement**</u>" has the meaning set forth in the preamble to this Agreement.

"<u>**Allocation Schedule**</u>" has the meaning set forth in <u>Section 2.07(d)</u>.

"<u>**Ancillary Agreements**</u>" means all agreements (other than this Agreement) entered into by Issuer and/or Seller (but as to which no Third Party is a party) in connection with the Contemplated Transactions.

"<u>**Applicable Contracts**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Applicable Easements**</u>" has the meaning set forth in the definition of "Wellbore Interests".

------

"<u>**Asset Taxes**</u>" means ad valorem, property, severance, production, sales, use and similar Taxes based upon or measured by the ownership or operation of the Wellbore Interests, the production of Hydrocarbons therefrom or the receipt of proceeds therefrom (excluding, for the avoidance of doubt, any income, franchise or similar Taxes and Transfer Taxes).

"<u>**Assumed Hedge Contracts**</u>" means all Hedge Contracts that are assumed by, or novated to, the Issuer.

"<u>**Assumed Liabilities**</u>" has the meaning set forth in <u>Section 2.08</u>.

"<u>**Basic Documents**</u>" has the meaning set forth in the Indenture.

"<u>**Burden**</u>" means any and all royalties (including lessors' royalties and non-participating royalties), overriding royalties, reversionary interests, net profits interests, production payments and other burdens upon, measured by or payable out of production.

"<u>**Business Day**</u>" means any day (other than a Saturday or Sunday) on which commercial banks in New York, New York are generally open for business.

"<u>**Buy-Out Price**</u>" means, for any Wellbore Interest, (i) the value ascribed to the applicable Well on the most recent Indenture Reserve Report *less* (ii) the following net amount, with each payment or offset discounted at a discount rate of 10% from the Effective Time through the date the payment or offset was made: (a) revenues received by Issuer for production from such Well from and after the date of that Indenture Reserve Report *less* (b) costs and expenses associated with the maintenance and operation of such Well from and after the date of that Indenture Reserve Report.

"<u>**Cash Purchase Price**</u>" has the meaning set forth in <u>Section 2.02</u>.

"<u>**Central Prevailing Time**</u>" means, with respect to any particular time in question, Central Standard Time or Central Daylight Time in effect at such time.

"<u>**Claim**</u>" means any notice, claim, demand, allegation, cause of action, chose in action, or other communication alleging or asserting any Liability or seeking contribution, indemnification, cost recovery, or compensation for Damages or injunctive or other equitable relief.

"<u>**Closing**</u>" means the closing of the Contemplated Transactions.

"<u>**Closing Date**</u>" has the meaning set forth in the preamble to this Agreement.

"<u>**Closing Documents**</u>" means the Issuer's Closing Documents and the Seller's Closing Documents.

"<u>**Code**</u>" means the Internal Revenue Code of 1986, as amended from time to time, and Treasury Regulations promulgated thereunder.

"<u>**Completed Depths**</u>" means, with respect to a Wellbore Interest, the geological zone and depth open to production and from which Hydrocarbons are being produced from the applicable Well as of the Effective Time.

"<u>**Consent**</u>" means any approval, consent, ratification, waiver, or other authorization or expiration of the period for the same (including any Governmental Authorization) from any Person that is required to be obtained in connection with the execution or delivery of this Agreement or the consummation of the Contemplated Transactions; *provided*, *however*, "Consent" does not include any Preferential Purchase Right.

"<u>**Contemplated Transactions**</u>" means all of the transactions contemplated by this Agreement.

------

"<u>**Contract**</u>" means any contract, agreement or other legally binding arrangement, whether oral or in writing; *provided*, *however*, "Contracts" does not include any Leases or any other instrument creating any oil and gas mineral interest or other real property interest.

"<u>**Control**</u>" and its derivatives shall mean, with respect to any Person, the possession, directly or indirectly, of the power to exercise or determine the voting of more than 50% of the voting rights in a corporation, and, in the case of any other type of entity, the right to exercise or determine the voting of more than 50% of the equity interests having voting rights, or otherwise to direct or cause the direction of the management and policies of such Person, whether by Contract or otherwise.

"<u>**Conveyances**</u>" means the instruments of conveyance transferring title of the Wellbore Interests to Issuer. At Closing, the Parties shall execute, acknowledge, and deliver one (1) original of an Assignment and Bill of Sale substantially in the form of <u>Exhibit D</u> for each county in which the Wellbore Interests are located.

"<u>**Conveyed Claims**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**COPAS**</u>" means the Council of Petroleum Accountants Societies.

"<u>**Covered Liabilities**</u>" means the Seller Covered Liabilities or the Issuer Covered Liabilities, as applicable.

"<u>**Custody Transfer Points**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Customary Post-Closing Consents**</u>" has the meaning set forth in the definition of "Permitted Encumbrances".

"<u>**Damages**</u>" means any and all claims, demands, payments, charges, judgments, assessments, losses, liabilities, damages, penalties, fines, expenses, costs, fees, settlements, and deficiencies, including any reasonable attorneys' fees, legal, and other costs and expenses suffered or incurred therewith, including liabilities, costs, losses and damages for personal injury or death or property damage or environmental damage or remediation.

"<u>**Defensible Title**</u>" means such title of Seller (immediately before the Closing and as of the Subsidiary Transfer) and Issuer (as of immediately after the Closing) to each Wellbore Interest in a Well and the applicable Lease that, subject to Permitted Encumbrances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) obligates Seller (as of immediately prior to the Closing and following the Subsidiary Transfer) and Issuer (as of immediately after the Closing), as to such Wellbore Interest, to bear not more than the Working Interest set forth for such Wellbore Interest in <u>Exhibit A</u> as to the Completed Depths for such Wellbore Interest, throughout the duration of the productive life of the applicable Well and the plugging, abandonment or salvage thereof, except (i) to the extent any increase in the Working Interest is accompanied by a proportionate increase in Seller's Net Revenue Interest in such Wellbore Interest, and (ii) increases resulting from contribution requirements provided for under applicable operating agreements with respect to defaulting co-owners other than Seller or its Affiliates for defaults occurring after the Closing Date or reflected on <u>Exhibit A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) entitles Seller (as of immediately prior to the Closing and following the Subsidiary Transfer) and Issuer (as of immediately after the Closing), as to such Wellbore Interest, to not less than the Net Revenue Interest set forth for such Wellbore Interest in <u>Exhibit A</u> as to the Completed Depths for such Wellbore Interest, throughout the duration of the productive life of the applicable Well and the plugging, abandonment or salvage thereof, except decreases resulting from rights of Third Parties to make up past underproduction or pipelines to make up past under deliveries; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is free and clear of all Encumbrances.

"<u>**Discharge Date**</u>" means the date on which the Indenture is satisfied and discharged in accordance with Article XI of the Indenture.

"<u>**Effective Time**</u>" means 12:01 a.m., Central Prevailing Time on April 1, 2022.

"<u>**Encumbrance**</u>" means any equitable interest, privilege, lien, charge, pledge, mortgage, deed of trust, production payment, collateral assignment, security interest, attachment, right of first refusal, option, easement, covenant, encroachment, Burden, defect or irregularity in title, or other arrangement or encumbrance substantially equivalent to any of the foregoing or other adverse claim whatsoever.

"<u>**Environmental Defect**</u>" means an event or condition with respect to any Wellbore Interest which causes (or would, if known, cause) any Wellbore Interest to be subject to any Liability or remediation obligation, in each case, under any Environmental Law.

"<u>**Environmental Law**</u>" means any Legal Requirement relating to the environment, natural resources, health and safety, Hazardous Substances, industrial hygiene, or environmental conditions on, under, or about any applicable property, including soil, groundwater, surface water, soil gas, and indoor and ambient air conditions, or the reporting, investigation or remediation of environmental contamination and includes the Comprehensive Environmental Response, Compensation and Liability Act, including the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. § 9601 <u>et</u> <u>seq</u>.; the Resource Conservation and Recovery Act, including the Hazardous and Solid Waste Amendments Act of 1984, 42 U.S.C. § 6901 <u>et</u> <u>seq</u>.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 <u>et</u> <u>seq</u>.; the Clean Air Act, 42 U.S.C. § 7401 <u>et</u> <u>seq</u>.; the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 <u>et</u> <u>seq</u>.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 through 2629; the Oil Pollution Act, 33 U.S.C. § 2701 <u>et</u> <u>seq</u>.; the Emergency Planning and Community Right to Know Act, 42 U.S.C. § 11001 <u>et</u> <u>seq</u>.; the Safe Drinking Water Act, 42 U.S.C. §§ 300f through 300j; the Rivers and Harbors Act of 1899, 33 U.S.C. § 401 <u>et</u> <u>seq</u>.; and the Occupational Safety and Health Act, 29 U.S.C. § 651 <u>et</u> <u>seq</u>.; as any of the foregoing may be amended as of the Closing, as well as common law.

"<u>**Environmental Liabilities**</u>" means any Liability or other responsibility arising from or under either an Environmental Law or a Third Party Claim relating to the environment, and which relates to the ownership or operation of the Wellbore Interests.

"<u>**Environmental Matters**</u>" means the effect of, or any matters covered by or constituting, Environmental Defects, Environmental Laws, or Environmental Liabilities.

"<u>**Excluded Assets**</u>" has the meaning set forth in <u>Exhibit C</u>.

"<u>**GAAP**</u>" means generally accepted accounting principles.

"<u>**Gathering Facilities**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Governmental Authorization**</u>" means any approval, consent, license, permit, certificate, clearance, franchise, Order, registration, variance, exemption, waiver, or other authorization issued, granted, given, or otherwise made available by or under the authority of any Governmental Body or pursuant to any Legal Requirement.

"<u>**Governmental Body**</u>" means any (a) nation, state, county, city, town, village, district, or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign, tribal or other government; (c) governmental, quasi-governmental, regulatory or administrative authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal); (d) multi-national organization or body; (e) arbitral panel, commission, body or other authority exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature; or (f) any court or governmental tribunal, including any tribal authority having or asserting jurisdiction.

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"<u>**Hazardous Substance**</u>" means any waste, chemical, material or other substance that is listed, defined, designated or classified as hazardous, radioactive or toxic or a pollutant or a contaminant under any Environmental Law, or otherwise regulated under any Environmental Law, including petroleum and all derivatives thereof, asbestos or asbestos-containing materials in any form or condition, and polychlorinated biphenyls.

"<u>**Hedge Contract**</u>" means any Contract to which Seller or any of its Affiliates is a party with respect to any swap, forward, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions, in each case, with respect to or encumbering any of the Wellbore Interests.

"<u>**Holdings**</u>" means Alpine Summit Funding Holdings LLC, a Delaware limited liability company, which, as of the Closing, is a direct subsidiary of Seller and the direct parent entity of Issuer.

"<u>**Hydrocarbons**</u>" means oil, gas, carbon dioxide and other hydrocarbons produced or processed in association therewith (whether or not such item is in liquid or gaseous form), including all crude oils, condensates and natural gas liquids at atmospheric pressure and all gaseous hydrocarbons (including wet gas, dry gas and residue gas) or any combination thereof, and any minerals produced in association therewith.

"<u>**Imbalance**</u>" or "<u>**Imbalances**</u>" shall mean any over-production, under-production, over-delivery, under-delivery or similar imbalance of Hydrocarbons produced from or allocated to the Wells regardless of whether such over-production, under-production, over-delivery, under-delivery or similar imbalance arises at the platform, wellhead, pipeline, gathering system, transportation system, processing plant or other location.

"<u>**Indemnified Party**</u>" has the meaning set forth in <u>Section 5.09</u>.

"<u>**Indemnifying Party**</u>" has the meaning set forth in <u>Section 5.09</u>.

"<u>**Indenture**</u>" means that certain Indenture dated of even date herewith by and between Issuer and the Indenture Trustee.

"<u>**Indenture Reserve Report**</u>" means the "Reserve Report" as defined in the Indenture, which, until the date of delivery of a subsequent "Reserve Report" under the Indenture, will be the Reserve Report as defined herein.

"<u>**Indenture Trustee**</u>" means UMB Bank N.A., a national banking association.

"<u>**Independent Expert**</u>" has the meaning set forth in <u>Section 5.11(f)</u>.

"<u>**Independent Expert Decision**</u>" has the meaning set forth in <u>Section 5.11(f)</u>.

"<u>**Initial Reserve Engineers**</u>" means Austin Consulting Petroleum Engineers Inc.

"<u>**Issuer**</u>" has the meaning set forth in the preamble to this Agreement.

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"<u>**Issuer Books and Records**</u>" means, **INSOFAR AND ONLY INSOFAR** as relating to the Wellbore Interests, the following: all lease files; land files, including unrecorded agreements related thereto; well files; division order files; abstracts; title opinions; land surveys; logs; maps; and other books, records, data, files, and accounting records; but, in each case, excluding any and all (a) books, records, data, files, maps, and accounting records to the extent disclosure or transfer is restricted or prohibited by third-party agreement or applicable Legal Requirements, (b) attorney-client privileged communications and work product of Seller's legal counsel (other than title opinions), (c) reserve studies and evaluations, and (d) records relating to the negotiation and consummation of the acquisition of the Wellbore Interests pursuant to this Agreement.

"<u>**Issuer Indemnity Group**</u>" has the meaning set forth in <u>Section 5.02</u>.

"<u>**Issuer's Closing Documents**</u>" means the documents executed and/or delivered by Issuer at the Closing.

"<u>**Joint Operating Agreement**</u>" shall mean the Joint Operating Agreement by and between Issuer and Operator, in the form attached hereto as <u>Exhibit F</u>.

"<u>**Knowledge**</u>" means the actual knowledge (without any duty of inquiry) of any of the following Representatives of Seller: Craig Perry (Chairman and Chief Executive Officer), Michael McCoy (Chief Operating Officer), Darren Moulds (Chief Financial Officer), and Chris Nilan (Senior Managing Director).

"<u>**Lands**</u>" has the meaning set forth in the definition of "Leases".

"<u>**Leases**</u>" means all oil and gas leases, subleases, mineral fees, leaseholds, and other similar interests of Seller covering or contributing to Seller's interest in any Well, including all interests set forth on <u>Exhibit A</u> and all of Seller's applicable working interests, leasehold interests, overriding royalty interests, royalty interests, net profits interests, carried interests, and similar rights and interests in the lands covered by such leases and the lands pooled, unitized, or communitized with the lands covered by such leases (those lands, collectively, the "<u>**Lands**</u>").

"<u>**Legal Requirement**</u>" means any federal, state, local, municipal, foreign, international, multinational or other law (including common law), Order, code, constitution, ordinance, rule (including rules of common law), regulation, statute, treaty (including any income tax treaty), license, permit, authorization, approval, consent, decree, injunction, binding judicial or administrative interpretation or other legally enforceable directive or requirement, in each case, enacted, promulgated, issued or entered by a Governmental Body.

"<u>**Liabilities**</u>" shall mean all debts, guarantees, assurances, commitments, liabilities, responsibilities, costs, expenses, damages, fines, penalties, deficiencies, settlements, sanctions, interest and obligations of any nature or kind (including legal and accounting fees and expenses and costs of investigation and litigation and damages for personal injury or death or property damage), whether accrued or fixed, absolute or contingent, matured or unmatured, liquidated or unliquidated, or known or unknown, and including those arising under any Legal Requirement or action and those arising under any Contract, agreement, obligation, indenture, instrument, lease, promise, arrangement, release, warranty, commitment or undertaking, or any equitable relief that is imposed, including any reasonable attorneys' fees, legal, and other costs and expenses suffered or incurred therewith.

"<u>**Management Services Agreement**</u>" means a Management Services Agreement by and between Issuer and Seller, in the form attached hereto as <u>Exhibit E</u>.

"<u>**Material Contracts**</u>" has the meaning set forth in <u>Section 3.17</u>.

"<u>**Midstream Contracts**</u>" has the meaning set forth in <u>Section 3.17</u>.

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"<u>**Net Revenue Interest**</u>" means, for any Wellbore Interest, the holder's share of the Hydrocarbons produced, saved and marketed therefrom (after satisfaction of all Burdens).

"<u>**Non-Party Affiliate**</u>" has the meaning set forth in <u>Section 6.13</u>.

"<u>**Noteholders**</u>" has the meaning set forth in the Indenture.

"<u>**Operator**</u>" means Ironroc Energy Partners, LLC, a Texas limited liability company, in its capacity as operator under the Joint Operating Agreement.

"<u>**Order**</u>" means any award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any court, administrative agency, or other Governmental Body or by any arbitrator.

"<u>**Organizational Documents**</u>" means (a) the Articles or certificate of incorporation and the bylaws of a corporation; (b) the Articles of organization and regulations of a limited liability company; (c) the certificate of limited partnership and limited partnership agreement of a limited partnership; and (d) any amendment to any of the foregoing.

"<u>**Party**</u>" and "<u>**Parties**</u>" has the meaning set forth in the preamble to this Agreement.

"<u>**Permitted Consent**</u>" means any Consent (a) that is a Customary Post-Closing Consent, (b) required under any applicable maintenance of uniform interest provision under any joint operating agreement, or (c) with respect to which (i) such Consent may not be unreasonably withheld pursuant to the express terms of the applicable Lease or Contract, provided that a request for Consent shall have been provided at least 5 Business Days before the Closing in accordance with the terms of the applicable Lease or Contract and such Person shall not have responded and denied or refused to provide such Consent, and (ii) there is no provision in the applicable Lease or Contract expressly stating that an assignment (including by operation of Legal Requirements) in violation thereof (1) is null, unenforceable, void or voidable, (2) triggers the payment of specified liquidated damages, or (3) causes termination or provides a right of termination to a Person other than Seller (and after Closing, Issuer) of the applicable Lease, Applicable Easement, or Contract.

"<u>**Permitted Encumbrance**</u>" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Encumbrances for Taxes that are not yet due and payable or that are being contested in good faith by appropriate Proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the terms and conditions of, and all Encumbrances arising under, (i) all Applicable Contracts and Leases, except with respect to any such Encumbrances arising thereunder and securing amounts past due, and (ii) all Assumed Hedge Contracts and Basic Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Consents or Preferential Purchase Rights with respect to which prior to Closing (i) waivers or consents have been obtained from the appropriate Person, or (ii) the applicable period of time for asserting such rights has expired without any exercise of such rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Permitted Consents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights-of-way, permits, surface leases, and other similar rights on, over, or in respect of any of the Wellbore Interests to the extent they do not materially impair the use, ownership or operation of the Wells, Applicable Easements, and Leases as currently used, owned, and operated;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) vendor's, materialman's, mechanic's, repairman's, carrier's, warehousemen's, workmen's, construction or other like liens arising by operation of law in the ordinary course of business or incident to the construction or improvement of any property in respect of obligations which are not yet due or delinquent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all rights to consent by, required notices to or filings with Governmental Bodies in connection with the conveyance of the Wellbore Lease Rights to Issuer if the same are customarily sought and received after assignment, disposition or transfer of interests therein (collectively, "<u>**Customary Post-Closing Consents**</u>"), and Customary Post-Closing Consents shall include any consents required in connection with the sale, disposition, transfer, or conveyance of federal, state, tribal, or other governmental oil and gas leases or interests therein or related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) defects or irregularities in the chain of title: (i) consisting of the failure to recite marital status or omissions of heirship Proceedings in documents; (ii) arising out of lack of evidence of, or other defects with respect to, authorization, execution, delivery, acknowledgement, or approval of any instrument in Seller's chain of title unless Issuer provides affirmative evidence that such action did not occur and has resulted in a claim of superior title from a Third Party; (iii) resulting from lack of survey, unless a survey is expressly required by applicable Legal Requirements; (iv) resulting from failure to record rights-of-way, releases of liens, production payments, or mortgages that have expired by their own terms or the enforcement of which are barred by the applicable statute(s) of limitations or prescription; or (v) resulting from or related to probate proceedings or the lack thereof that have been outstanding for ten (10) years or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) conventional rights of reassignment obligating Seller to reassign Seller's interest in any portion of the Wellbore Lease Rights to a Third Party, if such rights have not been triggered as of the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Burdens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) rights of a common owner of any interest in a Well or Lease, held by Seller (or the Issuer after Closing) and such common owner as tenants in common or through common ownership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Encumbrances created under deeds of trust, mortgages, and similar instruments by the lessor under a Lease, unless a complaint of foreclosure has been filed or any similar action taken by the mortgagee thereunder and such instrument has not been subordinated to the Wellbore Interests affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) defects based on the failure of the records of any Governmental Body to reflect Seller (as of immediately prior to the Closing and following the Subsidiary Transfer) and Issuer (as of immediately after the Closing) as the record owner of the Wellbore Interest in any Lease or Well if Seller (as of immediately prior to the Closing and following the Subsidiary Transfer) and Issuer (as of immediately after the Closing) is reflected as the record owner of the Wellbore Interest in the Lease or Well in the applicable county real property records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) defects, gaps, or irregularities that have been cured by possession under any applicable statutes of limitation for adverse possession or for prescription or under marketable title or similar Legal Requirements or standards or the doctrine of laches, or that have existed for more than twenty (20) years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) irregularities or defects based solely on (i) lack of information in Seller's files, lack of Third Party records, or the unavailability of information from regulatory agencies, (ii) references to a document that is not in Seller's files, (iii) references to an unrecorded document to which neither Seller nor any of its Affiliates is a party and which is dated earlier than January 1, 1990, or (iv) any changes in Legal Requirements following the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) irregularities, defects, or loss of title affecting ownership interests in formations or depths other than the applicable Completed Depths for a Wellbore Interest;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) any matters set forth on <u>Exhibit A</u>, <u>Exhibit B</u>, or <u>Schedule 3.12</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) all other Encumbrances, irregularities, and defects affecting a Wellbore Interest, but only to the extent that they do not, individually or in the aggregate, materially impair the use, ownership or operation of the applicable Well, Applicable Easements, and Lease(s) as currently used, owned, and operated.

Notwithstanding the foregoing, if any matter described in the foregoing clauses (a) through (r), (but excluding any matter described in clauses (b)(ii), (i) (unless as of Closing the passage of time or action by a Third Party that such Third Party was entitled to take as of Closing would trigger such rights, in which case clause (i) shall not be excluded), and (q)) that exists before or as of the Closing causes or results in, as of or at any time after the Effective Time or Closing, a Protected Outcome to occur for a reason other than the breach of or failure to satisfy any obligation owed by, failure to comply with Legal Requirements by, or other election, action, deemed non-consent under a joint operating agreement by, or fault of Issuer after Closing (provided, and without limiting the foregoing limitations in this sentence, Issuer shall have no obligation to take any action to prevent the occurrence of a Protected Outcome other than as may be required by Legal Requirements for which Issuer is responsible or by contractual obligations of Issuer, in each case excluding Retained Liabilities), and either (A) such Protected Outcome has either been alleged or asserted in writing by any Person other than by, or on behalf of, Issuer or its successors and assigns (provided that the Noteholders or Issuer may assert the basis or occurrence of a Protected Outcome in connection with a credit bid or following an allegation from or action by some other Third Party (including a potential buyer in a sale of the Wellbore Interests in a foreclosure sale) that asserts superior title or facts or a claim that, if accurate or valid in whole or in part, would constitute the existence of a Protected Outcome or otherwise provides a reasonable basis to support the existence of a Protected Outcome, in which case this clause (A) shall be satisfied) or (B) any Person has suspended or withheld (or threatened to suspend or withhold) from Issuer timely payment of any revenues on the basis of such Protected Outcome or that would otherwise have been due to Issuer but for such Protected Outcome, then (i) such matter shall, as of the occurrence of a Protected Outcome (with any dispute as to the occurrence of a Protected Outcome being subject to resolution pursuant to <u>Section 5.11(f)</u>), cease to be a Permitted Encumbrance for purposes of the definition of Defensible Title, (ii) such Protected Outcome shall be deemed to have existed as of immediately following the Closing, and (iii) Issuer shall be entitled to the remedies in <u>Section 5.11</u> with respect to any Title Failure occurring as a result of the application of the forgoing clauses (i) and (ii).

"<u>**Person**</u>" means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture, unincorporated organization, limited liability entity, estate, trust, association, organization, labor union, or other entity or Governmental Body.

"<u>**Plugging and Abandonment Obligations**</u>" means, to the extent allocable to the Wellbore Interests, any and all Claims, Liabilities, and Damages resulting from, arising out of, or otherwise related to any of the following: (a) the plugging, replugging, and/or abandonment of the Wells and the dismantling, salvaging, removal, abandonment, disposal, capping, and/or burying of all Well Facilities (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities); (b) to the extent related to the items described in clause (a) above, the restoration of the surface and subsurface of the Leases and Lands to the condition required by applicable Legal Requirements, Governmental Authorizations, Orders, Leases, and Applicable Contracts; and (c) all other Claims and Losses relating to the items described in clause (a) or (b) above and either arising under the Leases or Applicable Contracts or asserted by Governmental Bodies or Third Parties.

"<u>**Precautionary Mortgage**</u>" has the meaning set forth in <u>Section 2.04</u>.

"<u>**Preferential Purchase Right**</u>" means any right or agreement that enables any Person to purchase or acquire any Wellbore Interest or any interest therein or portion thereof as a result of or in connection with the execution or delivery of this Agreement or the consummation of the Contemplated Transactions.

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"<u>**Proceeding**</u>" means any action, arbitration, audit, hearing, litigation, or suit (whether civil, criminal, administrative, investigative, or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator.

"<u>**Property Costs**</u>" means all costs and expenses attributable to the development, operation and/or ownership of the Wellbore Interests, including, but not limited to, (a) all bonuses and rentals, royalties, overriding royalties, shut-in royalties, minimum royalties, and renewal and extension payments required to renew and extend Wellbore Lease Rights, (b) all operating expenses and capital expenditures, and (c) all Asset Taxes, <u>provided</u> that the Retained Liabilities shall not be "Property Costs".

"<u>**Protected Outcome**</u>" means, with respect to a Wellbore Interest, Issuer, as of immediately after the Closing or at any time thereafter throughout the duration of the productive life of the applicable Well and the plugging, abandonment or salvage thereof, (a) being entitled to a Net Revenue Interest as to the Completed Depths for such Wellbore Interest less than the Net Revenue Interest set forth in <u>**Exhibit A**</u> for such Wellbore Interest, or (b) being obligated to bear a Working Interest as to the Completed Depths for such Wellbore Interest in an amount greater than the Working Interest set forth in <u>**Exhibit A**</u> (unless Issuer's Net Revenue Interest for such Completed Depth is greater than the Net Revenue Interest set forth in <u>**Exhibit A**</u> for such Completed Depth and such increase is in the same or greater proportion as any increase in such Working Interest).

"<u>**Representative**</u>" means, with respect to any Person, any director, officer, manager, employee, agent, consultant, advisor, or other representative of such Person, including legal counsel, accountants, financial advisors, or other representatives.

"<u>**Repurchased Interest**</u>" has the meaning set forth in the definition of "Retained Liabilities".

"<u>**Reserve Report**</u>" means that certain reserve report dated March 23, 2022, prepared by the Initial Reserve Engineers as of March 1, 2022, with respect to the Wells.

"<u>**Retained Gathering Facilities**</u>" means all right, title, and interests in and to the Gathering Facilities to the extent not constituting a part of the Wellbore Interests (i.e., being the remaining undivided interest of all of Seller's right, title, and interest therein after conveyance of the Wellbore Interests therein).

"<u>**Retained Hedge Contracts**</u>" means all Hedge Contracts other than the Assumed Hedge Contracts.

"<u>**Retained Liabilities**</u>" means, except for Plugging and Abandonment Obligations, Asset Taxes allocated to Issuer pursuant to <u>Section 2.07(b)</u>, and Liabilities, Damages, and obligations under the Assumed Hedge Contracts, all of the following Liabilities, Damages, and obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) costs and expenses allocable to the Wellbore Interests to the extent incurred during or attributable to the period prior to the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liabilities for Burdens allocable to the Wellbore Interests to the extent attributable to production from the Wells during the period prior to the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) excluding (1) Property Costs allocable to the Wellbore Interests to the extent attributable to the period from the Effective Time until the Closing Date and incurred in the ordinary course and not as a result of any failure by Seller or its Affiliates to comply with the standards set forth in applicable operating agreements and (2) Liabilities for Burdens allocable to the Wellbore Interests to the extent attributable to production from the Wells during the period from the Effective Time until the Closing Date, all other Liabilities, Damages, and obligations incurred during or otherwise attributable to the period prior to the Closing Date and that are related or attributable to the development, operation or ownership of the Seller Assets, the Wellbore Interests, the Wells or the Leases or any breach or violation of or failure to comply with the Leases, including: (i) any such Environmental Liability or Environmental Defect incurred during or attributable to the period prior to the Closing Date; (ii) any such Liabilities for personal injuries or death, property damage, torts, breach of contract or violation of any Legal Requirement or Governmental Authorization incurred during or attributable to the period prior to the Closing Date; (iii) Liabilities and obligations arising out of, resulting from, or attributable to any Third Party claim related to the gross negligence or willful misconduct of Seller or any of its Affiliates in connection with the operation by Seller or any of its Affiliates of any Well or Well Facilities during the period prior to the Closing Date; (iv) any disposal of any Hazardous Substances offsite of the Leases or any lands pooled therewith that occurred or was conducted prior to the Closing Date and associated with the operation or ownership of any Well or Well Facility; and (v) all Liabilities arising under any mortgage, pledge, security agreement or security instrument to which Seller or any of its Affiliates is a party including, without limitation, any such mortgage, security agreement or pledge which grants a lien or security interest in after acquired property;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Liabilities, Damages and obligations to the extent attributable to: (i) the Excluded Assets and not to any Wellbore Interests, regardless of whether arising before, on, or after the Effective Time; (ii) any indebtedness for borrowed money obligations of Seller or its Affiliates, regardless of whether such Liabilities arose before, on, or after the Effective Time; (iii) any Seller Taxes, regardless of whether arising before, on, or after the Effective Time; and (iv) any Transfer Taxes, regardless of whether arising before, on, or after the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Liabilities, Damages, and obligations to the extent related to any Wellbore Interest repurchased by Seller pursuant to <u>Section 5.11(d)</u> (each, a "<u>**Repurchased Interest**</u>"), but solely to the extent such Liabilities, Damages, and obligations are attributable to the period from and after the effective date of that repurchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Liabilities, Damages, and obligations with respect to any Environmental Defect that was incurred, or offsite disposal of any Hazardous Substances that occurred or was conducted, in each case, prior to the Closing Date and associated with the Wellbore Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Liabilities, Damages, and obligations under any Retained Hedge Contracts.

"<u>**Seller**</u>" has the meaning set forth in this Agreement.

"<u>**Seller Assets**</u>" means all assets, rights, titles, interests and properties of every kind, nature, character or description (whether real, personal, mixed or otherwise) held by Seller and/or any of its Affiliates immediately prior to the Closing, excluding the Wellbore Interests.

"<u>**Seller Indemnity Group**</u>" has the meaning set forth in <u>Section 5.03</u>.

"<u>**Seller Taxes**</u>" means (a) Asset Taxes allocated to Seller pursuant to <u>Section 2.07(b)</u>, without duplication of any amount that was included as a Property Cost and resulted in a reduction of the Cash Purchase Price, and (b) income or franchise Taxes imposed on Seller, any of its direct or indirect owners or Affiliates (other than Issuer), or any combined, unitary or consolidated group of which any of the foregoing is or was a member.

"<u>**Seller's Closing Documents**</u>" means the documents required under <u>Section 2.06(a)</u> to be executed and/or delivered by Seller or any Affiliate of Seller at the Closing.

"<u>**Straddle Period**</u>" means any period beginning before and ending on or after the day of the Effective Time.

"<u>**Subsidiary**</u>" has the meaning set forth in the recitals to this Agreement.

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"<u>**Subsidiary Conveyance**</u>" means that certain Assignment and Bill of Sale executed, acknowledged, and delivered by the Subsidiary to Seller, immediately prior to the execution of this Agreement and the consummation of the Contemplated Transactions, and pursuant to which the Subsidiary Transfer was effected.

"<u>**Subsidiary Transfer**</u>" has the meaning set forth in the recitals to this Agreement.

"<u>**Tax**</u>" or "<u>**Taxes**</u>" means any (a) and all federal, state, provincial, local, foreign and other taxes, levies, fees, imposts, duties, assessments, and other governmental charges imposed by any Governmental Body, including income, profits, franchise, withholding, employment, social security (or similar), disability, occupation, ad valorem, property, value added, capital gains, sales, goods and services, use, real or personal property, capital stock, license, branch, payroll, estimated, unemployment, severance, compensation, utility, stamp, occupation, premium, windfall profits, transfer, gains, production and excise taxes, and customs duties, together with any interest, penalties, fines or additions thereto, (b) liability for any amounts of the type described in clauses (a), (c), and (d) of a predecessor entity, as a transferee or arising by operation of law, (c) liability for the payment of any amounts of the type described in clauses (a), (b), or (d) as a result of being a member of an affiliated, consolidated, combined, or unitary group for any period (including any arrangement for group or consortium Tax relief or similar arrangement), and (d) liability for the payment of any amounts of the type described in clauses (a), (b), or (c) as a result of any express or implied obligation to indemnify any other person or as a result of any obligation under any agreement or arrangement to make any payment determined by reference to the Tax liability of a third party.

"<u>**Tax Returns**</u>" means any report, return, election, document, estimated tax filing, declaration or other filing related to Taxes filed or required to be filed with any Governmental Body, including any amendments thereof and any attachments thereto.

"<u>**Third Party**</u>" shall mean any Person other than the Parties or their respective Affiliates.

"<u>**Third Party Claim**</u>" has the meaning set forth in <u>Section 5.09</u>.

"<u>**Threatened**</u>" means that a demand or statement has been delivered in writing to Seller or its Affiliates prior to the Closing Date and that would lead a prudent Person to conclude that such a claim, Proceeding, dispute, action, or other matter is reasonably likely to be asserted, commenced, taken, or otherwise pursued in the future.

"<u>**Title Adjustment Amount**</u>" has the meaning set forth in <u>Section 5.11(e)</u>.

"<u>**Title Credit**</u>" means any right, circumstance or condition with respect to a Wellbore Interest that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) obligates Seller (and after Closing, will obligate Issuer) to bear a Working Interest as to such Wellbore Interest that is less than the Working Interest set forth for such Wellbore Interest in <u>Exhibit A</u> as to the Completed Depths for such Wellbore Interest (to the extent, and solely to the extent, such right, circumstance or condition decreases Seller's (and after Closing, Issuer's) Working Interest in a greater proportion than any accompanying decrease in Seller's (and after Closing, Issuer's) Net Revenue Interest in such Wellbore Interest from the Net Revenue Interest set forth for such Wellbore Interest in <u>Exhibit A</u>);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) entitles Seller (and after Closing, will entitle Issuer) to a Net Revenue Interest as to such Wellbore Interest that is greater than the Net Revenue Interest set forth for such Wellbore Interest in <u>Exhibit A</u> as to the Completed Depths for such Wellbore Interest.

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"<u>**Title Credit Amount**</u>" means the amount resulting from a Title Credit by which the value of the applicable Wellbore Interest is increased as a result of the existence of such Title Credit, which shall be determined in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if a Title Credit affects the applicable Wellbore Interest for less than its full productive life, the Title Credit Amount shall be reduced to take into account the applicable time period only, using generally accepted engineering analysis and present value calculations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to clause (a) above in this definition:

&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 Title Credit is an increase in the Net Revenue Interest of Seller (and after the Closing, Issuer) with respect to any Wellbore Interests from that set forth on <u>Exhibit A</u> and the Working Interest that Seller is obligated to bear with respect to such Wellbore Interest is proportionately increased from that set forth on <u>Exhibit A</u>, then the Title Credit Amount shall be equal to the product of (1) the value ascribed to the applicable Well on the most recent Indenture Reserve Report, *multiplied by* (2) a fraction, (A) the numerator of which is the difference between such Person's actual Net Revenue Interest for the applicable Wellbore Interest and the Net Revenue Interest set forth on <u>Exhibit A</u> for the applicable Wellbore Interest, and (B) the denominator of which is the Net Revenue Interest set forth on <u>Exhibit A</u> for such Wellbore Interest; 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;(ii) if the Title Credit is not of the type described in subsection (a) above, the Title Credit Amount shall be determined by taking into account the value ascribed to the applicable Well on the most recent Indenture Reserve Report, the portion of such Wellbore Interest that is affected by the Title Credit, the legal effect of the Title Credit, the potential economic effect of the Title Credit over the life of the affected Well and such other reasonable factors as are necessary to make a proper evaluation.

"<u>**Title Failure**</u>" means, as to any Wellbore Interest, any lien, defect or other condition that causes Seller as of immediately prior to the Closing and following the Subsidiary Transfer or Issuer as of immediately after the Closing not to have Defensible Title in and to such Wellbore Interest.

"<u>**Title Failure Amount**</u>" means the amount resulting from a Title Failure by which the value of the applicable Wellbore Interest is reduced as a result of the existence of such Title Failure, which shall be determined in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate amount of all Title Failure Amounts attributable to all Title Failures, other than Encumbrances, affecting any Wellbore Interest shall not exceed the value ascribed to the applicable Well on the most recent Indenture Reserve Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Title Failure Amount with respect to an Encumbrance shall not exceed the cost to cure the related Title Failure (if the cost to cure is reasonably determinable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if a Title Failure affects the applicable Wellbore Interest for less than its full productive life, the Title Failure Amount shall be reduced to take into account the applicable time period only, using generally accepted engineering analysis and present value calculations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in determining the Title Failure Amount of an individual Title Failure, such Title Failure Amount shall be without duplication of any other Title Failure Amount calculated hereunder based on or arising out of the same underlying objections to title to the applicable Wellbore Interest; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to clauses (a) through (d) above in this definition:

&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 Title Failure is a decrease in the Net Revenue Interest to which Seller (and after the Closing, Issuer) is entitled with respect to such Wellbore Interest and the Working Interest that Seller (and after the Closing, Issuer) is obligated to bear with respect to such Wellbore Interest is proportionately reduced from that set forth in <u>Exhibit A</u>, the Title Failure Amount shall be equal to the product of (1) the value ascribed to the applicable Well on the most recent Indenture Reserve Report, *multiplied by* (2) a fraction, (A) the numerator of which is the excess of the Net Revenue Interest set forth on <u>Exhibit A</u> for the applicable Wellbore Interest over the Seller's actual Net Revenue Interest, and (B) the denominator of which is the Net Revenue Interest set forth on <u>Exhibit A</u> for such Wellbore Interest;

&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 Title Failure is an Encumbrance or other charge which is undisputed and liquidated in amount, then the Title Failure Amount shall be the amount necessary to be paid to remove the Title Failure from the affected Wellbore Interest; 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;(iii) if the Title Failure is not of the type described in subpart (i) or (ii) above, the Title Failure Amount shall be determined by taking into account the value ascribed to the applicable Well on the most recent Indenture Reserve Report, the portion of the Wellbore Interest that is affected by the Title Failure, the legal effect of the Title Failure, the reasonably anticipated cost to cure the Title Failure, the potential economic effect of the Title Failure over the life of the Wellbore Interest and such other reasonable factors as are necessary to make a proper evaluation.

"<u>**Title Matters**</u>" has the meaning set forth in <u>Section 5.11(h)</u>.

"<u>**Transfer Taxes**</u>" means any and all sales, use, transfer (including real property transfer) and other similar Taxes, if any, imposed or required in connection with the assignment of the Wellbore Interests to Issuer or the filing or recording of all assignments related to the conveyance of the Wellbore Interests to Issuer.

"<u>**Well Facilities**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Wellbore Facilities**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Wellbore Interests**</u>" means the following, but excluding the Excluded Assets:

&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) with respect to each Hydrocarbon well set forth in <u>Exhibit A</u> (collectively, the "<u>**Wells**</u>", and each, a "<u>**Well**</u>"), all of Seller's right, title, and interest in and to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 wellbore of such well, as such wellbore has been completed as of the Effective Time or may be extended or otherwise reworked or recompleted at any time thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Hydrocarbons produced from or attributable to the wellbore of such Well from and after the Effective Time, and all proceeds or accounts receivable resulting from the sale of any such Hydrocarbons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Leases, in each case, **INSOFAR AND ONLY INSOFAR** as the rights thereunder are necessary or used to (A) own, operate, and maintain such Well, (B) participate in and perform subsequent operations at any time applicable to such Well (including maintenance, repair, workovers, reworks, or extensions (including lateral extensions) of the wellbore of such Well), or (C) produce, store, and transport Hydrocarbons from the wellbore of such Well (such rights to and under the Leases, collectively, the "<u>**Wellbore Lease Rights**</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any units or pooled or communitized lands arising on account of the Leases having been unitized or pooled into such units, pools or communitized lands, and all unitization, pooling or communitization agreements, declarations or designations and statutorily, judicially or administratively created drilling, spacing and/or production units, whether recorded or unrecorded, in each case, **INSOFAR AND ONLY INSOFAR** as necessary or used to (A) own, operate, and maintain such Well, (B) participate in and perform subsequent operations at any time applicable to such Well (including maintenance, repair, workovers, reworks, or extensions (including lateral extensions) of the wellbore of such Well), or (C) produce, store, and transport Hydrocarbons from the wellbore of such Well (such rights to and under the foregoing, collectively, the "<u>**Unit Rights**</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;(v) all tangible personal property, fixtures, and improvements, in each case, **INSOFAR AND ONLY INSOFAR** as necessary for or used in connection with the ownership or operation of, or for the production or transportation of Hydrocarbons from, such Well or the other Wellbore Interests therein (including (i) all wellheads, casing, tubing, pumps, motors, gauges, valves, heaters, treaters, water lines, and vessels and (ii) all flowlines, pipelines, meters, separators, heater treaters, vapor recovery units, tanks, and any other associated equipment), in each case, to the extent the foregoing (A) are located up to, or constitute a part of, the wellhead of such Well or (B) are located between the wellhead of such Well and the outlet valve of the individual gas meter applicable to such Well (for gas) or the outlet valves of the oil tank battery and water tank battery of the facilities applicable to such Well (for oil and water) (collectively, the "<u>**Wellbore Facilities**</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;(vi) all Contracts, in each case, **INSOFAR AND ONLY INSOFAR** as, and then only to the extent, pertaining to (a) the ownership of the Wellbore Interests (including existing joint operating agreements to the extent covering or relating to any of the Wells or Wellbore Lease Rights) or (b) the gathering, treating, storing, transporting, processing, or selling of Hydrocarbons from the Wells (and not to the extent pertaining to the ownership of, or the gathering, treating, storing, transporting, processing, or selling of Hydrocarbons from, any Excluded Assets) (collectively, the "<u>**Applicable Contracts**</u>"); including, to the extent pertaining to the other Wellbore Interests, all Material Contracts and Midstream Contracts listed on <u>Schedule 3.17</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;(b) with respect to each Well, (i) an undivided twenty percent (20%) of all of Seller's legal right, title, and interest (together with and limited to the beneficial ownership, rights, and obligations set forth in the applicable Conveyance) in and to all tangible personal property, fixtures, and improvements, in each case, **INSOFAR AND ONLY INSOFAR** as necessary for or used in connection with the gathering, treating, storing, transporting, processing, or selling of Hydrocarbons from such Well (including all flowlines, pipelines, meters, and other similar equipment), in each case, to the extent the foregoing are located between the Wellbore Facilities applicable to such Well (for gas) and the locations at which custody to the Hydrocarbons and other production from such Well transfers from Seller to the respective counterparties pursuant to the applicable gas Marketing Contracts described on <u>Schedule 3.17</u> (such locations, the "<u>**Custody Transfer Points**</u>", and the foregoing in this <u>clause (b)</u>, collectively, the "<u>**Gathering Facilities**</u>" (which defined term, for clarity, includes all of Seller's right, title, and interest in and to the foregoing in this clause (b), including both the undivided twenty percent (20%) thereof included within the Wellbore Interests as well as that portion constituting the Retained Gathering Facilities) and, together with the Wellbore Facilities, the "<u>**Well Facilities**</u>") and (ii) the rights to the use of all of the Gathering Facilities (including both the portion constituting Wellbore Interests and the portion constituting Retained Gathering Facilities) as set forth in Section 1.3 of the Conveyance, including the highest priority call on capacity thereon for transportation of Hydrocarbons;

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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;(c) with respect to each Well, a non-exclusive, perpetual, assignable, cost-free license to use all rights-of-way, easements, access or crossing licenses, and permits, in each case, **INSOFAR AND ONLY INSOFAR** as necessary for or used in connection with the ownership, operation or maintenance of, or the production, gathering, treating, storing, transporting, processing, or selling of Hydrocarbons from, such Well (collectively, the "<u>**Applicable Easements**</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;(d) copies (but not the originals) of the Issuer Books and Records; 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;(e) all rights, claims, and causes of action (including all rights of indemnity, recovery, set-off or refunds against Third Parties) of Seller, including rights, claims, and causes of action against Third Parties under Contracts that are not Applicable Contracts, in each case, **INSOFAR AND ONLY INSOFAR** as such rights, claims, or causes of action relate to the Assumed Liabilities or to title to the Wellbore Interests (collectively, the "<u>**Conveyed Claims**</u>").

"<u>**Wellbore Lease Rights**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Wells**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Working Interest**</u>" means, for any Wellbore Interest, that share of costs and expenses associated with the exploration, maintenance, development, and operation of the applicable Well (and the applicable Wellbore Lease Rights) that the holder of the Wellbore Interest is required to bear and pay, including the plugging and abandonment of and all other operations related to such Well, but without regard to the effect of any Burdens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.02 <u>**Interpretation**</u>. All references in this Agreement or the Ancillary Agreements to Exhibits, Schedules, Annexes, Articles, Sections, subsections and other subdivisions refer to the corresponding Exhibits, Schedules, Annexes, Articles, Sections, subsections and other subdivisions of or to this Agreement or the Ancillary Agreements unless expressly provided otherwise. Titles appearing at the beginning of any Articles, Sections, subsections and other subdivisions of this Agreement or the Ancillary Agreements are for convenience only, do not constitute any part of this Agreement or the Ancillary Agreements, 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 or other subdivision unless expressly so limited. The words "this Article," "this Section" and "this subsection," and words of similar import, refer only to Article, Section or subsection 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 GAAP, as in effect on the date of this Agreement. The word "or" is not exclusive and shall have the same meaning as "and/or" unless the context requires otherwise. 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. Appendices, Annexes and Exhibits referred to herein are attached to and made a part of this Agreement. Unless expressly stated otherwise, references to any Legal Requirement, Contract, or Lease shall mean such Legal Requirement, Contract, or Lease as it may be amended from time to time.

**ARTICLE 2**<br>**SALE AND TRANSFER OF WELLBORE INTERESTS; CLOSING**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.01 <u>**Sale and Purchase**</u>. On the terms and conditions of this Agreement, Seller agrees to sell and convey to Issuer, and Issuer agrees to purchase from Seller, the Wellbore Interests. For the avoidance of doubt, Issuer shall be entitled to the proceeds of volumes of Hydrocarbons produced from the Wellbore Interests from and after the Effective Time as if the Closing had occurred at the Effective Time, even if the Conveyances are not valid until the Closing Date. Notwithstanding anything else in this Agreement, the Wellbore Interests shall not include, and there is excepted, reserved, and excluded from the Contemplated Transactions, the Excluded Assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.02 <u>**Purchase Price; Closing Settlement Statement**</u>. The base cash portion of the purchase price for the Wellbore Interests is $67,041,025.22 (the "<u>**Cash Purchase Price**</u>"). To the extent that the value of the Wellbore Interests exceeds such Cash Purchase Price, such difference shall be deemed to be an increase in the value of the equity interest of Seller in Holdings and an increase in the value of the equity interest of Holdings in Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.03 <u>**Costs and Expenses**</u>. If Closing occurs, Seller shall pay, or cause to be paid, (a) all recording fees and expenses for the recording of the Conveyances in the local real estate records and (b) all reasonable expenses of (i) Issuer's legal counsel in connection with the negotiation, review, structuring, and closing of this Agreement and the Issuer's Closing Documents and (ii) all advisors, consultants and independent Third Parties engaged by or on behalf of Seller or its Affiliates or Issuer in preparing or reviewing this Agreement and the Issuer's Closing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.04 <u>**Intention of the Parties**</u>. It is the intention of Seller and Issuer that the assignment and transfer contemplated herein and by the Conveyances shall constitute (and shall be construed and treated for all purposes, other than for U.S. federal, state, or local income Tax purposes, as) a true and complete sale of the Wellbore Interests as described in the Conveyances, conveying Defensible Title thereto from Seller to Issuer free and clear of any Encumbrances, other than Permitted Encumbrances (rather than the grant of a security interest to secure a debt or other obligation of Seller), and that the right, title, and interest in and to the Wellbore Interests vested in Issuer at Closing and prior to any and all rights arising thereafter of all other Persons (including lien creditors, secured lenders, purchasers, and any other Person) claiming by or through Seller. However, Seller hereby grants to Issuer a first priority perfected security interest in all of Seller's right, title and interest in, to and under the Wellbore Interests assigned to Issuer pursuant to the Conveyances in case such Conveyances are deemed to be a pledge to secure a loan (in spite of the express intent of the Parties). Contemporaneously with Closing, Seller shall execute, acknowledge and deliver to Issuer a Precautionary Wellbore Interest Deed of Trust, Mortgage, Assignment of As-Extracted Collateral, Security Agreement, Fixture Filing and Financing Statement, substantially in the form attached hereto as <u>Exhibit G</u> (a "<u>**Precautionary Mortgage**</u>") describing the Wellbore Interests as collateral, and such Precautionary Mortgage shall be recorded in the local land records where the Wells are located. Promptly following the written request of Seller at any time after the Closing and the delivery of the Precautionary Mortgage and Conveyances, Issuer shall (at the cost and expense of Seller) deliver such releases and similar instruments as are reasonably requested by Seller for purposes of evidencing that the Precautionary Mortgage is not, or is no longer, an Encumbrance on or affecting any Excluded Asset or, as applicable, any Repurchased Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05 <u>**Closing**</u>. The Closing shall take place simultaneously with the execution of this Agreement and be deemed effective as of the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.06 <u>**Closing Obligations**</u>. At the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller shall deliver (and execute, as appropriate), or cause to be delivered (and executed, as appropriate), to Issuer:

&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) duly executed counterparts of the Conveyances;

&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 recordable release in a form acceptable to Issuer of any trust, mortgages, financing statements, fixture filings and security agreements, in each case, securing indebtedness for borrowed money made by Seller or its Affiliates affecting the Wellbore Interests (including corresponding authorizations to file UCC-3 termination statement releases in all applicable jurisdictions);

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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;(iii) a certificate of non-foreign entity status whereby Seller (or its regarded parent if Seller is a disregarded entity for U.S. federal income tax purposes) certifies that it is not a "foreign person" within the meaning of Section 1445 of the Code;

&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) counterparts of the Precautionary Mortgages and UCC-1 filings in connection therewith, duly executed by Seller, in sufficient counterparts to facilitate filing in the official public records with the applicable Governmental Bodies in each county where any of the Wellbore Interests are located;

&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 counterpart of the Management Services Agreement duly executed by Seller;

&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) a counterpart of the Joint Operating Agreement duly executed by Operator; 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;(vii) such documents as Issuer or counsel for Issuer may reasonably request and which are reasonably required to consummate the Contemplated Transaction in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Issuer shall deliver (and execute, as appropriate), or cause to be delivered (and executed, as appropriate), to Seller:

&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) an amount in cash equal to the Cash Purchase Price;

&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) duly executed counterparts of the Conveyances;

&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) counterparts of the Precautionary Mortgages, duly executed by Issuer, in sufficient counterparts to facilitate filing in the official public records with the applicable Governmental Bodies in each county where any of the Wellbore Interests are located;

&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) a duly executed counterpart of the Management Services 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;(v) a duly executed counterpart of the Joint Operating 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;(vi) such documents as Seller or counsel for Seller may reasonably request and which are reasonably required to consummate the Contemplated Transaction in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.07 <u>**Allocations and Adjustments**</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after Closing, Issuer shall be entitled to all revenues, proceeds, income and production from or attributable to the Wellbore Interests from and after the Effective Time (other than any Excluded Assets), and shall be responsible for (and entitled to any refunds with respect to) all Property Costs attributable to the Wellbore Interests and incurred from and after the Effective Time (excluding Property Costs allocable to the Wellbore Interests that are attributable to the period from the Effective Time until the Closing Date and incurred other than in the ordinary course or as a result of any failure by Seller or its Affiliates to comply with the standards set forth in applicable operating agreements). Seller shall be entitled to all revenues, proceeds, income, accounts receivable, and production from or attributable to the Wellbore Interests prior to the Effective Time (and any other Excluded Assets). Seller shall be responsible for (and entitled to any refunds with respect to) all Property Costs attributable to the Wellbore Interests and incurred prior to the Effective Time or otherwise constituting Retained Liabilities. "<u>**Earned**</u>" and "<u>**incurred**</u>," as used in this Agreement, shall be interpreted in accordance with GAAP and COPAS standards; *provided* that the allocation of any Asset Taxes between the pre- and post-Effective Time periods shall be determined in accordance with <u>Section 2.07(b)</u>. Notwithstanding anything herein to the contrary, for purposes of allocating revenues, production, proceeds, income, accounts receivable, and products under this <u>Section 2.07</u> (if any), (i) liquid Hydrocarbons produced into storage facilities will be deemed to be "from or attributable to" any Wells to the extent they are above load lines in tanks, and (ii) gaseous Hydrocarbons and liquid Hydrocarbons produced into pipelines will be deemed to be "from or attributable to" any Wells when they pass through the delivery point sales meters on the pipelines through which they are transported.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From and after Closing, Issuer shall be responsible for all Asset Taxes attributable to the Wellbore Interests for (a) all Tax periods that begin on or after the day of the Effective Time, and (b) that portion of any Straddle Period beginning on and including the day of the Effective Time. From and after Closing, Seller shall be responsible for all Asset Taxes attributable to the Wellbore Interests for (x) all Tax periods ending prior to the day of the Effective Time, and (y) that portion of any Straddle Period ending on and including the day immediately preceding the day of the Effective Time. In the case of any Straddle Period, any Asset Taxes that are (i) attributable to the severance or production of Hydrocarbons shall be allocated to the period in which the severance or production giving rise to such Asset Taxes occurred, (ii) based upon or related to sales or receipts or imposed on a transactional basis (other than such Asset Taxes described in clause (i)), shall be allocated to the period in which the transaction giving rise to such Asset Taxes occurred, and (iii) ad valorem, property or other Taxes imposed on a periodic basis shall be prorated on a daily basis (with an equal amount thereof allocated to each day in the applicable Straddle Period), with Issuer liable for the portion allocated to the period beginning on and including the day of the Effective Time and Seller liable for the portion allocated to the period ending on and including the day immediately preceding the day of the Effective Time. Issuer shall be entitled to all deductions, credits, and refunds pertaining to Asset Taxes allocated to Issuer under this <u>Section 2.07(b)</u>, and Seller shall be entitled to deductions, credits, and refunds pertaining to Asset Taxes allocated to Seller under this <u>Section 2.07(b)</u>. If the amount of such Asset Taxes for part, or all, of the Wellbore Interests is not available on the Closing Date, proration of Asset Taxes shall be estimated and made on the basis of Asset Taxes assessed in the previous year, with a subsequent adjustment of such proration to be made between the Parties when actual Asset Tax figures are available. Notwithstanding the foregoing, Issuer shall be responsible for the preparation and timely filing of any Tax Returns with respect to Asset Taxes that are required to be filed on or after the Closing Date, and (subject to its right to reimbursement pursuant to this <u>Section 2.07</u>) for the payment to the applicable Governmental Body of all Asset Taxes due with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) From and after the Closing, (i) if a Party receives revenues that belong to the other Party under this Agreement, the Party receiving the revenues agrees to hold such revenues in trust for the benefit of the other Party and remit those revenues to such other Party within 30 days following such first Party's receipt thereof, (ii) if a Party incurs or receives an invoice for an expense or obligation which is owed by the other Party, then such Party shall promptly notify the Party obligated to pay the same, and (iii) if a statement of an obligation is received by a Party, which is partially an obligation of both Seller and Issuer, then the Parties shall consult with each other, and each shall promptly pay its portion of such obligation to the obligee. After Closing, in the event a Party pays monies for Property Costs which are the obligation of the other Party, then such other Party shall, within 30 days after the end of the month in which the applicable invoice and proof of payment of such invoice were received, reimburse the Party which paid such amounts. To the extent any operator or other Third Party recoups any amounts that are the responsibility of Seller (either as a Retained Liability or pursuant to <u>Section 2.07(a)</u>) by offsetting such amounts against post-Effective Time production revenues paid to Issuer, then Issuer may provide written notice and evidence of such offsetting to Seller and, within 30 days after the end of the month in which such notice is received, Seller shall pay Issuer such amounts and thereafter Seller shall promptly pay the applicable operator or Third Party any remaining amounts owed by Seller to avoid any further netting or offsetting of Issuer's revenues. To the extent any operator or other Third Party recoups any amounts that are the responsibility of Issuer by offsetting such amounts against production revenues payable to Seller or its Affiliates in respect of production attributable to any Excluded Assets, then Seller may provide written notice and evidence of such offsetting to Issuer and, within 30 days after the end of the month in which such notice is received, Issuer shall pay Seller such amounts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent required by Section 1060 of the Code and any Treasury Regulations promulgated thereunder, Seller and Issuer shall cooperate to prepare a schedule allocating the purchase price (as determined for U.S. federal income tax purposes) for the Wellbore Interests among the Wellbore Interests in accordance with Code Section 1060 and the Treasury Regulations promulgated thereunder (the "<u>**Allocation Schedule**</u>"). To the extent permitted under Code Section 1060 and any Treasury Regulations promulgated thereunder, the Allocation Schedule shall be prepared in a manner consistent with the Cash Purchase Price allocation as set forth in <u>Exhibit A</u>. To the extent required by Section 1060 of the Code and any Treasury Regulations promulgated thereunder, Seller and Issuer shall cooperate in the preparation of Internal Revenue Service Form 8594, pursuant to Treasury Regulation Section 1.1060-1, to report the allocation of the Cash Purchase Price among the Wellbore Interests in the manner set forth on the Allocation Schedule. Except as required by applicable Legal Requirements, none of the Parties (or their applicable Affiliates) shall take any position on its Tax Returns that is inconsistent with the allocation of the Cash Purchase Price as so agreed or as adjusted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.08 <u>**Assumption**</u>. Issuer shall assume, pay, and discharge, insofar as allocable to the Wellbore Interests and only to the extent not constituting Retained Liabilities, subject to Seller's indemnity obligations under <u>Section 5.02</u> and obligations with respect to title matters pursuant to <u>Section 5.11</u> (subject to the limitations and restrictions in <u>ARTICLE 5</u>), any and all of the following Liabilities, Damages and obligations (collectively, the "<u>**Assumed Liabilities**</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the extent allocable to the Wellbore Interests, all Liabilities, Damages, and obligations incurred during or otherwise attributable to the period from and after the Closing Date and that are related or attributable to the operation or ownership of the Wells, Wellbore Lease Rights, Unit Rights, Well Facilities (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities), and Applicable Contracts, including: (i) any Environmental Liability or Environmental Defect attributable to the operation or ownership of any Well or Well Facility (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities) during the period from and after the Closing Date; (ii) Liabilities for personal injuries or death, property damage, torts, breach of contract or violation of any Legal Requirement or Governmental Authorization attributable to the operation or ownership of any Well or Well Facility (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities) during the period from and after the Closing Date; (iii) any Liabilities for disposal of any Hazardous Substances offsite of the Leases or any lands pooled therewith that occurred or was conducted from and after the Closing Date and associated with the operation or ownership of any Well or Well Facility (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities); (iv) costs and expenses allocable to the Working Interests to the extent incurred during or attributable to the period from and after the Closing Date; and (v) Liabilities for Burdens allocable to the Working Interests to the extent attributable to production from the Wells during the period from and after the Closing Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Property Costs to the extent attributable to the period from the Effective Time until the Closing Date and incurred in the ordinary course and not as a result of any failure by Seller or its Affiliates to comply with the standards set forth in applicable operating agreements; and (ii) Liabilities for Burdens allocable to the Wellbore Interests to the extent attributable to production from the Wells during the period from the Effective Time until the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Plugging and Abandonment Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Asset Taxes allocated to Issuer pursuant to <u>Section 2.07(b)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Liabilities, Damages, and obligations under the Assumed Hedge Contracts.

**ARTICLE 3**<br>**REPRESENTATIONS AND WARRANTIES OF SELLER** 

Seller represents and warrants to Issuer as of the Effective Time and the Closing as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.01 <u>**Organization and Good Standing**</u>. Seller is duly organized, validly existing, and in good standing under the Legal Requirements of the State of Delaware and every state in which it is required to be qualified to do business, and Seller has full power and authority under its Organizational Documents to conduct its business as it is now being conducted, and to own or use the properties and assets that it purports to own or use. The Subsidiary is and at the time of the Subsidiary Transfer was duly organized, validly existing, and in good standing under the Legal Requirements of the State of Delaware and every state in which it is required to be qualified to do business, and the Subsidiary has and at the time of the Subsidiary Transfer had full power and authority under its Organizational Documents to conduct its business as it is then and now being conducted, and to own or use the properties and assets that it purports or purported to own or use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.02 <u>**Authority**</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The execution, delivery, and performance of the Subsidiary Conveyance and the Subsidiary Transfer were duly and validly authorized and approved in accordance with the Organizational Documents of the Subsidiary and Seller and with applicable Legal Requirements. The Subsidiary Conveyance was duly executed and delivered by the Subsidiary and Seller. Without representing or warranting as to the Subsidiary's or Seller's title to the Wellbore Interests, the Subsidiary Conveyance constituted a legal, valid, and binding transfer and conveyance of ownership of all of the Subsidiary's legal and beneficial right, title, and interest in the applicable Wellbore Interests to Seller. The Subsidiary Conveyance constitutes the legal, valid, and binding obligations of the Subsidiary, enforceable against the Subsidiary in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy or other similar Legal Requirements affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery, and performance of this Agreement, the Closing Documents and the Contemplated Transactions have been duly and validly authorized and approved in accordance with the Organizational Documents of Seller and applicable Legal Requirements. This Agreement has been duly executed and delivered by Seller and all instruments executed and delivered by Seller at or in connection with the Closing have been duly executed and delivered by Seller. This Agreement constitutes the legal, valid, and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy or other similar Legal Requirements affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law). Upon the execution and delivery by Seller of the Conveyances at the Closing, and without representing or warranting as to Seller's title to the Wellbore Interests, such Conveyances shall constitute legal, valid, and binding transfers and conveyances of ownership of all legal and beneficial interest of Seller in the Wellbore Interests to Issuer. Upon the execution and delivery by Seller or any Affiliate of Seller of any of Seller's Closing Documents, Seller's Closing Documents shall constitute the legal, valid, and binding obligations of Seller or the applicable Affiliate, enforceable against Seller or the applicable Affiliate in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy or other similar Legal Requirements affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.03 <u>**No Conflict**</u>. Assuming the receipt of all Consents, (i) neither the execution and delivery of the Subsidiary Conveyance by the Subsidiary or Seller, nor the consummation or performance of the Subsidiary Transfer by the Subsidiary or Seller, did or will (with or without notice or lapse of time or both), and (ii) neither the execution and delivery of this Agreement or any of Seller's Closing Documents by Seller, nor the consummation or performance of any of the Contemplated Transactions by Seller, will (with or without notice or lapse of time or both):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contravene, conflict with, or result in a violation of (A) any provision of the Organizational Documents of the Subsidiary or Seller, or (B) any resolution adopted by the board of directors, board of managers or members of the Subsidiary or Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) materially contravene or conflict with, or result in a material violation of, or give any Governmental Body or other Person the right to notification of or to challenge the Subsidiary Transfer or any of the Contemplated Transactions, to terminate, accelerate, or modify any terms of, or to exercise any remedy or obtain any relief under, any applicable Legal Requirement or Order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) materially contravene or conflict with, or result in a material violation of any of the terms or requirements of, or give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate, or modify, any Governmental Authorization that relates to the Wellbore Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) result in the imposition or creation of any material Encumbrance or give rise to any right of termination, cancellation, or acceleration under any of the terms, conditions, or provisions of any Lease, Material Contract, Applicable Easement, note, bond, mortgage, indenture, license, or other material agreement with respect to any of the Wellbore Interests; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) materially contravene or conflict with, or result in a material violation of any obligation of the Subsidiary or Seller which would render Issuer liable for such contravention, conflict or violation, either individually or on a joint and several basis with the Subsidiary or Seller.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.04 <u>**Taxes**</u>(a) . Except as set forth in <u>Schedule 3.04</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Tax Returns with respect to Asset Taxes required to be filed by the Subsidiary or Seller have been timely filed. All such Tax Returns are correct and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Asset Taxes that have become due and payable by the Subsidiary or Seller have been properly and timely paid in accordance with applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There is not currently in effect any extension or waiver of any statute of limitations of any jurisdiction regarding the assessment or collection of any Asset Taxes of the Subsidiary or Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There are no material administrative or judicial Proceedings pending or, to Seller's Knowledge, Threatened against the Subsidiary or Seller relating to or in connection with any Asset Taxes relating to the Wellbore Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There are no Tax sharing, Tax allocation, Tax indemnity, or similar agreements or arrangements under which any member of the Issuer Indemnity Group could have any liability after the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) None of the Wellbore Interests are subject to any agreement or arrangement that constitutes a partnership for U.S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No member of the Issuer Indemnity Group will be required to include any item of income, or exclude any deduction, in the computation of taxable income for any taxable period or portion thereof ending after the Effective Time as a result of (i) any installment sale, deferred intercompany transaction, or open transaction disposition made on or prior to the Effective Time, (ii) any prepaid amount received prior to the Effective Time, or (iii) any change of method of Tax accounting, closing agreement, or intercompany transaction made or entered into prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Issuer is, and since its date of formation has been, disregarded as an entity separate from its owner for U.S. federal income Tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) There are no material liens or Encumbrances on any of the Wellbore Interests that arose as a result of the Subsidiary's or Seller's failure (or alleged failure) to pay any Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Contemplated Transactions will not be taxable transactions for income Tax purposes for Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05 <u>**Legal Proceedings; Orders**</u>. Except as set forth in <u>Schedule 3.05</u>, there is no pending Proceeding against Seller or any of its Affiliates (a) that relates to or may affect the ownership or operation of any of the Wellbore Interests; or (b) that challenges, or that may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions. To Seller's Knowledge, no Proceeding of the type referenced above has been Threatened. To Seller's Knowledge, there is no Order that specifically relates to, and that adversely affects, the current use or ownership of the Wellbore Interests to which Seller, any of its Affiliates, or any of the Wellbore Interests, is subject. There is no Order or Proceeding restraining, enjoining, or otherwise prohibiting or making illegal the consummation of the Contemplated Transactions or, to Seller's Knowledge, which, if determined adversely to Seller or any of its Affiliates, could result in a material diminution of the benefits to Issuer contemplated by this Agreement or the Contemplated Transactions exceeding $100,000 (net to the Wellbore Interests).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.06 <u>**Brokers**</u>. Neither Seller nor any of its Affiliates has incurred any obligation or Liability, contingent or otherwise, for broker's or finder's fees with respect to the Contemplated Transactions other than obligations that are the sole responsibility of Seller or its applicable Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.07 <u>**Compliance with Legal Requirements and Governmental Authorizations**</u>. Except as set forth in <u>Schedule 3.07</u> and except for Environmental Matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Wellbore Interests have been owned and, as applicable, operated by Seller and its Affiliates in all material respects in accordance with all applicable Legal Requirements of all Governmental Bodies having or asserting jurisdiction relating to the ownership and operation thereof, other than any violations that have been resolved to the satisfaction of all applicable Governmental Bodies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Governmental Authorizations required for the Subsidiary's, Seller's, or any of their Affiliates' ownership and, as applicable, operation of the Wellbore Interests have been obtained, no material violations exist or have been recorded in respect of such Governmental Authorizations that remain uncured or outstanding, and the Subsidiary, Seller, and their Affiliates are in compliance in all material respects with such Governmental Authorizations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Seller nor any of its Affiliates has Knowledge of or has received any written notice of any material violation of any applicable Legal Requirement or Governmental Authorization in connection with the ownership or operation of the Wellbore Interests that has not been corrected or settled, and there are no Proceedings pending or, to Seller's Knowledge, Threatened against Seller or any of its Affiliates that might result in any material modification, revocation, termination or suspension of any Governmental Authorization or would require any material corrective or remedial action for which Seller or any of its Affiliates may have any obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.08 <u>**Take-or-Pay Arrangements**</u>. Neither Seller nor any of its Affiliates has received any prepayments or buydowns, or entered into any take-or-pay or forward sale arrangements, such that Issuer will be obligated after the Effective Time to make deliveries of production from its interest in the Wells without receiving full payment therefor (excluding Imbalances and Burdens).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.09 <u>**Preferential Rights and Consents**</u>. There are no Preferential Purchase Rights applicable to the Wellbore Interests that were triggered by the Subsidiary Transfer or will be triggered by the execution of this Agreement or consummation of the Contemplated Transactions. Except as set forth on <u>Schedule 3.09</u>, for Consents that have been obtained, and for the maintenance of uniform interest provisions in the joint operating agreements listed in <u>Schedule 3.17</u>, there are no Consents applicable to the Wellbore Interests that were triggered by the Subsidiary Transfer or will be triggered by the execution of this Agreement or consummation of the Contemplated Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>**Plugging and Abandonment**</u>. Neither Seller nor any of its Affiliates has received any written notices, claims, or demands from any Governmental Bodies or other Third Parties to plug and abandon any Wells, and, to Seller's Knowledge, no such notice, claim, or demand is Threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>**Timely Payment**</u>. Seller and each of its Affiliates has paid when due, in all material respects, its share of all costs and expenses billed to, and payable by, such Person relating to the ownership, use, or operation of the Wellbore Interests (including all material bills for labor, materials and supplies used or furnished for use in connection with the Wellbore Interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>**Imbalances**</u>. Except as set forth in <u>Schedule 3.12</u>, there are no Imbalances attributable to the Wellbore Interests as of the date set forth in <u>Schedule 3.12</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <u>**Reserve Report**</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The data relating to the lease ownership, production history, operating history and Leases and Contracts that Seller or any of its Affiliates provided to the Initial Reserve Engineers to prepare the Reserve Report are, to Seller's Knowledge, true and correct in all material respects. In providing such information, neither Seller nor its Affiliates knowingly and intentionally omitted any information necessary to make such data not misleading in the context in which they were provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Well is, and continues to be, producing (except for any temporary interruptions due to ordinary maintenance or repair) from its respective Completed Depths.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>**Environmental Matters**</u>. Except as set forth in <u>Schedule 3.14</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to the Wellbore Interests, neither Seller nor any of its Affiliates has entered into any agreements with, or is or was a party under, any consents, Orders, decrees or judgments of, any Governmental Body (in each case) issued or arising under Environmental Laws that impose obligations on or limit the ownership, operation, or use of any of the Wellbore Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither Seller nor any of its Affiliates has received written notice from any Person of any, and to Seller's Knowledge there has been no, release or disposal of any Hazardous Substance concerning any land, facility, asset or property included in the Wellbore Interests which would reasonably be expected to: (i) materially interfere with or prevent compliance by Seller or any of its Affiliates with any Environmental Law or the terms of any Governmental Authorization issued pursuant thereto; or (ii) give rise to or result in any Environmental Liabilities or material Damages exceeding $100,000 (net to the Wellbore Interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Excluding joint operating agreements and contracts pursuant to which any of the Wellbore Interests were acquired, neither Seller nor any of its Affiliates has entered into any Contract or agreement to assume or undertake any Liability or responsibility of any Third Party for (i) remediation of any actual or alleged presence or release of Hazardous Substances or (ii) any other Damages under Environmental Laws, in each case, which relate to the Wellbore Interests and for which Issuer will have any liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To Seller's Knowledge, (i) there are no Environmental Defects affecting the Wellbore Interests that, individually, or in the aggregate with respect to Environmental Defects that arise out of or relate to the same or substantially similar incident or condition (as such incident or condition may affect multiple assets), would be reasonably likely to result in Damages exceeding $100,000 (net to the Wellbore Interests) and (ii) the Wellbore Interests, and Seller and its Affiliates with respect to the ownership and operation thereof, are in compliance with all Environmental Laws except for matters that, individually or in the aggregate, would not reasonably be likely to result in Liabilities or Damages exceeding $200,000 (net to the Wellbore Interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>**Wells**</u>. Except as set forth in <u>Schedule 3.15</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Wells drilled by Seller or its Affiliates and, to Seller's Knowledge, all other Wells have been drilled and completed within the limits permitted by each applicable Lease, Contract, pooling or unit agreement and by applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All drilling and completion of Wells drilled and completed by Seller and its Affiliates (and all related development and operations) and, to Seller's Knowledge, all other drilling and completion of the Wells (and all related development and operations) have been conducted in material compliance with all applicable Legal Requirements (other than Environmental Laws) and in accordance with prudent industry standards, other than any violations that have been resolved to the satisfaction of all applicable Governmental Bodies.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Well operated by Seller or its Affiliates and, to Seller's Knowledge, no other Well is subject to penalties on allowables after the Effective Time or the Closing Date because of any overproduction or any other violation of applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Well operated by Seller or its Affiliates and, to Seller's Knowledge, no other well: (i) is shut in, temporarily abandoned, suspended or otherwise inactive such that the applicable operator is obligated by applicable Legal Requirements, Lease or Contract to plug or abandon or (ii) is otherwise currently subject to an order from a Governmental Body requiring that such Well be plugged and abandoned or currently obligated by any applicable Legal Requirement, Lease or Contract to be plugged and abandoned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <u>**Compliance with Leases and Applicable Easements**</u>. Except as set forth in <u>Schedule 3.16</u>, Seller and each of its Affiliates is in material compliance with respect to its ownership and, as applicable, operation of each of the Leases and Applicable Easements, including all express and implied covenants thereunder. No written demands or notices of default or non-compliance or dispute (including those received electronically) with respect to any of the Leases or Applicable Easements have been issued by or received by Seller or any of its Affiliates that remain uncured or outstanding. To Seller's Knowledge, no event has occurred that with notice or lapse of time, or both, would constitute a material breach or default of any of the Leases or Applicable Easements by any party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <u>**Material Contracts**</u>. <u>Schedule 3.17</u> sets forth each of the following Applicable Contracts (collectively, the "<u>**Material Contracts**</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any such Contract that is an indenture, mortgage, loan, credit agreement, sale-leaseback, guaranty of any obligation, bond, letter of credit, or similar Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any such Contract that constitutes a partnership agreement, joint venture agreement, joint development agreement, joint operating agreement, farmin or farmout agreement, exploration agreement, participation agreement or similar Contract where the primary obligation has not been completed prior to the Effective Time, insofar as the same is applicable to any Wellbore Interest (in each case, excluding any tax partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any such Contract containing a guarantee by Seller or any of its Affiliates, insofar as the same is applicable to any Wellbore Interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Affiliate Contract, other than any Closing Document or Ancillary Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Contract that constitutes an area of mutual interest agreement or any other agreement that purports to restrict, limit or prohibit the manner in which, or the locations in which, Seller or any of its Affiliates (or after Closing, Issuer) conducts business that will be binding on Issuer after Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Contract that can reasonably be expected to result in aggregate payments or other Liabilities owed or borne by, or aggregate revenues to, Issuer of more than $100,000 (net to the Wellbore Interests) during the current or any subsequent fiscal year (based solely on the terms thereof and current volumes, without regard to any expected increase in volumes or revenues); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) each Contract that is (A) for the gathering, treatment, storage, transportation or processing of Hydrocarbons produced from the Wellbore Interests or (B) for the sale, purchase, exchange, or other disposition of Hydrocarbons produced from the Wellbore Interests, in each case at or downstream of the applicable Custody Transfer Points (whether or not set forth on <u>Schedule 3.17</u>, the foregoing in this <u>clause (g)</u>, collectively, the "<u>**Midstream Contracts**</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 <u>**Compliance with Material Contracts; Necessary Contracts**</u>. Each of the Material Contracts is valid, binding and (subject to effects of bankruptcy, insolvency, reorganization, moratorium and similar Legal Requirements, as well as to principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law)) enforceable against and by Seller or its applicable Affiliate and, to Seller's Knowledge, each other party thereto and will be, as of the consummation of the Contemplated Transactions, valid, binding and (subject to effects of bankruptcy, insolvency, reorganization, moratorium and similar Legal Requirements, as well as to principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law)) enforceable against and by Issuer (to the extent included in the Wellbore Interests) and each other party thereto. Neither Seller nor any of its Affiliates has, and, to Seller's Knowledge, no other party thereto has, violated or breached in any material respect any Material Contract and, to Seller's Knowledge, there are no existing facts or circumstances which upon notice or the passage of time or both would constitute a violation or breach thereof. There are no Contracts other than the Applicable Contracts that are necessary for Issuer to own (as owned by Seller as of immediately prior to Closing), and gather, treat, store, transport, process, sell, purchase, exchange or otherwise dispose of Hydrocarbons from (as Hydrocarbons therefrom are being gathered, treated, stored, transported, processed, sold, purchased, exchanged or otherwise disposed of as of immediately prior to Closing), and participate in operations (including maintenance, repair, workovers and reworks) with respect to, any Wellbore Interests. There is no Contract included in the Wellbore Interests that is an indenture, mortgage (other than customary liens under applicable joint operating agreements), loan, credit agreement, sale-leaseback, guaranty of any obligation, bond, letter of credit or similar contract. Neither Seller nor any of its Affiliates has received any unresolved written notice of any actual or potential breach, termination, cancellation or material default with respect to any Material Contract. None of the Material Contracts are oral contracts or agreements. Prior to the Closing Date, Seller has made available to counsel to the Majority Noteholders (as defined in the Indenture) complete and accurate copies of each Material Contract (and all amendments and supplements thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 <u>**Non-Consent Operations**</u>. No operations are being conducted or have been conducted with respect to the Wellbore Interests as to which Seller or the Subsidiary elected to be a non-consenting party under the terms of the applicable operating agreement and with respect to which Seller has not yet recovered its full participation or that would cause Seller not to have Defensible Title in any Well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20 <u>**Suspense Funds**</u>. All proceeds from the sale of Hydrocarbons produced from the Wellbore Interests are being received by Seller or were being received by the Subsidiary in a timely manner and are not being held in suspense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21 <u>**Hedges**</u>. Except for the Assumed Hedge Contracts, there are no Hedge Contracts with respect to the sale of Hydrocarbons from the Wellbore Interests (a) that are currently binding on the Wellbore Interests and that will be binding on the Wellbore Interests after the Closing or (b) that will be binding on the Wellbore Interests after the Closing and that are not Basic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22 <u>**Bankruptcy**</u>. There are no bankruptcy, reorganization or arrangement Proceedings pending, being contemplated by or to Seller's Knowledge Threatened against Seller or any Affiliate of Seller. Neither Seller nor the Subsidiary is now insolvent, or was or will be rendered insolvent by the Subsidiary Transfer or any of the Contemplated Transactions. As used herein, "insolvent" means that the sum of Seller's or the Subsidiary's debts, as applicable, and other probable liabilities exceeds the present fair saleable value of Seller's or the Subsidiary's assets, as applicable (after giving effect to amounts that could reasonably be received by reason of indemnity, offset, insurance or other similar arrangement). Immediately after giving effect to the consummation of the Contemplated Transactions, (a) each of Seller and the Subsidiary will not have unreasonably small capital with which to conduct its present or proposed business, or will have incurred or intended to incur, or believes that it will incur, debt beyond its ability to pay such debt as such debt matures, and (b) each of Seller and the Subsidiary will have assets (calculated at fair market value) that exceed or will exceed its liabilities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23 <u>**Current Commitments**</u>. Except as set forth on <u>Schedule 3.23</u>, (a) Seller and its Affiliates have not received any authorizations for expenditures relating to ownership of the Wellbore Interests that could require any expenditure to be paid or borne by Issuer at or after Closing and (b) neither Seller nor the Subsidiary is subject to any other binding capital commitments relating to ownership of the Wellbore Interests that will require, individually, an expenditure to be paid or borne by Issuer at or after Closing in an amount in excess of $100,000 (net to the Wellbore Interests). Issuer acknowledges that the amounts, if any, shown on <u>Schedule 3.23</u> with respect to such operations or projects are estimates only and Seller makes no representation or warranty concerning the actual costs of the operations or activities to which such estimated expenditures relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24 <u>**Sufficiency of Assets**</u>. Following the Subsidiary Transfer, no Affiliate of Seller owns any interest in any Well Facilities or Applicable Contracts. Subject to the limitations set forth in the Joint Operating Agreement, the Wellbore Interests and the rights of Issuer as of the Closing Date under the Basic Documents are sufficient to permit the Issuer to effect the gathering, processing, transportation, and sale of Hydrocarbons produced from or attributable to the Wells as such sales occurred by Seller or its Affiliates immediately prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25 <u>**Burdens**</u>. Except as set forth in <u>Schedule 3.25</u>, and except for amounts owed to Third Parties that are held in suspense and amounts disputed in good faith, Seller and its Affiliates have properly and timely paid, or caused to be paid, in all material respects, all Burdens due upon the Seller's and its Affiliates' interest in production from the Wells prior to the Effective Time in accordance with the applicable Leases and Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.26 <u>**Security Agreements**</u>. Excluding the Assumed Hedge Contracts and the Basic Documents, neither the Subsidiary nor Seller is a party to any mortgage, pledge, security agreement or any other security interest to which Issuer is or would as of Closing become bound.

**ARTICLE 4**<br>**POST-CLOSING COVENANTS AND OBLIGATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.01 <u>**Books and Records**</u>. (a) From and after the Closing until the Discharge Date, Seller shall afford Issuer and its Affiliates and representatives reasonable access, during normal business hours and upon reasonable advance notice, to the Issuer Books and Records and shall permit Issuer and its Affiliates and representatives to examine and copy such Issuer Books and Records to the extent reasonably requested by such party and (b) from and after termination of the Management Services Agreement until the Discharge Date, Seller shall, and shall cause Seller's Representatives to, furnish all information reasonably requested by Issuer and its Affiliates and representatives in connection with financial reporting, third party litigation, or any other business purpose, *provided* that the foregoing in this clause (b) shall not require Seller or any of its Representatives to incur any material expense or to create or furnish any information, reports, or data not already in the possession of Seller or its Affiliates at the time of such request or that differ materially from the information required to be provided to Issuer under the Management Services Agreement. Until the Discharge Date, except to the extent pursuant to and consistent with its ordinary course document and electronic retention policies, Seller shall not destroy, alter or otherwise dispose of any such Issuer Books and Records that are material to the ownership and operation of the Wellbore Interests.

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**ARTICLE 5**<br>**INDEMNIFICATION; REMEDIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.01 <u>**Survival**</u>. Notwithstanding any Legal Requirement regarding any statute of limitations to the contrary, all representations and warranties contained in this Agreement shall survive the Closing until the Discharge Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.02 <u>**Indemnification and Payment of Damages by Seller**</u> . Except as otherwise limited in this <u>ARTICLE 5</u>, from and after the Closing, Seller shall defend, indemnify, and hold harmless Issuer and its Representatives, equityholders, controlling Persons, members, partners, and Affiliates (collectively, "<u>**Issuer Indemnity Group**</u>") for, and shall pay to the Issuer Indemnity Group the amount of any Damages arising from, the following (collectively, the "<u>**Seller Covered Liabilities**</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach of any representation or warranty made by Seller in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach by Seller of any covenant or obligation of Seller in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Retained Liabilities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) subject to <u>Section 5.11(h)</u>, the breach of any maintenance of uniform interest provision under a joint operating agreement caused by or resulting from the Contemplated Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.03 <u>**Indemnification and Payment of Damages by Issuer**</u>. Except as otherwise limited in this <u>ARTICLE 5</u> and except to the extent Issuer is entitled to indemnity under <u>Section 5.02</u>, from and after the Closing, Issuer shall defend, indemnify, and hold harmless Seller, its Affiliates, and its and their Representatives, equityholders, controlling Persons, members, and partners (collectively, "<u>**Seller Indemnity Group**</u>") for, and shall pay to Seller Indemnity Group the amount of any Damages arising from, the following (collectively, the "<u>**Issuer Covered Liabilities**</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach by the Issuer Indemnity Group of any covenant or obligation of Issuer in this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Assumed Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.04 <u>**Materiality and Knowledge; Limitations**</u>. Solely for purposes of <u>Section 5.02</u>, any claims of or Liabilities associated with or any indemnification with respect to any breach of any representation or warranty of Seller in this Agreement shall be determined without regard to any materiality, material adverse effect, Knowledge, knowledge, or other similar qualification contained in or otherwise applicable to such representation or warranty; *provided*, *however*, the foregoing shall not have any application for any other purposes (including for any other purposes under this Agreement, for any purposes under any Basic Document or Ancillary Agreement, or for purposes of any other rights or remedies of any member of the Issuer Indemnity Group at law or in equity, including in the case of fraud), and for all such other purposes all such materiality, material adverse effect, Knowledge, knowledge, and other similar qualifications contained in or otherwise applicable to any such representation or warranty shall apply and be given their full effect. Seller acknowledges that it and Issuer are under common control and management, that the management of Issuer therefore has knowledge of the matters with respect to which Seller has knowledge. Seller hereby acknowledges that, regardless of any investigation made (or not made) by or on behalf of Issuer, and regardless of the results of any such investigation, Issuer has entered into the transactions contemplated by this Agreement in express reliance upon the representations, warranties and covenants of Seller made in this Agreement and the Ancillary Agreements. To the fullest extent permitted by applicable law, the rights of Issuer to indemnification or any other remedy under this Agreement or the Ancillary Agreements shall not be impacted or limited by any knowledge that Issuer may have acquired, or could have acquired, whether before or after the Effective Time, or by any investigation or diligence by Issuer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.05 <u>**Exclusive Remedy**</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT (OTHER THAN IN THE CASE OF FRAUD), THE PARTIES AGREE THAT, FROM AND AFTER CLOSING, <u>SECTION 2.07</u> AND THIS <u>ARTICLE 5</u>, AS APPLICABLE, CONTAIN THE PARTIES' EXCLUSIVE REMEDIES AGAINST EACH OTHER WITH RESPECT TO BREACHES OF THE REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS OF THE PARTIES CONTAINED IN THIS AGREEMENT. The Parties have agreed that should any representation or warranty of any Party prove inaccurate, incomplete, or untrue, the other Party shall have the specific rights and remedies herein specified as the exclusive remedy therefor, but that (other than in the case of fraud) no other rights, remedies, or causes of action (whether under at law or in equity or whether in contract or in tort or otherwise) are permitted to any Party hereto as a result of the failure, breach, inaccuracy, incompleteness, or untruth of any such representation and warranty. Seller and Issuer acknowledge that, following Closing, specific performance or the payment of money, as limited by the terms of this Agreement, shall be adequate compensation for breach of any representation, warranty, covenant, or agreement contained herein or for any other claim arising in connection with or with respect to the Contemplated Transactions. As such, following Closing, Issuer and Seller each waive any right to rescind this Agreement or any of the Contemplated Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06 <u>**Compliance with Express Negligence Rule**</u>. **The Parties agree that the obligations of the indemnifying Party to indemnify the Indemnified Party shall be without regard to the negligence or strict liability of the Indemnified Party, whether the negligence or strict liability is active, passive, joint, concurrent, comparative, contributory, or sole, except to the extent such Damages were occasioned by the gross negligence or willful misconduct of the Indemnified Party or any Representative thereof.** The foregoing is a specifically bargained for allocation of risk among the Parties, which the Parties agree and acknowledge satisfies the express negligence rule and conspicuousness requirement under applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.07 <u>**Limitations of Liability**</u>. **Neither Seller nor Issuer shall be entitled to recover from the other Party any consequential (which, for clarity, shall not be construed to include actual direct damages), indirect, special, punitive, exemplary, remote or speculative** **damages** **arising under or in connection with the Contemplated Transactions. Each Party waives any right to recover any consequential (which, for clarity, shall not be construed to include actual direct damages), indirect, special, punitive, exemplary, remote or speculative damages arising in connection with or with respect to the Contemplated Transactions**, in each case, except to the extent constituting actual direct Damages. The limitations in this <u>Section 5.07</u> shall not be applicable to the rights and remedies expressly provided under <u>Section 5.11</u> or to the extent that a Third Party has made claims against an Indemnified Party for any consequential, indirect, special, punitive, exemplary, remote or speculative damages arising under or in connection with the Contemplated Transactions. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The amount of any Damages for which any of the Issuer Indemnity Group or Seller Indemnity Group is entitled to indemnification under this Agreement or in connection with or with respect to the Contemplated Transactions shall be reduced by any corresponding insurance proceeds actually received by any such Indemnified Party under any insurance arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Issuer Indemnity Group or Seller Indemnity Group will be entitled to indemnification under this <u>ARTICLE 5</u> for, from, or against, and Damages shall not include, any Claim or Liability based on or arising from any change in, or in the judicial interpretation of, any applicable Legal Requirement(s) taking effect after the Closing Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the Seller Indemnity Group other than Seller shall have any liability to any of the Issuer Indemnity Group hereunder in connection with the Contemplated Transactions, and none of the Issuer Indemnity Group other than Issuer shall have any liability to any of the Seller Indemnity Group hereunder in connection with the Contemplated Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties shall treat, for Tax purposes, any amounts paid under this <u>ARTICLE 5</u> as an adjustment to the Cash Purchase Price, unless otherwise required by a change in law after the date hereof, a closing agreement with an applicable Tax authority or a final judgment of a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.08 <u>**No Duplication**</u>. Any liability for indemnification hereunder shall be determined without duplication of recovery by reason of the state of facts giving rise to such liability constituting a breach of more than one representation, warranty, covenant, or agreement in this Agreement. In addition, no Indemnified Party will be entitled to indemnification under this <u>ARTICLE 5</u> for, from, or against, and Damages shall not include, any Claim or Liability with respect to any item to the extent an adjustment therefor has already been made to the Cash Purchase Price, or other recovery has already been obtained, under the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.09 <u>**Third Party Claims**</u>. If a claim by a Third Party (a "<u>**Third Party Claim**</u>") is made against a member of the Issuer Indemnity Group or Seller Indemnity Group (as applicable, the "<u>**Indemnified Party**</u>") and if such Indemnified Party intends to seek indemnity with respect thereto under this <u>ARTICLE 5</u>, such Indemnified Party shall promptly notify the Party which the Indemnified Party asserts is obligated to indemnify the Indemnified Party pursuant to this <u>ARTICLE 5</u> (the "<u>**Indemnifying Party**</u>") of such claim in writing setting out in reasonable detail a description of the facts underlying such Third Party Claim and enclosing a copy of all papers (if any) served with respect to the Third Party Claim. The Indemnifying Party shall have 30 days after receipt of such notice to notify the Indemnified Party that it will, and to commence to, undertake, conduct, and control, through counsel of its own choosing and at its own expense, the settlement or defense thereof and the Indemnified Party shall cooperate with the Indemnifying Party in connection therewith; *provided* that the Indemnifying Party shall permit the Indemnified Party to participate in (but not control) such settlement or defense through counsel chosen by such Indemnified Party at the expense of such Indemnified Party; *provided*, *further* that, to the extent that the Indemnified Party reasonably appears to have defenses available to it that are different from or additional to those available to the Indemnifying Party, the assertion of such different or additional defenses by such counsel shall be at the expense of the Indemnifying Party. So long as the Indemnifying Party, at its own cost and expense, (a) has within such 30 days notified the Indemnified Party that it will, and has commenced to, undertake the defense of, and has agreed to assume full responsibility for (subject to the terms and limitations contained in this <u>ARTICLE 5</u>), all Covered Liabilities allocated to it under this Agreement with respect to such Third Party Claim, (b) is reasonably contesting such Third Party Claim in good faith by appropriate Proceedings timely initiated and diligently conducted or is reasonably attempting to settle such Third Party Claim, and (c) has taken such action (including the posting of a bond, deposit, or other security) as may be necessary, if applicable, to prevent foreclosure of a lien against or attachment of the property of the Indemnified Party for payment of such Third Party Claim, the Indemnified Party shall not pay or settle any such claim and the Indemnifying Party shall have full control of such defense and Proceedings, including any compromise or settlement thereof (unless the compromise or settlement includes the payment of any amount by, the performance of any obligation by, or the limitation of any material right or benefit of, the Indemnified Party, in which event such settlement or compromise shall not be effective without the consent of the Indemnified Party, which shall not be unreasonably withheld or delayed). Notwithstanding compliance by the Indemnifying Party with the preceding sentence, the Indemnified Party shall have the right to pay or settle any such Third Party Claim; *provided* that, if the Indemnifying Party is in material compliance with the preceding sentence at the time of such payment or settlement by the Indemnified Party, then the Indemnifying Party shall have no responsibility to make any payment or reimbursement with respect to such claim or the settlement thereof. If, within 30 days after the receipt of the Indemnified Party's notice of a claim of indemnity hereunder in respect of a Third Party Claim, the Indemnifying Party does not notify the Indemnified Party that the Indemnifying Party elects, at its cost and expense, to undertake the defense thereof and assume full responsibility for all Covered Liabilities allocated to it under this Agreement with respect to such Third Party Claim (subject to the terms and limitations contained in this <u>ARTICLE 5</u>), or if the Indemnifying Party gives such notice and thereafter fails to contest or attempt to settle such Third Party Claim in good faith or to take such action as may reasonably be necessary, if applicable, to prevent foreclosure of a lien against or attachment of the Indemnified Party's property as contemplated above, the Indemnified Party shall have the right to contest, settle, or compromise the claim but shall not thereby waive any right to indemnity therefor pursuant to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>**Direct Claims.**</u> For any claim for indemnification not based upon a Third Party Claim, the Indemnified Party shall deliver to the Indemnifying Party a notice in writing describing in reasonable detail the facts giving rise to such claim, the basis upon which indemnification is being sought, and the estimated amount of Covered Liabilities (if known or reasonably capable of estimation) attributable to such claim. The Indemnifying Party shall have 30 days (or if such breach or liabilities cannot be cured within 30 days, such longer period as is reasonably necessary to cure, so long as the Indemnifying Party is using good faith efforts to cure) from its receipt of such notice to (a) cure the liabilities complained of, (b) admit its liability for such liabilities or (c) dispute the claim for such liabilities. If the Indemnifying Party does not notify the Indemnified Party within such time period that it has cured the liabilities complained of, that it admits its liability for such liabilities, or that it disputes the claim for such liabilities, then the Indemnifying Party shall be deemed to have disputed liability with respect to such matter. If the Indemnifying Party does not admit or otherwise does deny or dispute its liability against a direct claim for indemnification by an Indemnified Party within the time period set forth in this <u>Section 5.10</u>, then the Indemnified Party may pursue its rights and remedies under this Agreement, at law or in equity with respect to such claim for indemnification, or withdraw such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>**Title Matters**</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Issuer may, from time to time, deliver to Seller, on or before the Discharge Date, one or more written notices asserting the existence of Title Failure(s) (a "<u>**Title Failure Notice**</u>"). Each Title Failure Notice shall include (i) a description, in reasonable detail, of each Title Failure asserted thereunder and the Wellbore Interests affected thereby, (ii) if Issuer believes such Title Failure is reasonably susceptible of being cured, the curative actions that Issuer reasonably anticipates are required to cure such Title Failure, (iii) Issuer's calculation of the Title Failure Amount for each Title Failure asserted thereunder and (iv) any documents or information in Issuer's possession reasonably necessary for Seller to determine the existence of each Title Failure asserted thereunder. For thirty (30) days following delivery of a Title Failure Notice, Issuer and Seller will in good faith negotiate the validity and Title Failure Amounts of the Title Failure(s) asserted thereunder using the criteria set forth in this Agreement, and, if Issuer and Seller are unable to agree on the validity or Title Failure Amount of one or more Title Failure(s) asserted in such Title Failure Notice during such thirty (30) day period, then such matters shall be resolved pursuant to <u>Section 5.11(f)</u> and the time periods set forth in <u>Section 5.11(c)</u> and <u>Section 5.11(d)</u> shall be tolled with respect to the Title Failure(s) under dispute until finally resolved pursuant to <u>Section 5.11(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller may, from time to time (including at any time following receipt of a Title Failure Notice), deliver to Issuer, on or before the Discharge Date one or more written notices asserting the existence of Title Credit(s) (a "<u>**Title Credit Notice**</u>"). Each Title Credit Notice shall include (i) a description, in reasonable detail, of each Title Credit asserted thereunder and the Wellbore Interests affected thereby, (ii) Seller's calculation of the Title Credit Amount for each Title Credit asserted thereunder and (iii) any documents or information in Seller's possession reasonably necessary for Issuer to determine the existence of each Title Credit asserted thereunder and Seller's calculation of the associated Title Credit Amount. For twenty (20) Business Days following delivery of a Title Credit Notice, Issuer and Seller will in good faith negotiate the validity and Title Credit Amounts of the Title Credit(s) asserted thereunder using the criteria set forth in this Agreement, and, if Issuer and Seller are unable to agree on the validity or Title Credit Amount of a one or more Title Credit(s) asserted in such Title Credit Notice during such twenty (20) Business Day period, then such matters shall be resolved pursuant to <u>Section 5.11(f)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Title Failure asserted pursuant to a Title Failure Notice delivered pursuant to <u>Section 5.11(a)</u> is reasonably susceptible of being cured, Seller shall have a period of ninety (90) days following receipt of such Title Failure Notice to attempt in good faith to cure the identified Title Failure (or if such Title Failure cannot be cured within such ninety (90)-day period, such longer period as is reasonably necessary to cure such Title Failure, so long as Seller is using good faith efforts to cure such Title Failure, but with such period not to exceed in any event 12 months following receipt of such Title Failure Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to Title Failures affecting a Well that are asserted pursuant to Title Failure Notices delivered pursuant to <u>Section 5.11(a)</u>, if the aggregate Title Failure Amount(s) of such Title Failures exceed 50% of the then applicable Buy-Out Price for such Well, then Seller shall have the option to, within thirty (30) days following (i) if the Title Failures are not reasonably susceptible of being cured, then delivery of the applicable Title Failure Notice, or (ii) if the Title Failures are reasonably susceptible of being cured, then the last day of the period specified in <u>Section 5.11(c)</u>, repurchase all of the Wellbore Interests related to the affected Well for an amount equal to the Buy-Out Price for the affected Well (by paying such amount directly to Issuer) and, upon such payment, Issuer shall assign to Seller (in an assignment substantially in the form of the Conveyances) the Wellbore Interests related to such Well free and clear of any Encumbrances by, through, or under Issuer, but not otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to <u>Section 5.11(f)</u>, with respect to any (x) aggregate Title Failure Amounts for all Title Failures asserted pursuant to Title Failure Notices delivered pursuant to <u>Section 5.11(a)</u> and which Title Failures have not been cured pursuant to <u>Section 5.11(c)</u> and do not relate to a Repurchased Interest under <u>Section 5.11(d)</u> (as finally determined by agreement of the Parties pursuant to <u>Section 5.11(a)</u> or pursuant to <u>Section 5.11(f)</u>), *less* (y) aggregate Title Credit Amounts for all Title Credits asserted as of such time pursuant to Title Credit Notices delivered pursuant to <u>Section 5.11(b)</u> (as finally determined by agreement of the Parties pursuant to <u>Section 5.11(b)</u> or pursuant to <u>Section 5.11(f)</u>) and that have not previously been applied pursuant to this <u>Section 5.11(e)</u> (such net amount, the "**Title Adjustment Amount**"), Seller shall, within thirty (30) days following (i) if the Title Failures are not reasonably susceptible of being cured, then delivery of the applicable Title Failure Notice, or (ii) if the Title Failures are reasonably susceptible of being cured, then the last day of the period specified in <u>Section 5.11(c),</u> pay Issuer an amount in cash equal to the Title Adjustment Amount (by paying such amount directly to Issuer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any disputes regarding Title Failures, Title Failure Amounts, Title Credits, Title Credit Amounts, the appropriate cure of any Title Failure, the occurrence or existence of a Protected Outcome or whether or to what extent a Title Failure has been cured, in each case, that are not resolved within thirty (30) days following either Party submitting a written notice of dispute may be submitted by a Party, with written notice to the other Party, to an independent expert (the "<u>**Independent Expert**</u>"), who shall serve as the sole and exclusive arbitrator of any such dispute. The Independent Expert shall be selected by Issuer and Seller (acting reasonably and in good faith) within fifteen (15) days following the date said notice is received by the other Party. The Independent Expert must (i) be a neutral party who has never been an officer, director or employee of or performed material work for a Party or any Party's Affiliate within the preceding five (5)-year period and (ii) agree in writing to keep strictly confidential the specifics and existence of the dispute as well as all proprietary records of the Parties reviewed by the Independent Expert in the process of resolving such dispute. For any title matter, the Independent Expert must have not less than ten (10) years' experience as a lawyer with experience in oil and gas titles involving properties in the same geographic region in which the Wellbore Interests are located. If Issuer and Seller fail to select an Independent Expert within the fifteen (15) day period referred to in this <u>Section 5.11(f)</u> above, within three (3) Business Days thereafter, each of Issuer and Seller shall choose an Independent Expert meeting the qualifications set forth above, and such experts shall promptly choose a third Independent Expert (meeting the qualifications provided for herein) who alone shall resolve the disputes between Issuer and Seller regarding Title Failures, Title Failure Amounts, Title Credits, Title Credit Amounts, the appropriate cure of any Title Failure, or whether or to what extent a Title Failure has been cured. Issuer and Seller shall each bear its own costs and expenses incurred in connection with any such Proceeding and one-half (1/2) of the costs and expenses of the Independent Expert. Disputes to be resolved by an Independent Expert shall be resolved in accordance with the Commercial Arbitration Rules of the AAA as supplemented to the extent necessary to determine any procedural appeal questions by the Federal Arbitration Act (Title 9 of the United States Code), but only to the extent such rules do not conflict with the terms of this Agreement, mutually agreed procedures and rules and, failing such agreement, in accordance with the rules and procedures for non-administered arbitration set forth in the commercial arbitration rules of the American Arbitration Association. The decision and award of the Independent Expert shall be binding upon the Parties and final and non-appealable to the maximum extent permitted by Legal Requirements and judgment thereon may be entered in a court of competent jurisdiction and enforced by any Party as a final judgment of such court. Within fifteen (15) days following the receipt by either Party of written notice of a dispute, the Parties will exchange their written description of the proposed resolution of the disputed matters. Provided that no resolution has been reached, within five (5) Business Days following the selection of the Independent Expert, the Parties shall submit to the Independent Expert the following: (i) this Agreement, (ii) Issuer's written description of the proposed resolution of the disputed matters, together with any relevant supporting materials, (iii) Seller's written description of the proposed resolution of the disputed matters, together with any relevant supporting materials, and (iv) the written notice of the dispute. The Independent Expert shall make its determination by written decision within fifteen (15) days following receipt of the materials (the "<u>**Independent Expert Decision**</u>"). The Independent Expert Decision with respect to the disputed matters shall be limited to the selection of the single proposal for the resolution of the aggregate disputed matters proposed by a Party that best reflects the terms and provisions of this Agreement (*i.e.*, the Independent Expert must select either Issuer's proposal or Seller's proposal for resolution of the aggregate disputed matters). The Independent Expert shall act as an expert for the limited purpose of determining the specific matters submitted for resolution herein and shall not be empowered to award other Damages, attorney fees, interest, or penalties to either Party with respect to any other matter.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary herein, with respect to the Wellbore Interests, Issuer shall assume all risk of loss with respect to: (i) changes in commodity or product prices and any other market factors or conditions from and after the Effective Time; (ii) production declines or any adverse change in the production characteristics or downhole condition of a Well, including any Well watering out or experiencing a collapse in the casing or sand infiltration; and (iii) depreciation of any Well Facilities (excluding as to Seller's interest in the Retained Gathering Facilities) that constitute personal property through ordinary wear and tear, and none of the foregoing shall constitute Title Failures or otherwise give rise to any Claims by Issuer hereunder or under any other Seller Closing Document.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding anything to the contrary in this Agreement or in any other Seller Closing Document, this <u>Section 5.11</u> constitutes the entire and exclusive rights and remedies of Issuer against any member of the Seller Indemnity Group with respect to any Title Failures or other title matters or deficiencies in title with respect to the Wellbore Interests or of Seller against any member of the Issuer Indemnity Group with respect to any Title Credits or other title matters or benefits in title with respect to the Wellbore Interests (collectively, "<u>**Title Matters**</u>"). In this regard and notwithstanding anything to the contrary in this Agreement or in any other Seller Closing Document, if a Title Failure or other Title Matter constitutes, or results from any matter or circumstance which constitutes, either (1) a breach of any representation or warranty of Seller set forth in this Agreement or in any other Seller Closing Document or (2) a matter for which Seller has agreed to indemnify Issuer under <u>Section 5.02(d)</u>, then Issuer shall only be entitled to assert such matter (i) as to the portion thereof constituting a Title Failure, as a Title Failure as and to the extent permitted by this <u>Section 5.11</u>, and (ii) as to any Liability or Damage (other than such Title Failure) incurred by Issuer and owed to any Third Party, as the basis of the breach of any such representation or warranty (and claim under <u>Section 5.02(a)</u>) and/or the basis of a claim under <u>Section 5.02(d)</u>, as applicable.

**ARTICLE 6**<br>**GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.01 <u>**Expenses**</u>. Except as otherwise expressly provided in this Agreement, each Party to this Agreement shall bear its respective expenses incurred in connection with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including all fees and expenses of agents, Representatives, counsel, and accountants. However, the prevailing Party in any legal Proceeding brought under or to enforce this Agreement shall be entitled to recover court costs and reasonable attorneys' fees from the non-prevailing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.02 <u>**Notices**</u>. All notices, consents, waivers, and other communications under this Agreement must be in writing and shall be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by electronic mail with receipt acknowledged (with the receiving Party affirmatively obligated to promptly acknowledge receipt), or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate recipients, addresses, and fax numbers set forth below (or to such other recipients, addresses, or fax numbers as a Party may designate by notice to the other Party):

<u>NOTICES TO SELLER</u>:

HB2 Origination, LLC <br>3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

------

With a copy (which shall not constitute notice) to:

HB2 Origination, LLC <br>3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

<u>NOTICES TO ISSUER</u>:

Alpine Summit Funding LLC

c/o HB2 Origination, LLC

3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

With a copy (which shall not constitute notice) to:

HB2 Origination, LLC <br>3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.03 <u>**Jurisdiction; Service of Process**</u>. EACH PARTY TO THIS AGREEMENT HEREBY SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, THE COURTS OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF. EACH PARTY (i) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR SUCH COVERED CLAIMS, (ii) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT, AND (iii) AGREES THAT IT WILL NOT BRING ANY COVERED CLAIM IN ANY COURT OTHER THAN SUCH COURTS. EACH PARTY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE JURISDICTION AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY NON-APPEALABLE JUDGMENT RENDERED THEREBY, IN EACH CASE, IN CONNECTION WITH SUCH COVERED CLAIMS. A COPY OF ANY SERVICE OF PROCESS SERVED UPON THE PARTIES IN CONNECTION WITH A COVERED CLAIM SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LEGAL REQUIREMENTS, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY A PARTY REFUSES TO ACCEPT SERVICE, EACH PARTY AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LEGAL REQUIREMENTS.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.04 <u>**Waiver of Jury Trial**</u>. EACH OF THE PARTIES HERETO HEREBY WAIVES AND AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO COVERED CLAIMS. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THE TRANSACTIONS UNDER THIS AGREEMENT AND THE CLOSING DOCUMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.05 <u>**Further Assurances**</u>. The Parties agree (a) to furnish upon request to each other such further information, (b) to execute, acknowledge, and deliver to each other such other documents, and (c) to do such other acts and things, all as the other Party may reasonably request and which are reasonably necessary for the purpose of carrying out the intent of this Agreement and the Closing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.06 <u>**Waiver**</u>. The rights and remedies of the Parties are cumulative and not alternative. Neither the failure nor any delay by either Party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement shall operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege shall preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable Legal Requirements, (a) no claim or right arising out of this Agreement or the documents referred to in this Agreement can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other Party; (b) no waiver that may be given by a Party shall be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one Party shall be deemed to be a waiver of any obligation of such Party or of the right of the Party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.07 <u>**Entire Agreement and Modification**</u>. This Agreement supersedes all prior discussions, communications, and agreements (whether written or oral) between the Parties with respect to its subject matter and constitutes (along with the Closing Documents and Ancillary Agreements) a complete and exclusive statement of the terms of the agreement between the Parties with respect to its subject matter. This Agreement may not be amended or otherwise modified except by a written agreement executed by both Parties and the Majority Noteholders (as defined in the Indenture), which are third party beneficiaries for purposes of this Section 6.07. The Majority Noteholders shall be entitled to request an Opinion of Counsel (as defined in the Indenture) pursuant to Section 9.02 of the Indenture prior to consenting to any such modification or amendment. The Parties hereby agree that, until such time as the Indenture is terminated and the notes thereunder are satisfied, the Parties will not amend this Agreement to modify or alter the definition of the term "Permitted Encumbrance" without the prior consent of the applicable Holders of the then Outstanding Notes (as such terms are defined in the Indenture) in accordance with the terms of Section 9.02(a)(iv) of the Indenture. In the event of a conflict between the terms and provisions of this Agreement and the terms and provisions of any Schedule or Exhibit hereto, the terms and provisions of this Agreement shall govern, control, and prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.08 <u>**Assignments, Successors, and Third-Party Rights**</u>. Neither Party may assign any of its rights, liabilities, covenants, or obligations under this Agreement without the prior written consent of the other Party (which consent may be granted or denied at the sole discretion of the other Party), *provided, however*, the Parties consent to the pledge and assignment by Issuer to the Indenture Trustee of Issuer's rights under this Agreement as more particularly set forth in the Indenture. In the event of a permitted assignment pursuant to the preceding sentence, such assignment nevertheless shall not relieve such assigning Party of any of its obligations under this Agreement without the prior written consent of the other Party. Subject to the preceding sentence, this Agreement shall apply to, be binding in all respects upon, and inure to the benefit of the successors and permitted assigns of the Parties. Nothing expressed or referred to in this Agreement shall be construed to give any Person other than the Parties or the parties to any other agreement contemplated herein (and (a) Issuer Indemnity Group and Seller Indemnity Group who are entitled to indemnification under <u>ARTICLE 5</u> and (b) Non-Party Affiliates under <u>Section 6.13</u>), any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement, any other agreement contemplated herein, and all provisions and conditions hereof and thereof, are for the sole and exclusive benefit of the Parties and the parties to such other agreements (and (x) Issuer Indemnity Group and Seller Indemnity Group who are entitled to indemnification under <u>ARTICLE 5</u> and (y) Non-Party Affiliates under <u>Section 6.13</u>), and their respective successors and permitted assigns. Notwithstanding anything herein to the contrary, the Indenture Trustee shall be a third-party beneficiary to this Agreement and may enforce on Issuer's behalf the provisions hereof as if it were a Party hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.09 <u>**Severability**</u>. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree shall remain in full force and effect to the extent not held invalid or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>**Governing Law**</u>. This Agreement and any claim or cause of action (whether based in statute, tort, contract or otherwise) based upon or arising under this Agreement or any of the Closing Documents, based upon or arising in connection with any dealings between the Parties relating to the subject matter of this Agreement or any of the Closing Documents or the negotiation or performance of this Agreement or any of the Closing Documents (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or any of the Closing Documents or as an inducement to enter into this Agreement or any of the Closing Documents), or otherwise relating to the Contemplated Transactions ("<u>**Covered Claims**</u>") shall be governed by the internal laws of the State of Texas, including its statutes of limitations, without regard to any borrowing statute that would result in the application of the statute of limitations of any other jurisdiction, provided that any matter that relates to real property the legal effect of which as related to such real property is dependent on the substantive laws of the State where such real property is located or other jurisdiction having authority over such matter as related to such real property shall be governed by the substantive laws of the State where such real property is located or such other jurisdiction having authority over such matter as related to such real property, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>**Counterparts**</u>. This Agreement may be executed and delivered (including by facsimile or electronic transmission) in one or more counterparts, each of which shall be deemed to be an original copy of this Agreement, and each of which may be executed by less than all of the Parties, and shall be enforceable and effective against the Parties actually executing such counterparts, and all of which, when taken together, shall be deemed to constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>**Confidentiality**</u>. Each Party shall keep confidential, and cause its Affiliates and instruct its Representatives to keep confidential, all terms and provisions of this Agreement; *provided* that disclosure thereof shall be permitted: (a) to the lenders, swap counterparties, insurers, owners, and investors of any Party (or their trustees or other Representatives), to the Affiliates of any such Party, lender, owner or investor, and to any rating agency providing a rating for the obligations of Seller or Issuer or any Affiliate thereof and to any regulatory authority with jurisdiction of any such party; (b) to the directors, managers, officers, employees, agents, consultants, engineers, auditors and attorneys of any Party or any Person described in the preceding clause (a); (c) in the course of any trial or other action between any of the Parties, their lenders, swap counterparties, insurers, owners or investors, or the Affiliates of any such Party, lender, swap counterparty, insurer, owner or investor; (d) as required by any applicable securities Legal Requirements or other Legal Requirements (including any subpoena, interrogatory, or other similar requirement for such information to be disclosed); and (e) in connection with any direct or indirect assignment or potential assignment of or investment in such Party's, lender's, swap counterparty's, owner's or investor's rights or assets (*provided* that each such assignee or potential assignee is made aware that such information is required to be held in confidence). This <u>Section 6.12</u> shall not prevent either Party from recording the Conveyances delivered at Closing or from complying with any disclosure requirements of Governmental Bodies that are applicable to the transfer of the Wellbore Interests. The covenant set forth in this <u>Section 6.12</u> shall survive for twelve (12) months after the Closing Date.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>**No Recourse**</u>. Notwithstanding anything that may be expressed or implied in this Agreement or any document, agreement, or instrument delivered contemporaneously herewith, and notwithstanding the fact that any Party may be a partnership or limited liability company, each Party hereto, by its acceptance of the benefits of this Agreement, covenants, agrees and acknowledges that no Persons other than the Parties shall have any obligation hereunder and that it has no rights of recovery hereunder against, and no recourse hereunder or under any documents, agreements, or instruments delivered contemporaneously herewith or in respect of any oral representations made or alleged to be made in connection herewith or therewith shall be had against, any former, current or future director, officer, agent, Affiliate, manager, assignee, incorporator, controlling Person, fiduciary, Representative or employee of any Party (or any of their successors or permitted assignees), against any former, current, or future general or limited partner, manager, stockholder or member of any Party (or any of their successors or permitted assignees) or any Affiliate thereof or against any former, current or future director, officer, agent, employee, Affiliate, manager, assignee, incorporator, controlling Person, fiduciary, Representative, general or limited partner, stockholder, manager or member of any of the foregoing, but in each case not including the Parties (each, but excluding for the avoidance of doubt, the Parties, a "<u>**Non-Party Affiliate**</u>"), whether by or through attempted piercing of the corporate veil, by or through a claim (whether in tort, contract or otherwise) by or on behalf of such Party against the Non-Party Affiliates, by the enforcement of any assessment or by any Proceeding, or by virtue of Legal Requirements, or otherwise; it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on, or otherwise be incurred by any Non-Party Affiliate, as such, for any obligations of the applicable Party under this Agreement or the transactions contemplated hereby, under any documents or instruments delivered contemporaneously herewith, in respect of any oral representations made or alleged to be made in connection herewith or therewith, or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, such obligations or their creation. Except to the extent otherwise expressly set forth in, and subject in all cases to the terms and conditions of and limitations herein, this Agreement may only be enforced against, and any claim or cause of action of any kind based upon, arising out of, or related to this Agreement, or the negotiation, execution or performance of this Agreement, may only be brought against the entities that are expressly named as Parties hereto and then only with respect to the specific obligations set forth herein with respect to such Party. Each Non-Party Affiliate is expressly intended as a third-party beneficiary of this <u>Section 6.13</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <u>**Issuer's Obligations**</u>. Notwithstanding any provisions herein to the contrary, but subject to and without limitation of any right under the Joint Operating Agreement to net or offset amounts owing to Issuer against any Assumed Liabilities owing by Issuer, all out-of-pocket payment obligations of Issuer under or in connection with this Agreement are nonrecourse obligations of Issuer payable solely from the Collateral (as defined in the Indenture) in accordance with the priorities set forth in Section 8.06 of the Indenture, and following realization of the Collateral and its reduction to zero, any claims of a Person against Issuer under this Agreement shall be extinguished and shall not thereafter revive. It is understood that the foregoing provision shall not limit the right of any Person claiming hereunder to name Issuer as a party defendant in any proceeding or in the exercise of any other remedy, so long as no judgment in the nature of a deficiency judgment shall be asked for or (if obtained) enforced against Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 <u>**No Petition**</u>. Seller, by entering into this Agreement, hereby covenants and agrees that, solely in its capacity as a creditor of Issuer, it will not at any time institute against Issuer, or join in any institution against Issuer of, any involuntary bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings, or other Proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to this Agreement.

**[Signature Page Follows]**

------

IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the date first written above.

<u>**SELLER:**</u>

**HB2 ORIGINATION, LLC**

By: <u>/s/ Craig Perry</u><u> </u>

Craig Perry

President and Chief Executive Officer

<u>**ISSUER:**</u>

**ALPINE SUMMIT FUNDING LLC**

By: <u>/s/ Craig Perry</u><u> </u>

Craig Perry

President and Chief Executive Officer

*Signature Page to Asset Purchase Agreement*

------

## Exhibit 10.3

------

Execution Version <br>

---

| |
|:---|
| &nbsp;&nbsp; AMENDED AND RESTATED INDENTURE |
| &nbsp;&nbsp; between |
| &nbsp;&nbsp; ALPINE SUMMIT FUNDING LLC, |
| &nbsp;&nbsp; as Issuer |
| &nbsp;&nbsp; and |
| &nbsp;&nbsp; UMB BANK, N.A. |
| &nbsp;&nbsp; as Indenture Trustee, as Paying Agent and as Securities Intermediary |
| &nbsp;&nbsp; Dated as of September 12, 2022 |

---

------

Execution Version <br>

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | <u>Page</u> |
| [**ARTICLE I** DEFINITIONS AND INCORPORATION BY REFERENCE](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 1.01 Definitions](#page_7) | [2](#page_7) |
| [**ARTICLE II** THE NOTES](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.01 Form](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.02 Execution, Authentication and Delivery](#page_8) | [3](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.03 Reserved](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.04 Transfer Restrictions on Notes](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.05 Registration; Registration of Transfer and Exchange](#page_13) | [8](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.06 Mutilated, Destroyed, Lost or Stolen Notes](#page_15) | [10](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.07 Persons Deemed Owner](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.08 Reserved](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.09 Payment of Principal and Interest; Defaulted Interest](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.10 Cancellation](#page_17) | [12](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.11 Release of Collateral](#page_17) | [12](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.12 Definitive Notes](#page_18) | [13](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.13 Reserved](#page_18) | [13](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.14 Tax Treatment](#page_18) | [13](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.15 Private Placement Numbers](#page_19) | [14](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.16 Issuance of Additional Notes](#page_19) | [14](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 2.17 Extension of Initial Maturity Date](#page_21) | [16](#page_21) |
| [**ARTICLE III** REPRESENTATIONS AND WARRANTIES](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.01 Organization and Good Standing](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.02 Authority; No Conflict](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.03 Legal Proceedings; Orders](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.04 Compliance with Laws and Governmental Authorizations](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.05 Compliance with Leases](#page_23) | [18](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.06 Material Liabilities](#page_23) | [18](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.07 Employee Benefit Plans](#page_23) | [18](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.08 Use of Proceeds; Margin Regulations](#page_23) | [18](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.09 Existing Indebtedness; Future Liens](#page_24) | [19](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.10 Foreign Assets Control Regulations, Etc](#page_24) | [19](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.11 Status under Certain Statutes](#page_25) | [20](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.12 Single Purpose Entity](#page_25) | [20](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.13 Solvency](#page_25) | [20](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 3.14 Security Interest](#page_26) | [21](#page_26) |
| [**ARTICLE IV** COVENANTS](#page_26) | [21](#page_26) |

---

i

------

Execution Version

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.01 Payment of Principal and Interest](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.02 Maintenance of Office or Agency](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.03 Money for Payments to Be Held on behalf of the Noteholders and Hedge Counterparties](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.04 Compliance with Law](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.05 Insurance](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.06 No Change in Fiscal Year](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.07 Payment of Taxes and Claims](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.08 Existence](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.09 Books and Records](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.10 Performance of Material Agreements](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.11 Maintenance of Lien](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.12 Further Assurances](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.13 Use of Proceeds](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.14 Separateness](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.15 Transactions with Affiliates](#page_31) | [26](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.16 Merger, Consolidation, Etc](#page_31) | [26](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.17 Lines of Business](#page_31) | [26](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.18 Economic Sanctions, Etc](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.19 Liens](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.20 Sale of Assets, Etc](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.21 Permitted Indebtedness](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.22 Amendment to Organizational Documents](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.23 No Loans](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.24 Permitted Investments; Subsidiaries](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.25 Employees; ERISA](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.26 Tax Treatment](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.27 Replacement of Manager or Indenture Trustee](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.28 Hedge Agreements](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.29 Characterization](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.30 Manager or Operator Failure](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 4.31 Amendments to Basic Documents](#page_35) | [30](#page_35) |
| [**ARTICLE V REMEDIES**](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.01 Events of Default](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.02 Acceleration of Maturity; Rescission and Annulment](#page_38) | [33](#page_38) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.03 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee](#page_39) | [34](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.04 Remedies; Priorities](#page_41) | [36](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.05 Optional Preservation of the Assets](#page_43) | [38](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.06 Limitation of Suits](#page_43) | [38](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.07 Unconditional Rights of Hedge Counterparties and Noteholders to Receive Principal, Interest and Payments of Other Obligations](#page_44) | [39](#page_44) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.08 Restoration of Rights and Remedies](#page_44) | [39](#page_44) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.09 Rights and Remedies Cumulative](#page_44) | [39](#page_44) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.10 Delay or Omission Not a Waiver](#page_45) | [40](#page_45) |

---

ii

------

Execution Version

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.11 Control by Noteholders](#page_45) | [40](#page_45) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.12 Waiver of Past Defaults](#page_45) | [40](#page_45) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.13 Undertaking for Costs](#page_46) | [41](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.14 Waiver of Stay or Extension Laws](#page_46) | [41](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.15 Action on Notes or Hedge Agreements](#page_46) | [41](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.16 Performance and Enforcement of Certain Obligations](#page_46) | [41](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 5.17 Aron IM Collateral](#page_47) | [42](#page_47) |
| [**ARTICLE VI** THE INDENTURE TRUSTEE](#page_47) | [42](#page_47) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.01 Duties of Indenture Trustee](#page_47) | [42](#page_47) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.02 Rights of Indenture Trustee](#page_49) | [44](#page_49) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.03 Individual Rights of Indenture Trustee](#page_52) | [47](#page_52) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.04 Indenture Trustee's Disclaimer](#page_52) | [47](#page_52) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.05 Notice of Material Events](#page_52) | [47](#page_52) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.06 Reports by Indenture Trustee](#page_53) | [48](#page_53) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.07 Compensation and Indemnity](#page_53) | [48](#page_53) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.08 Replacement of Indenture Trustee](#page_54) | [49](#page_54) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.09 Successor Indenture Trustee by Merger](#page_55) | [50](#page_55) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee](#page_56) | [51](#page_56) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.11 Eligibility; Disqualification](#page_57) | [52](#page_57) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 6.12 Representations and Warranties of the Indenture Trustee](#page_57) | [52](#page_57) |
| [**ARTICLE VII** INFORMATION REGARDING THE ISSUER](#page_57) | [52](#page_57) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 7.01 Financial and Business Information](#page_58) | [53](#page_58) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 7.02 Visitation](#page_59) | [54](#page_59) |
| [**ARTICLE VIII** ACCOUNTS, DISBURSEMENTS AND RELEASES](#page_60) | [55](#page_60) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.01 Deposit of Collections](#page_60) | [55](#page_60) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.02 Establishment of Accounts](#page_60) | [55](#page_60) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.03 Collection of Money](#page_64) | [59](#page_64) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.04 Reserved](#page_64) | [59](#page_64) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.05 Reserve Reports](#page_64) | [59](#page_64) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.06 Distributions](#page_65) | [60](#page_65) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.07 Interest Reserve Account](#page_69) | [64](#page_69) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.08 Statements to Noteholders](#page_70) | [65](#page_70) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.09 Reserved](#page_72) | [67](#page_72) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 8.10 Original Documents](#page_72) | [67](#page_72) |
| [**ARTICLE IX** SUPPLEMENTAL INDENTURES](#page_72) | [67](#page_72) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 9.01 Supplemental Indentures Not Requiring Consent of Noteholders](#page_72) | [67](#page_72) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 9.02 Supplemental Indentures with Consent of Noteholders and Hedge Counterparties](#page_73) | [68](#page_73) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 9.03 Execution of Supplemental Indentures](#page_75) | [70](#page_75) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 9.04 Effect of Supplemental Indenture](#page_76) | [71](#page_76) |

---

iii

------

Execution Version

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 9.05 Reference in Notes to Supplemental Indentures](#page_76) | [71](#page_76) |
| [**ARTICLE X** REDEMPTION OF NOTES](#page_76) | [71](#page_76) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 10.01 Redemption](#page_76) | [71](#page_76) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 10.02 Form of Redemption Notice](#page_76) | [71](#page_76) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 10.03 Notes Payable on Redemption Date](#page_77) | [72](#page_77) |
| [**ARTICLE XI** SATISFACTION AND DISCHARGE](#page_77) | [72](#page_77) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 11.01 Satisfaction and Discharge of Indenture with respect to the Notes](#page_77) | [72](#page_77) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 11.02 Application of Trust Money](#page_79) | [74](#page_79) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 11.03 Repayment of Monies Held by Paying Agent](#page_79) | [74](#page_79) |
| [**ARTICLE XII** MISCELLANEOUS](#page_79) | [74](#page_79) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.01 Compliance Certificates and Opinions, etc](#page_79) | [74](#page_79) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.02 Form of Documents Delivered to Indenture Trustee](#page_80) | [75](#page_80) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.03 Acts of Noteholders](#page_80) | [75](#page_80) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.04 Notices, etc](#page_81) | [76](#page_81) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.05 Notices to Noteholders and Hedge Counterparties; Waiver](#page_82) | [77](#page_82) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.06 Alternate Payment and Notice Provisions](#page_83) | [78](#page_83) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.07 Effect of Headings and **Table of Contents**](#page_83) | [78](#page_83) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.08 Successors and Assigns](#page_83) | [78](#page_83) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.09 Severability](#page_83) | [78](#page_83) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.10 Benefits of Indenture](#page_83) | [78](#page_83) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.11 Legal Holidays](#page_84) | [79](#page_84) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.12 GOVERNING LAW; CONSENT TO JURISDICTION](#page_84) | [79](#page_84) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.13 Counterparts](#page_84) | [79](#page_84) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.14 Recording of Indenture](#page_85) | [80](#page_85) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.15 No Petition](#page_85) | [80](#page_85) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.16 Inspection](#page_85) | [80](#page_85) |
| &nbsp;&nbsp;&nbsp;&nbsp;[Section 12.17 Waiver of Jury Trial](#page_85) | [80](#page_85) |

---

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; APPENDIX A | &nbsp;&nbsp; - | Definitions |
| &nbsp;&nbsp; SCHEDULE A | &nbsp;&nbsp; - | Schedule of Wells included in Wellbore Interests |
| &nbsp;&nbsp; SCHEDULE B | &nbsp;&nbsp; - | Amortization Schedule |
| &nbsp;&nbsp; EXHIBIT A | &nbsp;&nbsp; - | Form of Note |
| &nbsp;&nbsp; EXHIBIT B | &nbsp;&nbsp; - | Form of Transferor Certificate |
| &nbsp;&nbsp; EXHIBIT C | &nbsp;&nbsp; - | Form of Investment Letter |
| &nbsp;&nbsp; EXHIBIT D | &nbsp;&nbsp; - | Form of Noteholder Statement |

---

iv

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Execution Version

THIS AMENDED AND RESTATED INDENTURE dated as of September 12, 2022 (as it may be amended and supplemented from time to time, this "<u>Indenture</u>") is between Alpine Summit Funding LLC, a Delaware limited liability company (the "<u>Issuer</u>"), and UMB Bank N.A., a national banking association, as indenture trustee and not in its individual capacity (the "<u>Indenture Trustee</u>"), as Paying Agent (as defined herein) and as Securities Intermediary (as defined herein).

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of (i) the Holders of the Issuer's Series 2022-1 Floating Rate Oil & Gas Asset-Backed Notes issued on April 29, 2022 (the "<u>2022-1 Notes</u>"), (ii) the Holders of the Issuer's Series 2022-2 Floating Rate Oil & Gas Asset-Backed Notes issued on September 12, 2022 (the "<u>2022-2 Notes</u>" and together with the 2022-1 Notes and any Additional Notes, collectively, the "<u>Notes</u>"), (iii) upon any such issuance, the Holders of Additional Notes, and (iv) the Hedge Counterparties:

**PRELIMINARY STATEMENT**

WHEREAS, the Issuer and the Indenture Trustee entered into an Indenture, dated as of April 29, 2022 (the "<u>Original Indenture</u>").

WHEREAS, the Issuer seeks to amend and restate the Original Indenture in contemplation of the issuance of the Tranche of 2022-2 Notes hereunder as well as to provide for the potential future issuance of Additional Notes subject to the terms set forth herein, and the Holders of the 2022-1 Notes have consented to such amendment and restatement (i) to facilitate such issuance of 2022-2 Notes and any Additional Notes, and (ii) to make certain other amendments as reflected in this Indenture.

**GRANTING CLAUSE**

The Issuer hereby Grants to the Indenture Trustee on the Initial Closing Date or, in respect of each Wellbore Interest acquired and Basic Document executed thereafter, on the Closing Date such Wellbore Interest was acquired or such Basic Document was executed, as Indenture Trustee for the benefit of the Secured Parties, and grants to the Indenture Trustee a security interest in, all of the Issuer's right, title and interest, whether now or hereafter acquired, and wherever located, in and to: all of the Issuer's right, title and interest, whether now or hereafter acquired, and wherever located, in and to: (a) each of the Wellbore Interests and all monies received thereon and in respect thereof that are attributable to the period from and after the Effective Time applicable to a Wellbore Interest; (b) the Issuer Accounts and all funds on deposit in, and all financial assets, instruments, money and other property credited to or on deposit in the Issuer Accounts from time to time and all investments and proceeds thereof (including all income thereon); (c) each Asset Purchase Agreement (including the Issuer's right to exercise remedies against the Seller with respect to Wellbore Interests under certain circumstances) and each Conveyance; (d) the Management Services Agreement; (e) the Hedge Agreements; (f) the Back-Up Management Agreement; (g) the Joint Operating Agreement; (h) the Holdings Pledge Agreement; (i) the Holdings Guaranty Agreement; (j) the Limited Guaranty, (k) each other Basic Document to which it is a party; (l) the representations, warranties and covenants contained in each of the Basic Documents; (m) all accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, and other minerals; (n) all proceeds of any and all of the foregoing insofar as relating to the Wellbore Interests and all present and future claims, demands, causes of action and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments, general intangibles and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing; and (o) all proceeds of any and all of the foregoing (collectively, the "<u>Collateral</u>"); provided, however, "<u>Collateral</u>" excludes (i) any Wellbore Interests and related Collateral that are Repurchased Interests under either of the Asset Purchase Agreements or under the Management Services Agreement, and (ii) any Aron IM Collateral (which shall not be subject to the lien of this Indenture).

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Execution Version

The foregoing Grant is made in trust to secure the Secured Obligations.

The Indenture Trustee, as Indenture Trustee on behalf of the Holders of the Notes and each Hedge Counterparty, acknowledges such Grant, accepts the trusts under this Indenture in accordance with the provisions of this Indenture and agrees to perform its duties required in this Indenture to the end that the interests of the Holders of the Notes may be adequately and effectively protected.

**ARTICLE I**<br>**DEFINITIONS AND INCORPORATION BY REFERENCE**

Section 1.01 <u>Definitions</u>. Certain capitalized terms used in this Indenture shall have the respective meanings assigned to them in <u>Part I</u> of <u>Appendix A</u> attached hereto or, if not defined therein, as defined in the applicable Asset Purchase Agreement. All references herein to "<u>the Indenture</u>" or "<u>this Indenture</u>" are to this Indenture as it may be amended, supplemented or modified from time to time, the exhibits hereto and the capitalized terms used herein which are defined in such <u>Appendix A</u>. All references herein to Articles, Sections, subsections and exhibits are to Articles, Sections, subsections and exhibits contained in or attached to this Indenture unless otherwise specified. All terms defined in this Indenture shall have the defined meanings when used in any certificate, notice, Note or other document made or delivered pursuant hereto unless otherwise defined therein. The rules of construction set forth in <u>Part II</u> of such <u>Appendix A</u> shall be applicable to this Indenture.

**ARTICLE II**<br>**THE NOTES**

Section 2.01 <u>Form</u>. (a) The Notes, together with the Indenture Trustee's certificate of authentication, shall be in substantially the form set forth in <u>Exhibit A</u> to this Indenture with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be determined by the officers of the Issuer executing such Notes, as evidenced by their execution of the Notes. Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Definitive Notes shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods (with or without steel engraved borders), all as determined by the officers of the Issuer executing such Notes, as evidenced by their execution of such Notes. As set forth in <u>Section 2.12</u>, the Notes, upon original issuance, shall be in the form of Definitive Notes. The Notes have been, and are being, offered and sold by the Issuer to the Purchasers of the Notes pursuant to the applicable Note Purchase 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;(c) The terms of the Notes set forth in <u>Exhibit A</u> are part of the terms of this Indenture.

Section 2.02 <u>Execution, Authentication and Delivery</u>. (a) The Notes shall be executed on behalf of the Issuer by any of its authorized officers. The signature of any such authorized officer on the Notes may be manual or facsimile.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Notes bearing the manual or facsimile signature of individuals who were at any time authorized officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes or did not hold such offices at the date of such Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Indenture Trustee (i) upon receipt of an Issuer Order authenticated and delivered the Tranche of 2022-1 Notes on the Initial Closing Date for original issue in an aggregate principal amount of $80,000,000.00, (ii) shall, upon receipt of an Issuer Order, authenticate and deliver the Tranche of 2022-2 Notes on the Second Closing Date for original issuance in an aggregate principal amount of $55,000,000.00, and (iii) shall, upon receipt of an Issuer Order in connection with an issuance of Additional Notes pursuant to <u>Section 2.16</u> hereof, authenticate and deliver such Additional Notes in accordance with the terms of the related Issuer Order. The aggregate principal amount of any Notes outstanding at any time may not exceed the original principal amount of such Notes, except as the amount may be increased by an issuance of Additional Notes pursuant to <u>Section 2.16</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;(d) Each Note shall be dated the date of its authentication. Except as otherwise described in this paragraph, the Notes shall be issuable as registered Notes in minimum denominations of $1,000,000 and in integral multiples of $1,000 in excess thereof. Notwithstanding any other provision in this Indenture or any Note Purchase Agreement, transfers of ownership or beneficial interests or participations in the Notes shall not be recognized if the result of such a transfer or participation is the creation of ownership or beneficial ownership of such Note in a principal amount that is less than the minimum denominations set forth in this <u>Section 2.02</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;(e) No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Note a certificate of authentication substantially in the form provided for herein executed by the Indenture Trustee by the manual signature of one of its authorized signatories, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder.

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Execution Version

Section 2.03 <u>Reserved</u>.

Section 2.04 <u>Transfer Restrictions on Notes</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;(a) No transfer of any Note or any interest therein (including, without limitation, by pledge or hypothecation) shall be made except in compliance with the restrictions on transfer set forth in this <u>Section 2.04</u> (including the applicable legend to be set forth on the face of each Note as provided in the Exhibits to this Indenture).

&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Reserved</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;(c) <u>Reserved</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;(d) Each Holder of a Note, by its acceptance of its beneficial interest in a Note, shall be deemed to have acknowledged, represented to and agreed with the Issuer as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) It understands and acknowledges that such Notes have not been and will not be registered under the Securities Act or any state or other applicable securities Law and that such Notes, or any interest or participation therein, may not be offered, sold, pledged or otherwise transferred unless registered pursuant to, or exempt from registration under, the Securities Act and any state or other applicable securities Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) It acknowledges that the Notes will bear a legend to the following effect unless the Issuer determines otherwise, consistent with applicable Law:

"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "<u>SECURITIES ACT</u>"), AND WILL NOT BE LISTED ON ANY EXCHANGE. THIS NOTE SHALL NOT BE TRANSFERRED OR ASSIGNED, AND NO INTEREST IN THIS NOTE SHALL BE TRANSFERRED OR ASSIGNED, UNLESS THE NOTEHOLDER AND THE TRANSFEREE OR ASSIGNEE, AS APPLICABLE, COMPLY WITH THE TERMS AND CONDITIONS OF <u>SECTION 2.04</u> OF THE INDENTURE. EXCEPT IN A TRANSFER TO ALPINE SUMMIT FUNDING HOLDINGS LLC ("<u>HOLDINGS</u>") OR BY HOLDINGS TO AN AFFILIATE THEREOF, IN THE EVENT THAT A TRANSFER IS TO BE MADE IN RELIANCE UPON AN EXEMPTION FROM THE SECURITIES ACT AND STATE SECURITIES LAWS, IN ORDER TO ASSURE COMPLIANCE WITH THE SECURITIES ACT AND SUCH LAWS, THE NOTEHOLDER DESIRING TO EFFECT SUCH TRANSFER AND SUCH NOTEHOLDER'S PROSPECTIVE TRANSFEREE SHALL EACH CERTIFY TO THE ISSUER, THE INDENTURE TRUSTEE AND HOLDINGS IN WRITING THE FACTS SURROUNDING THE TRANSFER IN SUBSTANTIALLY THE FORMS SET FORTH IN <u>EXHIBIT B</u> TO THE INDENTURE (THE "<u>TRANSFEROR CERTIFICATE</u>") AND <u>EXHIBIT C</u> TO THE INDENTURE (THE "<u>INVESTMENT LETTER</u>"); PROVIDED, THAT, IN CONNECTION WITH ANY SUCH TRANSFER BY THE INDENTURE TRUSTEE, AS INDENTURE TRUSTEE TO AN AFFILIATE THEREOF OR BY AN AFFILIATE THEREOF TO AN AFFILIATE THEREOF, SUCH TRANSFEROR AND TRANSFEREE SHALL BE DEEMED TO HAVE MADE THE CERTIFICATIONS CONTAINED IN THE TRANSFEROR CERTIFICATE AND INVESTMENT LETTER. EACH NOTEHOLDER DESIRING TO EFFECT SUCH A TRANSFER SHALL, AND DOES HEREBY AGREE TO, INDEMNIFY THE ISSUER, THE INDENTURE TRUSTEE AND HOLDINGS (IN ANY CAPACITY) AND THEIR RESPECTIVE MANAGERS, MEMBERS, AFFILIATES AND EMPLOYEES AGAINST ANY LIABILITY THAT MAY RESULT IF THE TRANSFER IS NOT SO EXEMPT OR IS NOT MADE IN ACCORDANCE WITH FEDERAL AND STATE SECURITIES LAWS.

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Execution Version

NO RESALE OR OTHER TRANSFER OF THIS NOTE OR ANY BENEFICIAL OWNERSHIP INTEREST HEREIN SHALL BE MADE TO ANY TRANSFEREE UNLESS EITHER (A) SUCH TRANSFEREE IS NOT AND WILL NOT ACQUIRE THIS NOTE OR ANY BENEFICIAL OWNERSHIP INTEREST HEREIN DIRECTLY OR INDIRECTLY FOR, ON BEHALF OR WITH THE ASSETS OF ANY "EMPLOYEE BENEFIT PLAN," AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("<u>ERISA</u>"), THAT IS SUBJECT TO TITLE I OF ERISA OR ANY OTHER "PLAN," AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "<u>CODE</u>"), THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF AN EMPLOYEE BENEFIT PLAN'S OR PLAN'S INVESTMENT IN SUCH ENTITY OR ANY GOVERNMENTAL, CHURCH, NON-U.S. OR OTHER PLAN WHICH IS SUBJECT TO THE PROVISIONS OF OTHER APPLICABLE FEDERAL, STATE, LOCAL OR NON-U.S. LAWS THAT ARE SIMILAR TO THE PROVISIONS OF TITLE I OF ERISA OR SECTION 4975 OF THE CODE ("<u>SIMILAR LAWS</u>") OR (B) ITS ACQUISITION, HOLDING AND DISPOSITION OF THIS NOTE OR ANY BENEFICIAL OWNERSHIP INTEREST HEREIN WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE BY REASON OF THE APPLICATION OF ONE OR MORE OF THE FOLLOWING EXEMPTIONS, ALL OF THE CONDITIONS OF WHICH SHALL BE MET: PROHIBITED TRANSACTION CLASS EXEMPTION ("<u>PTCE</u>") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 OR THE EXEMPTION UNDER SECTION 408(b)(17) OF ERISA AND SECTION 4975(d)(20) OF THE CODE, OR, IN THE CASE OF A PURCHASER OR TRANSFEREE SUBJECT TO ANY SIMILAR LAWS, SUCH ACQUISITION, HOLDING AND DISPOSITION WILL NOT CONSTITUTE OR RESULT IN A NON-EXEMPT VIOLATION OF ANY SIMILAR LAWS, AND WILL NOT OTHERWISE RESULT IN ANY TAX, RECISSION RIGHT OR PENALTY ON THE ISSUER AND, IN ANY CASE, NEITHER THE PURCHASE NOR HOLDING OF THIS NOTE OR ANY BENEFICIAL OWNERSHIP INTEREST HEREIN WILL SUBJECT THE ISSUER TO ANY OBLIGATION NOT AFFIRMATIVELY UNDERTAKEN IN WRITING. THIS NOTE AND RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME TO MODIFY THE RESTRICTIONS ON AND PROCEDURES UNDERTAKEN OR REPRESENTED BY THE HOLDER, FOR RESALES AND OTHER TRANSFERS OF THIS NOTE, TO REFLECT ANY CHANGE IN, OR TO MAKE USE OF OTHER, APPLICABLE LAWS OR REGULATIONS (OR THE INTERPRETATION THEREOF) OR IN PRACTICES RELATING TO RESALES OR OTHER TRANSFERS OF RESTRICTED SECURITIES GENERALLY. THE HOLDER OF THIS NOTE AND ANY BENEFICIAL OWNER OF ANY INTEREST THEREIN SHALL BE DEEMED, BY ITS ACCEPTANCE OR PURCHASE HEREOF OR THEREOF, TO HAVE AGREED TO ANY SUCH AMENDMENT OR SUPPLEMENT (EACH OF WHICH SHALL BE CONCLUSIVE AND BINDING ON THE HOLDER HEREOF AND ALL FUTURE HOLDERS OF THIS NOTE AND ANY NOTES ISSUED IN EXCHANGE OR SUBSTITUTION THEREFOR, WHETHER OR NOT ANY NOTATION THEREOF IS MADE HEREON) AND AGREES TO TRANSFER THIS NOTE ONLY IN ACCORDANCE WITH SUCH RELATED DOCUMENTATION AS SO AMENDED OR SUPPLEMENTED AND IN ACCORDANCE WITH APPLICABLE LAW IN EFFECT AT THE DATE OF SUCH TRANSFER.

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Execution Version

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY GOVERNMENTAL AGENCY.

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH OWNER OF A BENEFICIAL INTEREST HEREIN, AGREES TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE U.S. FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON, OR MEASURED BY, INCOME."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 it is acquiring any Notes, or any interest or participation therein, as a fiduciary or agent for one or more investor accounts, it represents that it has sole investment discretion with respect to each such account and that it has full power to make the acknowledgements, representations and agreements contained herein on behalf of each such account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) It is purchasing such Notes for its own account, or for one or more investor accounts for which it is acting as fiduciary or agent, in each case for investment, and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act, subject to any requirements of Law that the disposition of its property or the property of such investor account or accounts be at all times within its or their control and subject to its or their ability to resell such Notes, or any interest or participation therein pursuant to the provisions of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) It acknowledges that the Issuer, the Purchasers, the Indenture Trustee and others will rely on the truth and accuracy of the foregoing acknowledgments, representations and agreements, and agrees that if any of the foregoing acknowledgments, representations and agreements deemed to have been made by it are no longer accurate, it shall promptly notify the Issuer and the Purchasers.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) It acknowledges that transfers of the Notes or any interest or participation therein shall be subject in all respects to the restrictions applicable thereto contained in this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Either (1) it is not and is not acquiring the Notes or any beneficial ownership interest therein directly or indirectly for, on behalf of, or with the assets of any Plan or (2) its acquisition, holding and disposition of the Notes or any beneficial ownership interest therein is permissible under applicable law, and will not constitute or result in any non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code by reason of the application of one or more Investor-Based Class Exemptions and/or the Statutory Exemption, all of the conditions of which shall be met, or, if the Holder is subject to any Similar Law, such acquisition, holding and disposition will not constitute or result in a non-exempt violation of any Similar Law, and will not otherwise result in any tax, rescission right or other penalty on the Issuer, and, in any case, neither the purchase nor holding of the Notes or any beneficial ownership interest therein will subject the Issuer to any obligation not affirmatively undertaken in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Any resale, pledge or other transfer of any of the Notes contrary to the restrictions set forth above and elsewhere in this Indenture shall be deemed void ab initio by the Issuer and the Indenture Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Holder of a Note, by the purchase of such Note or its acceptance of a beneficial interest therein, acknowledges that interest on the Notes will be treated as United States source interest, and, as such, United States withholding tax may apply. If such withholding tax does apply, the Indenture Trustee or Paying Agent may withhold such payments in accordance with applicable Law. Each such Holder that claims exemption from, or eligibility for a reduced rate of, withholding tax further agrees, upon request, to provide any certifications that may be required under applicable Law, regulations or procedures to evidence such status and understands that if it ceases to satisfy the foregoing requirements or provide requested documentation, payments to it under the Notes may be subject to United States withholding tax (without any corresponding gross-up). Without limiting the foregoing, if any payment made under this Indenture would be subject to United States federal withholding tax, including any withholding tax imposed by FATCA, if the recipient of such payment were to fail to comply with applicable Law (including the requirements of Code Sections 1471(b) or 1472(b), as applicable), such recipient shall deliver to the Issuer, with a copy to the Indenture Trustee (or if the recipient fails to so deliver, the Issuer shall deliver to the Indenture Trustee any such withholding information, to the extent the Issuer shall have previously received such information), at the time or times prescribed by the Code and at such time or times reasonably requested by the Issuer or the Indenture Trustee, such documentation prescribed by the Code (including as prescribed by Code Section 1471(b)(3)(C)(i)) and such additional documentation reasonably requested by the Issuer or the Indenture Trustee to comply with their respective obligations under FATCA, to determine that such recipient has complied with such recipient's obligations, including under FATCA, or to determine the amount to deduct and withhold from such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything to the contrary contained herein, each Note and this Indenture may be amended or supplemented to modify the restrictions on and procedures for resale and other transfers of the Notes to reflect any change in applicable Law or regulation (or the interpretation thereof) or in practices relating to the resale or transfer of restricted securities generally. Each Noteholder shall, by its acceptance of such Note, have agreed to any such amendment or supplement.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) As of the date of this Indenture, the Notes have not been registered under the Securities Act and will not be listed on any exchange. No Note shall be transferred or assigned, and no interest in any Note shall be transferred or assigned, unless the Noteholder and the transferee or assignee, as applicable, comply with the terms and conditions of this <u>Section 2.04</u>. Except in a transfer to Holdings or by Holdings to an Affiliate thereof, in the event that a transfer of a Note is to be made in reliance upon an exemption from the Securities Act and state securities Laws, in order to assure compliance with the Securities Act and such Laws, the Noteholder desiring to effect such transfer and such Noteholder's prospective transferee shall each certify to the Issuer, the Indenture Trustee and Holdings in writing the facts surrounding the transfer in substantially the forms set forth in <u>Exhibit B</u> (the "<u>Transferor Certificate</u>") and <u>Exhibit C</u> (the "<u>Investment Letter</u>"). Each Noteholder desiring to effect such a transfer shall, by its acceptance of such Note, have agreed to, indemnify the Issuer, the Indenture Trustee and Holdings (in any capacity) and their respective managers, members, affiliates and employees against any liability that may result if the transfer is not so exempt or is not made in accordance with federal and state securities Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reserved</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) By acquiring a Note, each purchaser, transferee and owner of a beneficial interest in such Note will be deemed to represent that either (1) it is not and is not acquiring the Note or any beneficial ownership interest therein directly or indirectly for, on behalf of, or with the assets of any Plan or (2) its acquisition, holding and disposition of the Note or any beneficial ownership interest therein is permissible under applicable law, and will not constitute or result in any non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code by reason of the application of one or more Investor-Based Class Exemptions and/or the Statutory Exemption, all of the conditions of which shall be met, or, if the purchaser, transferee or owner is subject to any Similar Law, such acquisition, holding and disposition will not constitute or result in a non-exempt violation of any Similar Law, and will not otherwise result in any tax, rescission right or other penalty on the Issuer, and, in any case, neither the purchase nor holding of the Note or any beneficial ownership interest therein will subject the Issuer to any obligation not affirmatively undertaken in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Reserved</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;(k) <u>Reserved</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;(l) <u>Reserved</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;(m) <u>Reserved</u>.

Section 2.05 <u>Registration; Registration of Transfer and Exchange</u>. (a) The Issuer shall cause a note registrar (the "<u>Note Registrar</u>") to keep a register (the "<u>Note Register</u>") in which the Note Registrar shall provide for the registration of Notes and the registration of transfers of Notes. All Notes shall be maintained in "registered form" under Treasury Regulation Section 5f.103-1(c), proposed Treasury Regulation Section 1.163-5 and any applicable temporary, final or other successor regulations. The name and address of each Holder of the Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be recorded in such Note Register, together with the principal amount (and stated interest) of the Notes owing to the Holder of the Notes. Prior to due presentment for registration of transfer, the person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Note Registrar shall not be affected by any notice or knowledge to the contrary. No transfer shall be effective unless recorded in the Note Register. The Indenture Trustee initially shall be the Note Registrar for the purpose of registering Notes and transfers of Notes as herein provided. Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a successor or, if it elects not to make such an appointment, assume the duties of Note Registrar.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&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 a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the Issuer shall give the Indenture Trustee, the Back-Up Manager and the Noteholders prompt written notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register, and the Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to obtain copies thereof, and the Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and addresses of the Holders of the Notes and the principal amounts and number of such Notes; <u>provided</u> that, upon the reasonable request of any Noteholder, the Note Registrar and the Indenture Trustee shall provide a copy of such certificate to such Noteholder.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Upon surrender for registration of transfer of any Note at the office or agency of the Issuer to be maintained as provided in <u>Section 4.02</u>, the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, in the name of the designated transferee or transferees, one or more new Notes in any authorized denominations, of a like aggregate principal amount.

&nbsp;&nbsp;&nbsp;&nbsp;&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) At the option of a Holder of Definitive Notes, Definitive Notes may be exchanged for other Definitive Notes in any authorized denominations, of a like aggregate principal amount, upon surrender of the Definitive Notes to be exchanged at such office or agency. Whenever any Definitive Notes are so surrendered for exchange the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, the Definitive Notes which the Noteholder making the exchange is entitled to receive.

&nbsp;&nbsp;&nbsp;&nbsp;&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) All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Every Note presented or surrendered for registration of transfer or exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the Note Registrar duly executed by, the Holder thereof or such Holder's attorney duly authorized in writing, with such signature guaranteed by an "eligible guarantor institution" meeting the requirements of the Note Registrar, which requirements include membership or participation in the Securities Transfer Agent's Medallion Program ("<u>STAMP</u>") or such other "signature guarantee program" as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No service charge shall be made to a Holder for any registration of transfer or exchange of Notes, but the Issuer or the Note Registrar may require payment by such Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The preceding provisions of this <u>Section 2.05</u> notwithstanding, the Issuer shall not be required to make and the Note Registrar need not register transfers or exchanges of Notes selected for redemption or of any Note for a period of fifteen (15) days preceding the due date for any payment with respect to the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Any purported transfer of a Note not in accordance with this <u>Section 2.05</u> shall be null and void and shall not be given effect for any purpose whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Notwithstanding anything herein to the contrary, the Indenture Trustee shall not be responsible for ascertaining whether any transfer complies with, or for otherwise monitoring or determining compliance with, the requirements or terms of the Securities Act, applicable state securities laws, ERISA, the Code or any other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Each Person who has or who acquires any ownership interest in a Note shall be deemed by the acceptance or acquisition of such ownership interest to have agreed to be bound by the provisions of <u>Section 2.04</u> and this <u>Section 2.05.</u>

Section 2.06 <u>Mutilated, Destroyed, Lost or Stolen Notes</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;(a) If (i) any mutilated Note is surrendered to the Indenture Trustee or Note Registrar, or the Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the Indenture Trustee such security or indemnity as may be required by it to hold the Issuer and the Indenture Trustee harmless, then, in the absence of notice to the Issuer, the Note Registrar or the Indenture Trustee that such Note has been acquired by a protected purchaser, the Issuer shall execute, and upon its request the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note; <u>provided</u>, <u>however</u>, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or within seven (7) days shall be due and payable, or shall have been called for redemption, instead of issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without surrender thereof. If, after the delivery of such replacement Note or payment of a destroyed, lost or stolen Note pursuant to the proviso to the preceding sentence, a protected purchaser of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer and the Indenture Trustee shall be entitled to recover such replacement Note (or such payment) from the Person to whom it was delivered or any Person taking such replacement Note from such Person to whom such replacement Note was delivered or any assignee of such Person, except a protected purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in connection therewith.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&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) Upon the issuance of any replacement Note under this <u>Section 2.06</u>, the Issuer may require the payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the Indenture Trustee) connected therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Every replacement Note issued pursuant to this <u>Section 2.06</u> in replacement of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The provisions of this <u>Section 2.06</u> are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes.

Section 2.07 <u>Persons Deemed Owner</u>. Prior to due presentment for registration of transfer of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name any Note is registered (as of the day of determination) as the owner of such Note for the purpose of receiving payments of principal of and interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of the Issuer, the Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary.

Section 2.08 <u>Reserved</u>.

Section 2.09 <u>Payment of Principal and Interest; Defaulted Interest</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;(a) The Notes shall accrue interest during the related Interest Accrual Period at the Interest Rate, and such interest shall be payable on each Payment Date in accordance with the priorities set forth in <u>Section 8.06(i)</u> and <u>(ii)</u>, as applicable, subject to <u>Section 4.01</u>. Interest on the Notes will be calculated on the basis of a 360-day year consisting of twelve 30-day months.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Issuer shall pay interest on the Notes at the Interest Rate on each Payment Date on the principal amount of the Notes outstanding on the preceding Payment Date (after giving effect to all payments of principal made on the preceding Payment Date), subject to certain limitations contained in the last sentence of <u>Section 4.01</u>. Any installment of interest or principal payable on a Note that is punctually paid or duly provided for by the Issuer on the applicable Payment Date shall be paid to the Person in whose name such Note (or one or more Predecessor Notes) is registered on the Record Date by wire transfer in immediately available funds to the account designated by such person or nominee and except for the final installment of principal payable with respect to such Note on a Payment Date or on the Legal Final Maturity Date of such Note (and except for the Optional Redemption Price for any Note called for redemption pursuant to <u>Section 10.01</u>) which shall be payable as provided below.

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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;(c) Prior to the occurrence of an Event of Default and a declaration in accordance with <u>Section 5.02</u> that the Notes have become immediately due and payable, the Outstanding Principal Balance of any Notes shall be payable in full on the Legal Final Maturity Date of such Notes and, to the extent of funds available therefor, in installments on the Payment Dates (if any) preceding the Legal Final Maturity Date of such Notes, in the amounts and in accordance with the priorities set forth in <u>Section 8.06(i)</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;(d) Notwithstanding the foregoing, the entire unpaid principal amount of all Outstanding Notes shall be due and payable, if not previously paid, on the date on which an Event of Default shall have occurred and be continuing, and either (i) the Indenture Trustee (at the direction of the Majority Noteholders) or the Majority Noteholders have declared the Notes to be immediately due and payable in the manner provided in <u>Section 5.02</u> or (ii) such Event of Default arises as a result of an event set forth in <u>Section 5.01(a)(iv)</u> or <u>(v)</u>. In such case, principal shall be paid in accordance with the priorities set forth in <u>Section 8.06(ii)</u>. The Indenture Trustee shall notify the Person in whose name a Note is registered at the close of business on the Record Date preceding the Payment Date on which the Issuer expects that the final installment of principal of and interest on such Note will be paid. Such notice shall be mailed, transmitted by facsimile, or emailed, as applicable, prior to such final Payment Date and shall specify that such final installment will be payable only upon presentation and surrender of such Note and shall specify the place where such Note may be presented and surrendered for payment of such installment. Notices in connection with redemptions of Notes shall be mailed to Noteholders as provided in <u>Section 10.02.</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;(e) If the Issuer defaults in a payment of interest on the any Note, the Issuer shall pay defaulted interest (plus interest on such defaulted interest to the extent lawful) at the Interest Rate plus an additional rate of 3.00% *per annum* default rate to such Interest Rate, in any lawful manner. The Issuer may pay such defaulted interest to the persons who are Noteholders on a subsequent special record date, which date shall be at least five (5) Business Days prior to the Payment Date. The Issuer shall fix or cause to be fixed any such special record date and Payment Date, and, at least fifteen (15) days before any such special record date, the Issuer shall deliver to the Indenture Trustee for delivery to each Holder a notice that states the special record date, the Payment Date and the amount of defaulted interest to be paid.

Section 2.10 <u>Cancellation</u>. All Notes surrendered for payment, registration of transfer, exchange or redemption shall be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this <u>Section 2.10</u>, except as expressly permitted by this Indenture. All cancelled Notes may be held or disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be returned to it; <u>provided</u>, <u>that</u> such Issuer Order is timely and the Notes have not been previously disposed of by the Indenture Trustee.

Section 2.11 <u>Release of Collateral</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;(a) Subject to <u>Section 12.01</u> and any other restrictions in the terms of the Basic Documents, the Indenture Trustee shall release property from the lien of this Indenture only if (i) such release is (A) pursuant to a conveyance under Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement or (B) permitted in accordance with the terms of this Indenture, (ii) the Issuer has delivered to the Indenture Trustee and Hedge Counterparties an Issuer Request accompanied by an Officer's Certificate of the Issuer and an Opinion of Counsel stating that such release is permitted by the terms of this Indenture and that the conditions precedent to such release have been satisfied (including the terms and conditions of this <u>Section 2.11(a)</u>) and (iii) if such release is pursuant to <u>Section 2.11(a)(i)(A)</u> hereof, (A) the Indenture Trustee or Hedge Counterparty shall have received information reasonably requested by such Persons demonstrating that the Seller or the Manager, as applicable, is permitted to purchase the applicable Repurchased Interests pursuant to the terms of Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement, as applicable, and (B) concurrently with such release, the Issuer shall have had deposited an amount equal to the Buy-Out Price (as defined in the applicable Asset Purchase Agreement) into the Collection Account; provided, that, notwithstanding the foregoing, in the event the Issuer requests a release of all or substantially all of the Collateral, a written consent to such release from each Hedge Counterparty is required unless such release is being delivered in connection with the payment in full of all of the Secured 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;(b) In connection with the release of any Wellbore Interests or other Collateral described above, the Indenture Trustee shall, pursuant to an Issuer Order, execute instruments to release such Wellbore Interests or Collateral from the lien of this Indenture, or convey the Indenture Trustee's interest in the same, in a manner and under circumstances that are consistent with the provisions of this Indenture.

Section 2.12 <u>Definitive Notes</u>. The Notes, upon original issuance, will be in the form of Definitive Notes. Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes as Noteholders.

Section 2.13 <u>Reserved</u>.

Section 2.14 <u>Tax Treatment</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;(a) The Issuer has entered into this Indenture, and the Notes will be issued, with the intention that, for all purposes including federal, state and local income and franchise tax purposes, the Notes will qualify as indebtedness secured by the Collateral. The Issuer, by entering into this Indenture, the Indenture Trustee, and each Noteholder, by its acceptance of a Note, agree to treat the Notes (other than Notes held by any entity whose separate existence from the Issuer is disregarded for federal income tax purposes, but only so long as such Notes are held by such entity) for all purposes including federal, state and local income and franchise tax purposes as indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Noteholder, by its acceptance of a Note agrees to provide to the Person from whom it receives payments on the Notes (including the Paying Agent) the Noteholder Tax Identification Information and, upon request, to the extent FATCA Withholding Tax is applicable, the Noteholder FATCA Information.

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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;(c) Each Noteholder, by its acceptance of a Note, agrees that the Indenture Trustee has the right to withhold any amounts (properly withholdable under Law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements of <u>Section 2.14(b)</u>.

Section 2.15 <u>Private Placement Numbers</u>. The Issuer shall obtain "Private Placement Numbers" issued by the CUSIP Service Bureau with respect to each Tranche of Notes. The Indenture Trustee shall use "Private Placement Numbers" issued by the CUSIP Service Bureau in notices of redemption as a convenience to Noteholders; <u>provided</u> that any such notice may state that no representation is made as to the correctness of such "Private Placement Numbers" either as printed on the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes and any such redemption shall not be affected by any defect in or omission of such numbers. The Issuer shall promptly notify the Indenture Trustee in writing of any change in such "Private Placement Numbers".

Section 2.16 <u>Issuance of Additional Notes</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;(a) (I)With the consent of 100% of Noteholders with respect to an issuance of Additional Notes with respect to which the terms, including the applicable Interest Rate and the Legal Final Maturity Date, are not identical to a Tranche of Notes already outstanding, and (II) with the consent of the Majority Noteholders with respect to an issuance of Additional Notes with respect to which the terms, other than the issuance date, the initial Payment Date and the amount of scheduled amortization payments (provided that such amortization payments shall not be calculated based on an amortization period shorter than that of any other Tranche of Notes) are identical to a Tranche of Notes already outstanding, and with respect to all Additional Notes, subject to any right of first offer granted to the holders of the Notes pursuant to the Note Purchase Agreements, the Issuer may issue Additional Notes following the Second Closing Date, provided that, (i) the aggregate principal amount of such Additional Notes (together with any other Notes outstanding) shall not exceed the Maximum Facility Amount, and (ii) after giving effect to the issuance of such Additional Notes, (A) the DSCR is greater than 1.30 and (B) the LTV is less than 60% (calculated based on a re-calculated PV-10 using the Additional Notes Reserve Report) and (C) concurrently with the issuance of such Additional Notes, Issuer shall enter into and maintain Hedge Agreements to hedge not less than 80% of the reasonably projected Hydrocarbon production of crude oil, natural gas, and natural gas liquids, calculated separately, attributable to the Wellbore Interests and any additional wellbore assets sold to the Issuer in connection with the issuance of such Additional Notes, based on the most recently delivered Additional Notes Reserve Report for each full calendar month during the thirty-six (36) calendar month period immediately following each such issuance date. Any such Additional Notes shall constitute "Notes" for purposes of this Indenture and the other Basic Documents and shall be entitled to the benefits and privileges of this Indenture and the other Basic Documents, ratably and *pari passu* (subject to applicable Scheduled Distribution Amounts and Legal Final Maturity Dates) with all other Notes, and the holders of any such Additional Notes shall constitute "Noteholders" for purposes of this Indenture and the other Basic Documents. The Issuer shall provide no less than ten (10) Business Days' prior written notice to the Trustee of any such issuance of Additional Notes, unless the Indenture Trustee consents to a shorter 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Tranche of Notes issued in connection with the Initial Closing Date shall be referenced herein as the 2022-1 Notes. The Tranche of Notes issued in connection with the amendment and restatement of the Indenture on the Second Closing Date shall be designated as the 2022-2 Notes. Any issuance of Additional Notes with the same terms (other than issuance date and initial Payment Date) as an existing Tranche of Notes will share the same designation. New Tranches of Notes issued pursuant to this <u>Section 2.16</u> shall follow the foregoing naming convention as determined by the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The issuance of any Additional Notes shall require satisfaction of the following conditions precedent to the satisfaction of the relevant Noteholders prior to such issuance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Issuer shall set forth in an Officer's Certificate, a copy of each of which shall be delivered to the Indenture Trustee, the following 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the aggregate principal amount of such Additional Notes to be authenticated and delivered pursuant to this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the issue price, the issue date, the Private Placement Number, the first Payment Date and the amount of interest payable on such first payment date applicable thereto and the date from which interest shall accrue with respect to such Additional Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the Interest Rate, Legal Final Maturity Date, the Scheduled Principal Distribution Amounts and Tranche designation with respect to such Additional Notes, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) an affirmation that all conditions set forth in this <u>Section 2.16</u> have been satisfied with respect to the issuance of such Additional Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Issuer will be required to deliver an Opinion of Counsel to the Indenture Trustee stating that the issuance of Additional Notes under the Indenture:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) is authorized or permitted by the Indenture and that all conditions precedent under the Indenture for the issuance of Additional Notes have been complied with,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) will not cause the Issuer to become taxable as an association (or publicly traded partnership that is taxable as a corporation) or a taxable mortgage pool for U.S. federal income tax purposes,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) will not adversely affect the characterization of the Notes as indebtedness for U.S. federal income tax purposes, 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;&nbsp;&nbsp;&nbsp;&nbsp;&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 Issuer and Indenture Trustee do not receive an Opinion of Counsel to the effect that the Additional Notes will be characterized as indebtedness for U.S. federal income tax purposes, then the Additional Notes may be beneficially owned only by United States persons (as defined in Section 7701(a)(30) of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 applicable customary opinions and certifications as were delivered on the Initial Closing Date in connection with the issuance of the 2022-1 Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) a resolution of the board of directors, board of managers, stockholders, members, or partners of the Issuer, as applicable, approving the issuance of such Additional Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) copies of such additional documents, instruments, certificates, opinions or other confirmations as the Purchasers of the Additional Notes may reasonably request; 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;(vi) satisfaction of the conditions precedent set forth in the related Note Purchase Agreement.

Section 2.17 <u>Extension of Initial Maturity Date</u>. The Initial Maturity Date of any Tranche of Notes may be extended in accordance with the terms of the Side Letter applicable to such Tranche. The Issuer shall provide no less than ten (10) Business Days' prior written notice to the Trustee of any such extension, unless the Indenture Trustee consents to a shorter period.

**ARTICLE III**<br>**REPRESENTATIONS AND WARRANTIES**

The Issuer represents and warrants as of the Initial Closing Date and, except as otherwise set forth below, the Second Closing Date as follows:

Section 3.01 <u>Organization and Good Standing</u>. The Issuer is duly organized, validly existing, and in good standing under the Laws of the State of Delaware and every state in which it is qualified to do business, and the Issuer has full power and authority under its Organizational Documents to conduct its business as it is now being conducted, and to own or use the properties and assets that it purports to own or use.

Section 3.02 <u>Authority; No Conflict</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;(a) The execution, delivery, and performance of this Indenture and the Basic Documents and the performance of the Contemplated Transactions have been duly and validly authorized in accordance with the Organizational Documents of the Issuer, as applicable. This Indenture has been duly executed and delivered by the Issuer and all instruments executed and delivered by the Issuer at or in connection with the applicable Closing have been duly executed and delivered by the Issuer. This Indenture constitutes the legal, valid, and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy or other similar Laws affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the execution and delivery of this Indenture or the instruments executed in connection herewith by the Issuer nor the consummation or performance of any of the Contemplated Transactions or Basic Documents by the Issuer shall, directly or indirectly (with or without notice or lapse of time or both):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) contravene, conflict with, or result in a violation of (A) any provision of the Organizational Documents of the Issuer, as applicable, or (B) any resolution adopted by the board of directors, board of managers, stockholders, members, or partners of the Issuer, as 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) contravene, conflict with, or result in a violation of, or give any Governmental Body or other Person the right to notification of or to challenge any of the Contemplated Transactions or Basic Documents, to terminate, accelerate, or modify any terms of, or to exercise any remedy or obtain any relief under, any Contract or agreement or any Law or Order to which the Issuer, or any of the Collateral, may be subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) contravene, conflict with, or result in a violation of any of the terms or requirements of, or give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate, or modify, any Governmental Authorization that relates to the Collateral; 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;(iv) result in the imposition or creation of any Encumbrance or give rise to any breach, right of termination, cancellation, or acceleration under any of the terms, covenants, conditions, or provisions of, or constitute a default under, any Lease, Contract, note, bond, mortgage, indenture, license, or other material agreement with respect to any of the Collateral, other than any Encumbrance or Lien arising in favor of the Indenture Trustee pursuant to the Basic Documents.

Section 3.03 <u>Legal Proceedings; Orders</u>. There is no pending Proceeding against the Issuer or any of its Affiliates (a) that relates to or may affect any of the Collateral; or (b) that challenges, or that may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions or Basic Documents. To the Issuer's Knowledge, (x) no Proceeding of the type referenced above has been Threatened, (y) there is no Order adversely affecting the use or ownership of the Collateral to which the Issuer, or any of the Collateral, is subject, and (z) there is no Order or Proceeding restraining, enjoining, or otherwise prohibiting or making illegal the consummation of the Contemplated Transactions or Basic Documents or which, if determined adversely to the Issuer, could result in a material diminution of the benefits contemplated by this Indenture or the Contemplated Transactions or Basic Documents.

Section 3.04 <u>Compliance with Laws and Governmental Authorizations</u>. Except as disclosed on Schedule 3.15 to an Asset Purchase 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;(a) The Collateral have been owned and, as applicable, operated by the Issuer, its Affiliates, and the Operators (and, to the Issuer's Knowledge, as applicable, have been operated by Third Parties) in all material respects in accordance with all Laws of all Governmental Bodies having or asserting jurisdiction relating to the ownership and operation thereof, including the production of all Hydrocarbons attributable thereto, other than any violations that have been resolved to the satisfaction of all applicable Governmental Bodies.

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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;(b) All necessary Governmental Authorizations with regard to the ownership or, as applicable, operation by the Issuer, its Affiliates, and the Operators of the Issuer's interest in the Collateral (as such Collateral is currently owned and operated) have been obtained and no violations exist or have been recorded in respect of such Governmental Authorizations.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Neither the Issuer nor its Affiliates have received any written notice of any violation of any Laws or of any Governmental Authorization in connection with the ownership or operation of the Collateral that has not been corrected or settled, and there are no Proceedings pending or, to the Issuer's Knowledge, threatened against Issuer, its Affiliates, or an Operator that might result in any material modification, revocation, termination or suspension of any Governmental Authorization or which would require any material corrective or remedial action by the Issuer or any of its Affiliates in connection with the Collateral.

Section 3.05 <u>Compliance with Leases</u>. The Issuer is in compliance in all material respects with each Lease to the extent relating to the Collateral, including all express and implied covenants thereunder; provided, however, with respect to Leases applicable to or a portion of which are included in any Wellbore Interests operated by any Person that is not an Alpine Party or Affiliate thereof (other than an Operator or its subsidiaries) (a "<u>Third Party Operator</u>"), the Issuer makes the foregoing representation and warranty in this sentence to its Knowledge with respect to actions and omissions of such Person in connection with such Person's operation of such Wellbore Interests. No written demands or notices of default or non-compliance or dispute (including those received electronically) with respect to a Lease to the extent relating to the Collateral have been issued to or received by the Issuer that remain uncured or outstanding.

Section 3.06 <u>Material Liabilities</u>. As of the Initial Closing Date, the Issuer did not have any material liabilities other than Permitted Indebtedness, Assumed Liabilities and liabilities under the Basic Documents. As of the Second Closing Date, the Issuer does not have any material liabilities other than Permitted Indebtedness, Assumed Liabilities, liabilities under the Basic Documents, and any other liabilities arising during the period from the Initial Closing Date until the Second Closing Date and that either (a) are disclosed on Schedule 3.15 to an Asset Purchase Agreement or (b) were not incurred in violation of the terms of any of the Basic Documents then in effect.

Section 3.07 <u>Employee Benefit Plans</u>. Neither the Issuer nor any trade or business (whether or not incorporated) that, together with the Issuer, would be treated as a single employer for purposes of Section 412 of the Code or Title IV of ERISA maintains or has ever maintained any employee benefit plan within the meaning of Section 3(3) of ERISA to the extent it would reasonably be expected to have a Material Adverse Effect.

Section 3.08 <u>Use of Proceeds; Margin Regulations</u>. The Issuer will use the proceeds of an issuance of Notes to (a) pay to the Seller the cash portion of the purchase price for the Wellbore Interests being transferred pursuant to the applicable Asset Purchase Agreement, (b) fund the Interest Reserve Account, and (c) pay transaction costs associated with the issuance of such Notes. The non-cash consideration for the purchase price for any Wellbore Interests will be equal to the difference between the fair market value of the Wellbore Interests at the time of transfer and the amount of cash paid for the purchase thereof by the Issuer on the applicable Closing Date, resulting in an increase in the value of Holdings' equity interest in the Issuer and an increase in the value of the Seller's equity interest in Holdings. No part of the proceeds from the sale of any Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve the Issuer in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).

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Section 3.09 <u>Existing Indebtedness; Future Liens</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;(a) The Issuer does not have, and has never had, any outstanding Indebtedness other than the Notes or other Permitted Indebtedness. The Issuer has not granted or suffered to exist any Liens on any property of the Issuer while held by the Issuer other than Permitted Liens. As of the Initial Closing Date, there were no outstanding Liens on any property of the Issuer other than Permitted Liens. As of the Second Closing Date, there are no outstanding Liens on any property acquired by the Issuer pursuant to the Asset Purchase Agreement dated as of such date other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Other than as permitted or contemplated by the Basic Documents (including Permitted Liens), the Issuer has not agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Other than the Basic Documents, the Issuer is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Issuer, any agreement relating thereto or any other agreement (including its charter or any other Organizational Document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Issuer.

Section 3.10 <u>Foreign Assets Control Regulations, Etc</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;(a) Neither the Issuer nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) to Issuer's Knowledge, is a target of sanctions that have been imposed by the United Nations or the European Union.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Neither the Issuer nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Issuer's Knowledge, is under investigation by any Governmental Body for possible violation of any applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws.

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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;(c) No part of the proceeds from the sale of any Notes hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Issuer or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws, or (C) otherwise in violation of any U.S. Economic Sanctions Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; 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;(iii) will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Issuer and its Affiliates have established procedures and controls which they reasonably believe are adequate (and otherwise comply with applicable Law) to ensure that the Issuer and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti-Corruption Laws.

Section 3.11 <u>Status under Certain Statutes</u>. The Issuer is not subject to regulation under the Investment Company Act, the Public Utility Holding Company Act of 2005, the ICC Termination Act of 1995, or the Federal Power Act.

Section 3.12 <u>Single Purpose Entity</u>. The Issuer (a) has been formed and organized solely for the purpose of entering into the Basic Documents to which it is a party, performing its obligations thereunder (including entering into certain agreements in connection therewith), and owning the Collateral, (b) has not engaged in any business unrelated to <u>clause (a)</u> above, and (c) does not have any other assets other than those related to its activities in accordance with <u>clause (a)</u> above.

Section 3.13 <u>Solvency</u>. The Issuer is solvent, has capital not unreasonably small in relation to its business or any contemplated or undertaken transaction and has assets having a value both at fair valuation and at present fair saleable value greater than the amount required to pay its debts as they become due and greater than the amount that will be required to pay its probable liability on its existing debts as they become absolute and matured. The Issuer does not intend to incur, or believe that it will incur, debts beyond its ability to pay such debts as they become due. The Issuer does not believe that it will be rendered insolvent by the execution and delivery of, and performance of its obligations under, this Indenture, the Notes and the other Basic Documents to which it is a party. The Issuer does not intend to hinder, delay or defraud its creditors by or through the execution and delivery of, or performance of its obligations under, this Indenture, the Notes or the other Basic Documents to which it is a party.

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Section 3.14 <u>Security Interest</u>. The Indenture, together with the Mortgages, creates in favor of the Indenture Trustee, as security for the Secured Obligations and for the performance of the provisions of this Indenture, a security interest in or mortgage or deed of trust on all of the right, title, and interest, whether now owned or hereafter acquired, of the Issuer in, to, and under the Collateral. Upon the filing of the applicable UCC-1 financing statements, mortgages or deeds of trust, all action has been taken as is necessary to perfect such security interest or mortgage or deed of trust, and such security interest, mortgage or deed of trust is of first priority (subject, in the case of Mortgages, to Permitted Liens).

**ARTICLE IV**<br>**COVENANTS**

Section 4.01 <u>Payment of Principal and Interest</u>. The Issuer shall duly and punctually pay the principal of and interest, if any, on the Notes in accordance with the terms of the Notes and this Indenture. Without limiting the foregoing, subject to and in accordance with <u>Section 8.06</u>, the Manager, acting on behalf of the Issuer, shall cause the Paying Agent on behalf of the Indenture Trustee to distribute all amounts on deposit in the Collection Account and allocated for distribution to the Noteholders on a Payment Date pursuant to <u>Article VIII</u> hereof for the benefit of the Notes, to the Noteholders. Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest and/or principal shall be considered as having been paid by the Issuer to such Noteholder for all purposes of this Indenture.

Section 4.02 <u>Maintenance of Office or Agency</u>. The Issuer shall maintain an office or agency where Notes may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Issuer in respect of the Notes and this Indenture may be served. Such office or agency shall initially be at Corporate Trust Office of the Indenture Trustee, and the Issuer hereby initially appoints the Indenture Trustee to serve as its agent for the foregoing purposes. The Indenture Trustee shall give prompt written notice to the Issuer and the Back-Up Manager of any change in the location of any such office or agency. If at any time the Issuer shall fail to maintain any such office or agency or shall fail to furnish the Indenture Trustee with the address thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee as its agent to receive all such surrenders, notices and demands; provided, however, that the Indenture Trustee shall not be deemed an agent of the Issuer for service of process.

Section 4.03 <u>Money for Payments to Be Held on behalf of the Noteholders and Hedge Counterparties</u>. As provided in <u>Section 8.01</u>, all payments or amounts due and payable with respect to any Notes and Hedge Agreements that are to be made from amounts withdrawn from the Collection Account pursuant to <u>Section 8.06(i)</u>, <u>Section 8.06(ii)</u> and <u>Section 8.06(iii)</u> shall be made on behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the Collection Account for payments of Notes and Hedge Agreements shall be paid over to the Issuer except as provided in <u>Section 8.06</u>.

Section 4.04 <u>Compliance with Law</u>. The Issuer shall comply with all Laws and regulations to which it is subject (including ERISA, Environmental Laws, and the USA PATRIOT Act) and shall obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of its properties or to the conduct of its businesses, in each case to the extent necessary to ensure that non-compliance with such Laws or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be expected to have a Material Adverse Effect.

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Section 4.05 <u>Insurance</u>. From and after the Initial Closing Date, the Issuer shall maintain (or cause to be maintained), with financially sound and reputable insurers, insurance with respect to its properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co- insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated, and, within sixty (60) days after the Initial Closing Date, the Issuer shall cause the Indenture Trustee to be named as a loss payee or an additional insured. For the avoidance of doubt, any proceeds received by the Issuer or the Manager for the benefit of the Issuer with respect to any claim under such insurance policy shall be deemed to be Collections with respect to the Collection Period in which such proceeds are received and promptly, but in any event within two (2) Business Days, deposited into the Collection Account.

Section 4.06 <u>No Change in Fiscal Year</u>. Without the consent of the Majority Noteholders, the Issuer shall not permit its fiscal year to end on a day other than December 31, change its method of determining fiscal quarters or make, permit any change in accounting policies or reporting practices except as required by the applicable Accounting Standard or change its federal employer identification number, except for any such changes which are not materially adverse to the Holders or the Hedge Counterparties.

Section 4.07 <u>Payment of Taxes and Claims</u>. The Issuer shall file all Tax returns required to be filed in any jurisdiction and to pay and discharge all Taxes shown to be due and payable on such returns and all other Taxes, assessments, governmental charges, or levies imposed on it or any of its properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Issuer, provided that Issuer need not pay any such Tax, assessment, charge, levy or claim if the amount, applicability or validity thereof is contested in good faith by the Issuer via appropriate proceedings and with adequate reserves established and maintained therefor in accordance with the applicable Accounting Standard.

Section 4.08 <u>Existence</u>. Subject to <u>Section 4.17</u>, the Issuer shall at all times preserve and keep (a) its limited liability company existence in full force and effect and (b) all foreign qualifications of the Issuer and all rights and franchises of the Issuer.

Section 4.09 <u>Books and Records</u>. The Issuer shall maintain or cause to be maintained proper books of record and account in conformity with the applicable Accounting Standard and all applicable requirements of any Governmental Body having legal or regulatory jurisdiction over the Issuer. The Issuer shall keep or cause to be kept books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets. The Issuer or one of its Affiliates has devised a system of internal accounting controls sufficient to provide reasonable assurances that the Issuer's books, records, and accounts accurately reflect all transactions and dispositions of assets, and such a system shall be maintained.

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Section 4.10 <u>Performance of Material Agreements</u>. From and after the Initial Closing Date, the Issuer shall at all times (a) observe and perform all obligations, covenants and agreements to be performed by it under, and comply with all conditions under, each material agreement including each Lease to which it is or becomes a party in accordance with the terms thereof and (b) subject to the terms of this Indenture, diligently exercise, enforce, defend and protect its rights under, and take any action required to collect any and all sums due to it under, each material agreement including each Lease to which it is or becomes a party. The Issuer shall punctually perform and observe all of its obligations and agreements contained in this Indenture, the other Basic Documents to which it is a party and each other instrument and agreement included as part of the Collateral. The Issuer shall not take any action or permit any action to be taken by others which would release any Person from any of such Person's covenants or obligations under the Basic Documents or under any instrument or agreement included as part of the Collateral or that would result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as ordered by a bankruptcy or other court or as expressly provided in this Indenture, the other Basic Documents or such other instrument or agreement. Notwithstanding the foregoing, the Issuer shall not be deemed to be in breach of or default under any of the foregoing covenants in this <u>Section 4.10</u> in respect of any breach of a Lease or other instrument or agreement included as part of the Collateral to the extent such breach is caused by any action or omission of a Third Party Operator; however, Issuer shall, upon acquiring Knowledge thereof and subject to the terms of this Indenture, take all reasonable steps available to it to remedy such breach of, and defend and protect its rights under, such Lease or other instrument or agreement.

Section 4.11 <u>Maintenance of Lien</u>. From and after the Initial Closing Date and for so long as the Notes and the Hedge Agreements are outstanding, the Issuer shall, at its expense, timely take or cause to be taken all action required to maintain and preserve the perfection and first priority of the Lien on the Collateral granted under this Indenture and the Mortgages (subject, in each case, to Permitted Liens).

Section 4.12 <u>Further Assurances</u>. From time to time the Issuer shall perform or cause to be performed any other act as required by Law and shall execute or cause to be executed any and all further instruments that may be required by Law or reasonably necessary (or reasonably requested by the Indenture Trustee) in order to create, perfect and protect the Lien of the Indenture Trustee on or in the Collateral. The Issuer shall promptly do, execute, acknowledge and deliver, or cause to be promptly done, executed, acknowledged and delivered, all such further acts, deeds, conveyances, mortgages, assignments, transfers and assurances as the Indenture Trustee or any Noteholder may reasonably require for the creation, perfection and priority of the Liens being herein provided for (subject, in each case, to Permitted Liens). The Issuer shall pay or cause to be paid all filing, registration and recording Taxes and fees incident to such filing, registration and recording, and all expenses incident to the preparation, execution and acknowledgment of this Indenture, and of any instrument of further assurance, and all federal or state stamp Taxes and other Taxes, duties, imposts, assessments and charges arising out of or in connection with the execution and delivery of this Indenture, the other Basic Documents and such instruments of further assurance. The Issuer hereby authorizes, but does not obligate, the Indenture Trustee to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Collateral without the signature of the Issuer. The Issuer acknowledges and agrees, on behalf of itself, that any such financing statement may describe the Collateral as "all assets", "all personal property" or "all assets and all personal property of Debtor, whether now owned or existing or hereafter acquired or arising, wherever located, together with all products and proceeds thereof, substitutions and replacements therefor, and additions and accessions thereto" of the applicable Person or words of similar effect as may be required by the Indenture Trustee.

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Section 4.13 <u>Use of Proceeds</u>. The Issuer shall apply the proceeds of each sale of Notes solely as provided in <u>Section 3.08</u>.

Section 4.14 <u>Separateness</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;(a) The Issuer shall pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses and any compensation due to its Independent manager or member) from its assets as the same shall become due and payable, except for expenses paid on its behalf pursuant to the Basic Documents or arm's length contractual arrangements providing for operating, maintenance or administrative 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;(b) The Issuer shall observe all limited liability company, corporate, or organizational formalities, maintain books, records, financial statements and bank accounts separate from those of its Affiliates, except as permitted by this Indenture and the other Basic Documents. The Issuer's assets shall not be listed as assets on the financial statement of any other entity except as required by the applicable Accounting Standard; provided, however, that appropriate notation shall be made on any consolidated statements to indicate its separateness from any Affiliates and to indicate that its assets and credit are not available to satisfy the debt and other obligations of such Affiliate or any other Person except as otherwise contemplated by the Basic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Issuer shall be, and at all times shall hold itself out to the public as, a legal entity separate and distinct from any other entity (including 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;(d) The Issuer shall hold all of its assets in its own name and shall not commingle its funds and other assets with those of any Affiliate, other than as expressly permitted or contemplated by the Basic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&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 Issuer shall not conduct the business of or act on behalf of any other Person (except as required by the Basic Documents).

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Issuer (i) shall at all times have at least one (1) duly elected Independent manager or member and (ii) so long as the Notes or Hedge Agreements remain outstanding, shall not remove or replace any Independent manager or member without cause and only after providing the Indenture Trustee, each Noteholder and each Hedge Counterparty with no less than three (3) days' prior written notice of (A) any proposed removal of such Independent manager or member, and (B) the identity of the proposed replacement, together with a certification that such replacement satisfies the requirements for an Independent manager or member in the organizational documents for the Issuer. The Issuer shall not institute proceedings to be adjudicated bankrupt or insolvent, consent to the institution of bankruptcy or insolvency proceedings against it, or file, or consent to, a petition seeking reorganization or relief under any applicable federal or state Law relating to bankruptcy or insolvency, or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Issuer or any substantial part of its property, or make an assignment for the benefit of creditors, or admit in writing its inability to pay its debts generally as they become due, or take limited liability company action in furtherance of any such action without the affirmative vote of at least one (1) duly elected Independent manager or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Issuer shall be, and at times shall hold itself out to the public and all other Persons as, a legal entity separate and distinct from any other Person (including any Affiliate), correct any known misunderstanding regarding its status as a separate entity, conduct business solely in its own name, and not identify itself as a division of any of its Affiliates or any of its Affiliates as a division of the Issuer (except for income tax purposes). The Issuer shall conduct and operate its business in its own name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Issuer shall not permit its name to be used by any Affiliate of the Issuer in the conduct of such Affiliate's business and shall not use the name of any Affiliate in the conduct of the Issuer's 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;(i) The Issuer shall file its own tax returns, if any, as may be required under applicable Law, to the extent (i) not part of a consolidated group filing a consolidated return or returns or (ii) not treated as a division for tax purposes of another taxpayer, and pay any taxes required to be paid under applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Issuer shall maintain its assets, including the Collateral, in such a manner that it would not be costly or difficult to identify, segregate or ascertain its assets from those of any other 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;(k) Except as permitted or contemplated by the Basic Documents, the Issuer shall maintain an arm's length relationship with its Affiliates, and not enter into any transaction with any Affiliate unless such transaction is (i) on such terms and conditions (including terms relating to amounts paid thereunder) as would be generally available if such business transaction were with an entity that was not an Affiliate in comparable transactions, and (ii) pursuant to enforceable agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Issuer shall not hold out its credit or assets as being available to satisfy the obligations of others nor guarantee the obligation of any 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;(m) The Issuer shall maintain, adequate capital in light of its contemplated business purpose, transactions, and liabilities (<u>provided</u>, <u>that</u> no member of the Issuer shall have any obligation to make any contribution of capital to the Issuer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Issuer shall not grant a security interest in any of its assets to secure the obligations of any other 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;(o) The Issuer shall not, directly or indirectly, engage in any business or activity other than the actions that are both (i) required or permitted to be performed under its limited liability company agreement and (ii) permitted or contemplated by the terms of the Basic Documents.

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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;(p) The Issuer shall not incur any indebtedness, liability, obligation, or expense, or own any assets, other than in each case those that are both (i) necessary to achieve the purposes set forth in its limited liability company agreement and (ii) permitted or contemplated by the Basic Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Issuer shall not make or permit to remain outstanding any loan or advance to, or own or acquire any stock or securities of, any Person, other than as permitted by the Basic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Issuer shall maintain complete records of all transactions (including all transactions with 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;(s) The Issuer shall comply with all requirements of applicable Law regarding its operations and shall comply with the provisions of this Indenture and its Organizational Documents (including, without limitation, all separateness provisions herein and therein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Issuer shall not form, acquire, or hold any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Issuer shall use separate stationery, invoices and checks bearing the Issuer's name.

&nbsp;&nbsp;&nbsp;&nbsp;&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 Issuer shall comply with each of the assumptions made with respect to it in any non-consolidation opinion, and the certifications contained in any certificate referred to therein, delivered by counsel in connection with the transactions contemplated by the Basic Documents.

Section 4.15 <u>Transactions with Affiliates</u>. The Issuer shall not enter into directly or indirectly any transaction or group of related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate, except as contemplated by the Basic Documents and except in the ordinary course and pursuant to the reasonable requirements of the Issuer's business and upon fair and reasonable terms no less favorable to the Issuer than would be obtainable in a comparable arm's length transaction with a Person not an Affiliate.

Section 4.16 <u>Merger, Consolidation, Etc</u>. Neither the Issuer nor Holdings shall consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person.

Section 4.17 <u>Lines of Business</u>. The Issuer shall not at any time engage in any business other than those related to the ownership of the Wellbore Interests and the transactions contemplated by this Indenture and the other Basic Documents to which it is a party and other activities reasonably incidental thereto; provided, however, that the Issuer shall not engage in any business or activity or enter into any contractual arrangement which would (a) subject the Holders or any Hedge Counterparty to regulation or oversight by any Governmental Body (other than the Governmental Bodies which regulate insurance companies and, following foreclosure, regulations applicable to assets held as a result of such foreclosure) or cause the Holders or any Hedge Counterparty to breach any Law or regulation or guideline of any Governmental Body or require Holders or any Hedge Counterparty to obtain a consent, waiver or clarification by any Governmental Body or (b) cause any of the representations and warranties of the Issuer contained in any of the Basic Documents to be inaccurate in any material respect as of the date made or deemed made.

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Section 4.18 <u>Economic Sanctions, Etc</u>. Neither the Issuer nor any Controlled Entity shall (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any Noteholder, any Hedge Counterparty or any affiliate of such Holder or Hedge Counterparty to be in violation of, or subject to sanctions under, any applicable U.S. Economic Sanctions Laws, Anti-Corruption Laws or Anti-Money Laundering Laws, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.

Section 4.19 <u>Liens</u>. The Issuer shall not, directly or indirectly, create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any of its property or assets (including the Collateral), whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, except for Permitted Liens.

Section 4.20 <u>Sale of Assets, Etc</u>. The Issuer shall not sell, transfer, convey, assign, exchange or dispose of any of its properties or assets in any single transaction or series of related transactions of any individual asset, or group of related assets, except (a) pursuant to a conveyance under Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement so long as (i) the Indenture Trustee or Hedge Counterparty has received information reasonably requested by such Persons demonstrating that the Seller or the Manager, as applicable, is permitted to purchase the applicable Repurchased Interests pursuant to the terms of Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement, as applicable, and (ii) concurrently with the release of the lien of this Indenture in accordance with <u>Section 2.11(a)</u>, the Issuer shall have had deposited an amount equal to the Buy-Out Price (as defined in the applicable Asset Purchase Agreement) into the Collection Account, (b) as required by applicable Law, (c) for the abandonment of any assets no longer used or useful in the business of the Issuer, and/or (d) for sales or disposal of Hydrocarbons in the ordinary course of business.

Section 4.21 <u>Permitted Indebtedness</u>. The Issuer shall not create, guarantee, assume or suffer to exist, or in any manner be or become liable in respect of, any Indebtedness of any kind or character, other than the following (such Indebtedness and other obligations being referred to as "<u>Permitted Indebtedness</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;(a) Indebtedness owing under this Indenture, the Notes or any other Basic Document, including the Hedge Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&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) Operating Expenses; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obligations incurred in the ordinary course of its business specified in <u>Section 4.17</u> in an aggregate amount not to exceed $500,000 at any one time.

Section 4.22 <u>Amendment to Organizational Documents</u>. The Issuer shall not, and shall not permit any party to, amend, modify or otherwise change (a) any special purpose entity or separateness provisions in the Organizational Documents, (b) any other provision of the Organizational Documents, except to the extent such amendment, modification or change would not reasonably be expected to be materially adverse to the Secured Parties or result in a Material Adverse Effect or (c) its jurisdiction of organization, its location of principal place of business or its name, in each case, without the prior written consent of the Majority Noteholders and provided that all actions have been taken to maintain the perfection of the security interest in favor of the Indenture Trustee.

Section 4.23 <u>No Loans</u>. The Issuer shall not, directly or indirectly, make any loan or advance to any Person, other than Permitted Investments.

Section 4.24 <u>Permitted Investments; Subsidiaries</u>. The Issuer shall not make any Investments other than (a) any Investment in Permitted Investments of monies in any Issuer Account and (b) obligations of account debtors to the Issuer arising in the ordinary course of business. Without limiting the generality of the foregoing, the Issuer shall not create any Subsidiaries or enter into any partnership or joint venture.

Section 4.25 <u>Employees; ERISA</u>. The Issuer shall not employ any employees or individually maintain any ERISA Plan or, other than with respect to an entity that is a member of its controlled group under Code Section 414 or Section 4001 of ERISA, incur or suffer to exist any obligations to make any contribution to a Multiemployer Plan.

Section 4.26 <u>Tax Treatment</u>. Neither the Issuer, nor any party otherwise having the authority to act on behalf of the Issuer, is authorized to, or shall, make the election described in the Treasury Regulations Section 301.7701-3(a) or take any other action that may cause the Issuer to be treated as an association taxable as a corporation for U.S. federal income tax purposes, or a similar election under any U.S. state or local Law. For all U.S. federal, state and local tax purposes, the Issuer has always been and shall continue to be classified as an entity disregarded from its owner and shall not be treated as a partnership, a publicly traded partnership treated as a corporation, a taxable mortgage pool (in whole or in part) taxable as a corporation or as an association taxable as a corporation. The Issuer shall treat the Notes and this Indenture as debt, and not as an equity interest in the Issuer, for all purposes (including federal, state and local income Tax purposes).

Section 4.27 <u>Replacement of Manager or Indenture Trustee</u>. In the event that the Manager or the Indenture Trustee shall be terminated or shall resign, except as otherwise provided in Section 7 of the Management Services Agreement, the Issuer shall appoint a replacement manager or indenture trustee satisfactory to the Majority Noteholders as soon as reasonably practicable, but in any event within thirty (30) days following such delivery of notice of any such resignation or termination.

Section 4.28 <u>Hedge Agreements</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;(a) On or prior to the Initial Closing Date, the Issuer shall have entered into and will maintain at all times Hedge Agreements (including by way of assignment and novation from the Seller to the Issuer) with the purpose and effect of fixing commodity prices covering at least (i) NYMEX-WTI: 80% of projected crude Hydrocarbon production attributable to the Wellbore Interests for each calendar month through April 30, 2025, (ii) NYMEX-Henry Hub: 80% of projected Hydrocarbon production attributable to the Wellbore Interests for each calendar month through April 30, 2025, and (iii) NGL: 80% of projected Hydrocarbon production attributable to the Wellbore Interests for each calendar month through April 30, 2025. On or prior to the Second Closing Date, the Issuer shall have entered into and will maintain at all times Hedge Agreements (including by way of assignment and novation from the Seller to the Issuer) with the purpose and effect of fixing commodity prices covering at least (i) NYMEX-WTI: 80% of projected crude Hydrocarbon production attributable to the Wellbore Interests for each calendar month through August 31, 2025, (ii) NYMEX-Henry Hub: 80% of projected Hydrocarbon production attributable to the Wellbore Interests for each calendar month through August 31, 2025, and (iii) NGL: 80% of projected Hydrocarbon production attributable to the Wellbore Interests for each calendar month through August 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Issuer will not be party to or in any manner be liable on any Hedge Agreements, except for Hedge Agreements entered into with the purpose and effect of fixing prices on crude oil, natural gas or natural gas liquids from reasonably anticipated production from the Wellbore Interests on market terms and conditions; provided that with respect to such Hedge Agreements, at all times (i) no such contract fixes a price for a period later than ninety-six (96) months after such contract is entered into; and (ii) the aggregate monthly production of each of crude oil, natural gas liquids and natural gas, calculated separately, covered by all such contracts (determined, in the case of contracts that are not settled on a monthly basis, by a monthly proration reasonably acceptable to Hedge Counterparties) for any single month does not in the aggregate exceed ninety percent (90%) of the Issuer's reasonably anticipated Hydrocarbon production of crude oil, natural gas liquids and natural gas calculated separately (determined in a manner reasonably acceptable to Hedge Counterparties), from the Wellbore Interests anticipated to be sold in the ordinary course of business of the Issuer for such month. If, (A) on the date a conveyance under Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement occurs (after giving effect to such conveyance) or the date on which the Seller is required to pay to the Issuer a Title Adjustment Amount pursuant to Section 5.11(e) of the applicable Asset Purchase Agreement or (B) on the last day of any fiscal quarter, the combination of production volumes covered by Hedge Agreements for any calendar month exceeds 90% of reasonably projected Hydrocarbon production attributable to the Wellbore Interests for such month, based on the most recently delivered Reserve Report and as calculated separately for each of crude oil, natural gas liquids and natural gas (determined in a manner reasonably acceptable to Hedge Counterparties), the Issuer shall, within five (5) Business Days of such date of conveyance (but, in the case of clause (A) only, in any event prior to the Payment Date relating to the Collection Period within which such date of conveyance occurs) or last day, terminate an appropriate portion of Hedge Agreements or enter into offsetting agreements that have the same effect such that the volumes subject to such Hedge Agreements or fixed price production sale agreements do not exceed 90% of reasonably projected Hydrocarbon production for each calendar month following such date or last day, as calculated separately for each of crude oil, natural gas liquids and natural gas.

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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;(c) Notwithstanding the foregoing, the Issuer will not, incur or permit to exist (i) any speculative Hedge Agreements or (ii) any commodity Hedge Agreements that are or may be settled physically through the delivery of Hydrocarbons (other than any such Hedge Agreement described in this clause (ii) that has a term of sixty (60) days or less).

&nbsp;&nbsp;&nbsp;&nbsp;&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) To the extent that the Issuer solicits a consent of Noteholders in connection with a proposed sale or release of a Wellbore Interest or other Collateral, the Issuer shall include in any such solicitation details regarding any obligation to terminate a portion of a Hedge Agreement pursuant to part (b) hereof that would be implicated by such sale or release, including an estimate of payments to be made or received by the Issuer in connection with such termination.

Section 4.29 <u>Characterization</u>. The Issuer shall characterize (a) the transfer of the Wellbore Interests by the Seller to the Issuer pursuant to the applicable Asset Purchase Agreement for all purposes as an absolute transfer of legal and beneficial ownership, including on all relevant books, records, financial statements and other applicable documents, other than for tax and accounting purposes and (b) the Grant of the Collateral by the Issuer under this Indenture as a pledge for U.S. federal income tax purposes and for financial accounting purposes.

Section 4.30 <u>Manager or Operator Failure</u>. If an Event of Default or Manager Termination Event shall arise from the failure of the Manager or any Operator to perform any of its duties or obligations under the Management Services Agreement or the Joint Operating Agreement, as applicable, the Issuer shall take all reasonable steps available to it to remedy such failure.

Section 4.31 <u>Amendments to Basic Documents</u>. Without derogating from the assignment granted to the Indenture Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer agrees that it shall not, (a) terminate, amend, waive, supplement or otherwise modify any of, or consent to the assignment by any party of, the Basic Documents to which it is a party (other than this Indenture) and (b) to the extent that the Issuer has the right to consent to any termination, waiver, amendment, supplement or other modification of, or any assignment by any party of, any Basic Document to which it is not a party, give such consent, in each case, unless, (i) as evidenced by an Opinion of Counsel delivered to the Indenture Trustee, (A) such termination, amendment, waiver, supplement or other modification or such assignment, as applicable, is authorized and permitted under the terms of the Basic Documents, and (B) all conditions precedent to the execution of such termination, amendment, waiver, supplement or other modification or such assignment, as applicable, have been satisfied, (ii) as evidenced by an Officer's Certificate delivered to the Indenture Trustee in connection with such termination, amendment, waiver, supplement or other modification or assignment, as applicable, such termination, amendment, waiver, supplement or other modification or such assignment, as applicable, will not adversely affect in any material respect the interests of the Issuer, any Noteholder or the Hedge Counterparties, and (iii) the other requirements with respect to such termination, amendment, waiver, supplement or other modification, or such assignment, as applicable, contained in the Basic Documents (including this <u>Section 4.31</u>) are satisfied. Notwithstanding the foregoing, the Issuer may amend, modify, waive, supplement or agree to any amendment, modification, supplement or waiver of the terms of this Indenture in accordance with <u>Article IX</u> hereof, but subject to any other conditions set forth in <u>Article IX</u> hereof applicable thereto.

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**ARTICLE V**<br>**REMEDIES**

Section 5.01 <u>Events of Default</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;(a) "<u>Event of Default</u>," wherever used herein, means any one of the following events (whatever the reason for such Event of Default and, subject to <u>Sections 5.01(a)(iv)</u> and <u>(a)(v)</u> whether it shall be voluntary or involuntary or be effected by operation of Law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 failure to pay all amounts due and owing on any Notes in full and reduce the Outstanding Principal Balance to zero as of the Legal Final Maturity Date of any outstanding Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 failure of the Issuer on any Payment Date to pay any Note Interest on any Notes when the same becomes due and payable, and such default shall continue for a period of two (2) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 default in the observance or performance of any Alpine Party to comply with any covenant or agreement made in any Basic Document to which it is a party (other than a default in the observance or performance of any covenant or agreement of the Manager under the Management Services Agreement or an Operator under the Joint Operating Agreement for which a default would result in the termination of the Manager or removal of such Operator, as applicable, which is specifically addressed in clause (x) below), or a breach of any representation or warranty of any Alpine Party made in any Basic Document to which it is a party or in any certificate or other writing delivered pursuant to the Basic Documents or in connection therewith (other than a breach of a representation or warranty of the Manager under the Management Services Agreement or an Operator under the Joint Operating Agreement for which a breach would result in the termination of the Manager or the removal of such Operator, as applicable, which is specifically addressed in clause (x) below) and such representation or warranty proves to have been incorrect in any material respect as of the time when the same shall have been made, and such default or failure to comply shall continue or not be cured or remedied, or the circumstance or condition in respect of which such representation or warranty was incorrect in such material respect shall not have been eliminated or otherwise cured or remedied, within (1) any applicable grace or cure periods provided for in the applicable Basic Document or (2) if no such other grace or cure period is provided in the applicable Basic Document or if the applicable Basic Document is this Indenture, a period of thirty (30) days (with such thirty (30) day period subject to extension pursuant to <u>Section 5.01(c)</u> below), in the case of each of the foregoing clauses (1) and (2), after the earlier to occur of (A) an Alpine Party obtaining Knowledge of such default or incorrect representation or warranty or (B) receipt by the Issuer from the Indenture Trustee or receipt by the Issuer and a Responsible Officer of the Indenture Trustee from a Noteholder or a Hedge Counterparty of a written notice specifying such default or incorrect representation or warranty and requiring it to be remedied;

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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;(iv) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer, Holdings or any substantial part of the Collateral in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar Law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer, Holdings or for any substantial part of the Collateral, or ordering the winding-up or liquidation of the Issuer's or Holdings' affairs (as applicable), and such decree or order shall remain unstayed and in effect for a period of sixty (60) consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 commencement by any Alpine Party of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by any Alpine Party to the entry of an order for relief in an involuntary case under any such law, or the consent by an Alpine Party to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of an Alpine Party or for any substantial portion of the Collateral, or the making by an Alpine Party of any general assignment for the benefit of creditors, or the failure by an Alpine Party generally to pay its debts as such debts become due, or the taking of any action by an Alpine Party in furtherance of any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 failure of the Indenture Trustee, for the benefit of the Secured Parties, to have a valid first-priority perfected security interest subject to Permitted Liens in any portion of the Collateral (for the avoidance of doubt, the failure by the Seller to transfer to the Issuer good title to the Wellbore Interests free and clear of any Encumbrances shall not in and of itself constitute an Event of Default pursuant to this clause (vi));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the Issuer shall become an association, publicly traded partnership or taxable mortgage pool, that is, in each case, taxable as a corporation for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the filing of a non-appealable decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or Holdings in excess of $500,000 and not discharged, satisfied or stayed within thirty (30) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) a statute, rule or regulation of a competent legislative or governmental rule-making body is adopted in final form and becomes effective following the Initial Closing Date, or a final, non-appealable judgment of a court of competent jurisdiction is rendered following the Initial Closing Date, which has a material adverse effect on (a) the validity or enforceability of any of the Basic Documents, or (b) the ability of the Issuer to make payments on the Notes or its obligations under any of the Hedge Agreements;

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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;(x) any of the Manager, an Operator, the Indenture Trustee or the Back-Up Manager shall be terminated, removed or resign, and a replacement reasonably satisfactory to the Indenture Trustee (with consent of the Majority Noteholders (such consent not to be unreasonably withheld, conditioned or delayed)) shall not have been engaged within ninety (90) days of any such resignation, removal or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) an ERISA or tax lien securing the payment of money shall be rendered against the Issuer or Holdings in excess of $500,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the Issuer or Holdings is required to be registered as an "investment company" under the Investment Company 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) the DSCR on any Quarterly Determination Date is less than 1.10 to 1.00; 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;(xiv) the occurrence of a Change of Control related to an Alpine Party.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Issuer shall deliver to (i) a Responsible Officer of the Indenture Trustee, (ii) each Noteholder, (iii) the Back-Up Manager and (iv) each Hedge Counterparty, within five (5) days after the Issuer obtains Knowledge of the occurrence thereof, written notice in the form of an Officer's Certificate of any event which with the giving of notice and the lapse of time could become an Event of Default under <u>clause (a)(iii)</u> above, its status and what action the Issuer is taking or proposes to take with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding the foregoing, with respect to a breach of any covenant or agreement or representation or warranty of the Issuer referred to under <u>clause (a)(iii)</u> above for which the grace or cure period set forth in <u>clause (a)(iii)(2)</u> is applicable, such breach shall not constitute an Event of Default after such thirty (30) day period if (x) the Issuer has commenced in a diligent manner a cure of such breach and (y) such remedial action could not reasonably have been expected to fully cure such breach within such thirty (30) days, but could reasonably be expected to be implemented and fully cure such breach within an additional thirty (30) days (but in no event shall the total cure period set forth in <u>clause (a)(iii)(2)</u> (as extended by this <u>clause (c)</u>) exceed a total of ninety (90) days).

&nbsp;&nbsp;&nbsp;&nbsp;&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) Upon the occurrence of any such event, each of the Issuer and the Indenture Trustee, as applicable, shall not be relieved from performing its obligations in a timely manner in accordance with the terms of this Indenture and the Issuer or the Indenture Trustee, as applicable, shall provide the Indenture Trustee (if such delay or failure is a result of a delay or failure by the Issuer), the Noteholders, the Back-Up Manager and the Hedge Counterparties prompt notice of such failure or delay by it, together with a description of its efforts to so perform its obligations.

Section 5.02 <u>Acceleration of Maturity; Rescission and Annulment</u>. If an Event of Default should occur and be continuing (after any applicable grace or cure period), then and in every such case the Indenture Trustee at the written direction of the Majority Noteholders or the Majority Noteholders may declare all the Notes to be immediately due and payable, by a notice in writing to the Issuer (and to a Responsible Officer of the Indenture Trustee if given by Noteholders) (a copy of which shall be provided by the Issuer to each Hedge Counterparty and the Back-Up Manager), and upon any such declaration the unpaid principal amount of such Notes, together with accrued and unpaid interest thereon through the date of acceleration, shall become immediately due and payable; <u>provided</u>, <u>that</u> upon the occurrence of an Event of Default specified in <u>Section 5.01(a)(iv)</u> or <u>(v)</u> all the Notes shall be automatically deemed to be immediately due and payable and upon such event the unpaid principal of such Notes, together with accrued and unpaid interest thereon through the date of such Event of Default specified in <u>Section 5.01(a)(iv)</u> or <u>(v)</u>, shall become immediately due and payable, in each case, without notice, declaration or demand by the Indenture Trustee or the Holders, all of which are hereby waived by the Issuer.

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At any time after such declaration of acceleration of maturity has been made and before a judgment or decree for payment of the money due has been obtained by the Indenture Trustee as provided hereinafter in this <u>Article V</u>, the Majority Noteholders, by written notice to the Issuer and a Responsible Officer of the Indenture Trustee (with a copy to each Hedge Counterparty and the Back-Up Manager), may rescind and annul such declaration and its consequences if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all payments of principal of and interest on all Notes and all other amounts that would then be due hereunder or upon such Notes if the Event of Default giving rise to such acceleration had not occurred; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) all sums paid or advanced by the Indenture Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel; 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;(ii) all Events of Default, other than the nonpayment of the principal of the Notes that has become due solely by such acceleration, have been cured or waived as provided in <u>Section 5.12</u>.

No such rescission shall affect any subsequent default or impair any right or any exercise of remedies consequent thereto nor shall such rescission in and of itself serve as a waiver of any of the Events of Default.

Section 5.03 <u>Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.</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;(a) The Issuer covenants that if (i) an Event of Default specified in <u>Section 5.01(a)(i)</u> has occurred and is continuing or (ii) an Event of Default specified in <u>Section 5.01(a)(ii)</u> has occurred and is continuing, the Issuer shall, upon demand of the Indenture Trustee, pay to the Indenture Trustee, for the benefit of the Secured Parties, (1) the whole amount then due and payable on such Notes for principal and interest, with interest on the overdue principal and, to the extent payment at such rate of interest shall be legally enforceable, on overdue installments of interest at the rate borne by the Notes, (2) any amounts due and payable by the Issuer under the Hedge Agreements, including any termination amounts and any other amounts owed thereunder, and, in addition thereto, and (3) such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel, and all other amounts due and owing to the Indenture Trustee pursuant to <u>Section 6.07</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;(b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the Indenture Trustee, in its own name and as trustee of an express trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or final decree, and may enforce the same against the Issuer or other obligor upon such Notes and collect in the manner provided by Law out of the property of the Issuer or other obligor upon such Notes, wherever situated, the monies adjudged or decreed to be payable.

&nbsp;&nbsp;&nbsp;&nbsp;&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 an Event of Default occurs and is continuing, the Indenture Trustee may, as more particularly provided in <u>Section 5.04</u>, proceed to protect and enforce its rights and the rights of the Secured Parties, by such appropriate Proceedings as the Indenture Trustee may deem necessary to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by this Indenture or by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&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) In case there shall be pending, relative to the Issuer or any other obligor upon the Notes or any Person having or claiming an ownership interest in the Collateral, Proceedings under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or other similar Law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, or liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable judicial Proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such Proceedings or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee (including any claim for reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee, except as a result of gross negligence or willful misconduct of the Indenture Trustee) and of the Noteholders and the Hedge Counterparties allowed in such Proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) unless prohibited by applicable Law and regulations, to vote on behalf of the Holders of Notes and the Hedge Counterparties in any election of a trustee, a standby trustee or Person performing similar functions in any such Proceedings;

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 collect and receive any monies or other property payable or deliverable on any such claims and to distribute all amounts received with respect to the claims of the Noteholders, the Hedge Counterparties and the Indenture Trustee on their behalf; 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;(iv) to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee, the Holders of Notes and the Hedge Counterparties allowed in any Proceedings relative to the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by each of such Noteholders and the Hedge Counterparties to make payments to the Indenture Trustee and, in the event that the Indenture Trustee shall consent to the making of payments directly to such Noteholders or the Hedge Counterparties, to pay to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee except as a result of gross negligence or willful misconduct of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder or any Hedge Counterparty any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or the Hedge Agreements or the rights of any Hedge Counterparty thereof, or to authorize the Indenture Trustee to vote in respect of the claim of any Noteholder or any Hedge Counterparty in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar 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;(f) All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Indenture Trustee without the possession of any of the Notes or the production thereof in any trial or other Proceedings relative thereto, and any such action or Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective agents and attorneys, shall be for the ratable benefit of the Holders of the Notes and the Hedge Counterparties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the Secured Parties, and it shall not be necessary to make any Noteholder or any Hedge Counterparty a party to any such Proceedings.

Section 5.04 <u>Remedies; Priorities</u>.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&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 an Event of Default shall have occurred and is continuing, the Indenture Trustee may, or at the written direction of the Majority Noteholders (subject to the terms hereof) shall, do one or more of the following (subject to <u>Section 5.05</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;(i) declare the entire unpaid principal amount of the Notes, all interest accrued and unpaid thereon and all other amounts payable under this Indenture and the other Basic Documents to become immediately due and payable in accordance with <u>Section 5.02</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;(ii) institute Proceedings in its own name and as trustee of an express trust for the collection of all amounts then payable on the Notes and the Hedge Agreements (including any termination payments and any other amounts owed thereunder) or under this Indenture with respect thereto, whether by declaration or otherwise, enforce any judgment obtained and collect from the Issuer and any other obligor upon such Notes monies adjudged due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) institute Proceedings from time to time for the complete or partial foreclosure of this Indenture with respect to the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) exercise any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce the rights and remedies of the Indenture Trustee and the Secured Parties including for the avoidance of doubt, the exercise of any remedies available under the Basic Documents; 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;(v) sell the Collateral or any portion thereof or rights or interest therein, at one or more public or private sales called and conducted in any manner permitted by Law; provided, <u>however</u>, that the Indenture Trustee may not sell or otherwise liquidate the Collateral following an Event of Default, other than an Event of Default described in <u>Section 5.01(a)(i)</u> or <u>(ii)</u>, unless (A) the Majority Noteholders and Hedge Counterparties consent thereto, (B) the Indenture Trustee determines that the proceeds of such sale or liquidation distributable to the Noteholders and the Hedge Counterparties are sufficient to discharge in full all amounts then due and unpaid upon such Notes for principal and interest and all amounts then due under the Hedge Agreements or that would be due and payable if the Hedge Agreements were terminated on the date of such sale (including any breakage or termination payments and any other amounts owed thereunder (or that would be owing if the Hedge Agreements were terminated on the date of such sale)) or (C) the Indenture Trustee determines that the Collateral will not continue to provide sufficient funds for the payment of principal of and interest on the Notes as they would have become due if the Notes had not been declared immediately due and payable and all amounts then due under the Hedge Agreements or that would be due and payable if the Hedge Agreements were terminated on the date of such sale (including any breakage or termination payments and any other amounts owed thereunder (or that would be owing if the Hedge Agreements were terminated on the date of such sale)), and the Indenture Trustee obtains the consent of the Noteholders holding one-hundred percent (100)% of the Outstanding Principal Balance of the Notes and the Hedge Counterparties. In determining such sufficiency or insufficiency with respect to <u>clauses (B)</u> and <u>(C)</u>, the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Collateral for such purpose.

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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;(b) If the Indenture Trustee collects any money or property pursuant to this <u>Article V</u>, it shall deposit such money or property to the Collection Account as Collections to be applied pursuant to <u>Article VIII</u> hereof.

The Indenture Trustee may fix a record date and payment date for any payment to Noteholders pursuant to this <u>Section 5.04</u>. At least fifteen (15) days before such record date, the Issuer shall mail to each Secured Party a notice that states the record date, the payment date and the amount to be paid.

The Indenture Trustee shall incur no liability as a result of any sale (whether public or private) of the Collateral or any part thereof pursuant to this <u>Section 5.04</u> that is conducted in a commercially reasonably manner. Each of the Issuer, the Noteholders the Hedge Counterparties hereby waives any claim against the Indenture Trustee arising by reason of the fact that the price at which the Collateral may have been sold at such sale (whether public or private) was less than the price that might have been obtained otherwise, even if the Indenture Trustee accepts the first offer received and does not offer the Collateral to more than one offeree, so long as such sale is conducted in a commercially reasonable manner. Each of the Issuer and the Noteholders hereby agree that in respect of any sale of the Collateral pursuant to the terms hereof, the Indenture Trustee is authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel is necessary in order to avoid any violation of applicable Law, or in order to obtain any required approval of the sale or of the purchaser by any governmental authority or official, and the Issuer and the Noteholders further agree that such compliance shall not, in and of its self, result in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Indenture Trustee be liable or accountable to the Issuer or any Noteholders for any discount allowed by reason of the fact that the Collateral or any part thereof is sold in compliance with any such limitation or restriction.

Section 5.05 <u>Optional Preservation of the Assets</u>. If the Notes have been declared to be immediately due and payable under <u>Section 5.02</u> following an Event of Default and such declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may, but need not, elect to maintain possession of the Collateral. It is the desire of the parties hereto and the Secured Parties that there be at all times sufficient funds for the payment of principal of and interest on the Notes and payment of any amounts due under the Hedge Agreements (including any termination payments and any other amounts owed thereunder), and the Indenture Trustee shall take such desire into account when determining whether or not to maintain possession of the Collateral. In determining whether to maintain possession of the Collateral, the Indenture Trustee may, but need not, obtain (at the expense of the Issuer) and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Collateral for such purpose.

Section 5.06 <u>Limitation of Suits</u>. No Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

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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;(i) such Holder has previously given written notice to the Indenture Trustee of a continuing Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Majority Noteholders have consented to or made written request to the Indenture Trustee to institute such Proceeding in respect of such Event of Default in its own name as Indenture Trustee hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) such Holder or Holders have offered to the Indenture Trustee indemnity reasonably satisfactory to it against the costs, expenses and liabilities to be incurred in complying with such request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Indenture Trustee for sixty (60) days after its receipt of such notice, request and offer of indemnity has failed to institute such Proceedings; 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;(v) no direction inconsistent with such written request has been given to the Indenture Trustee during such sixty (60) day period by the Majority Noteholders.

It is understood and intended that no one or more Holders of Notes shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Secured Party or to obtain or to seek to obtain priority or preference over any other Secured Party, or to enforce any right under this Indenture, except in the manner herein provided.

Section 5.07 <u>Unconditional Rights of Hedge Counterparties and Noteholders to Receive Principal, Interest and Payments of Other Obligations</u>. Notwithstanding any other provisions in this Indenture, (a) the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Note on or after the respective due dates thereof expressed in such Note or in this Indenture (or, in the case of redemption, on or after the Redemption Date), (b) each Hedge Counterparty shall have the right, which is absolute and unconditional, to receive payment of any obligations of the Issuer under the Hedge Agreements (including the termination amounts and any other amounts owed thereunder) on or after the respective due dates thereof expressed in the applicable Hedge Agreement or in this Indenture, and (c) each Noteholder and Hedge Counterparty shall have the right to institute suit for the enforcement of any such payment, and such right shall not be impaired without the consent of such Holder or the Hedge Counterparties.

Section 5.08 <u>Restoration of Rights and Remedies</u>. If the Indenture Trustee, any Noteholder or any Hedge Counterparty has instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason or has been determined adversely to the Indenture Trustee, to such Noteholder or to such Hedge Counterparty, then and in every such case the Issuer, the Indenture Trustee, the Noteholders and the Hedge Counterparties shall, subject to any determination in such Proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Indenture Trustee, the Noteholders and the Hedge Counterparties shall continue as though no such Proceeding had been instituted.

Section 5.09 <u>Rights and Remedies Cumulative</u>. No right or remedy herein conferred upon or reserved to the Indenture Trustee, to the Noteholders or to the Hedge Counterparties is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by Law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at Law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

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Section 5.10 <u>Delay or Omission Not a Waiver</u>. No delay or omission of the Indenture Trustee, any Holder of any Note or any Hedge Counterparty to exercise any right or remedy accruing upon any Default or Event of Default shall impair any such right or remedy or constitute a waiver of any such Default or Event of Default or an acquiescence therein. Every right and remedy given by this <u>Article V</u> or by Law to the Indenture Trustee, to the Noteholders or to the Hedge Counterparties may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee, by the Noteholders or by the Hedge Counterparties, as the case may be.

Section 5.11 <u>Control by Noteholders</u>. The Majority Noteholders shall have the right to direct the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee with respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) such direction shall not be in conflict with any rule of Law or with this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) such rights shall be subject to the express terms of <u>Section 5.04(a)(v)</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;(iii) if the conditions set forth in <u>Section 5.05</u> have been satisfied and the Indenture Trustee elects to retain the Collateral pursuant to such Section, then any written direction to the Indenture Trustee by Holders of Notes representing less than one-hundred percent (100%) of the Outstanding Principal Balance of the Notes to sell or liquidate the Collateral shall be of no force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Indenture Trustee may take any other action deemed proper by the Indenture Trustee that is not inconsistent with such direction; 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;(v) the Majority Noteholders have offered to the Indenture Trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred in complying with such direction.

Notwithstanding the rights of Noteholders set forth in this Section, subject to <u>Section 6.01</u>, the Indenture Trustee need not take any action that it determines might involve it in liability or might adversely affect the rights of any Noteholders not consenting to such action or the rights of any Hedge Counterparties.

Section 5.12 <u>Waiver of Past Defaults</u>. Prior to the declaration of the acceleration of the maturity of the Notes as provided in <u>Section 5.02</u>, the Majority Noteholders may waive any past Default or Event of Default and its consequences except a Default or Event of Default (a) in payment of principal of or interest on any of the Notes, (b) arising under any Hedge Agreement, (c) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each Note, or (d) occurring as a result of an event specified in <u>Section 5.01(a)(iv)</u> or <u>(v)</u>. In the case of any such waiver, the Issuer, the Indenture Trustee, the Holders of the Notes and the Hedge Counterparties shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereto.

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Upon any such waiver, such Default or Event of Default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured and not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right consequent thereto.

Section 5.13 <u>Undertaking for Costs</u>. All parties to this Indenture agree, and each Holder of a Note by such Holder's acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees and reasonable expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this <u>Section 5.13</u> shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit instituted by the Majority Noteholders or (c) any suit instituted by any Noteholder for the enforcement of the payment of principal of or interest on any Note on or after the respective due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after the Redemption Date).

Section 5.14 <u>Waiver of Stay or Extension Laws</u>. The Issuer covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, or plead or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension Law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such Law, and covenants that it shall not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but shall suffer and permit the execution of every such power as though no such Law had been enacted.

Section 5.15 <u>Action on Notes or Hedge Agreements</u>. The Indenture Trustee's right to seek and recover judgment on the Notes, the Hedge Agreements or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the Indenture Trustee, the Noteholders or the Hedge Counterparties shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Collateral or upon any of the assets of the Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance with <u>Section 5.04(b)</u>.

Section 5.16 <u>Performance and Enforcement of Certain Obligations</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;(a) At the Manager's expense, the Issuer shall take all such lawful action as the Indenture Trustee, at the direction of the Majority Noteholders, shall request to compel or secure the performance and observance by the Manager of its obligations to the Issuer under or in connection with the Management Services Agreement or by the Seller, in all material respects, of its obligations under or in connection with the Asset Purchase Agreements, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection with the Management Services Agreement and the Asset Purchase Agreements to the extent and in the manner reasonably directed by the Indenture Trustee, at the direction of the Majority Noteholders, including the transmission of notices of default under the Management Services Agreement on the part of the Manager thereunder, claims for indemnification by the Issuer against the Seller under any Asset Purchase Agreement and the institution of legal or administrative actions or proceedings to compel or secure performance by the Manager of its obligations under the Management Services Agreement and by the Seller of its obligations under the Asset Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&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 an Event of Default has occurred and is continuing, the Indenture Trustee may, and at the direction (which direction shall be in writing) of the Majority Noteholders shall, exercise all rights, remedies, powers, privileges and claims of the Issuer against the Manager under or in connection with the Management Services Agreement, or against the Seller under or in connection with the Asset Purchase Agreements, including the right or power to take any action to compel or secure performance or observance by the Manager, of its obligations to the Issuer under the Management Services Agreement or by the Seller, of its obligations to the Issuer under the Asset Purchase Agreements, and to give any consent, request, notice, direction, approval, extension or waiver under the Management Services Agreement or the Asset Purchase Agreements or the other Basic Documents, as the case may be, and any right of the Issuer to take such action shall be suspended.

Section 5.17 <u>Aron IM Collateral</u>. Notwithstanding anything in this Indenture or in any other Basic Document (other than the Aron Hedge Agreement) to the contrary, the parties hereto and, by their acceptance of the benefits of this Indenture and the other Basic Documents, the other Secured Parties, hereby acknowledge and agree that, subject to the terms of the Aron Hedge Agreement, the Issuer (or the Manager, on behalf of the Issuer) may at any time, and without prior notice to or consent of any Person (including, but not limited to, the Indenture Trustee), distribute or otherwise transfer (or require the Indenture Trustee to so distribute or transfer) the Aron IM Collateral directly to any of the Issuer's direct or indirect parent companies or as the Manager may otherwise direct, it being acknowledged and agreed that the Aron IM Collateral does not constitute "Collateral", "Collections" or "Available Funds" for purposes of this Indenture and the other Basic Documents (except that the Aron IM Collateral will constitute "Collateral" under the Aron Hedge Agreement), and any distribution or transfer thereof is not subject to the terms of this Indenture or the other Basic Documents (other than the Aron Hedge Agreement), including, without limitation, <u>Section 8.06</u> of this Indenture.

**ARTICLE VI**<br>**THE INDENTURE TRUSTEE**

Section 6.01 <u>Duties of Indenture Trustee</u>.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&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 an Event of Default has occurred and is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Except (i) as directed in writing by the Majority Noteholders, or any other percentage of Noteholders required hereby, the Indenture Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and the other Basic Documents to which it is a party and (ii) during the continuation of an Event of Default, no implied covenants or obligations shall be read into this Indenture or such other Basic Documents against the Indenture Trustee. In the absence of gross negligence or willful misconduct on its part, the Indenture Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of this Indenture; however, in the case of certificates or opinions specifically required by any provision of this Indenture to be furnished to it, the Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform on their face to the requirements of this Indenture (but need not confirm or investigate the accuracy of any mathematical calculations or other facts stated therein).

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Indenture Trustee may not be relieved from liability for its own grossly negligent action, its own grossly negligent failure to act or its own willful misconduct, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) this paragraph does not limit the effect of paragraph (b) of this <u>Section 6.01</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;(ii) the Indenture Trustee shall not be liable for any error of judgment made in good faith by the Indenture Trustee unless it is proved that the Indenture Trustee was grossly negligent in ascertaining the pertinent facts; 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;(iii) the Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to <u>Section 5.11</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;(d) Every provision of this Indenture that in any way relates to the Indenture Trustee is subject to this <u>Section 6.01</u> and <u>Section 6.02</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;(e) The Indenture Trustee shall not be liable for interest on any money received by it except as the Indenture Trustee may agree in writing with the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Money held on behalf of the Noteholders by the Indenture Trustee need not be segregated from other funds except to the extent required by Law or the terms of this Indenture or the Management Services 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;(g) No provision of this Indenture shall require the Indenture Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayment of such funds or indemnity satisfactory to it against such risk or liability is not reasonably assured to it, and none of the provisions contained in this Indenture shall in any event require the Indenture Trustee to perform, or be responsible for the performance of, any of the obligations of the Manager or the Back-Up Manager under this Indenture or the Basic Documents.

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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;(h) The Indenture Trustee shall have no duty (i) to see to any recording, filing, or depositing of this Indenture or any agreement referred to herein or any financing statement or continuation statement evidencing a security interest, or to see to the maintenance of any such recording or filing or depositing or to any re-recording, refiling or redepositing of any thereof or otherwise to monitor the perfection, continuation of perfection or the sufficiency or validity of any security interest related to the Collateral, (ii) to see to any insurance or (iii) subject to the other provisions of this Indenture and the Basic Documents, to see to the payment or discharge of any tax, assessment, or other governmental charge or any lien or encumbrance of any kind owing with respect to, assessed or levied against, any part of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&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 Indenture Trustee shall not be charged with knowledge of any Material Event or breach of representation or warranty unless either (1) a Responsible Officer of the Indenture Trustee shall have actual knowledge of such Default, Event of Default or breach of representation or warranty or (2) written notice of such Default, Event of Default or breach of representation or warranty shall have been given to a Responsible Officer of the Indenture Trustee in accordance with the provisions of this Indenture. For the avoidance of doubt, receipt by the Indenture Trustee of a Payment Date Report shall not constitute actual knowledge of any breach of representation or warranty.

Section 6.02 <u>Rights of Indenture Trustee</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;(a) The Indenture Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by the proper 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;(b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer's Certificate of the Issuer or an Opinion of Counsel. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on an Officer's Certificate of the Issuer or Opinion of Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee, and the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of, or for the supervision of, any such agent, attorney, custodian or nominee appointed absent gross negligence or willful misconduct by it hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers; <u>provided</u>, <u>that</u> the Indenture Trustee's conduct does not constitute willful misconduct or gross negligence.

&nbsp;&nbsp;&nbsp;&nbsp;&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 Indenture Trustee may consult with counsel (which may be counsel to the Issuer, the Noteholders and/or Hedge Counterparties), accountants and other experts of its own selection, and the advice or opinion of such counsel, accountants and other experts with respect to legal or other matters relating to this Indenture and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel, accountants and other experts.

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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;(f) The Indenture Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture or to institute, conduct or defend any litigation hereunder or in relation hereto or to honor the request or direction of any of the Noteholders pursuant to this Indenture, unless such Noteholders shall have offered to the Indenture Trustee security or indemnity satisfactory to it against the reasonable costs, expenses, disbursements, advances and liabilities which might be incurred by it, its agents and its counsel in compliance with such request or direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Indenture Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond or other paper or document (including electronic communications), unless requested in writing to do so by the Holders of Notes representing at least 25% of the aggregate principal amount of the Notes outstanding; <u>provided</u> that if the payment within a reasonable time to the Indenture Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Indenture Trustee, not reasonably assured to the Indenture Trustee by the security afforded to it by the terms of this Indenture, the Indenture Trustee may require indemnity satisfactory to the Indenture Trustee in its reasonable discretion against such cost, expense or liability as a condition to taking any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The right of the Indenture Trustee to perform any discretionary act enumerated in this Indenture or any other Basic Document to which it is a party shall not be construed as a duty or obligation, and the Indenture Trustee shall not be answerable under this Indenture or any other Basic Document to which it is a party for anything other than its gross negligence or willful misconduct in the performance of such 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;(i) The rights, privileges, protections, immunities and benefits given to the Indenture Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Indenture Trustee in each of its capacities hereunder, and each agent, custodian and other Person engaged by the Indenture Trustee to act hereunder. In connection with its actions under any other Basic Document to which it is a party, the Indenture Trustee shall also be afforded all of the rights, privileges, protections, immunities and benefits given to it herein, including, without limitation, its right to be indemnified, as if set forth in full therein, *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) In no event shall the Indenture Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, any act or provision of any present or future law or regulation or governmental authority, strikes, work stoppages, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, epidemics, pandemics or quarantines, loss or malfunctions of utilities, communications or computer (hardware or software) systems and services, or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility; it being understood that the Indenture Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) In no event shall the Indenture Trustee be liable for (i) special, consequential, indirect or punitive damages (including lost profits), (ii) the acts or omissions of its nominees, correspondents, clearing agencies or securities depositories and (iii) the acts or omissions of brokers or dealers even if the Indenture Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) In no event shall the Indenture Trustee be liable for the failure to perform its duties hereunder if such failure is a direct or proximate result of another party's failure to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) As to any fact or matter the manner of ascertainment of which is not specifically described herein, the Indenture Trustee shall be entitled to receive and may for all purposes hereof conclusively rely on a certificate, signed by a Responsible Officer of any duly authorized Person, as to such fact or matter, and such certificate shall constitute full protection to the Indenture Trustee for any action taken or omitted to be taken by it in good faith reliance thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Any Opinion of Counsel requested by the Indenture Trustee shall be an expense of the party requesting the Indenture Trustee to act or refrain from acting or otherwise shall be an expense of the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Indenture Trustee or its Affiliates are permitted to receive additional compensation that could be deemed to be in the Indenture Trustee's economic self-interest for (i) serving as investment adviser, administrator, shareholder servicing agent, custodian or sub-custodian, (ii) using Affiliates to effect transactions in certain investments (if directed) and (iii) effecting transactions in certain investments (if directed). Such compensation shall not be considered an amount that is reimbursable or payable to the Indenture Trustee as part of the compensation hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Neither the Indenture Trustee nor the Issuer shall be responsible for the acts or omissions of the other, it being understood that this Indenture shall not be construed to render them partners, joint venturers or agents (unless expressly set forth herein) of one another.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Indenture Trustee shall not have any obligation or liability to take any action or to refrain from taking any action hereunder that requires written direction in the absence of such written direction as provided hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Indenture Trustee shall not be required to give any bond or surety with respect to the execution of the trust created hereby or the powers granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The Indenture Trustee may, from time to time, request that the Issuer deliver a certificate (upon which the Indenture Trustee may conclusively rely) setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture or any other Basic Document together with a specimen signature of such authorized officers; provided, however, that from time to time, the Issuer may, by delivering to the Indenture Trustee a revised certificate, change the information previously provided by it pursuant to this <u>Section 6.02(s)</u>, but the Indenture Trustee shall be entitled to conclusively rely on the then current certificate until receipt of a superseding certificate.

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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;(t) Except for notices, reports and other documents expressly required to be furnished to the Holders or the Hedge Counterparties by the Indenture Trustee hereunder, the Indenture Trustee shall not have any duty or responsibility to provide any Holder with any information concerning the transaction contemplated hereby, the Issuer, the servicer or any other parties to any other Basic Document which may come into the possession of the Indenture Trustee or any of its officers, directors, employees, representatives or attorneys in fact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) If at any time the Indenture Trustee is served with any arbitral, judicial or administrative order, judgment, award, decree, writ or other form of arbitral, judicial or administrative process which in any way affects this Indenture, the Notes, the Collateral or any part thereof or funds held by it (including, but not limited to, orders of attachment or garnishment or other forms of levies or injunctions), it shall be authorized to comply therewith in any manner as it or its legal counsel of its own choosing deems appropriate; and if the Indenture Trustee complies with any such arbitral, judicial or administrative order, judgment, award, decree, writ or other form of arbitral, judicial or administrative process, the Indenture Trustee shall not be liable to any of the parties hereto or to any other person or entity even though such order, judgment, award, decree, writ or process may be subsequently modified or vacated or otherwise determined to have been without legal force or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything to the contrary herein, the Indenture Trustee shall not have any obligation to (i) calculate the Benchmark (and the Indenture Trustee shall be able to rely conclusively upon any Benchmark calculation provided to it in any Payment Date Report or other document required by a Basic Document) or (ii) monitor the occurrence of any Benchmark Transition Event, the cessation of USD LIBOR or the cessation of any other Benchmark.

Section 6.03 <u>Individual Rights of Indenture Trustee</u>. The Indenture Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it would have if it were not Indenture Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with like rights. However, the Indenture Trustee must comply with <u>Sections 6.11</u> and <u>6.12</u>.

Section 6.04 <u>Indenture Trustee's Disclaimer</u>. The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Issuer's use of the proceeds from the Notes, and it shall not be responsible for any statement of the Issuer in the Indenture or in any document issued in connection with the sale of the Notes or in the Notes other than the Indenture Trustee's certificate of authentication.

Section 6.05 <u>Notice of Material Events</u>. Unless provided by Issuer (or the Manager on its behalf) on an earlier date, if a Material Event occurs and is continuing and if it is actually known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail to each Noteholder, each Hedge Counterparty and the Back-Up Manager notice of the Material Event within five (5) days after receipt of such actual knowledge.

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Section 6.06 <u>Reports by Indenture Trustee</u>. The Indenture Trustee shall make available within a reasonable period of time after the end of each calendar year to each Noteholder and each Hedge Counterparty such information furnished to the Indenture Trustee as may be required to enable such Holder or such Hedge Counterparty to prepare its federal and state income tax returns. On or before each Payment Date, the Indenture Trustee shall post a copy of the statement or statements provided to the Indenture Trustee pursuant to <u>Section 8.08</u> hereof with respect to the applicable Payment Date on its internet website promptly following its receipt thereof, for the benefit of the Noteholders, the Back-Up Manager and the Hedge Counterparties, and upon written request provide a copy thereof to each Hedge Counterparty and the Back-Up Manager. The Indenture Trustee shall post copies of the items provided to the Indenture Trustee pursuant to <u>Section 7.01</u> hereof and the Reserve Report provided pursuant to <u>Section 8.05</u> hereof on its internet website promptly following its receipt thereof, for the benefit of the Noteholders, the Back-Up Manager, and the Hedge Counterparties, and upon written request provide a copy thereof to each Noteholder, the Back-Up Manager, and each Hedge Counterparty. The Indenture Trustee's internet website shall initially be located at "www.debtx.com". The Indenture Trustee may change the way the statements and information are posted or distributed in order to make such distribution more convenient and/or accessible for such Noteholders, the Back-Up Manager and the Hedge Counterparties and the Indenture Trustee shall provide on the website timely and adequate notification to all parties regarding any such change. As currently configured, the Indenture Trustee's website will automatically issue an email notification to any Noteholder, the Back-Up Manager and each Hedge Counterparty who has registered its email address with the Indenture Trustee of any posting of information to such website. Promptly after each Closing Date, the Indenture Trustee will send by email a registration link for such website to the email address of each Noteholder with an email address listed on Schedule B to the related Note Purchase Agreement, the Back-Up Manager and each Hedge Counterparty. Each Noteholder, the Back-Up Manager and each Hedge Counterparty shall be responsible for its own registration for such website and the Indenture Trustee shall not have any obligation to monitor any Noteholder's, Bank-Up Manager's or Hedge Counterparty's registration status. The Indenture Trustee shall not have any liability in connection with its website failing to automatically deliver the email notifications referenced in this <u>Section 6.06</u> absent gross negligence or willful misconduct on its part.

Section 6.07 <u>Compensation and Indemnity</u>. The Issuer shall, or shall cause the Manager to, pursuant to the Management Services Agreement, pay to the Indenture Trustee from time to time reasonable compensation for its services as agreed between the Issuer and the Indenture Trustee in writing from time to time. The Indenture Trustee's compensation shall not be limited by any Law on compensation of a trustee of an express trust. The Issuer shall, or shall cause the Manager to, reimburse the Indenture Trustee for all reasonable and documented out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation for its services. Such expenses shall include the reasonable and documented compensation and expenses, disbursements and advances of the Indenture Trustee's agents, counsel, accountants and experts; <u>provided</u>, <u>that</u>, reimbursement for expenses and disbursements of any legal counsel to the Indenture Trustee may be subject to any limitations separately agreed upon in writing before the date hereof between the Manager and the Indenture Trustee. The Issuer shall, or shall cause the Manager to, pursuant to the Management Services Agreement, indemnify the Indenture Trustee for, and hold it and its officers, directors, employees, representatives and agents harmless against any and all loss, liability, claim, damage or expense (including reasonable and documented legal and consulting fees and expenses and including, without limitation, any legal fees, costs and expenses incurred in connection with any enforcement (including any action, claim or suit brought) by the Indenture Trustee of any indemnification or other obligation of the Issuer or the Manager) incurred by it in connection with the administration of this Indenture and the performance of its duties hereunder, including with respect to any Environmental Liabilities, compliance with Environmental Laws and the generation, use, presence or release of Hydrocarbons or Hazardous Substances. The Indenture Trustee shall, to the extent practicable and not prohibited by court order or other operation of law, notify the Issuer, the Back-Up Manager and the Manager promptly of any claim of which the Indenture Trustee has received written notice for which it may seek indemnity. Failure by the Indenture Trustee to so notify the Issuer and the Manager shall not relieve the Issuer or the Manager of its obligations hereunder. The Issuer shall, or shall cause the Manager to, defend any such claim, and the Indenture Trustee may have separate counsel in connection with the defense of any such claim and the Issuer shall, or shall cause the Manager to, pay the fees and expenses of such counsel. Neither the Issuer nor the Manager need reimburse any expense or indemnify against any loss, liability or expense incurred by the Indenture Trustee through the Indenture Trustee's own willful misconduct or gross negligence.

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The Issuer's payment obligations to the Indenture Trustee pursuant to this Section shall survive the resignation or removal of the Indenture Trustee and the discharge of this Indenture. When the Indenture Trustee incurs fees or expenses after the occurrence of a Default specified in <u>Section 5.01(a)(iv)</u> or <u>(a)(v)</u> with respect to the Issuer, the expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or similar Law.

Section 6.08 <u>Replacement of Indenture Trustee</u>. No resignation or removal of the Indenture Trustee and no appointment of a successor Indenture Trustee shall become effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this <u>Section 6.08</u>. The Indenture Trustee may resign at any time with thirty days' prior written notice by so notifying the Issuer (with a copy to the Noteholders, the Back-Up Manager and each Hedge Counterparty). The Majority Noteholders may remove the Indenture Trustee with 30 days' prior written notice by so notifying the Indenture Trustee, the Hedge Counterparties, the Back-Up Manager and Holdings and may appoint a successor Indenture Trustee. The Issuer shall remove the Indenture Trustee if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Indenture Trustee fails to comply with <u>Section 6.11</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;(ii) the Indenture Trustee is adjudged bankrupt or insolvent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 receiver or other public officer takes charge of the Indenture Trustee or its property; 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;(iv) the Indenture Trustee otherwise becomes incapable of acting.

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If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of Indenture Trustee for any reason (the Indenture Trustee in such event being referred to herein as the retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee, acceptable to the Majority Noteholders and the Hedge Counterparties, and shall notify Holdings and the Back-Up Manager of such appointment.

A successor Indenture Trustee shall deliver a written acceptance of its appointment to the retiring Indenture Trustee, the Issuer, the Majority Noteholders, the Back-Up Manager and each Hedge Counterparty. Thereupon the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights, powers and duties of the Indenture Trustee under this Indenture. The successor Indenture Trustee shall mail a notice of its succession to Noteholders and the Hedge Counterparties. The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.

If a successor Indenture Trustee does not take office within thirty (30) days after the retiring Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the Majority Noteholders may, at the expense of the Issuer, petition any court of competent jurisdiction for the appointment of a successor Indenture Trustee.

If the Indenture Trustee fails to comply with <u>Section 6.11</u>, any Noteholder or any Hedge Counterparty may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee.

Notwithstanding the replacement of the Indenture Trustee pursuant to this <u>Section 6.08</u>, the Issuer's and the Manager's obligations under <u>Section 6.07</u> shall continue for the benefit of the retiring Indenture Trustee.

Section 6.09 <u>Successor Indenture Trustee by Merger</u>. If the Indenture Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation or banking association without any further act shall be the successor Indenture Trustee; <u>provided</u>, <u>that</u> such corporation or banking association shall be otherwise qualified and eligible under <u>Section 6.11</u>. The Indenture Trustee shall provide Holdings and the Back-Up Manager with prior written notice of any such transaction.

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Section 6.10 <u>Appointment of Co-Indenture Trustee or Separate Indenture Trustee</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;(a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement of any jurisdiction in which any part of the Collateral may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Issuer, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders and each Hedge Counterparty, such title to the Collateral, or any part hereof, and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under <u>Section 6.11</u> and no notice to Noteholders of the appointment of any co-trustee or separate trustee shall be required under <u>Section 6.08</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Every separate trustee and co-trustee shall, to the extent permitted by Law, be appointed and act subject to the following provisions 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be conferred or imposed upon and exercised or performed by the Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Indenture Trustee joining in such act), except to the extent that under any Law of any jurisdiction in which any particular act or acts are to be performed the Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Collateral or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Indenture Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) no trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder; 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;(iii) the Indenture Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&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 notice, request or other writing given to the Indenture Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this <u>Article VI</u>. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as may be provided therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such instrument shall be filed with the Indenture Trustee.

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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;(d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee, its agent or attorney-in-fact with full power and authority, to the extent not prohibited by Law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by Law, without the appointment of a new or successor trustee.

Section 6.11 <u>Eligibility; Disqualification</u>. The Indenture Trustee shall have a combined capital and surplus of at least $300,000,000 as set forth in its most recent published annual report of condition, and the time deposits of the Indenture Trustee shall be rated at least BBB (or equivalent) by one of the Rating Agencies.

Section 6.12 <u>Representations and Warranties of the Indenture Trustee</u>. The Indenture Trustee hereby makes the following representations and warranties on which the Issuer, the Noteholders and the Hedge Counterparties shall rely:

&nbsp;&nbsp;&nbsp;&nbsp;&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) the Indenture Trustee is a national banking association duly organized and validly existing under the Laws of the jurisdiction of its formation;

&nbsp;&nbsp;&nbsp;&nbsp;&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) the Indenture Trustee has full power, authority and legal right to execute, deliver, and perform this Indenture and shall have taken all necessary action to authorize the execution, delivery and performance by it of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&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) the execution, delivery and performance by the Indenture Trustee of this Indenture (i) shall not violate any provision of any Law or regulation governing the banking and trust powers of the Indenture Trustee or any order, writ, judgment or decree of any court, arbitrator, or governmental authority applicable to the Indenture Trustee or any of its assets, (ii) shall not violate any provision of the corporate charter or by-laws of the Indenture Trustee and (iii) shall not violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in the creation or imposition of any lien on any properties included in the Collateral pursuant to the provisions of any mortgage, indenture, contract, agreement or other undertaking to which it is a party, which violation, default or lien could reasonably be expected to have a materially adverse effect on the Indenture Trustee's performance or ability to perform its duties under this Indenture or on the transactions contemplated in this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&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) no consent, license, approval or authorization of, or filing or registration with, any governmental authority, bureau or agency is required to be obtained that has not been obtained by the Indenture Trustee in connection with the execution, delivery or performance by the Indenture Trustee of the Basic Documents; 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;(e) this Indenture has been duly executed and delivered by the Indenture Trustee and constitutes the legal, valid and binding agreement of the Indenture Trustee, enforceable in accordance with its terms.

**ARTICLE VII**<br>**INFORMATION REGARDING THE ISSUER**

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Section 7.01 <u>Financial and Business Information</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;(a) *Annual Statements* - The Issuer shall deliver, or cause the Manager to deliver, to the Indenture Trustee (with a copy to the Back-Up Manager), within one hundred and twenty (120) days after the end of each fiscal year of the Issuer, commencing with the fiscal year ended December 31, 2022 (i) duplicate copies of the audited consolidated financial statements of the Parent and its consolidated subsidiaries by an independent public accountant and (ii) duplicate unaudited financial statements of the Issuer; <u>provided</u>, <u>that</u> upon receipt of such audited consolidated financial statements and unaudited financial statements, respectively, the Indenture Trustee shall promptly make them available to Noteholders and the Hedge Counterparties on the Indenture Trustee's internet website.

&nbsp;&nbsp;&nbsp;&nbsp;&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) *Quarterly Statements* - The Issuer shall deliver, or cause the Manager to deliver, to the Indenture Trustee (with a copy to the Back-Up Manager), within ninety (90) days after the end of each of the first three quarterly fiscal periods in each fiscal year of the Issuer, commencing with the fiscal quarter of the Issuer ending September 30, 2022, duplicate copies of the following reports; provided that upon receipt of such reports, the Indenture Trustee shall promptly make them available to Noteholders and the Hedge Counterparties on the Indenture Trustee's internet website:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) (x) an unaudited consolidated balance sheet of the Parent and its consolidated subsidiaries as at the end of such quarter and (y) an unaudited balance sheet of the Issuer as at the end of such quarter, 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;(ii) unaudited consolidated statements of income, changes in shareholders' equity and cash flows of the Parent and its consolidated subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, in each case setting forth, starting with the fiscal quarter ending September 30, 2022, in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with the applicable Accounting Standard applicable to quarterly financial statements generally, and certified by a Senior Financial Officer of the Parent as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&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) *Notice of Material Events* - The Issuer shall deliver, or cause the Manager to deliver, to the Indenture Trustee, each Noteholder, the Back-Up Manager and each Hedge Counterparty promptly, and in any event within three (3) Business Days after any Alpine Party has obtained Knowledge of the existence of (i) any Material Event, (ii) any material breach or default of the Issuer under any Basic Document to which it is a party, (iii) any event that could reasonably be expected to cause a Material Adverse Effect or (iv) information that any Person has given any notice or taken any action with respect to a claimed default hereunder, an Officer's Certificate specifying the nature and period of existence and what action the Issuer is taking or proposes to take with respect thereto. The Issuer shall, at the Issuer's expense (in accordance with <u>Section 8.06(i)</u> or <u>Section 8.06(ii)</u>, as applicable), promptly provide the Indenture Trustee, the Majority Noteholders, each Hedge Counterparty and the Manager (or Back-Up Manager) with such additional information as any such party may reasonably request from time to time in connection with the matters so reported, and the actions so taken or contemplated to be taken.

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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;(d) *Notices from Governmental Body* - The Issuer shall deliver, or cause the Manager to deliver, to the Indenture Trustee, each Noteholder, the Back-Up Manager and each Hedge Counterparty promptly, and in any event within ten (10) days of receipt thereof, copies of any material notice to the Issuer from any Governmental Body relating to any order, ruling, statute or other Law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&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) *Notices under Material Agreements* - The Issuer shall deliver, or cause the Manager to deliver, to the Indenture Trustee, each Noteholder, the Back-Up Manager and each Hedge Counterparty promptly, and in any event within ten (10) days after delivery or receipt by the Issuer, copies of all notices of termination, default or event of default, suspension of performance or any force majeure event given or received pursuant to or in respect of any material agreement to which it is a party or any other material notices or documents given or received pursuant to or in respect of any material agreement to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&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) *Payment Date Compliance Certificates* - On or before the second (2nd) Business Day prior to each Payment Date, the Issuer shall deliver to the Indenture Trustee, each Hedge Counterparty and the Back-Up Manager, an Officer's Certificate to the effect that, except as provided in a notice delivered pursuant to <u>Section 7.01(c)</u>, no potential Rapid Amortization Event or Rapid Amortization Event, no potential Manager Termination Event or Manager Termination Event, no Default or Event of Default has occurred and is continuing (each, a "<u>Payment Date Compliance Certificate</u>").

Section 7.02 <u>Visitation</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;(a) If no Default, Manager Termination Event or Event of Default then exists, the Issuer shall permit the representatives of each Noteholder that is an Institutional Investor, to visit and inspect the offices or properties of the Issuer, to examine all its books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss its affairs, finances and accounts, all at such times as may be reasonably requested and as often as may be requested, all at such reasonable times and as often as may be reasonably requested in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&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 a Default, Manager Termination Event or Event of Default exists, the Issuer shall permit the representatives of each Noteholder that is an Institutional Investor, at the expense of the Issuer, upon reasonable prior notice, to visit and inspect the offices or properties of the Issuer, to examine all its books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss its affairs, finances and accounts, all at such times as may be reasonably requested and as often as may be requested.

&nbsp;&nbsp;&nbsp;&nbsp;&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 visits contemplated by <u>Section 7.02(a)</u> shall be at the expense of the requesting party, provided that the Issuer shall reimburse the reasonable travel expenses of any Noteholder and its Affiliates (together as a group) up to $15,000 per calendar year. If a Default or Event of Default exists, any visits contemplated by this <u>Section 7.02</u> shall be at the sole expense of the Issuer and not limited in number.

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**ARTICLE VIII**<br>**ACCOUNTS, DISBURSEMENTS AND RELEASES**

Section 8.01 <u>Deposit of Collections</u>. The Issuer, or the Manager on its behalf, shall direct that all payments with respect to the Wellbore Interests (net of Applicable Deductions) and all payments received by the Issuer under the Hedge Agreements be transferred to the Collection Account in accordance with the terms of the Joint Operating Agreement and the Management Services Agreement. Notwithstanding anything contained herein to the contrary, the Indenture Trustee and the Paying Agent shall be authorized to accept instructions (which shall be in writing) from the Manager on behalf of the Issuer on a daily basis regarding withdrawals or order transfers of funds from the Collection Account, to the extent such funds have been mistakenly deposited into the Collection Account (including without limitation funds representing amounts due and payable on wells not part of the Wellbore Interests). In the case of any withdrawal or transfer pursuant to the foregoing sentence, the Manager, on behalf of the Issuer, shall provide the Hedge Counterparties, the Indenture Trustee, the Back-Up Manager and the Paying Agent with notice of such withdrawal or transfer, together with reasonable supporting details regarding such withdrawal or transfer and the mistaken deposit related thereto, on such date of withdrawal to be delivered by the Manager, on behalf of the Issuer (or in such earlier written notice as may be required by the Indenture Trustee from the Manager, on behalf of the Issuer, from time to time). Notwithstanding anything therein to the contrary, the Indenture Trustee and the Paying Agent shall be entitled to make withdrawals or order transfers of funds from the Collection Account, in the amount of all reasonable out-of-pocket costs and expenses incurred by the Indenture Trustee or the Paying Agent in connection with any misdirected funds described in the second foregoing sentence.

Section 8.02 <u>Establishment of Accounts</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;(a) The Issuer, for the benefit of the Secured Parties, shall cause to be established and maintained with the Securities Intermediary a non-interest bearing trust account on behalf of the Indenture Trustee and in the name of the Indenture Trustee an Eligible Account (the "<u>Collection Account</u>"), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Secured Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Issuer shall cause HB2 to (A) establish and maintain the HB2 Segregated Account with Bank7, and (B) enter into the HB2 DACA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Issuer, for the benefit of the Secured Parties, shall cause to be established and maintained with the Securities Intermediary a non-interest bearing trust account on behalf of the Indenture Trustee and in the name of the Indenture Trustee an Eligible Account (the "<u>Interest Reserve Account</u>"), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Secured Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Reserved</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;(iv) <u>Reserved</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;(v) <u>Reserved</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;(b) Funds on deposit in each of (i) the Collection Account, and (ii) the Interest Reserve Account (collectively the "<u>Issuer Accounts</u>") shall be invested by the Securities Intermediary on behalf of the Indenture Trustee in Permitted Investments as directed in writing by the Manager. In the absence of written direction from the Manager, such funds shall remain uninvested. All such Permitted Investments shall be held by the Securities Intermediary on behalf of the Indenture Trustee for the benefit of the Secured Parties; <u>provided</u>, <u>that</u> on each Payment Determination Date all interest and other Investment Earnings on funds on deposit in the Issuer Accounts shall be deposited into the Collection Account and shall be deemed to constitute a portion of Available Funds for the related Payment Date. Other than as permitted by the Majority Noteholders, funds on deposit in the Issuer Accounts shall be invested in Permitted Investments that will mature (A) not later than the Business Day immediately preceding the next Payment Date or (B) on or before 10:00 a.m. on such next Payment Date if such investment is held in the corporate trust department of the institution with which the Issuer Accounts are then maintained and is invested either (i) in a time deposit of the Indenture Trustee with a credit rating in one of the generic rating categories that signifies investment grade of at least one of the Rating Agencies (such account being maintained within the corporate trust department of the Indenture Trustee), or (ii) in the Indenture Trustee's common trust fund so long as such fund has a credit rating in one of the generic rating categories that signifies investment grade of at least one of the Rating Agencies; and <u>provided</u> that Permitted Investments shall be available for redemption and use by the Indenture Trustee on the relevant Payment Date. In no event shall the Indenture Trustee be held liable for investment losses in Permitted Investments pursuant to this <u>Section 8.02(b)</u>, except to the extent it is acting separately in its capacity as obligor thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&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) (i) The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Issuer Accounts and in all proceeds thereof (including all income thereon) and all such funds, investments, proceeds and income shall be part of the Collateral. The Issuer Accounts shall be under the sole dominion and control of the Indenture Trustee for the benefit of the Secured Parties. If, at any time, any of the Issuer Accounts ceases to be an Eligible Account, the Paying Agent on behalf of the Indenture Trustee shall within 10 Business Days (or such longer period, not to exceed 30 calendar days with the prior written consent of the Majority Noteholders) establish a new Issuer Account as an Eligible Account and shall transfer any cash and/or any investments to such new Issuer Account. The Indenture Trustee, Paying Agent or the other Person holding the Issuer Accounts as provided in this <u>Section 8.02(c)(i)</u> shall be the "<u>Securities Intermediary</u>." On the date hereof, the Securities Intermediary is the Indenture Trustee. If the Securities Intermediary shall be a Person other than the Indenture Trustee or the Paying Agent on its behalf, the Manager shall obtain the express agreement of such Person to the obligations of the Securities Intermediary set forth in this <u>Section 8.02</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;(ii) The Securities Intermediary agrees, by its acceptance hereof, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) The Issuer Accounts are "securities accounts" within the meaning of Section 8-501 of the New York UCC and are accounts to which Financial Assets will be credited.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) All securities or other property underlying any Financial Assets credited to the Issuer Accounts shall be registered in the name of the Securities Intermediary, indorsed to the Securities Intermediary or in blank or credited to another securities account maintained in the name of the Securities Intermediary and in no case will any Financial Asset credited to any of the Issuer Accounts be registered in the name of the Issuer or the Manager, payable to the order of the Issuer or the Manager or specially indorsed to the Manager or Holdings except to the extent the foregoing have been specially indorsed to the Securities Intermediary or in blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) All property delivered to the Securities Intermediary pursuant to this Indenture will be promptly credited to the appropriate Issuer Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each item of property (whether investment property, Financial Asset, security, instrument or cash) credited to an Issuer Account shall be treated as a "financial asset" within the meaning of Section 8-102(a)(9) of the New York UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If at any time the Securities Intermediary shall receive any order from the Indenture Trustee directing transfer or redemption of any Financial Asset relating to the Issuer Accounts, the Securities Intermediary shall comply with such entitlement order without further consent by the Issuer, the Manager or any other 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) The Issuer Accounts shall be governed by the Laws of the State of New York, regardless of any provision in any other agreement. For purposes of the UCC, New York shall be deemed to be the Securities Intermediary's jurisdiction and the Issuer Accounts (as well as the securities entitlements (as defined in Section 8-102(a)(17) of the UCC) related thereto) shall be governed by the Laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) The Securities Intermediary has not entered into, and until the termination of this Indenture will not enter into, any agreement with any other person relating to the Issuer Accounts and/or any Financial Assets credited thereto pursuant to which it has agreed to comply with entitlement orders (as defined in Section 8-102(a)(8) of the New York UCC) of such other person and the Securities Intermediary has not entered into, and until the termination of this Indenture will not enter into, any agreement with the Issuer, the Manager or the Indenture Trustee purporting to limit or condition the obligation of the Securities Intermediary to comply with entitlement orders as set forth in <u>Section 8.02(c)(ii)(E)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) Except for the claims and interest of the Indenture Trustee and of the Issuer in the Issuer Accounts, the Securities Intermediary knows of no claim to, or interest in, the Issuer Accounts or in any Financial Asset credited thereto. If any other person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Issuer Accounts or in any Financial Asset carried therein, the Securities Intermediary will promptly notify the Indenture Trustee, the Manager and the Issuer 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;&nbsp;&nbsp;&nbsp;&nbsp;&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 Securities Intermediary will promptly send copies of all statements, confirmations and other correspondence concerning the Issuer Accounts and/or any Issuer Account Property simultaneously to each of the Manager and the Indenture Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) The Securities Intermediary shall be a corporation or national bank that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity hereunder. The Securities Intermediary (1) shall not be an Affiliate of the Issuer, (2) shall have a combined capital and surplus of at least U.S. $300,000,000, (3) shall be subject to supervision or examination by United States federal or state authority, and (4) shall have a rating of at least "Baa1" by Moody's, "BBB+" by Standard & Poor's, and "BBB" by Fitch (if such entity is rated by Fitch).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) The Securities Intermediary shall treat the Indenture Trustee as entitled to exercise the rights that comprise each financial asset credited to any Issuer Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(L) The Securities Intermediary shall not change the name or the account number of any Issuer Account without the prior written consent of the Indenture Trustee (acting at the written direction of the Majority Noteholders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(M) The Securities Intermediary shall not be a party to any agreement that is inconsistent with this Indenture, or that limits or conditions any of its obligations under this Indenture. The Securities Intermediary shall not take any action inconsistent with the provisions of this Indenture applicable to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(N) Each item of property credited to each Issuer Account shall not be subject to, and the Securities Intermediary hereby waives, any security interest, lien, claim, encumbrance, or right of setoff in favor of the Securities Intermediary or anyone claiming through the Securities Intermediary (other than the Indenture Trustee).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(O) For purposes of Article 8 of the UCC, the jurisdiction of the Securities Intermediary with respect to the Collateral shall be the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(P) It is the intent of the Indenture Trustee and the Issuer that each Issuer Account shall be a securities account on behalf of the Indenture Trustee for the benefit of the Secured Parties and not an account of the Issuer.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Manager shall have the power to instruct the Paying Agent on behalf of the Indenture Trustee in writing to make withdrawals and payments from the Issuer Accounts for the purpose of permitting the Manager to carry out its respective duties under the Management Services Agreement or hereunder or permitting the Indenture Trustee to carry out its duties under the Indenture; <u>provided</u> that the Indenture Trustee shall have no responsibility for monitoring the Manager's duties and shall rely exclusively on such written direction to determine if a withdrawal or payment should be made.

Section 8.03 <u>Collection of Money</u>. Except as otherwise expressly provided herein, the Indenture Trustee may demand payment or delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture Trustee shall apply all such money received by it as provided in this Indenture. Except as otherwise expressly provided in this Indenture, if any default occurs in the making of any payment or performance under any agreement or instrument that is part of the Collateral, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings. Any such action shall be without prejudice to any right to claim a Default or Event of Default under this Indenture and any right to proceed thereafter as provided in <u>Article V</u>.

Section 8.04 <u>Reserved</u>.

Section 8.05 <u>Reserve Reports</u>. The Issuer shall be required to deliver, or to cause the Manager to deliver, to the Indenture Trustee and the Back-Up Manager an updated Reserve Report within ninety (90) days following each June 30 and December 31, commencing June 30, 2022, and, to the extent the Issuer, or the Manager on the Issuer's behalf, in its discretion obtains an updated Reserve Report prior to any otherwise scheduled annually updated Reserve Report, the Issuer, or the Manager on the Issuer's behalf, shall be required to deliver each such updated Reserve Report to such persons promptly upon its receipt thereof. The Reserve Report shall be prepared by or under the supervision of the Chief Financial Officer (or similarly titled position) of the Manager, who shall certify such Reserve Report to have been prepared, in all material respects, in accordance with the procedures used in the immediately preceding Reserve Report (and, with respect to the first Reserve Report delivered by the Issuer under this Indenture, the APA Reserve Report). With the delivery of each Reserve Report other than the APA Reserve Report, the Issuer shall provide to the Indenture Trustee and the Back-Up Manager a certificate from a Responsible Officer of the Manager certifying that in all material respects (a) the information delivered by the Issuer to the applicable engineer for use in preparing such Reserve Report is true and correct, (b) the Issuer owns good and defensible title by, through, and under the Issuer to the Wellbore Interests evaluated in such Reserve Report, (c) such Wellbore Interests are free of all Liens by, through, and under the Issuer except for Permitted Liens and (d) that, to the extent there has been a change in the Net Revenue Interest (as defined in the applicable Asset Purchase Agreement) or Working Interest (as defined in the applicable Asset Purchase Agreement), that change is identified in an exhibit to the certificate. With the delivery of each Reserve Report other than the APA Reserve Report, the Issuer shall provide to the Indenture Trustee and the Back-Up Manager a report that shows any change, set forth to the fourth decimal place, in the Net Revenue Interest (as defined in the applicable Asset Purchase Agreement) relating to the prior year or Working Interest (as defined in the applicable Asset Purchase Agreement) relating to the prior year with respect to any Well from the Net Revenue Interest or Working Interest provided in the previous Reserve Report, and except to the extent already included in a report under this <u>Section 8.05</u>. The Indenture Trustee shall promptly make any such Reserve Reports, certificates and other reports delivered pursuant to this <u>Section 8.05</u> available to the Noteholders and the Hedge Counterparties by posting any such Reserve Report or other reports delivered pursuant to this <u>Section 8.05</u> to its internet website referenced in <u>Section 6.06</u> hereof.

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Execution Version

Section 8.06 <u>Distributions</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;(i) Except as otherwise provided in <u>clause (ii)</u> below, on each Payment Date, the Issuer, or the Manager on the Issuer's behalf, shall instruct the Paying Agent on behalf of the Indenture Trustee in writing (based solely on the information contained in the Payment Date Report delivered on the related Payment Determination Date pursuant to <u>Section 8.08</u>) to apply all Available Funds for payments of the following amounts in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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, *pro rata and pari passu*, (1) to the Indenture Trustee, (x) the Indenture Trustee's fees with respect to such Payment Date and any accrued and unpaid fees of the Indenture Trustee with respect to prior Payment Dates, plus (y) any Administrative Expenses payable to the Indenture Trustee; <u>provided</u>, <u>that</u>, in no event shall the cumulative aggregate amount paid to the Indenture Trustee pursuant to the immediately preceding clause (1) exceed $150,000 in any calendar year; provided, that any amounts in excess of $150,000 which are unpaid pursuant to the cap herein or pursuant to <u>Section 8.06(i)(H)</u> shall remain due and owing to the Indenture Trustee and payable in the following year and each subsequent year thereafter until repaid in full; provided, further, that following the occurrence and during the continuance of an Event of Default, no such cap shall apply, and (2) to the Back-Up Manager, the Back-Up Management Fee for such Payment Date and any accrued and unpaid Back-Up Management Fees with respect to prior Payment Dates, plus any Administrative Expenses payable to the Back-Up Manager; <u>provided</u>, <u>that</u>, in no event shall the cumulative aggregate amount paid pursuant to the immediately preceding clause (2) exceed (i) $200,000 in any calendar year during which the Back-Up Manager does not perform any Warm Back-Up Management Duties (as defined in the Back-Up Management Agreement) or Hot Back-Up Management Duties (as defined in the Back-Up Management Agreement) (provided, that any amounts in excess of $200,000 which are unpaid pursuant to the cap herein or pursuant to <u>Section 8.06(i)(H)</u> shall remain due and owing to the Back-Up Manager and payable in the following year and each subsequent year thereafter until repaid in full), (ii) $750,000 in any calendar year during which the Back-Up Manager does not perform any Hot Back-Up Management Duties but does perform Warm Back-Up Management Duties (provided, that any amounts in excess of $750,000 which are unpaid pursuant to the cap herein or pursuant to <u>Section 8.06(i)(H)</u> shall remain due and owing to the Back-Up Manager and payable in the following year and each subsequent year thereafter until repaid in full), and (iii) $1,250,000 in any calendar year during which the Back-Up Manager does perform Hot Back-Up Management Duties (provided, that any amounts in excess of $1,250,000 which are unpaid pursuant to the cap herein or pursuant to <u>Section 8.06(i)(H)</u> shall remain due and owing to the Back-Up Manager and payable in the following year and each subsequent year thereafter until repaid in full); provided, however, that following the occurrence and during the continuance of an Event of Default, no such cap shall apply;

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) first, to pay Successor Manager Transition Expenses, if any, and second, to the Manager, the Management Fee with respect to such Payment Date and any accrued and unpaid Management Fees with respect to prior Payment Dates, plus any unpaid Administrative Expenses payable to the Manager; provided, that, in no event shall the cumulative aggregate amount paid to the Manager pursuant to this clause exceed $500,000 in any calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *pro rata and pari passu*, (1) to the Hedge Counterparties, *pro rata*, (i) any net payments due and payable by the Issuer under the related Hedge Agreements (other than any breakage or termination amounts not referenced in clause (ii)) and (ii) any breakage or termination amounts due and payable by the Issuer as a result of the partial termination of a portion of the Hedge Agreements to comply with <u>Section 4.28(b)</u> and (2) to the Noteholders, *pro rata*, based on the amount of Note Interest payable to each Noteholder, the Note Interest payable on such Payment 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) to the Interest Reserve Account, the amount required to cause the balance in the Interest Reserve Account to equal the Interest Reserve Account Required Balance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *pro rata and pari passu* (1) to the Noteholders, *pro rata*, among each outstanding Tranche, based on the applicable Principal Distribution Amount with respect to each Tranche of Notes, and *pro rata* among the Noteholders in each Tranche of Notes, based on the Outstanding Principal Balance of such Notes, as payment of principal on the Notes, the applicable Principal Distribution Amount with respect to each Tranche of Notes and any Optional Redemption Price or any Excess Amounts (with respect to a partial redemption of the Notes) with respect to such Payment Date, and (2) to the Hedge Counterparties, *pro rata*, any breakage or termination amounts due and payable by the Issuer as a result of an event of default under Section 5(a)(i) (Failure to Pay) or Section 5(a)(vii) (Bankruptcy) of the applicable Hedge Agreement, in each case, where the Issuer is the "Defaulting Party" (as defined in the applicable Hedge Agreement);

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if the then applicable Excess Allocation Percentage is 50%, then to the Noteholders, *pro rata,* among each outstanding Tranche, based on the Outstanding Principal Balance of each Tranche, and *pro rata* among the Noteholders in each Tranche of Notes, based on the Outstanding Principal Balance of such Notes, the Excess Amortization Amount with respect to such Payment 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) *pro rata and pari passu* (1) (a) if the then applicable Excess Allocation Percentage is 100%, then to the Noteholders, *pro rata*, among each outstanding Tranche, based on the Outstanding Principal Balance of each Tranche, and *pro rata* among the Noteholders in each Tranche of Notes, based on the Outstanding Principal Balance of such Notes, the lesser of (i) the Excess Amortization Amount (subject to the second proviso of the definition of such term) with respect to such Payment Date and (ii) the Outstanding Principal Balance of all outstanding Tranches or (b) if the then applicable Excess Allocation Percentage is not 100% and if such Payment Date is on or after the Initial Maturity Date of an outstanding Tranche, then to the Noteholders, *pro rata*, among each such outstanding Tranche, based on the Outstanding Principal Balance of each such outstanding Tranche, and *pro rata* among the Noteholders in each such outstanding Tranche, the Outstanding Principal Balance of each such outstanding Tranche, and (2) to the Hedge Counterparties, *pro rata*, any termination amounts due and payable by the Issuer under the related Hedge Agreements but not paid in accordance with clause (E) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) to the Indenture Trustee and the Back-Up Manager, any amounts owed but not paid in accordance with clause (A) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to the Noteholders, *pro rata*, among each outstanding Tranche, based on the Outstanding Principal Balance of each Tranche, and *pro rata* among the Noteholders in each Tranche of Notes, based on the Outstanding Principal Balance of such Notes, any remaining amounts owed under the Basic Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J) *pro rata* and *pari passu*, (a) to the Manager, any amounts owed but not paid in accordance with clause (B) above and (b) to the Operators any unpaid Operating Expenses or other Property Costs, in each case, including amounts unpaid and owing from prior Payment Dates; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K) to the Issuer, any remaining Available Funds plus any amounts on deposit in the Interest Reserve Account in excess of the Interest Reserve Account Required Balance, in each case, free and clear of the lien of the Indenture; provided that, during the continuance of any event or condition that, with notice, the lapse of time, or both, would constitute a Rapid Amortization Event, any remaining amounts shall remain on deposit in the Collection Account or the Interest Reserve Account, as applicable, until such event or condition is cured, in each case, for application as Available Funds on the following Payment Date.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) On each Payment Date (a) as of which the Notes have been accelerated as a result of an Event of Default, (b) on which an Optional Redemption in whole of the Notes is scheduled to occur, (c) that is on or after the latest occurring Legal Final Maturity Date with respect to all Tranches of Notes, or (d) that is the Legal Final Maturity Date with respect to any Tranche of Notes the remaining Outstanding Principal Balance of which would not be redeemed in full if Available Funds were distributed pursuant to <u>Section 8.06(i)</u>, in each case as specified solely in the Payment Date Report delivered on or before the related Payment Determination Date pursuant to <u>Section 8.08</u>, Available Funds and all amounts in the Collection Account and the Interest Reserve Account shall be distributed by the Paying Agent on behalf of the Indenture Trustee in the following order and priority of payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all payments required and in the order required by <u>Sections 8.06(i)(A)</u>, <u>(B)</u> and <u>(C)</u>, in each case without giving effect to the provisos related to any fee or Administrative Expense caps stated therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *pro rata* and *pari passu*, (A) to the Noteholders, *pro rata*, among each outstanding Tranche, based on the Outstanding Principal Balance of each Tranche, and *pro rata* among the Noteholders in each Tranche of Notes, based on the Outstanding Principal Balance of such Notes, the Outstanding Principal Balance of the Notes, plus, in the case of an Optional Redemption, the Make-Whole Amount, if any and (B) to the Hedge Counterparties, *pro rata*, any breakage or termination amounts or any other amounts due and payable by the Issuer to the Hedge Counterparties under the related Hedge 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) to the Noteholders, *pro rata*, among each outstanding Tranche, based on the Outstanding Principal Balance of each Tranche, and *pro rata* among the Noteholders in each Tranche of Notes, based on the Outstanding Principal Balance of such Notes any remaining amounts owed under the Basic Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) *pro rata* and *pari passu*, (a) to the Indenture Trustee, the Back-Up Manager and the Manager, any amounts owed but not paid to such parties in accordance with <u>clause (A)</u> above and (b) to the Operators any Operating Expenses or other Property Costs, in each case, including amounts unpaid and owing from prior Payment Dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to the Issuer, all remaining amounts, free and clear of the lien of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding the foregoing, (A) with respect to each Payment Date in which an Event of Default has not occurred and is continuing, if following the end of the related Collection Period the Available Funds on deposit in the Collection Account, as set forth in an Issuer Order delivered to the Indenture Trustee on or before the related Payment Determination Date, at least equals or exceeds the sum of the amounts, as set forth in such Issuer Order, required to be paid on the upcoming Payment Date pursuant to <u>Section 8.06(i)(A)</u> and <u>Section 8.06(i)(B)</u> and, as set forth in such Issuer Order, there are amounts available to be paid to the Hedge Counterparties on a pro rata basis pursuant to <u>Section 8.06(i)(C)</u>, on the next Payment Date, upon Issuer Order, such pro rata amounts to be paid to the Hedge Counterparties pursuant to <u>Section 8.06(i)(C)</u> on the upcoming Payment Date, as set forth in such Issuer Order, shall be paid by the Indenture Trustee to the Hedge Counterparties in advance of such Payment Date in accordance with the Issuer Order or (B) with respect to each Payment Date in which an Event of Default has not occurred and is continuing, if following the end of the related Collection Period the Available Funds on deposit in the Collection Account, as set forth in an Issuer Order delivered to the Indenture Trustee on or before the related Payment Determination Date, at least equals or exceeds the sum of the amounts, as set forth in such Issuer Order, required to be paid on the upcoming Payment Date pursuant to <u>Section 8.06(ii)(A)</u> and, as set forth in such Issuer Order, there are amounts available to be paid to the Hedge Counterparties on a pro rata basis pursuant to <u>Section 8.06(ii)(B)</u>, on the next Payment Date, upon Issuer Order, such pro rata amounts to be paid to the Hedge Counterparties pursuant to <u>Section 8.06(ii)(B)</u> on the upcoming Payment Date shall be paid by the Indenture Trustee to the Hedge Counterparties in advance of such Payment Date in accordance with the Issuer Order.

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding the foregoing, if an Alpine Party other than the Issuer pays any amounts to the Issuer (i) pursuant to any indemnification obligation, or to cure any breach of contract, by any Alpine Party (other than the Issuer) under any Basic Document or (ii) under Section 5.11 of the applicable Asset Purchase Agreement, those amounts less, with respect to subclause (i), the sum of (A) any amounts paid or reasonably expected to be payable by the Issuer to any third parties in respect of matters that are the subject of the applicable indemnification obligation and (B) any amounts reinvested or reasonably expected to be reinvested by the Issuer in connection with its permitted business (including to cure or remedy any breach or liability) subject to the terms and conditions of the Basic Documents, shall be paid to the Noteholders (*pro rata* among each outstanding Tranche, based on the Outstanding Principal Balance of each Tranche, and *pro rata* among the Noteholders in each Tranche of Notes, based on the Outstanding Principal Balance of such Notes) as a partial redemption of the Notes pursuant to <u>Section 8.06(i)</u> without premium or penalty.

Section 8.07 <u>Interest Reserve Account</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;(a) On the Initial Closing Date and each subsequent Closing Date, the Issuer shall cause an amount not less than the Interest Reserve Account Initial Deposit to be deposited by the Paying Agent on behalf of the Indenture Trustee into the Interest Reserve Account.

&nbsp;&nbsp;&nbsp;&nbsp;&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 amount on deposit in the Interest Reserve Account on any Payment Date (after giving effect to all deposits thereto or withdrawals therefrom on such Payment Date) is greater than the Interest Reserve Required Balance for such Payment Date, the Manager shall instruct the Paying Agent on behalf of the Indenture Trustee to withdraw such amount from the Interest Reserve Account and apply it as Available Funds for such Payment Date as set forth in the Payment Date Report.

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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;(c) Without duplication, in the event that the Available Funds for a Payment Date are not sufficient to make the full amount of the payments and deposits required pursuant to <u>Sections 8.06(i)(A)</u> through <u>(C)</u> on such Payment Date, the Manager shall instruct the Paying Agent on behalf of the Indenture Trustee to withdraw from the Interest Reserve Account on such Payment Date an amount equal to such shortfall, to the extent of funds available therein, and pay or deposit such amount according to the priorities set forth in <u>Sections 8.06(i)(A)</u> through <u>(C)</u>. In addition, if <u>Section 8.06(ii)</u> applies, all amounts shall be withdrawn from the Interest Reserve Account and applied as provided in <u>Section 8.06(ii)</u>, as set forth in the Payment Date Report.

&nbsp;&nbsp;&nbsp;&nbsp;&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) On any Business Day, the Manager may direct the Indenture Trustee in writing, and the Paying Agent on behalf of the Indenture Trustee shall withdraw from the Interest Reserve Account and distribute to the Manager, amounts equal to any AFE Cover Amounts in accordance with the provisions of the Management Services Agreement; provided that in no event shall Manager direct any distribution of amounts on deposit in the Interest Reserve Account without Majority Noteholder's consent as required under the Management Services Agreement and in no event shall such withdrawal reduce the amount remaining on deposit in the Interest Reserve Account after giving effect to all withdrawals and deposits to be made on such date to less than the Interest Reserve Account Required Balance; provided, further, that in no event shall the Paying Agent or the Indenture Trustee be responsible for any such determination and the Paying Agent and the Indenture Trustee shall rely exclusively on the written direction of the Manager in making withdrawals and distributions pursuant to this <u>Section 8.07(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;(e) Following the payment in full of the aggregate Outstanding Principal Balance of the Notes and of all other amounts owing or to be distributed hereunder to Noteholders, any amount remaining on deposit in the Interest Reserve Account shall be distributed to the Issuer free and clear of the lien of this Indenture upon written direction to the Indenture Trustee by the Manager.

Section 8.08 <u>Statements to Noteholders</u>. On or prior to 1:00 p.m. (New York City time) on each Payment Determination Date, the Issuer shall cause the Manager to provide to the Indenture Trustee for the Indenture Trustee to post on its internet website pursuant to <u>Section 6.06</u>, a statement substantially in the form of <u>Exhibit D</u>, setting forth at least the following information as to the Notes, to the extent 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;(a) the amount of Collections, if any, received in the Collection Account with respect to the related Collection Period;

&nbsp;&nbsp;&nbsp;&nbsp;&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) confirmation of compliance with the terms of the Indenture and the other Basic Documents by the respective Alpine Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&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) copies of all reports, updates to Hedge Agreement documentation and any other relevant material documentation received or prepared by the Manager, in each case, in respect of the Hedge Agreements, along with a summary of all Hedge Agreements currently in place, including volumes and the percentage of production that is hedged, along with a calculation of the hedge ratio;

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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;(d) the amount of Administrative Expenses, Direct Expenses and indemnity payments paid to each party or withheld by the Operators pursuant to the Joint Operating Agreement or the Management Services Agreement during the most recent Collection Period;

&nbsp;&nbsp;&nbsp;&nbsp;&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 amount of any fees and expenses to be paid to the Indenture Trustee, the Manager and the Back-up Manager with respect to the related Collection Period;

&nbsp;&nbsp;&nbsp;&nbsp;&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) if any, the amount of any payment (including breakage or termination payments) paid to the Hedge Counterparties with respect to the related Collection Period, which payment amount shall include all amounts currently due and payable and not yet paid for which an invoice was delivered on or before the date that is five (5) Business Days prior to the Payment Determination 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;(g) the amount deposited in or withdrawn from the Interest Reserve Account on such Payment Determination Date, the amount on deposit in the Interest Reserve Account after giving effect to such deposit or withdrawal and the Interest Reserve Account Required Balance for such Payment 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;(h) the amount of the Principal Distribution Amount with respect to such Payment Determination Date, the amount, if any, of the Excess Amortization Amount with respect to such Payment Determination Date, the amount if any of any Excess Amounts received as Collections with respect to the related Collection Period, the change in such amounts from the preceding Payment Date and the portions thereof allocable to each Tranche of Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&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 Note Interest due with respect to such Payment Date and the portions thereof allocable to each Tranche of Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the amount of the PV-10, Production Tracking Rate and Securitized Net Cash Flow, DSCR, LTV, in each case with respect to the related Collection Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the amounts on deposit in each Issuer Account and the HB2 Segregated Account, including the Interest Reserve Excess Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) amounts due and owing and paid to the Noteholders under the Note Purchase Agreements and other Basic Documents and the portions thereof allocable to each Tranche of Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) identification of any Wellbore Interests repurchased by Seller by Well number with respect to such Wellbore Interest (as specified in the applicable Asset Purchase 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;(n) the Consolidated Total Assets and Consolidated Borrowed Debt as of the last day of the most recent calendar quarter;

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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;(o) the amount of any AFE Cover Amounts utilized to participate in AFE Operations during the related Collection Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) on a quarterly basis such report shall include any change, set forth to the fourth decimal place, in the Net Revenue Interest (as defined in the applicable Asset Purchase Agreement) or Working Interest (as defined in the applicable Asset Purchase Agreement) with respect to any Well from the Net Revenue Interest or Working Interest reflected in the most recent Reserve Report, except to the extent already expressly identified in a report under this <u>Section 8.08</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;(q) any material Environmental Liability of which an Alpine Party has obtained Knowledge since the most recent report delivered under this <u>Section 8.08</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;(r) the filing or commencement of, or the threat in writing of, any action, suit, investigation, arbitration or proceeding by or before any arbitrator or Governmental Body against the Issuer, or any material adverse development in any action, suit, proceeding, investigation or arbitration (whether or not previously disclosed), that, in either case, if adversely determined, could reasonably be expected to result in liability in excess of $500,000; 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;(s) the amounts to be distributed pursuant to <u>Section 8.06(i)</u>, <u>Section 8.06(ii)</u>, <u>Section 8.06(iii)</u> and <u>Section 8.06(iv)</u> for the related Collection Period.

Deliveries pursuant to this <u>Section 8.08</u> or any other Section of this Indenture may be delivered by electronic mail.

Section 8.09 <u>Reserved</u>.

Section 8.10 <u>Original Documents</u>. The Indenture Trustee agrees to hold any assignments of mortgage or deeds of trust that are part of the Collateral received by it. The Indenture Trustee shall keep such documents in its possession separate and apart from all other property that it is holding in its possession and from its own general assets. The Indenture Trustee shall keep records showing that it is holding such documents pursuant to this Indenture. Such documents shall be released by the Indenture Trustee to or at the direction of the Issuer upon the satisfaction and discharge of this Indenture.

**ARTICLE IX**<br>**SUPPLEMENTAL INDENTURES**

Section 9.01 <u>Supplemental Indentures Not Requiring Consent of Noteholders</u>. The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, without the consent of or notice to any of the Noteholders or Hedge Counterparties, enter into any indenture or indentures supplemental to this Indenture for any one or more of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&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) to cure any ambiguity or formal defect or omission in this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&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) to grant to or confer upon the Indenture Trustee for the benefit of the Secured Parties any additional benefits, rights, remedies, powers or authorities;

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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;(c) to subject to this Indenture additional revenues, properties or collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&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) to modify, amend or supplement this Indenture or any indenture supplemental hereto in such manner as to permit the qualification hereof and thereof under the Trust Indenture Act of 1939 or any similar federal statute hereafter in effect or to permit the qualification of the Notes for sale under the securities laws of the United States of America or of any of the states of the United States of America, and, if they so determine, to add to this Indenture or any indenture supplemental hereto such other terms, conditions and provisions as may be permitted by said Trust Indenture Act of 1939 or similar federal statute;

&nbsp;&nbsp;&nbsp;&nbsp;&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) to evidence the appointment of a separate or co-Indenture Trustee or a co-registrar or transfer agent or the succession of a new Indenture Trustee hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&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) to make any changes necessary to comply with or obtain more favorable treatment under the Code and the regulations promulgated thereunder; 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;(g) to create any additional funds or accounts under this Indenture deemed by the Indenture Trustee to be necessary or desirable;

provided, however, that nothing in this Section shall permit, or be construed as permitting, any modification of the trusts, powers, rights, duties, remedies, indemnities, immunities and privileges of the Indenture Trustee without the prior written approval of the Indenture Trustee, which approval shall be evidenced by execution of a supplemental indenture.

For any supplemental indenture or amendment pursuant to this <u>Section 9.01</u>, no such supplemental indenture or amendment shall be effective unless the Issuer furnishes to the Indenture Trustee and the Noteholders, at the Issuer's expense, an Opinion of Counsel stating that (i) such action is authorized or permitted by the Indenture, (ii) all conditions precedent under the Indenture for the taking of such action have been complied with and (iii) such action will not materially adversely affect the interests of any Noteholders.

Section 9.02 <u>Supplemental Indentures with Consent of Noteholders and Hedge Counterparties</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;(a) Exclusive of supplemental indentures covered by <u>Section 9.01</u> hereof, the Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, with the consent of (1) the Majority Noteholders by an Act of the Noteholders delivered to the Issuer and the Indenture Trustee and (2) each Hedge Counterparty for any amendment, waiver, supplement or modification (A) to <u>Sections 2.11</u>, <u>2.16</u>, <u>4.20</u>, <u>4.28</u>, <u>4.31</u>, <u>8.06</u>, to this <u>Section 9.02</u>, the final paragraph of <u>Section 11.01</u> (including the amendment or modification of any defined term used in such sections that would have the effect of amending, waiving, supplementing or modifying the terms of such sections in any material respect), (B) to the extent that the same addition or change is not applicable to any Noteholder, or changes the scope, timing or manner of information required to be delivered to the Hedge Counterparties, or (C) if the rights of each such Hedge Counterparty would be adversely affected in any material respect, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this Indenture; <u>provided</u>, <u>however</u>, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Note affected thereby:

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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;(i) change the Legal Final Maturity Date or the date of payment of any installment of principal of or interest on any Note, or reduce the principal amount thereof, the Interest Rate thereon or the Optional Redemption Price with respect thereto, change the provisions of this Indenture relating to the application of collections on, or the proceeds of the sale of, the Collateral to payment of principal of or interest on the Notes, or change any place of payment where, or the coin or currency in which, any Note or the interest thereon is payable, or impair the right to institute suit for the enforcement of the provisions of this Indenture requiring the application of funds available therefor, as provided in <u>Article V</u>, to the payment of any such amount due on the Notes on or after the respective due dates thereof (or, in the case of redemption, on or after the Redemption 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;(ii) reduce the percentage of the Outstanding Principal Balance of the Majority Noteholders, the consent of the Holders of which is required for any such supplemental indenture, or the consent of the Holders of which is required for any waiver of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences provided for in this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) modify or alter the provisions of the proviso to the definition of the term "<u>Outstanding</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;(iv) modify or alter the definitions of the terms

"Available Funds," "Equity Contribution Cure," "Excess Allocation Percentage," "Basic Documents," "Principal Distribution Amount," "Scheduled Principal Distribution Amount," "DSCR," "Interest Reserve <u>Account Required Balance</u>," "LTV," "Majority Noteholders," "Permitted Liens," "Production Tracking Rate," "PV-10," "Rapid Amortization Event," "Optional Redemption Price," "Reserve Report," "Securitized Net Cash Flow" or "Warm Trigger Event;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) reduce the percentage of the Outstanding Principal Balance of the Majority Noteholders required to direct the Indenture Trustee to direct the Issuer to sell or liquidate the Collateral pursuant to <u>Section 5.04</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;(vi) modify any provision of this Section except to increase any percentage specified herein or to provide that certain additional provisions of this Indenture or the Basic Documents cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of interest or principal due on any Note on any Payment Date (including the calculation of any of the individual components of such calculation) or to affect the rights of the Holders of Notes to the benefit of any provisions for the mandatory redemption of the Notes contained herein;

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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;(viii) permit the creation of any lien ranking prior to or on a parity with the lien of this Indenture with respect to any part of the Collateral or, except as otherwise permitted or contemplated herein, terminate the lien of this Indenture on any property at any time subject hereto or deprive the Holder of any Note of the security provided by the lien of this Indenture; 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;(ix) except as provided in <u>Section 5.04(a)(v)</u>, liquidate the Collateral when the proceeds of such sale would be insufficient to fully pay the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The Indenture Trustee shall rely exclusively on an Officer's Certificate of the Issuer and an Opinion of Counsel to determine whether any such action would require the consent of the Majority Noteholders, the consent of all of the Noteholders or the consent of any Hedge Counterparty. The Indenture Trustee shall not be liable for reliance on such Officer's Certificate or Opinion of Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&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) It shall not be necessary for any Act of Noteholders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance 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;(d) Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section, the Indenture Trustee shall transmit to the Holders of the Notes, the Hedge Counterparties and the Back-Up Manager a notice (to be provided by the Issuer) setting forth in general terms the substance of such supplemental indenture and a copy of such supplemental indenture. Any failure of the Indenture Trustee to transmit such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

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Section 9.04 <u>Effect of Supplemental Indenture</u>. Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and shall be deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and immunities under this Indenture of the Indenture Trustee, the Issuer, the Hedge Counterparties and the Holders of the Notes shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

Section 9.05 <u>Reference in Notes to Supplemental Indentures</u>. If the Issuer or the Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes.

**ARTICLE X**<br>**REDEMPTION OF NOTES**

Section 10.01 <u>Redemption</u>. The Outstanding Notes are subject to redemption in whole or in part, at the direction of the Issuer on any Payment Date occurring after the Second Closing Date (such date, the "<u>Redemption Date</u>"), <u>provided</u>, <u>that</u>, except as otherwise provided in <u>Section 8.06(iv)</u>, Tranches of Outstanding Notes shall be redeemed in order of issuance date, with the first issued Tranche of Notes to be first to be redeemed. If the Outstanding Notes, or some portion thereof, are to be redeemed pursuant to this Section, the Issuer shall furnish notice of such election containing all of the requirements of a notice of redemption set forth in <u>Section 10.02</u> below to the Indenture Trustee not later than the close of business on the first Business Day of the month in which the Redemption Date occurs and the Issuer shall deposit by 10:00 A.M. New York City time on the Redemption Date with the Paying Agent in the Collection Account the Optional Redemption Price of the Notes to be redeemed, whereupon all such Notes, or the portion thereof being redeemed, shall be due and payable on the Redemption Date upon the furnishing of a notice complying with <u>Section 10.02</u> to each Holder of the Notes.

Section 10.02 <u>Form of Redemption Notice</u>. Following receipt by the Indenture Trustee of the Issuer's notice of redemption under <u>Section 10.01,</u> such notice of redemption shall be given by the Indenture Trustee by first-class mail, postage prepaid, or by facsimile mailed or transmitted, or emailed, as applicable, not later than ten (10) days prior to the applicable Redemption Date to each Holder of Notes affected thereby, the Back-Up Manager and each Hedge Counterparty, as of the close of business on the Record Date preceding the applicable Redemption Date, at such Holder's address or facsimile number appearing in the Note Register.

All notices of redemption shall state:

&nbsp;&nbsp;&nbsp;&nbsp;&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) the Redemption 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;(b) the Optional Redemption Price;

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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;(c) the principal amount of Notes being redeemed; 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;(d) the place where such Notes are to be surrendered for payment of the Optional Redemption Price (which shall be the office or agency of the Issuer to be maintained as provided in <u>Section 4.02</u>).

Notice of redemption of the Notes shall be given by the Indenture Trustee in the name and at the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any Holder of any Note shall not impair or affect the validity of the redemption of any other Note.

Section 10.03 <u>Notes Payable on Redemption Date</u>. The Notes or portions thereof to be redeemed shall, following notice of redemption as required by <u>Section 10.02</u>, on the Redemption Date become due and payable at the Optional Redemption Price and (unless the Issuer shall default in the payment of the Optional Redemption Price) no interest shall accrue on the Optional Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating the Optional Redemption Price. On or before such Redemption Date (but in any event no later than 10:00 a.m. (New York City time) on the Redemption Date), Issuer shall cause the aggregate Optional Redemption Price to be deposited to the Collection Account, and such amount shall be paid prior to any distribution set forth in <u>Section 8.06.</u>

**ARTICLE XI**<br>**SATISFACTION AND DISCHARGE**

Section 11.01 <u>Satisfaction and Discharge of Indenture with respect to the Notes</u>. This Indenture shall cease to be of further effect with respect to the Notes except as to (i) rights of registration of transfer and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments of principal thereof and interest thereon, (iv) <u>Sections 4.01</u>, <u>4.02</u>, <u>4.03</u>, <u>4.04</u>, <u>4.08</u>, <u>4.14</u> and <u>4.18</u>, (v) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under <u>Section 6.07</u> and the obligations of the Indenture Trustee under <u>Section 11.02</u>) and (vi) the rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all Notes theretofore authenticated and delivered (other than (i) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided in <u>Section 2.06</u> and (ii) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or discharged from such trust, as provided in <u>Section 4.03</u>) have been delivered to the Indenture Trustee for cancellation; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all Notes not theretofore delivered to the Indenture Trustee for cancellation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) have become due and payable, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) are to be called for redemption within one year under arrangements satisfactory to the Indenture Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and at the expense, of the Issuer, and the Issuer, in the case of <u>(I)</u> or <u>(II)</u> above, has irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to the date such amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Indenture Trustee for cancellation when due to the applicable Legal Final Maturity Date or Redemption Date (if Notes shall have been called for redemption pursuant to <u>Section 10.01</u>), as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the Issuer has paid or caused to be paid all other sums payable by the Issuer hereunder and under each other Basic Document; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the Issuer has delivered to the Indenture Trustee an Officer's Certificate, an Opinion of Counsel and, each meeting the applicable requirements of <u>Section 12.01(a)</u> and, subject to <u>Section 12.02</u>, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

Notwithstanding the foregoing, the foregoing satisfaction and discharge of the Indenture only applies to the Notes and the Noteholders subject to the terms in this <u>Section 11.01.</u> The Indenture shall not terminate and cease to be of further effect with respect to any of the Hedge Counterparties or any of the Hedge Agreements until and unless all of the Hedge Agreements have terminated and all payments thereunder, including the termination value, have been paid in full, or other arrangements satisfactory to the applicable Hedge Counterparties with respect thereto have been made. At any time that the Notes are no longer outstanding, the Majority Hedge Counterparties, on behalf of the Hedge Counterparties, shall be entitled to exercise (and when so directed by the Majority Hedge Counterparties, the Indenture Trustee shall exercise) any rights and remedies set forth herein otherwise afforded to the Noteholders or Majority Noteholders under the Basic Documents; provided that, if any Hedge Counterparty with net mark-to-market exposure to the Issuer in excess of $1,000,000 instructs the Indenture Trustee to take any remedy or enforcement action, then commencing on the date that is 30 days after the occurrence and continuance of an event of default or termination event under an applicable Hedge Agreement (in each case, where Issuer is the "Defaulting Party" or the sole "Affected Party" (in each case, as defined in the applicable Hedge Agreement)), no other Hedge Counterparty's vote shall be required for the Indenture Trustee to commence such enforcement action or remedy, and no other Hedge Counterparty shall be permitted to vote against such remedy or enforcement action or otherwise obstruct, delay or hinder any such enforcement action or remedy taken by the Indenture Trustee.

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Section 11.02 <u>Application of Trust Money</u>. All monies deposited with the Indenture Trustee pursuant to <u>Section 11.01</u> hereof shall be held on behalf of the Noteholders and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent, as the Indenture Trustee may determine, (i) to the Holders of the particular Notes for the payment or redemption of which such monies have been deposited with the Indenture Trustee, of all sums due and to become due thereon for principal and interest and (ii) to each Hedge Counterparty, of all sums, if any, due or to become due to such Hedge Counterparty under and in accordance with the Hedge Agreements; but such monies need not be segregated from other funds except to the extent required herein or in the Management Services Agreement or required by Law.

Section 11.03 <u>Repayment of Monies Held by Paying Agent</u>. In connection with the satisfaction and discharge of this Indenture with respect to the Notes, all monies then held by any Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to <u>Section 4.03</u> and thereupon such Paying Agent shall be released from all further liability with respect to such monies.

**ARTICLE XII**<br>**MISCELLANEOUS**

Section 12.01 <u>Compliance Certificates and Opinions, etc</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;(a) Upon any application or request by the Issuer to the Indenture Trustee to take any action under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee (i) an Officer's Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and (ii) an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished.

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a statement that each signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the definitions herein relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a statement that, in the opinion of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been complied with; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) a statement as to whether, in the opinion of each such signatory, such condition or covenant has been complied with.

Section 12.02 <u>Form of Documents Delivered to Indenture Trustee</u>. In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

Any certificate or opinion of an authorized officer of the Issuer may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which such officer's certificate or opinion is based are erroneous. Any such certificate of an authorized officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Manager or the Issuer, stating that the information with respect to such factual matters is in the possession of the Manager or the Issuer, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

Whenever in this Indenture, in connection with any application or certificate or report to the Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the granting of such application, or as evidence of the Issuer's compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such application or at the effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of the Issuer to have such application granted or to the sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the Indenture Trustee's right to rely upon the truth and accuracy of any statement or opinion contained in any such document as provided in <u>Article VI</u>.

Section 12.03 <u>Acts of Noteholders</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;(a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as herein otherwise expressly provided such action shall become effective when such instrument or instruments are delivered to the Indenture Trustee and, where it is hereby expressly required, to the Issuer, and in each case such delivery may be by electronic means as reasonably agreed to by the Indenture Trustee. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the "<u>Act of the Noteholders</u>" signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to <u>Section 6.01</u>) conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this <u>Section 12.03</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;(b) The fact and date of the execution by any person of any such instrument or writing may be proved in any manner that the Indenture Trustee deems sufficient.

&nbsp;&nbsp;&nbsp;&nbsp;&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) The ownership of Notes shall be proved by the Note Register.

&nbsp;&nbsp;&nbsp;&nbsp;&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 request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Notes shall bind the Holder of every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action is made upon such Note.

Section 12.04 <u>Notices, etc., to Indenture Trustee and Issuer</u>. Any request, demand, authorization, direction, notice, consent, waiver or act of Noteholders or Hedge Counterparties or other documents provided or permitted by this Indenture shall be in writing and if such request, demand, authorization, direction, notice, consent, waiver or act of Noteholders or Hedge Counterparties is to be made upon, given or furnished to or filed with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Indenture Trustee by any Noteholder, by the Issuer or by any Hedge Counterparty shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing (which may be made via e-mail transmission, pdf, or overnight delivery) to or with a Responsible Officer of the Indenture Trustee at its Corporate Trust 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;(ii) the Issuer by the Indenture Trustee, by any Noteholder or by any Hedge Counterparty shall be sufficient for every purpose hereunder if in writing and sent by facsimile or email, in each case with a copy to follow via first-class mail, postage prepaid to the Issuer addressed to: Alpine Summit Funding LLC, at 3322 West End Avenue, Suite 450, Nashville, TN 37203, email: with a copy to Alpine Summit Funding LLC, at 3322 West End Avenue, Suite 450, Nashville, TN 37203, email: , or at any other address previously furnished in writing to the Indenture Trustee by the Issuer or the Manager. The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Manager by the Indenture Trustee, by the Issuer, by any Noteholder or by any Hedge Counterparty shall be sufficient for every purpose hereunder if in writing and sent by facsimile or email, in each case with a copy to follow via first-class mail, postage prepaid to the Manager addressed to: HB2 Origination, LLC, at 3322 West End Avenue, Suite 450, Nashville, TN 37203, email: , with a copy to HB2 Origination, LLC, at 3322 West End Avenue, Suite 450, Nashville, TN 37203, email: , or at any other address previously furnished in writing to the Indenture Trustee by the Manager. The Manager shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee.

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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;(iv) either Operator by the Indenture Trustee, by the Issuer, by any Noteholder or by any Hedge Counterparty shall be sufficient for every purpose hereunder if in writing and sent by facsimile or email, in each case with a copy to follow via first-class mail, postage prepaid to such Operator addressed to: c/o Ironroc Energy Partners LLC, at 2445 Technology Forest Blvd, Suite 1010, The Woodlands, TX, 77381, email: , with a copy to Ironroc Energy Partners LLC, at 2445 Technology Forest Blvd, Suite 1010, The Woodlands, TX, 77381, email: , or at any other address previously furnished in writing to the Indenture Trustee by such Operator. The Operators shall promptly transmit any notice received by them from the Noteholders to the Indenture Trustee.

The Issuer's obligation to deliver or provide any demand, delivery, notice, communication or instruction to any Person shall be satisfied by the Issuer making such demand, delivery, notice, communication or instruction is posted to the Indenture Trustee's investor reporting website, or such other website or distribution service or provider as the Issuer shall designate by written notice to the other parties; provided however that any demand, delivery, notice, communication or instruction to the Indenture Trustee shall be provided at its Corporate Trust Office in accordance with <u>Section 12.04(i)</u> hereof.

The Indenture Trustee may promptly transmit (which may be via electronic mail) any notice received by it from the Noteholders to the Issuer, the Manager and the Hedge Counterparties.

Section 12.05 <u>Notices to Noteholders and Hedge Counterparties; Waiver</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;(a) (a) Where this Indenture provides for notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if posted to the Indenture Trustee's investor reporting website, by electronic transmission or in writing and mailed, first-class, postage prepaid to each Noteholder affected by such event, at such Holder's address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Where this Indenture provides for notice to Hedge Counterparties of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if posted to the Indenture Trustee's investor reporting website, by electronic transmission or in writing and mailed, first-class, postage prepaid to each Hedge Counterparty affected by such event, at such Hedge Counterparty's address as it appears on the Hedge Agreement to which such Hedge Counterparty is a party, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Hedge Counterparties is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Hedge Counterparty shall affect the sufficiency of such notice with respect to other Hedge Counterparties, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given.

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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;(c) Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&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) In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving of such notice.

Section 12.06 <u>Alternate Payment and Notice Provisions</u>. Notwithstanding any provision of this Indenture or any of the Notes to the contrary, the Issuer may enter into any agreement with any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee or any Paying Agent to such Holder, that is different from the methods provided for in this Indenture for such payments or notices. The Issuer shall furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee shall cause payments to be made and notices to be given in accordance with such agreements.

Section 12.07 <u>Effect of Headings and **Table of Contents**</u>. The Article and Section headings herein and the **Table of Contents** are for convenience only and shall not affect the construction hereof.

Section 12.08 <u>Successors and Assigns</u>. All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees and agents.

Section 12.09 <u>Severability</u>. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 12.10 <u>Benefits of Indenture</u>. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, and the Noteholders, each Hedge Counterparty and any other party secured hereunder, and any other Person with an ownership interest in any part of the Collateral, any benefit or any legal or equitable right, remedy or claim under this Indenture. Each Hedge Counterparty shall be a third-party beneficiary to this Indenture, but only to the extent this it has any rights expressly specified herein. The Issuer hereby assigns to the Indenture Trustee the representations, warranties, covenants and agreements of which the Issuer is a beneficiary, including the right to enforce all such representations, warranties, covenants and agreements directly against the maker thereof.

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Section 12.11 <u>Legal Holidays</u>. In any case where the date on which any payment is due shall not be a Business Day, then (notwithstanding any other provision of the Notes or this Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on which nominally due, and no interest shall accrue for the period from and after any such nominal date.

Section 12.12 <u>GOVERNING LAW; CONSENT TO JURISDICTION</u>. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS; PROVIDED THAT ANY MATTERS THAT RELATE TO REAL PROPERTY SHALL BE GOVERNED BY THE LAWS OF THE STATE WHERE SUCH PROPERTY IS LOCATED. EACH PARTY TO THIS INDENTURE AND EACH NOTEHOLDER BY PURCHASING A NOTE SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS INDENTURE, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, THE COURTS OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF. EACH PARTY (a) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR SUCH ACTIONS OR PROCEEDINGS, (b) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT, AND (c) AGREES THAT IT WILL NOT BRING ANY SUCH ACTION OR PROCEEDING IN ANY COURT OTHER THAN SUCH COURTS. EACH PARTY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE JURISDICTION AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY NON- APPEALABLE JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTIONS OR PROCEEDINGS. A COPY OF ANY SERVICE OF PROCESS SERVED UPON THE PARTIES SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY A PARTY REFUSES TO ACCEPT SERVICE, EACH PARTY AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

Section 12.13 <u>Counterparts</u>. This Indenture may be executed in any number of counterparts (including electronic PDF), each of which when so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. Each of the parties hereto agrees that the transactions consisting of this Indenture and the other Basic Documents (other than the Notes) may be conducted by electronic means. Each party agrees, and acknowledges that it is such party's intent, that if such party signs this Indenture or any other Basic Document (other than the Notes) using an electronic signature, it is signing, adopting, and accepting this Indenture or such other Basic Document (other than the Notes) and that signing this Indenture or such other Basic Document (other than the Notes) using an electronic signature is the legal equivalent of having placed its handwritten signature on this Indenture or such other Basic Document (other than the Notes) on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Indenture and the other Basic Documents in a usable format.

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Section 12.14 <u>Recording of Indenture</u>. If this Indenture is subject to recording in any appropriate public recording offices, such recording is to be effected by the Issuer and at its expense accompanied by an Opinion of Counsel to the effect that such recording is necessary either for the protection of the Noteholders, the Hedge Counterparties or any other Person secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture.

Section 12.15 <u>No Petition</u>. The Indenture Trustee, by entering into this Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree that they will not at any time institute against the Issuer, or join in any institution against the Issuer of, any involuntary bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar Law in connection with any obligations relating to the Notes, this Indenture or any of the Basic Documents.

Section 12.16 <u>Inspection</u>. The Issuer agrees that, on reasonable prior notice, it shall permit any representative of the Indenture Trustee, during the Issuer's normal business hours, to examine all the books of account, records, reports and other papers of the Issuer, to make copies and extracts therefrom, to cause such books to be audited by Independent certified public accountants, and to discuss the Issuer's affairs, finances and accounts with the Issuer's officers, employees and Independent certified public accountants, all at such reasonable times and as often as may be reasonably requested. The Indenture Trustee shall, and shall cause its representatives to, hold in confidence all such information except to the extent disclosure may be required by Law (and all reasonable applications for confidential treatment are unavailing) and except to the extent that the Indenture Trustee may reasonably determine that such disclosure is consistent with its obligations hereunder.

Section 12.17 <u>Waiver of Jury Trial</u>. EACH OF THE ISSUER, EACH NOTEHOLDER AND THE INDENTURE TRUSTEE 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 INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

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Execution Version

IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture to be duly executed by their respective officers, thereunto duly authorized, all as of the day and year first above written.

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| | |
|:---|:---|
| ALPINE SUMMIT FUNDING LLC | ALPINE SUMMIT FUNDING LLC |
| By: | /s/ Craig Perry |
|  | Name: Craig Perry |
|  | Title: President and Chief Executive Officer |

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*Signature Page to Indenture*

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Execution Version <br>

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| | |
|:---|:---|
| UMB BANK, N.A., not in its individual capacity but solely as Indenture Trustee | UMB BANK, N.A., not in its individual capacity but solely as Indenture Trustee |
| By: | /s/ Jenna Kaufman |
|  | Name: Jenna Kaufman |
|  | Title: Senior Vice President |

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| | |
|:---|:---|
| UMB BANK, N.A., as Securities Intermediary | UMB BANK, N.A., as Securities Intermediary |
| By: | /s/ Jenna Kaufman |
|  | Name: Jenna Kaufman |
|  | Title: Senior Vice President |

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| | |
|:---|:---|
| UMB BANK, N.A., as Paying Agent | UMB BANK, N.A., as Paying Agent |
| By: | /s/ Jenna Kaufman |
|  | Name: Jenna Kaufman |
|  | Title: Senior Vice President |

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*Signature Page to Indenture*

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Execution Version

**APPENDIX A**

**PART I - DEFINITIONS**

All terms used in this Appendix shall have the defined meanings set forth in this <u>Part I</u> when used in the Basic Documents, unless otherwise defined therein.

"<u>2022-1 Interest Rate</u>" means (a) with respect to the period from and including the Initial Closing Date, to but excluding the Initial Maturity Date with respect to the 2022-1 Notes, the applicable Benchmark for a tenor of one-month's duration (with a 1.00% floor) plus 6.00% per annum, and (b) with respect to the period from and including the Initial Maturity Date with respect to the 2022-1 Notes, to but excluding the Subsequent Maturity Date with respect to the 2022-1 Notes, the applicable Benchmark for a tenor of one-month's duration (with a 1.00% floor) plus 12.00% per annum.

"<u>2022-2 Interest Rate</u>" means (a) with respect to the period from and including the Second Closing Date, to but excluding the Initial Maturity Date with respect to the 2022-2 Notes, the applicable Benchmark for a tenor of one-month's duration (with a 1.00% floor) plus 8.00% per annum, and (b) with respect to the period from and including the Initial Maturity Date with respect to the 2022-2 Notes, to but excluding the Subsequent Maturity Date with respect to the 2022-2 Notes, the applicable Benchmark for a tenor of one-month's duration (with a 1.00% floor) plus 14.00% per annum.

<u>"2022-1 Notes"</u> has the meaning specified in the preamble to the Indenture.

<u>"2022-2 Notes"</u> has the meaning specified in the preamble to the Indenture.

"<u>Aron</u>" means J. Aron & Company LLC, a New York limited liability company.

"<u>Aron Hedge Agreement</u>" means the Hedge Agreement entered into on or about April 28, 2022, between Aron and Issuer.

"<u>Aron IM Collateral</u>" means cash collateral in an aggregate amount of up to $10,000,000 from time to time held in (or credited to) the Issuer's margin account with Aron pursuant to the Aron Hedge Agreement.

"<u>Accounting Standard</u>" means, with respect to a Person, (a) GAAP or (b) IFRS, depending on which accounting standard is normally applied by such Person with respect to the filing of its reporting, as applicable, in each case, consistently applied.

"<u>Accredited Investor</u>" has the meaning assigned in <u>Exhibit C</u> of the Indenture.

"<u>Act of the Noteholders</u>" has the meaning specified in <u>Section 12.03(a)</u> of the Indenture.

"<u>Additional Notes</u>" means any Notes, of a new Tranche or of an existing Tranche, issued after the Second Closing Date pursuant to <u>Section 2.16</u> of the Indenture.

App. A

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Execution Version

"<u>Additional Notes Reserve Report</u>" means, on the date of the issuance of Additional Notes under <u>Section 2.16</u> of the Indenture, the Reserve Report delivered in connection with the issuance of such Additional Notes and covering all of the Wellbore Interests plus any additional wellbore assets sold to the Issuer in connection with the issuance of such Additional Notes or, if none, then either (a) the most recently delivered Reserve Report pursuant to <u>Section 8.05</u> of the Indenture if such Reserve Report was the Reserve Report issued within 90 days of December 31 or (b) if the most recently delivered Reserve Report was not the Reserve Report issued within 90 days of December 31, a Reserve Report by Austin Consulting Petroleum Engineers Inc. or another nationally recognized independent petroleum engineering firm acceptable to the Majority Noteholders that was prepared as of a recent date prior to the date of the issuance of such Additional Notes.

"<u>Administrative Expenses</u>" means, with respect to any Payment Date, the unpaid expenses of the Issuer consisting of out-of-pocket costs and expenses and indemnification amounts payable or reimbursable pursuant to the Basic Documents (other than amounts payable or reimbursable pursuant to the Joint Operating Agreement) to the Indenture Trustee, the Manager, the Back-Up Manager and any independent director and any third-party service provider hired by the Issuer (including, without limitation, amounts payable to any Observer and insurance premiums related to the Collateral, but excluding amounts payable (whether to an Operator or, where performing services on behalf of an Operator as provided in the Joint Operating Agreement, the Manager) pursuant to the Joint Operating Agreement), in each case, except any such expense as may arise from the willful misconduct or gross negligence with respect to the Indenture Trustee and the willful misconduct, gross negligence, fraud or bad faith of the Manager and the Back-Up Manager.

"<u>AFE Cover Amounts</u>" has the meaning specified in the Management Services Agreement.

"<u>AFE Operation</u>" has the meaning specified in the Management Services Agreement.

"<u>Affiliate</u>" means, with respect to any specified Person, any other Person controlling or controlled by or under common control with such specified Person. For the purposes of this definition, "control" when used with respect to any Person means (a) any Person that owns directly or indirectly more than 50% of the equity interest having ordinary voting power for the election of the directors or other governing body of a Person (other than as a limited partner of such other Person) or (b) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" shall have meanings correlative to the foregoing. For purposes of this Agreement, Seller and its subsidiaries, on the one hand, and Issuer and its subsidiaries, on the other hand, shall not be considered Affiliates of one another, and neither any Operator nor any equity holder of Seller (or any direct or indirect subsidiaries of any such equity holder of Seller, other than Seller's direct and indirect subsidiaries) shall be considered Affiliates of either Party.

"Ageron" means Ageron Ironroc Energy, LLC, a Texas limited liability company.

"<u>Alpine Parties</u>" means, collectively, the Issuer, Holdings, the Seller, the Parent and the Manager.

App. A-2

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Execution Version

"<u>Anti-Corruption Laws</u>" means any Law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.

"<u>Anti-Money Laundering Laws</u>" means any Law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.

"<u>APA Reserve Report</u>" means, collectively, (a) that certain reserve report prepared by Austin Consulting Petroleum Engineers Inc. as of March 1, 2022, (b) that certain reserve report prepared by Austin Consulting Petroleum Engineers Inc. as of September 1, 2022, and (c) with respect to an issuance of Additional Notes, a reserve report prepared by Austin Consulting Petroleum Engineers Inc. or another nationally recognized independent petroleum engineering firm acceptable to the Majority Noteholders, in each case with respect to the applicable Wellbore Interests.

"<u>Applicable Deductions</u>" means all Operating Expenses and Third Party Operating Expenses (including Burdens and Asset Taxes allocated to the Issuer pursuant to Section 2.07 of each of the Asset Purchase Agreements) attributable or allocable to the Wellbore Interests or the ownership or operation thereof. Applicable Deductions exclude any Administrative Expenses.

"<u>Asset Purchase Agreements</u>" means (a) the Asset Purchase Agreement, dated as of the Initial Closing Date, between Seller and the Issuer, (b) the Asset Purchase Agreement, dated as of the Second Closing Date, between Seller and the Issuer, and (c) with respect to an issuance of Additional Notes, any other Asset Purchase Agreement, entered into by the Issuer and the other parties thereto in connection therewith, as each may be amended from time to time pursuant to its terms.

"<u>Asset Taxes</u>" means, collectively, the "Asset Taxes" under, and as defined in, each of the Asset Purchase Agreements.

"<u>Assumed Liabilities</u>" means, collectively, the "Assumed Liabilities" under, and as defined in, each of the Asset Purchase Agreements.

"<u>Available Funds</u>" means, with respect to any Payment Date, the sum of the following amounts, without duplication, with respect to the Wellbore Interests in respect of the Collection Period preceding such Payment Date (but excluding any reserves established and maintained in accordance with the Applicable Standard as contemplated in <u>Section 4.07</u> of the Indenture): (a) all Collections received and deposited into and available for withdrawal from the Collection Account prior to the applicable Payment Determination Date and adjustments relating to prior Collection Periods, (b) amounts on deposit in the Interest Reserve Account after giving effect to all other deposits and withdrawals thereto or therefrom on the Payment Date relating to such Collection Period in excess of the Interest Reserve Account Required Balance, (c) Investment Earnings for the related Payment Date, (d) all amounts received by the Indenture Trustee pursuant to <u>Article V</u> of the Indenture, (e) the net amount, if any, paid to the Issuer under the Hedge Agreements, and (f) the amount of any Equity Contribution Cure.

App. A-3

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Execution Version

"<u>Back-Up Management Agreement</u>" means the Amended and Restated Back-Up Management Agreement, dated as of the Second Closing Date, among the Issuer, the Manager, the Indenture Trustee and the Back-Up Manager, as amended, restated, or otherwise modified from time to time.

"<u>Back-Up Management Fee</u>" means the fee payable to the Back-Up Manager for services rendered during each Collection Period, determined pursuant to <u>Section 4.1</u> of the Back-Up Management Agreement.

"<u>Back-Up Manager</u>" means AlixPartners, LLP, in its capacity as back-up manager under the Back-Up Management Agreement, and any successor thereunder.

"<u>Basic Documents</u>" means the Indenture, the Notes, the Management Services Agreement, the Joint Operating Agreement, the Back-Up Management Agreement, the Asset Purchase Agreements, the Note Purchase Agreements, the Limited Guaranty, each Conveyance, the Hedge Agreements, the Novation Agreement, the Issuer LLC Agreement, the Holdings LLC Agreement, the Holdings Guaranty Agreement, the Holdings Pledge Agreement, the HB2 DACA, each Mortgage, the Side Letters, each Precautionary Mortgage and other documents and certificates delivered in connection with any of the foregoing and any amendments to the foregoing.

"<u>Benchmark</u>" means (a) initially, USD LIBOR, and (b) upon the occurrence of a Benchmark Transition Event, Term SOFR.

"<u>Benchmark Transition Event</u>" means that the Issuer or the Majority Noteholders, as applicable, have notified the Indenture Trustee in writing (which shall promptly notify the Issuer or the Noteholders, as applicable, in writing) that (a) the administrator of USD LIBOR has ceased (or, within one month of such notice, will cease on a specified date) to provide a one-month tenor of USD LIBOR, permanently or indefinitely, or (b) the one-month tenor of USD LIBOR is or will no longer be representative of the underlying market and economic reality that USD LIBOR is intended to measure and that representativeness will not be restored.

"<u>Blocked Person</u>" means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws, or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).

"<u>Burdens</u>" means, collectively, the "Burdens" under, and as defined in, each of the Asset Purchase Agreements.

"<u>Business Day</u>" means any day other than (a) a Saturday or a Sunday, (b) a day on which banking institutions or trust companies in the State of New York are required or authorized by Law, regulation or executive order to be closed, or (c) in connection with Term SOFR, the term "Business Day" shall also exclude any day which is not a U.S. Government Securities Business Day.

App. A-4

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Execution Version

"<u>Buy-Out Price</u>" shall have the meaning assigned to the term "Buy-Out Price" in the applicable Asset Purchase Agreement.

"<u>Capital Lease</u>" means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with the applicable Accounting Standard.

"<u>Change of Control</u>" means the current owners of the equity in each Alpine Party cease to own (directly or indirectly) at least 51% of the equity in such entity.

"<u>Closing Date</u>" or "<u>Closing</u>" means (a) with respect to the issuance of the 2022-1 Notes, the Initial Closing Date, (b) with respect to the issuance of the 2022-2 Notes, the Second Closing Date, and (c) with respect to the issuance of any Additional Notes, the date on which such Additional Notes are issued, as applicable.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time, and Treasury Regulations promulgated thereunder.

"<u>Collateral</u>" has the meaning specified in the Granting Clause of the Indenture.

"<u>Collection Account</u>" means the account designated as such, established and maintained pursuant to <u>Section 8.02(a)</u> of the Indenture.

"<u>Collection Period</u>" means, with respect to each Payment Date, the period from and including the first day of the calendar month immediately preceding the calendar month in which such Payment Date occurs (or with respect to the initial Payment Date with respect to any Tranche of Notes, from but excluding the Closing Date with respect to such Tranche of Notes), to and including the last day of the calendar month immediately preceding the calendar month in which such Payment Date occurs.

"<u>Collections</u>" means all amounts paid from whatever source on or with respect to the Wellbore Interests.

"<u>Commission</u>" means the U.S. Securities and Exchange Commission.

"<u>Consolidated Borrowed Debt</u>" has the meaning specified in the Management Services Agreement.

"<u>Consolidated Total Assets</u>" has the meaning specified in the Management Services Agreement.

"<u>Contemplated Transactions</u>" means (a) all of the transactions contemplated by the Basic Documents, including: (i) the assignment of the Wellbore Interests by the Seller to the Issuer at the applicable Closing; (ii) the execution, delivery, and performance of the Conveyances and all other instruments and documents required under the Asset Purchase Agreements; (iii) the entering into the Basic Documents by the Alpine Parties and the performance of the Alpine Parties of their respective covenants and obligations under the Basic Documents; and (iv) the Issuer's acquisition, ownership, and exercise of control over the Wellbore Interests from and after the applicable Closing; (b) the Manager's management of the Issuer contemplated by the Management Services Agreement; and (c) each Operator's operation, as applicable, of the Wellbore Interests in accordance with the applicable joint operating agreements, including the Joint Operating Agreement.

App. A-5

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Execution Version

"<u>Contract</u>" means any agreements and contracts (including joint operating agreements) to which the Issuer is a party.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms "<u>Controlled</u>" and "<u>Controlling</u>" shall have meanings correlative to the foregoing.

"<u>Controlled Entity</u>" means (a) any of the Issuer's respective Controlled Affiliates and (b) Holdings and its Controlled Affiliates.

"<u>Conveyance</u>" means each Wellbore Assignment and Bill of Sale, dated as of the Initial Closing Date, by and between the Seller and the Issuer and, each subsequent Wellbore Assignment and Bill of Sale, dated after the Initial Closing Date, by and between the Seller (or its applicable Affiliate) and the Issuer.

"<u>COPAS</u>" means Council of Petroleum Accountants Society.

"<u>Corporate Trust Office</u>" means (a) the office of the Indenture Trustee at which at any particular time the Indenture shall be administered, which office at the date of execution of the Indenture is located at UMB Bank, N.A., 100 William Street, Suite 1850, New York, NY 10038, Attn: ABS Structured Finance, Email: jenna.kaufman@umb.com and michele.voon@umb.com, (b) for purposes of transfers and exchanges of Notes pursuant to the Indenture, UMB Bank, N.A., 928 Grand Blvd. 4<sup>th</sup> Floor, Kansas City, MO 64106, Attn: Corporate Trust Dept, Bond Operations, or (c) at such other address or electronic mail address as the Indenture Trustee may designate from time to time by notice to the Noteholders and the Issuer, or the principal corporate trust office of any successor Indenture Trustee at the address or electronic mail address designated by such successor Indenture Trustee by notice to the Noteholders and the Issuer.

"<u>Default</u>" means any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default.

"<u>Definitive Notes</u>" means a certificated definitive, fully-registered Note.

"<u>Direct Expenses</u>" has the meaning specified in the Management Services Agreement.

"<u>DSCR</u>" means, with respect to any Quarterly Determination Date beginning with the Payment Determination Date occurring in September 2022, an amount equal to (a) the aggregate Securitized Net Cash Flow with respect to the three (3) immediately preceding Collection Periods, *divided* by (b) the sum of (i) the Note Interest payable on the Payment Dates with respect to such three (3) immediately preceding Collection Periods and (ii) the aggregate Scheduled Principal Distribution Amount paid on the Payment Dates with respect to such three (3) immediately preceding Collection Periods.

App. A-6

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Execution Version

"<u>Effective Time</u>" means, with respect to any Wellbore Interest, the "Effective Time" under, and as defined in, the applicable Asset Purchase Agreement pursuant to which such Wellbore Interest was acquired by the Issuer.

"<u>Eligible Account</u>" means either (a) a segregated account with an Eligible Institution or (b) a segregated trust account with the corporate trust department of a depository institution organized under the Laws of the United States of America or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign bank), having corporate trust powers and acting as trustee for funds deposited in such account, so long as any of the securities of such depository institution shall have a credit rating in one of the generic rating categories that signifies investment grade of an NRSRO.

"<u>Eligible Institution</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the corporate trust department of the Indenture Trustee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a depository institution or trust company organized under the Laws of the United States of America or any one of the states thereof, or the District of Columbia (or any domestic branch of a foreign bank), which at all times (i) has either (A) a long-term unsecured debt rating of at least BBB by Fitch, or such other rating that is acceptable to the Majority Noteholders or (B) a certificate of deposit rating of at least A-1+ by Fitch (or equivalent) by an NRSRO, or such other rating that is acceptable to the Majority Noteholders and (ii) whose deposits are insured by the FDIC.

"<u>Encumbrance</u>" has the meaning specified in the Asset Purchase Agreements.

"<u>Environmental Law</u>" has the meaning specified in the Asset Purchase Agreements.

"<u>Environmental Liabilities</u>" has the meaning specified in the Asset Purchase Agreements.

"<u>Equity Contribution Cure</u>" means on any date prior to the latest Legal Final Maturity Date of any Note, the contribution of equity to the Issuer made by depositing cash into the Collection Account, provided that (i) such contributions shall not exceed in the aggregate ten percent (10%) of the initial Outstanding Principal Balance of all Tranches of Notes and (ii) such contributions shall not be made more frequently than four times in a calendar year.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder from time to time in effect.

"<u>ERISA Plan</u>" means an "employee benefit plan" as defined in section 3(3) of ERISA.

App. A-7

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Execution Version

"<u>Event of Default</u>" has the meaning specified in <u>Section 5.01</u> of the Indenture.

"<u>Excess Allocation Percentage</u>" means the greatest of the following percentages, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if neither clause (b) nor clause (c) of this definition is then applicable, (i) if the DSCR as of the applicable Payment Date is less than 1.20 to 1.00, then 100%, or (ii) if the DSCR as of such Payment Date is greater than or equal to 1.20 to 1.00 and less than 1.25 to 1.00, then 50%, or (iii) if the DSCR as of such Payment Date is greater than or equal to 1.25 to 1.00, then 0%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Production Tracking Rate is less than 80%, then 100%, otherwise as set forth in clause (a) or (c) of this definition, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if a Rapid Amortization Event has occurred and is continuing, then 100%, otherwise as set forth in clause (a) or (b) of this definition, as applicable.

"<u>Excess Amortization Amount</u>" means, with respect to any Payment Date, an amount equal to the product of the Excess Allocation Percentage and the Available Funds for such Payment Date remaining after giving effect to the distributions in clauses (A) through (E) of <u>Section 8.06(i)</u> of the Indenture on such Payment Date; *provided* that the Excess Amortization Amount as of any Payment Date shall not exceed the Outstanding Principal Balance of the Notes as of such Payment Date (calculated after giving effect to the payments on such Payment Date contemplated by clauses (A) through (E) of <u>Section 8.06(i)</u> of the Indenture); *provided, further*, and for the avoidance of doubt, if, on any Payment Date, any Excess Amortization Amount is payable to the Noteholders pursuant to <u>Section 8.06(i)(G)(1)(a)</u> of the Indenture<u>, it is payable only if paid</u> *pari passu* and *pro rata* with any amounts then payable to the Hedge Counterparties under Section 8.06(i)(G)(2) of the Indenture.

"<u>Excess Amounts</u>" shall mean the amounts payable pursuant to <u>Section 8.06(iv)</u>.

"<u>Excess Funds</u>" means, with respect to any Collection Period and the related Payment Date, the amounts, if any, for distribution pursuant to <u>Section 8.06(i)</u> of the Indenture after the distributions pursuant to clauses (A) through (K) thereof.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended.

"<u>Executive Officer</u>" means, with respect to any corporation, the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, President, any Executive Vice President, Senior Vice President, Secretary, Assistant Secretary, Treasurer or Assistant Treasurer of such corporation; with respect to any limited liability company, any of the officers listed previously with respect to a corporation or any managing member or sole member of the limited liability company; with respect to any partnership, any general partner thereof; and with respect to any other entity, a similarly situated person.

"<u>FATCA</u>" means <u>Sections 1471</u> through <u>1474</u> of the Code and any regulations or official interpretations thereof (including any revenue ruling, revenue procedure, notice or similar guidance issued by the U.S. Internal Revenue Service thereunder as a precondition to relief or exemption from taxes under such Sections, regulations and interpretations), any agreements entered into pursuant to Code Section 1471(b)(1), any intergovernmental agreements entered into in connection with any of the foregoing and any fiscal or regulatory legislation, rules or generally accepted practices adopted pursuant to any such intergovernmental agreements, and any amendments made to any of the foregoing after the date of the Indenture.

App. A-8

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Execution Version

"<u>FATCA Withholding Tax</u>" means any withholding or deduction pursuant to an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to Sections 1471 through 1474 of the Code and any regulations or agreements (including any intergovernmental agreements) thereunder or official interpretations thereof.

"<u>FDIC</u>" means the Federal Deposit Insurance Corporation.

"<u>Federal Power Act</u>" means 16 U.S.C.A. §§ 791-823g.

"<u>Financial Asset</u>" has the meaning given such term in Article 8 of the New York UCC. As used herein, the Financial Asset "related to" a security entitlement is the Financial Asset in which the entitlement holder (as defined in the New York UCC) holding such security entitlement has the rights and property interest specified in the New York UCC.

"<u>Fitch</u>" means Fitch Ratings, Inc., or any successor to the rating agency business thereof.

"<u>GAAP</u>" means generally accepted accounting principles.

"<u>Governmental Authorization</u>" means any approval, consent, license, permit, registration, variance, exemption, waiver, or other authorization issued, granted, given, or otherwise made available by or under the authority of any Governmental Body or pursuant to any Law.

"<u>Governmental Body</u>" means any (a) nation, state, county, city, town, village, district, or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign, or other government; (c) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal); (d) multi-national organization or body; or (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature.

"<u>Governmental Official</u>" means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.

"<u>Governmental Rule</u>" means with respect to any Person, any Law, rule, regulation, ordinance, order, code, treaty, judgment, decree, directive, guideline, policy or similar form of decision of any Governmental Body binding on such Person.

"<u>Grant</u>" means mortgage, pledge, bargain, warrant, alienate, remise, release, convey, assign, transfer, create, grant a lien upon and a security interest in, grant a right of set-off against, deposit, set over and confirm pursuant to the Indenture. A Grant of any item of Collateral or of any other property shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of such item of Collateral and all other monies payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise, and generally to do and receive anything that the granting party is or may be entitled to do or receive thereunder or with respect thereto.

App. A-9

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Execution Version

"<u>Guaranty</u>" means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to purchase such indebtedness or obligation or any property constituting security therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

"<u>Hazardous Substances</u>" has the meaning specified in the Asset Purchase Agreements.

"<u>HB2</u>" means HB2 Origination, LLC, a Delaware limited liability company.

"<u>HB2 DACA</u>" means that certain Deposit Account Control Agreement dated as of the Initial Closing Date, among the Indenture Trustee, Bank7, and HB2 with respect to the HB2 Segregated Account, as the same may be amended, restated, or otherwise modified from time to time.

"<u>HB2 Segregated Account</u>" means that certain deposit account number XXX6432 of HB2 established with Bank7.

"<u>Hedge Agreements</u>" means each ISDA Master Agreement, the Schedule to the ISDA Master Agreement, and any confirmation, between the Issuer and a Hedge Counterparty and any other document executed by the applicable Hedge Counterparty in connection therewith, as the same may be amended, restated, or otherwise modified from time to time.

App. A-10

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Execution Version

"<u>Hedge Counterparties</u>" means Macquarie Bank Limited and its successors and assigns, or such other Person(s) selected by the Manager and consented to by the Majority Noteholders.

"<u>Holder</u>" or "<u>Noteholder</u>" means the Person in whose name a Note is registered in the Note Register.

"<u>Holdings</u>" means Alpine Summit Funding Holdings LLC, a Delaware limited liability company, or its successors.

"<u>Holdings Guaranty Agreement</u>" means that certain Guaranty Agreement, dated as of the Initial Closing Date, made by Holdings in favor of the Indenture Trustee on behalf of the Noteholders and each Hedge Counterparty, as the same may be amended, restated, or otherwise modified from time to time.

"<u>Holdings LLC Agreement</u>" means the Second Amended and Restated Limited Liability Company Agreement of Holdings, dated as of the Second Closing Date, as the same may be amended, restated, or otherwise modified from time to time.

"<u>Holdings Pledge Agreement</u>" means the Holdings Pledge Agreement, dated as of the Initial Closing Date, among Holdings, the Issuer and the Indenture Trustee, for the benefit of the Secured Parties, as amended, restated, or otherwise modified from time to time.

"<u>Hot Back-Up Management Duties</u>" shall have the meaning set forth in the Back-Up Management Agreement.

"<u>Hydrocarbons</u>" has the meaning specified in the Asset Purchase Agreements.

"<u>ICC Termination Act</u>" means Pub. L. No. 104-88, 109 Stat. 803 (1995), as amended.

"<u>IFRS</u>" means International Financial Reporting Standards.

"<u>Indebtedness</u>" means, with respect to any Person, at any time, without duplication,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) its liabilities for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) its obligations for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) all obligations appearing on its balance sheet in accordance with the applicable Accounting Standard in respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet in accordance with the applicable Accounting Standard in respect of Synthetic Leases assuming such Synthetic Leases were accounted for as Capital Leases;

App. A-11

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all obligations for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all its obligations in respect of letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions (whether or not representing obligations for borrowed money);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the aggregate termination payments due under any swap or hedging agreement of such Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Guaranty of such Person with respect to liabilities of a type described in any of clauses (a) through (f) hereof.

Indebtedness of any Person shall include all obligations of such Person of the character described in clauses (a) through (g) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under the applicable Accounting Standard.

"<u>Indenture</u>" means Amended and Restated the Indenture, dated as of the Second Closing Date, between the Issuer and the Indenture Trustee, as the same may be further amended and supplemented from time to time.

"<u>Indenture Trustee</u>" means UMB Bank, N.A., a national banking association, not in its individual capacity but solely as Indenture Trustee under the Indenture, or any successor Indenture Trustee under the Indenture.

"<u>Independent</u>" means, when used with respect to any specified Person, that the Person (a) is in fact independent of the Issuer, any other obligor on the Notes, Holdings and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any material indirect financial interest in the Issuer, any such other obligor, Holdings or any Affiliate of any of the foregoing Persons and (c) is not connected with the Issuer, any such other obligor, Holdings or any Affiliate of any of the foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions.

"<u>Initial Closing Date</u>" means April 29, 2022.

"<u>Initial Maturity Date</u>" means, (i) with respect to the 2022-1 Notes, the date that is 364 days after the Initial Closing Date, (ii) with respect to the 2022-2 Notes, the date that is 364 days after the Second Closing Date, and (iii) with respect to any Additional Notes, the date specified as the Initial Maturity Date in the Officer's Certificate with respect to such Additional Notes, delivered pursuant to <u>Section 2.16</u> of the Indenture.

"<u>Institutional Investor</u>" means (a) any Purchaser of a Note, (b) any holder of a Note holding (together with one or more of its affiliates) more than five percent (5%) of the aggregate principal amount of the Notes then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Note.

App. A-12

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Execution Version

"<u>Interest Accrual Period</u>" means, with respect to any Payment Date for the Notes, the period from and including the immediately preceding Payment Date (or, in the case of the initial Payment Date with respect to the 2022-2 Notes and any Additional Notes, from and including the Closing Date with respect to such Notes), to, but excluding, such Payment Date.

"<u>Interest Rate</u>" means, with respect to the 2022-1 Notes, the 2022-1 Interest Rate, with respect to the 2022-2 Notes, the 2022-2 Interest Rate, and with respect to any Additional Notes, the interest rate designated for such Additional Notes specified in the related Officer's Certificate delivered pursuant to <u>Section 2.16</u> of the Indenture.

"<u>Interest Reserve Account</u>" means the account designated as such, established and maintained pursuant to <u>Section 8.02(a)(ii)</u> of the Indenture.

"<u>Interest Reserve Account Initial Deposit</u>" means (i) with respect to the Initial Closing Date, cash or Permitted Investments having a value of $1,400,000.00, and (ii) with respect to the Second Closing Date and each subsequent Closing Date, cash or Permitted Investments in an amount sufficient to satisfy the Interest Reserve Account Required Balance based on the Outstanding Principal Balance on such date, inclusive of the Additional Notes issued on such date.

"<u>Interest Reserve Account Required Balance</u>" means an amount equal to three months of Note Interest (calculated based on the then Outstanding Principal Balance and the then applicable Interest Rate).

"<u>Interim Successor Manager</u>" means, upon the resignation or termination of the Manager pursuant to the terms of the Management Services Agreement and prior to the appointment of any successor to the Manager by the Majority Noteholders, the Back-Up Manager.

"<u>Investment Company Act</u>" means the Investment Company Act of 1940, as amended.

"<u>Investment Earnings</u>" means, with respect to any Payment Date, the investment earnings (net of losses and investment expenses) on amounts on deposit in the Issuer Accounts to be deposited into the Collection Account on such Payment Date pursuant to <u>Section 8.02(b)</u> of the Indenture.

"<u>Investment Letter</u>" has the meaning assigned in <u>Section 2.04(g)</u> of the Indenture.

"<u>Investments</u>" means all investments, in cash or by delivery of property made, directly or indirectly in any Person, whether by acquisition of shares of capital stock, Indebtedness or other obligations or securities or by loan, advance, capital contribution or otherwise.

"<u>Investor-Based Class Exemption</u>" means any of PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23.

"Ironroc" means Ironroc Energy Partners LLC, a Texas limited liability company.

App. A-13

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Execution Version

"<u>Issuer</u>" means Alpine Summit Funding LLC, a Delaware limited liability company.

"<u>Issuer Account Property</u>" means the Issuer Accounts, all amounts and investments held from time to time in any Issuer Account (whether in the form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise), including the Interest Reserve Account, and all proceeds of the foregoing.

"<u>Issuer Accounts</u>" has the meaning assigned thereto in <u>Section 8.02(b)</u> of the Indenture.

"<u>Issuer LLC Agreement</u>" means the Second Amended and Restated Limited Liability Company Agreement of the Issuer, dated as of the Second Closing Date, as the same may be amended, restated, or otherwise modified from time to time.

"<u>Issuer Order</u>" or "<u>Issuer Request</u>" means a written order or request signed in the name of the Issuer by any one of its authorized officers and delivered to the Indenture Trustee.

"<u>Joint Operating Agreement</u>" means the Amended and Restated Operating Agreement, dated as of the Second Closing Date, by and among Ironroc, Ageron and the Issuer, including the related recording supplement, as amended, restated, or otherwise modified from time to time.

"<u>Knowledge</u>" means, with respect to any Alpine Party, the actual knowledge (without any duty of inquiry) of any Knowledge Person of such entity.

"<u>Knowledge Person</u>" means (a) with respect to Issuer and Holdings, any Executive Officer of such entity, and (b) with respect to the Parent, the Seller and the Manager, any of the following Executive Officers thereof (or, as applicable, their respective successors to such Executive Officer positions): Craig Perry (Chairman and Chief Executive Officer), Michael McCoy (Chief Operating Officer), Darren Moulds (Chief Financial Officer), and Chris Nilan (Senior Managing Director).

"<u>Law</u>" means any applicable United States or foreign, federal, state, regional, or local statute, law, code, rule, treaty, convention, order, decree, injunction, directive, determination or other requirement and, where applicable, any legally binding interpretation thereof by a Governmental Body having jurisdiction with respect thereto or charged with the administration or interpretation thereof (including, without limitation, any Governmental Rule).

"<u>Legal Final Maturity Date</u>" means with respect to any Note, the Initial Maturity Date or the Subsequent Maturity Date of such Note, as applicable.

"<u>Leases</u>" means, collectively, the "Leases" under, and as defined in, each of the Asset Purchase Agreements.

"<u>Lien</u>" means a security interest, lien, charge, pledge, equity or encumbrance of any kind.

"<u>Limited Guaranty</u>" the limited guaranty of HB2 dated as of the Initial Closing Date, as amended, restated, or otherwise modified from time to time.

App. A-14

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Execution Version

"<u>LTV</u>" means, with respect each Semi-Annual Determination Date, (a) the excess of the Outstanding Principal Balance as of such date of determination over the amount then on deposit in the Collection Account divided by (b) the PV-10 as of such date of determination. LTV shall be determined on a semi-annual basis; <u>provided</u> that, if the PV-10 shall have been re-calculated subsequent to the most recent semi-annual determination thereof as a result of the Issuer having obtained an updated Reserve Report prior to any otherwise scheduled semi-annually updated Reserve Report, then the LTV shall be re-calculated giving effect to such re-calculation of the PV-10 and on the basis of the then current amounts specified in the preceding clause (a).

"<u>Majority Hedge Counterparties</u>" means, at any time, (i) Hedge Counterparties representing greater than 50% of the aggregate net mark-to-market exposure of all outstanding Hedge Agreements of the Issuer at such time (calculated in the aggregate for each Hedge Counterparty but excluding from the aggregate any Hedge Counterparty with net mark-to-market exposure owing to the Issuer), but if no Hedge Counterparty has any positive net mark-to-market exposure to the Issuer under all outstanding Hedge Agreements, then a majority of the Hedge Counterparties in number shall, acting together, constitute the Majority Hedge Counterparties or (ii) each other Hedge Counterparty with net mark-to-market exposure to the Issuer under all outstanding Hedge Agreements in excess of $1,000,000, if an Event of Default is continuing and the Hedge Counterparties in clause (i) hereof have not directed the Indenture Trustee to exercise some or all of the remedies under Section 5.04 of the Indenture for a period of ninety (90) consecutive days after the occurrence and continuance of an event of default or termination event under such other Hedge Counterparties' Hedge Agreements, in each case, where Issuer is the "Defaulting Party" or the sole "Affected Party" (in each case, as defined in the applicable Hedge Agreement).

"<u>Majority Noteholders</u>" means, at any time during which Notes are outstanding, Noteholders representing greater than 50% of the Outstanding Principal Balance (excluding any Notes held by the Issuer or any affiliate of the Issuer).

"<u>Make-Whole Amount</u>" means, with respect to any Note and with respect to a Payment Date on which an Optional Redemption occurs, an amount equal to all required interest payments through the Legal Final Maturity Date for such Note discounted at a rate equal to the United States Treasury Security having a maturity closest to the Payment Date occurring in the month of the Legal Final Maturity Date for such Note plus 50 basis points.

"<u>Management Fees</u>" has the meaning specified in the Management Services Agreement.

"<u>Management Services Agreement</u>" means the Amended and Restated Management Services Agreement, dated as of the Second Closing Date, between the Manager and the Issuer, as amended, restated, or otherwise modified from time to time.

"<u>Manager</u>" means HB2 in its capacity as manager under the Management Services Agreement, and any successor thereunder.

"<u>Manager Termination Event</u>" has the meaning specified in the Management Services Agreement.

App. A-15

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Execution Version

"<u>Material Adverse Effect</u>" means any event, occurrence, fact, condition or change that is materially adverse to (a) the business, operations, affairs, assets, properties, condition (financial or otherwise), prospects or results of operation of any Alpine Party, (b) the validity, priority or enforceability of the Liens on the Collateral, taken as a whole, (c) the ability of any Alpine Party to perform any material obligation under any Basic Document to which it is a party, (d) the ability of the Indenture Trustee to enforce the obligations of the Alpine Parties under the Basic Documents to which such person is a party in any material respect, or (e) the validity or enforceability against an Alpine Party of any Basic Document to which such person is a party.

"<u>Material Event</u>" means a Default or Rapid Amortization Event.

"<u>Maximum Facility Amount</u>" means (a) as of the Initial Closing Date, $100,000,000, and (b) after Second Closing Date, $150,000,000.

"<u>Moody's</u>" means Moody Investors Service, Inc., or any successor to the rating agency business thereof.

"<u>Mortgage</u>" means each Wellbore Interest Deed of Trust, Mortgage, Assignment of As-Extracted Collateral, Security Agreement, Fixture Filing and Financing Statement, from the Issuer to the Indenture Trustee, in each case as amended, restated, supplemented, or otherwise modified from time to time.

"<u>Multiemployer Plan</u>" means any ERISA Plan that is a "multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA).

"<u>NAIC</u>" means the National Association of Insurance Commissioners.

"<u>Non-U.S. Person</u>" means a Person who is not a U.S. Person, as defined in Regulation S.

"<u>Non-U.S. Plan</u>" means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by Holdings or the Issuer primarily for the benefit of employees of Holdings or the Issuer residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Code.

"<u>Note Interest</u>" means with respect to any Payment Date, an amount equal to the sum of (a) interest accrued during the Interest Accrual Period at the Interest Rate with respect to the Notes on the Outstanding Principal Balance plus (b) any accrued and unpaid Note Interest from prior Payment Dates, together with, to the extent permitted by law, interest thereon at such Interest Rate during the Interest Accrual Period, calculated on the basis of a 360-day year consisting of twelve 30-day months.

"<u>Note Purchase Agreement</u>" means each of (i) the Note Purchase Agreement with respect to the 2022-1 Notes, dated the Initial Closing Date, among the Issuer, the Seller, Holdings, the Manager, Ironroc, the Parent and the Purchasers (as may be further modified, amended or supplemented), (ii) the Note Purchase Agreement with respect to the 2022-2 Notes, dated the Second Closing Date, among the Issuer, the Seller, Holdings, the Manager, the Operators, the Parent and the Purchasers (as may be further modified, amended or supplemented), and (iii) each additional Note Purchase Agreement executed by the Issuer and other parties thereto with respect to an issuance of Additional Notes.

App. A-16

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Execution Version

"<u>Note Register</u>" and "<u>Note Registrar</u>" have the respective meanings specified in <u>Section 2.05</u> of the Indenture.

"<u>Noteholder Tax Identification Information</u>" means, with respect to any Noteholder, properly completed and signed tax certifications (generally, in the case of U.S. Federal Income Tax, IRS Form W-9 (or applicable successor form) in the case of a person that is a "United States Person" within the meaning of Section 7701(a)(30) of the Code or the appropriate IRS Form W-8 (or applicable successor form) in the case of a person that is not a "United States Person" within the meaning of Section 7701(a)(30) of the Code).

"<u>Noteholder FATCA Information</u>" means, with respect to any Noteholder, information sufficient to eliminate the imposition of, or determine the amount of, U.S. withholding tax under FATCA.

"<u>Notes</u>" has the meaning specified in the preamble to the Indenture.

"<u>Notice Date</u>" has the meaning specified in <u>Section 2.17(b)</u> of the Indenture.

"<u>Novation Agreement</u>" means the ISDA Novation Agreement, dated as of the Second Closing Date, by and by and among the Issuer, Aron and Macquarie Bank Limited.

"<u>NRSRO</u>" means any nationally recognized statistical rating agency recognized as such by the Commission.

"<u>Observer</u>" means any party engaged by or on behalf of the Issuer in accordance with the Back-Up Management Agreement.

"<u>OFAC</u>" means the Office of Foreign Assets Control of the United States Department of the Treasury.

"<u>OFAC Sanctions Program</u>" means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.

"<u>Officer's Certificate</u>" means in the case of the Issuer, a certificate signed by any authorized officer of the Issuer or of the Manager on behalf of the Issuer, under the circumstances described in, and otherwise complying with, the applicable requirements of <u>Section 12.01</u> of the Indenture, and delivered to the Indenture Trustee (unless otherwise specified, any reference in the Indenture to an Officer's Certificate shall be to an Officer's Certificate of any authorized officer of the Issuer or of the Manager on behalf of the Issuer), and in the case of Holdings, the Seller or the Manager, a certificate signed by the chief executive officer, president, chief financial officer, chief investment officer, chief operating officer, chief administrative officer, chief legal officer, a vice president, a treasurer, assistant treasurer, secretary or assistant secretary of Holdings, the Seller or the Manager, as appropriate.

App. A-17

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Execution Version

"<u>Operating Expenses</u>" means (a) the amount of operating expenses and capital expenses payable or paid to third parties and chargeable to the Issuer's account with respect to the Wellbore Interests, including Asset Taxes, Burdens, lease operating expenses, capital expenditure projects and workovers, less (b) any COPAS income received by an Operator from third parties and used to offset operating expenses actually charged to the Issuer; provided, however, Operating Expenses exclude any Administrative Expenses.

"<u>Operators</u>" means each of (a) Ironroc, solely in its capacity as operator under the Joint Operating Agreement of that portion of the Contract Area (as defined in the Joint Operating Agreement) not constituting the Ageron Contract Area (as defined in the Joint Operating Agreement), and (b) Ageron, solely in its capacity as operator under the Joint Operating Agreement of the Ageron Contract Area.

"<u>Opinion of Counsel</u>" means one or more written opinions of counsel who may, except as otherwise expressly provided in the Indenture, be an employee of or counsel to the Issuer (if acceptable to the addressees of such opinion) and who shall be reasonably satisfactory to the addressees of such opinion, and which opinion or opinions if addressed to the Indenture Trustee, shall comply with any applicable requirements of <u>Section 12.01</u> or any other applicable provision of the Indenture and shall, if applicable, be in form and substance satisfactory to the Indenture Trustee.

"<u>Optional Redemption</u>" means the redemption of the Notes, in whole or in part, by the Issuer in accordance with <u>Section 10.01</u> of the Indenture.

"<u>Optional Redemption Price</u>" means, in connection with a redemption of the Notes in whole or in part pursuant to <u>Section 10.01</u> of the Indenture, with respect to any Note, an amount equal to the Outstanding Principal Balance subject to such Optional Redemption, plus all accrued and unpaid interest thereon to but excluding the Redemption Date, plus the Make-Whole Amount, if any.

"<u>Order</u>" means any award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any court, administrative agency, or other Governmental Body or by any arbitrator.

"<u>Organizational Documents</u>" of any entity means (a) in the case of a corporation, the articles or certificate of incorporation (or the equivalent of such items under state Law) and the bylaws of such corporation, (b) in the case of a limited liability company, the certificate or articles of existence or formation and the operating agreement of such limited liability company, (c) in the case of a limited partnership, the certificate of formation and limited partnership agreement of such limited partnership and the Organizational Documents of the general partner of such limited partnership, and (d) any equivalent documents, to the foregoing under the state Law where such entity was organized or formed.

App. A-18

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Execution Version

"<u>Original Indenture"</u> has the meaning specified in the Preliminary Statement to the Indenture.

"<u>Outstanding</u>" means, as of the date of determination, all Notes theretofore authenticated and delivered under this Indenture except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notes theretofore cancelled by the Note Registrar or delivered to the Note Registrar for cancellation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notes or portions thereof the payment for which money in the necessary amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the Holders of such Notes (*provided*, *however*, that if such Notes are to be redeemed, notice of such redemption has been duly given or waived pursuant to this Indenture or provision for such notice or waiver has been made which is satisfactory to the Indenture Trustee); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notes in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a protected purchaser;

*provided*, that in determining whether the Holders of the requisite Outstanding Principal Balance of the Majority Noteholders have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuer, any other obligor upon the Notes, Holdings or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture Trustee has actual knowledge are so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgee's right so to act with respect to such Notes and that the pledgee is not the Issuer, any other obligor upon the Notes, Holdings or any Affiliate of any of the foregoing Persons.

"<u>Outstanding Principal Balance</u>" mean, with respect to any date of determination, the sum of the initial principal balance of each Tranche of Notes less the sum of all amounts distributed to the Noteholders on or prior to such date in respect of principal, including with respect to any redemption of Notes or any acquisition and cancellation of Notes by the Issuer.

"<u>Parent</u>" means Alpine Summit Energy Partners, Inc., a company incorporated under the Business Corporations Act (British Columbia).

"<u>Paying Agent</u>" means the Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee specified in <u>Section 6.11</u> of the Indenture and is authorized by the Issuer to make payments to and distributions from the Collection Account, including payments of principal of or interest on the Notes on behalf of the Issuer.

"<u>Payment Date</u>" means, with respect to each Collection Period, the 25<sup>th</sup> day of the following month or, if such day is not a Business Day, the immediately following Business Day. The initial Payment Date of the 2022-1 Notes shall be June 27, 2022, the initial Payment Date of the 2022-2 Notes shall be November 25, 2022 and the initial Payment Date of any Additional Notes shall be the date specified in the Officer's Certificate delivered in connection with such issuance pursuant to <u>Section 2.16</u> of the Indenture.

App. A-19

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Execution Version

"<u>Payment Date Compliance Certificate</u>" means the certificate delivered pursuant to <u>Section 7.01(f)</u> of the Indenture.

"<u>Payment Date Report</u>" means a report of the Manager delivered pursuant to <u>Section 8.08</u> of the Indenture, substantially in the form of <u>Exhibit D</u> to the Indenture.

"<u>Payment Determination Date</u>" means, with respect to any Payment Date, two (2) Business Days immediately preceding such Payment Date.

"<u>Payment in Full</u>" means the principal of and interest on each Note and all fees payable under the Indenture and all other amounts payable under the Basic Documents shall have been indefeasibly paid in full in dollars (other than contingent indemnity obligations for which no claim has been made).

"<u>Permitted Indebtedness</u>" shall have the meaning specified in <u>Section 4.21</u> of the Indenture.

"<u>Permitted Investments</u>" means (a) direct obligations of the United States of America or any agency thereof, or shares of money market funds that invest solely in such obligations, (b) obligations fully guaranteed by the United States of America and certificates of deposit issued by, or bankers' acceptances of, or time deposits, demand deposits or overnight deposits with, any bank, trust company or national banking association incorporated or doing business under the laws of the United States of America or one of the states thereof having combined capital and surplus and retained earnings of at least $300,000,000, (c) commercial paper of companies, banks, trust companies or national banking associations incorporated or doing business under the laws of the United States of America or one of the states thereof and in each case having a rating assigned to such commercial paper by S&P or Moody's (or, if neither such organization shall rate such commercial paper at any time, by any nationally recognized rating organization in the United States of America) equal to the highest rating assigned by such organizations, (d) money market funds which (i) invest primarily in obligations of the United States of America or any agency thereof, corporate bonds, certificates of deposit, commercial paper rated F-1 or better by Fitch and P-1 or better by Moody's or A-1 or better by S&P, repurchase agreements, time deposits, asset-backed securities, mortgage-backed securities, banker's acceptances, municipal bonds, and floating rate and variable rate securities and (ii) have a rating assigned to such fund by S&P, Moody's, or Fitch equal to "AAAm", "Aaa-mf", or "AAAmmf", respectively, or better, and (e) such other investments as the Majority Noteholders and the Hedge Counterparties may approve from time to time. In no event shall any investment be eligible as a "Permitted Investment" unless the final maturity or date of return of such investment is thirty-one (31) days or less from the date of purchase thereof.

"<u>Permitted Liens</u>" means, collectively, the "Permitted Encumbrances" under, and as defined in, each of the Asset Purchase Agreements.

App. A-20

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Execution Version

"<u>Person</u>" means any individual, corporation, limited liability company, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization or government or any agency or political subdivision thereof.

"<u>Physical Property</u>" means instruments within the meaning of Section 9-102(a)(47) of the UCC and certificated securities within the meaning of Section 8-102 of the UCC.

"<u>Plan</u>" means (a) an "employee benefit plan" as defined in Section 3(3) of the ERISA that is subject to Title I of ERISA, (b) a "plan" described in Section 4975(e)(1) of the Code that is subject to Section 4975 of the Code, (c) any entity or account whose underlying assets are deemed to include "plan assets" (within the meaning of the Department of Labor regulation located at 29 C.F.R. section 2510.3-101, as modified by Section 3(42) of ERISA) or (d) any plan, entity or account that is subject to any Similar Law.

"<u>Precautionary Mortgage</u>" means, collectively, each Precautionary Wellbore Interest Deed of Trust, Mortgage, Assignment of As-Extracted Collateral, Security Agreement, Fixture Filing and Financing Statement delivered pursuant to an Asset Purchase Agreement, dated as of the applicable Closing Date, in each case as amended, restated, supplemented, or otherwise modified from time to time, from the Seller, as mortgagor, to the Issuer, as mortgagee.

"<u>Predecessor Note</u>" means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under <u>Section 2.06</u> of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

"<u>Principal Distribution Amount</u>" means, with respect to any Notes on any Payment Date, the Scheduled Principal Distribution Amount with respect to such Notes plus any Scheduled Principal Distribution Amount previously due and unpaid on such Notes, and, with respect to the Legal Final Maturity Date of any Notes, the Outstanding Principal Balance of the such Notes; <u>provided</u>, that the Principal Distribution Amount as of any Payment Date shall not exceed the Outstanding Principal Balance of the Notes as of such Payment Date.

"<u>Proceeding</u>" means any suit in equity, action at law or other judicial or administrative proceeding.

"<u>Production Tracking Rate</u>" means, as of any Quarterly Determination Date, the quotient of (a) the aggregate Hydrocarbon production volume with respect to the Wellbore Interests (calculated on a Mcf equivalent basis) reported over the six calendar months immediately preceding such Quarterly Determination Date divided by (b) the aggregate Hydrocarbon production volume with respect to the Wellbore Interests (calculated on a Mcf equivalent basis) projected in the most recent Reserve Report delivered by the Issuer pursuant to the Indenture with respect to such six immediately preceding calendar months. The Production Tracking Rate shall first be tested on the Quarterly Determination Date occurring in December 2022.

App. A-21

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Execution Version

"<u>Property Costs</u>" means, collectively, the "Property Costs" under, and as defined in, each of the Asset Purchase Agreements.

"<u>PTCE</u>" means Prohibited Transaction Class Exemption.

"<u>Public Utility Holding Company Act of 2005</u>" means Pub. L. No. 109-58, 119 Stat. 594 (2005).

"<u>Purchaser</u>" or "<u>Purchasers</u>" means the purchasers listed on Schedule B to a Note Purchase Agreement.

"<u>PV-10</u>" means, as of any date of determination, a calculation of the present value of estimated future revenues as calculated based on the most recently delivered Reserve Report consisting of the discounted present value (using a 10% discount rate) of the sum of (a) the net projected cash flows from the Wellbore Interests, calculated as of such date of determination as (i) the sum of revenues based on (1) projected production at current WTI, Henry Hub or the applicable strip prices for natural gas liquids (as reported from time to time by CME Group / NYMEX), and (2) all other projected revenue line items recognized (or that will be recognized) on the financial statements of the Issuer less (ii) projected severance taxes, ad valorem taxes, operating expenses (net of COPAS income), workover expenses and other deductions, in each case, net to the Wellbore Interests and calculated on a monthly basis (or less frequently if the most recently delivered Reserve Report does not break down by month for such time period), and projected plugging and abandonment expenses for the Wellbore Interests (net to the Wellbore Interests), and (b) the positive or negative aggregate mark-to-market value determined as of such date of determination of all commodity hedges, calculated in the aggregate for all Hydrocarbons hedged.

"<u>Quarterly Determination Date</u>" means the Payment Determination Dates in the months of March, June, September, and December, commencing September 2022.

"<u>Rapid Amortization Event</u>" means the occurrence of (a) any Event of Default, (b) any Manager Termination Event, or (c) any Warm Trigger Event.

"<u>Rating Agency</u>" means (i) Fitch or (ii) if Fitch does not issue a debt rating for the applicable Notes or fails to make such rating available to the Noteholders (in a form available for sharing with the Securities Valuation Office of the NAIC), Kroll, DBRS, S&P or Moody's, or any other "nationally recognized statistical rating organization" registered under the Exchange Act (other than Egan Jones) that is acceptable to the Majority Noteholders.

"<u>Record Date</u>" means, with respect to a Payment Date or Redemption Date, the last day of the immediately preceding calendar month.

"<u>Redemption Date</u>" means, in the case of a redemption of the Notes pursuant to <u>Section 10.01</u> of the Indenture, the Payment Date specified by Holdings or the Issuer pursuant to <u>Section 10.01</u> of the Indenture.

App. A-22

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Execution Version

"<u>Related Fund</u>" means, with respect to any Holder of any Note, any fund or entity that (a) invests in Securities or bank loans, and (b) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

"<u>Repurchased Interests</u>" has the meaning specified in the applicable Asset Purchase Agreement or the Management Services Agreement, as the context requires.

"<u>Reserve Report</u>" means initially the APA Reserve Report and upon delivery of the updated reserve report required with respect to the Wellbore Interests pursuant to <u>Section 8.05</u> of the Indenture, a reserve report in form and substance substantially similar to the APA Reserve Report (as adjusted for new information), setting forth as of the date of the report the oil and gas reserves of the Issuer, together with a projection of the rate of production and future net income, Taxes, Operating Expenses and capital expenditures with respect to the Wellbore Interests as of that date based on good faith and reasonable economic assumptions provided by the Manager, containing customary assumptions, qualifications and exclusions, and prepared by Austin Consulting Petroleum Engineers Inc. or another nationally recognized independent petroleum engineering firm acceptable to the Majority Noteholders or, with respect to the reserve report to be delivered within ninety (90) days following June 30 of each year, the internal reserve engineering staff of the Manager; <u>provided</u> that upon the reasonable request of the Majority Noteholders, the Majority Noteholders may, at their sole expense, independently audit the economic assumptions provided in connection with the preparation of the Reserve Report.

"<u>Responsible Officer</u>" means, (a) with respect to the Indenture Trustee, any officer within the Corporate Trust Office of the Indenture Trustee, including any vice president, assistant vice president, assistant secretary, senior associate, associate, trust officer or any other officer, employee or other person of the Indenture Trustee customarily performing functions similar to those performed by any of the above designated officers and, with respect to each, having direct responsibility for the administration of the Indenture and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer's knowledge of and familiarity with the particular subject, (b) with respect to the Issuer any officer, including any president, vice president, secretary or any other officer performing functions similar to those performed by such officers, and (c) with respect to Holdings or the Seller, any officer, including any president, vice president, secretary or any other officer performing functions similar to those performed by such officers.

"<u>Retained Liabilities</u>" means, collectively, the "Retained Liabilities" under, and as defined in, each of the Asset Purchase Agreements.

"<u>Schedule of Wellbore Interests</u>" means the schedules attached as <u>Schedule A</u> to the Indenture.

"<u>Scheduled Principal Distribution Amount</u>" means, with respect to any date of determination, the fixed dollar amount set forth (i) on Schedule B to the Indenture with respect to the 2022-1 Notes and the 2022-2 Notes, and (ii) in the Officer's Certificate delivered to the Indenture Trustee with respect to any issuance of Additional Notes pursuant to <u>Section 2.16</u> of the Indenture, with respect to such date.

App. A-23

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Execution Version

"<u>Second Closing Date</u>" means September 12, 2022.

"<u>Secured Obligations</u>" means any and all amounts owing or to be owing by the Issuer: (a) to any Noteholder under any of the Notes or any of the other Basic Documents, including, without limitation, (i) all payment of principal of, and interest on each Note and the Indenture (including, without limitation, interest accruing after the filing of any bankruptcy or similar petition or the commencement of any insolvency, receivership or similar proceeding, regardless of whether such interest is allowed in such proceeding or after the filing of such petition), (ii) all other amounts payable by the Issuer under the Notes and the other Basic Documents and (iii) the punctual and faithful performance, keeping, observance, and fulfilment by the Issuer of all of the agreements, conditions, covenants, and obligations of the Issuer contained in the Notes and the other Basic Documents; (b) to any Hedge Counterparties under any applicable Hedge Agreements (including any termination payments and any amounts owed thereunder); and (c) all renewals, extensions and/or rearrangements of any of the above, in each case, equally and ratably without prejudice, priority or distinction, and to secure compliance with the provisions of the Indenture, all as provided in the Indenture.

"<u>Secured Parties</u>" means, collectively, each Holder of the Notes, the Indenture Trustee, each Hedge Counterparty and the Back-Up Manager, and "Secured Party" means any of them individually.

"<u>Securities</u>" or "<u>Security</u>" shall have the meaning specified in section 2(a)(1) of the Securities Act.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended.

"<u>Securities Intermediary</u>" shall have the meaning specified in <u>Section 8.02(c)</u> of the Indenture.

"<u>Securitized Net Cash Flow</u>" means, with respect to any Collection Period, the sum of the aggregate proceeds of the aggregate Collections, the aggregate amount of Equity Contribution Cures, if any, deposited in the Collection Account during the Collection Period, and the net proceeds of the Hedge Agreements received by the Issuer during such Collection Period in excess of amounts payable pursuant to clauses (i) and (ii) of <u>Section 8.06</u> of the Indenture relating to such Collection Period.

"<u>Security Termination</u>" means (a) Payment in Full (which for the avoidance of doubt does not include Hedge Agreements) and (b) (i) all the Hedge Agreements have been terminated and all amounts due under Hedge Agreements shall have been indefeasibly paid in full in cash or (ii) such Hedge Agreements are cash collateralized or otherwise secured to the satisfaction of the Hedge Counterparties (it being understood that the Indenture Trustee shall, if such Hedge Counterparty does not respond to a written request from the Indenture Trustee or the Issuer to confirm that the foregoing clause (b) has occurred within five (5) Business Days of such request, be (x) permitted to rely on the certificate of a Responsible Officer of the Issuer that certifies the foregoing in clause (b) has occurred and (y) entitled to deem that the foregoing clause (b) has occurred with respect to such Hedge Counterparty.

App. A-24

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Execution Version

"<u>Seller</u>" means HB2 in its capacity as seller under each of the Asset Purchase Agreements, or its successors.

"<u>Semi-Annual Determination Date</u>" means the 1st day of each March and September, commencing in September 30, 2022, or if any such day is not a Business Day, the next succeeding Business Day.

"<u>Senior Financial Officer</u>" means, with respect to the Issuer or Holdings, the manager or the Issuer or Holdings, as applicable, or the chief financial officer, principal accounting officer, treasurer or comptroller (or any other officer holding a title or role similar to any of the foregoing) of the Issuer or Holdings, as applicable.

"<u>Side Letter</u>" means, (i) with respect to the 2022-1 Notes, the amended and restated side letter dated as of the Second Closing Date, between the Issuer and Kuvare Insurance Services LP and acknowledged by the Purchasers of the 2022-1 Notes, (ii) with respect to the 2022-2 Notes, the side letter dated as of the Second Closing Date, between the Issuer and Kuvare Insurance Services LP and acknowledged by the Purchasers of the 2022-2 Notes, and (iii) with respect to any Additional Notes, any side letter relating to fees executed among the Issuer and the Purchasers of such Additional Notes, each as amended, restated or otherwise modified from time to time.

"<u>Similar Law</u>" means any U.S. federal, state, non-U.S., or local law that is similar to the provisions of Title I of ERISA or Section 4975 of the Code.

"<u>SOFR</u>" means a rate per annum equal to the secured overnight financing rate published by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of New York, currently at <u>http://www.newyorkfed.org</u> (or any successor source for the secured overnight financing rate identified as such by the administrator of the secured overnight financing rate from time to time).

"<u>Special Priority of Payments Payment Date</u>" means each Payment Date (a) with respect to which the Notes have been accelerated as a result of an Event of Default, (b) on which an Optional Redemption in whole of the Notes is scheduled to occur, (c) that is on or after the latest occurring Legal Final Maturity Date with respect to all Tranches of Notes, or (d) that is the Legal Final Maturity Date with respect to any Tranche of Notes the remaining Outstanding Principal Balance of which would not be redeemed in full if Available Funds were distributed pursuant to Section 8.06(i), in each case as specified in the applicable Payment Date Report delivered on or before the related Payment Determination Date.

"<u>STAMP</u>" has the meaning assigned in <u>Section 2.05(f)</u> of the Indenture.

"<u>Standard & Poor's</u>" or "<u>S&P</u>" means S&P Global Ratings, a division of S&P Global Inc., or any successor to the rating agency business thereof.

"<u>State</u>" means any one of the 50 States of the United States of America or the District of Columbia.

App. A-25

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Execution Version

"<u>State Sanctions List</u>" means a list that is adopted by any state Governmental Body within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.

"<u>Statutory Exemption</u>" means the statutory prohibited transaction exemption under Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code.

"<u>Subsequent Maturity Date</u>" means, with respect to any Tranche of Notes, the date that is 364 days after the Initial Maturity Date of such Tranche of Notes, to the extent in effect in accordance with the Side Letter relating to such Notes.

"<u>Subsidiary</u>" means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a "Subsidiary" is a reference to a Subsidiary of the Issuer.

"<u>Successor Manager Transition Expenses</u>" means all costs and expenses incurred by a successor Manager or Interim Successor Manager in connection with the termination, removal and/or replacement of the Manager under the Management Services Agreement.

"<u>Synthetic Lease</u>" means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under the applicable Accounting Standard and (b) in respect of which the lessee retains or obtains ownership of the property so leased for U.S. federal income tax purposes, other than any such lease under which such Person is the lessor.

"<u>Tax</u>" or "<u>Taxes</u>" means any and all federal, state, provincial, local, foreign and other taxes, levies, fees, imposts, duties, assessments, and other governmental charges imposed by any Governmental Body, including income, profits, franchise, withholding, employment, social security (or similar), disability, occupation, ad valorem, property, value added, capital gains, sales, goods and services, use, real or personal property, capital stock, license, branch, payroll, estimated, unemployment, severance, compensation, utility, stamp, occupation, premium, windfall profits, transfer, gains, production and excise taxes, and customs duties, together with any interest, penalties, fines or additions thereto.

"<u>Term SOFR</u>" means, for the applicable corresponding tenor, the forward-looking term rate based on SOFR for a one-month tenor on the day that is two (2) U.S. Government Securities Business Days prior to the first day of such interest period, as such rate is published by the Term SOFR Administrator.

App. A-26

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Execution Version

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of Term SOFR selected by the Issuer and the Majority Noteholders).

"<u>Third Party Operator</u>" has the meaning assigned in <u>Section 3.05</u> of the Indenture.

"<u>Threatened</u>" means a claim, Proceeding, dispute, action, or other matter will be deemed to have been "Threatened" if any demand or statement has been made (orally or in writing) to any Knowledge Person of an Alpine Party that would lead a prudent Person to conclude that such a claim, Proceeding, dispute, action, or other matter is likely to be asserted, commenced, taken, or otherwise pursued in the future.

"<u>Tranche</u>" means with respect to outstanding Notes, all Notes sharing an identical Interest Rate and Legal Final Maturity Date and other economic terms, provided that such notes may have more than one date of issuance.

"<u>Transferor Certificate</u>" has the meaning assigned in <u>Section 2.04(g)</u> of the Indenture.

"<u>Treasury Regulations</u>" means regulations, including proposed or temporary regulations, promulgated under the Code. References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations.

"<u>Trust Indenture Act of 1939</u>" means 15 U.S.C.A. §§ 77aaa-77bbbb.

"<u>UCC</u>" means, unless the context otherwise requires, the Uniform Commercial Code, as in effect in the relevant jurisdiction, as amended from time to time.

"<u>U.S. Economic Sanctions Laws</u>" means those Laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.

"<u>U.S. Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>U.S. Person</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a citizen or resident of the United States for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an entity treated as a corporation or partnership for U.S. federal income tax purposes, except to the extent provided in applicable U.S. Department of Treasury regulations, created or organized in or under the Laws of the United States, any state or the District of Columbia, including an entity treated as a corporation or partnership for U.S. federal income tax purposes;

App. A-27

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Execution Version

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an estate the income of which is subject to U.S. federal income taxation regardless of its source;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an entity treated as a trust for U.S. federal income tax purposes if a court within the United States is able to exercise primary supervision over the administration of such trust, and one or more such U.S. Persons have the authority to control all substantial decisions of such trust; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to the extent provided in applicable U.S. Department of Treasury regulations, certain trusts in existence on August 20, 1996, which are eligible to elect to be treated as U.S. Persons.

"<u>USA PATRIOT Act</u>" means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

"<u>USD LIBOR</u>" means the London interbank offered rate for U.S. dollars.

"<u>Warm Back-Up Management Duties</u>" shall have the meaning set forth in the Back-Up Management Agreement.

"<u>Warm Trigger Event</u>" will occur on a Quarterly Determination Date if, as of such Quarterly Determination Date and the immediately preceding Quarterly Determination Date, any of the following conditions are met: (a) the DSCR is less than 1.20 to 1.00, (b) the Production Tracking Rate is less than 80% or (c) the LTV is greater than 85%.

"<u>Wellbore Interests</u>" means, collectively, the "Wellbore Interests" under, and as defined in, each of the Asset Purchase Agreements.

"<u>Wells</u>" means, collectively, the "Wells" under, and as defined in, each of the Asset Purchase Agreements.

App. A-28

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Execution Version

**PART II - RULES OF CONSTRUCTION**

&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) <u>Accounting Terms</u>. As used in this Appendix or the Basic Documents, accounting terms which are not defined, and accounting terms partly defined, herein or therein shall have the respective meanings given to them under generally accepted accounting principles. To the extent that the definitions of accounting terms in this Appendix or the Basic Documents are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this Appendix or the Basic Documents shall control.

&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) "<u>Hereof</u>," etc. The words "hereof," "herein" and "hereunder" and words of similar import when used in this Appendix or any Basic Document shall refer to this Appendix or such Basic Document as a whole and not to any particular provision of this Appendix or such Basic Document; and Section, Schedule and Exhibit references contained in this Appendix or any Basic Document are references to Sections, Schedules and Exhibits in or to this Appendix or such Basic Document unless otherwise specified. The word "or" is not exclusive.

&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) <u>Use of "related"</u>. As used in this Appendix and the Basic Documents, with respect to any Payment Date, the "related Payment Determination Date," the "related Collection Period," and the "related Record Date" shall mean the Payment Determination Date, the Collection Period, and the Record Date, respectively, immediately preceding such Payment 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;(D) <u>Amendments</u>. Any agreement or instrument defined or referred to in the Basic Documents or in any instrument or certificate delivered in connection herewith shall mean such agreement or instrument as from time to time amended, modified or supplemented and includes references to all attachments thereto and instruments incorporated therein.

&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) <u>Number and Gender</u>. Each defined term used in this Appendix or the Basic Documents has a comparable meaning when used in its plural or singular form. Each gender-specific term used in this Appendix or the Basic Documents has a comparable meaning whether used in a masculine, feminine or gender-neutral form.

&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) <u>Including</u>. Whenever the term "including" (whether or not that term is followed by the phrase "but not limited to" or "without limitation" or words of similar effect) is used in this Appendix or the Basic Documents in connection with a listing of items within a particular classification, that listing shall be interpreted to be illustrative only and will not be interpreted as a limitation on, or exclusive listing of, the items within that classification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) <u>UCC References</u>. Terms used herein that are defined in the New York Uniform Commercial Code, as amended, and not otherwise defined herein shall have the meanings set forth in the New York Uniform Commercial Code, as amended, unless the context requires otherwise.

App. A-29

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## Exhibit 10.4

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**FIRST SUPPLEMENTAL INDENTURE**

This First Supplemental Indenture (this "<u>Supplemental Indenture</u>"), dated as of March 23, 2023 (the "<u>Amendment Date</u>"), but made effective as of December 31, 2022, is between Alpine Summit Funding LLC, a Delaware limited liability company (the "<u>Issuer</u>"), and UMB Bank N.A., a national banking association, as indenture trustee and not in its individual capacity (the "<u>Indenture Trustee</u>").

**W I T N E S S E T H**

WHEREAS, the Issuer and the Indenture Trustee entered into an Amended and Restated Indenture, dated as of September 12, 2022 (the "<u>Indenture</u>"), with respect to the Issuer's Series 2022-1 Floating Rate Oil & Gas Asset-Backed Notes issued on April 29, 2022 (the "<u>2022-1 Notes</u>") and the Issuer's Series 2022-2 Floating Rate Oil & Gas Asset-Backed Notes issued on September 12, 2022 (the "<u>2022-2 Notes</u>" and together with the 2022-1 Notes, collectively, the "<u>Notes</u>");

WHEREAS, the Issuer and the Noteholders (i) elected to terminate all hedge transactions in place under the Hedge Agreements in effect on or about March 15, 2023 and pay all amounts owed to Macquarie Bank Limited, as the sole Hedge Counterparty under all existing Hedge Agreements, in connection with such termination, and (ii) seek to use the net amount of any proceeds remaining after such termination and payment (the "<u>Hedge Agreements Proceeds</u>") to pay to the Noteholders unpaid interest and principal on the Notes, and to amend the Indenture as set forth herein;

WHEREAS, in connection herewith, the Issuer has delivered to the Indenture Trustee an Officer's Certificate of the Issuer and an Opinion of Counsel as contemplated by Section 9.02(b) of the Indenture;

WHEREAS, in connection herewith, the Alpine Parties, the Operators, and the Noteholders have entered into that certain Side Letter Agreement dated as of the Amendment Date (the "<u>Additional Agreement</u>"), pursuant to which, and in consideration of the agreements and conditions specified therein, the Issuer and the Noteholders have agreed to execute this Supplemental Indenture;

WHEREAS, Holders of 100% of the Notes have provided consent to the amendments to the Indenture set forth in this Supplemental Indenture;

WHEREAS, Macquarie Bank Limited, as the former sole Hedge Counterparty has acknowledged and agreed that it is no longer a Hedge Counterparty under the Indenture; and

WHEREAS, pursuant to Section 9.02 of the Indenture, the Indenture Trustee is authorized and instructed to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Noteholders as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Capitalized Terms</u>. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Unpaid Principal and Interest</u>. On March 27, 2023, the Issuer shall withdraw from the Collection Account an amount equal to the Hedge Agreements Proceeds to pay the Noteholders (i) any amount of accrued and unpaid interest owing with respect to the Notes and (ii) to reduce the Outstanding Principal Balance of the 2022-1 Notes, *pro rata* among the Noteholders of the 2022-1 Notes, based on the Outstanding Principal Balance of such Notes, the amount of the Hedge Agreements Proceeds less the amount paid to the Noteholders pursuant to clause (i) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Certain Amendments to the Indenture</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;(a) <u>Part I</u> of <u>Appendix A</u> of the Indenture is amended and supplemented by inserting or restating, as the case may be, in their appropriate alphabetical position, the following definitions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Covenant Suspension Period</u>" means the period commencing on, and including, December 31, 2022 and ending on the earlier of July 1, 2023 and the occurrence of a Covenant Suspension Period Termination Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Covenant Suspension Period Termination Event</u>" means any of the following, each of which may be waived in writing by the Noteholders in their sole discretion: (a) any representation or warranty of any Alpine Party set forth in the Additional Agreement proves to have been incorrect in any material respect as of the time when the same shall have been made, and the circumstance or condition in respect of which such representation or warranty was incorrect in such material respect shall not have been eliminated or otherwise cured or remedied within ten (10) days after the earlier to occur of (1) an Alpine Party obtaining Knowledge of such breach or (2) receipt by the Issuer from the Indenture Trustee or receipt by the Issuer and a Responsible Officer of the Indenture Trustee from a Noteholder or a Hedge Counterparty of a written notice specifying such breach and requiring it to be remedied, or (b) any failure of any Alpine Party to comply with any covenant or agreement set forth in the Additional Agreement, and such failure to comply shall continue or not be cured or remedied within ten (10) days after the earlier to occur of (1) an Alpine Party obtaining Knowledge of such failure to comply or (2) receipt by the Issuer from the Indenture Trustee or receipt by the Issuer and a Responsible Officer of the Indenture Trustee from a Noteholder or a Hedge Counterparty of a written notice specifying such failure to comply and requiring it to be remedied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Excess Allocation Percentage</u>" means, during any period other than the Covenant Suspension Period, the greatest of the following percentages, as applicable:

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if neither clause (b) nor clause (c) of this definition is then applicable, (i) if the DSCR as of the applicable Payment Date is less than 1.20 to 1.00, then 100%, or (ii) if the DSCR as of such Payment Date is greater than or equal to 1.20 to 1.00 and less than 1.25 to 1.00, then 50%, or (iii) if the DSCR as of such Payment Date is greater than or equal to 1.25 to 1.00, then 0%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Production Tracking Rate is less than 80%, then 100%, otherwise as set forth in clause (a) or (c) of this definition, as applicable; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if a Rapid Amortization Event has occurred and is continuing, then 100%, otherwise as set forth in clause (a) or (b) of this definition, as applicable;

*provided*, that commencing with the Payment Determination Date occurring in March 20203 through and until the conclusion of the Covenant Suspension Period, "<u>Excess Allocation Percentage</u>" means 100%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>Additional Agreement</u>" means that certain Side Letter Agreement, dated as of the Amendment Date, among the Alpine Parties, the Operators, and the Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "<u>Hedge Agreements</u>" means each ISDA Master Agreement, the Schedule to the ISDA Master Agreement, and any confirmation, between the Issuer and a Hedge Counterparty and any other document executed by the applicable Hedge Counterparty in connection therewith, as the same may be amended, restated, or otherwise modified from time to time; *provided*, *however*, "<u>Hedge Agreements</u>" shall not include any ISDA Master Agreement or related or similar document that remains in place and effect during such periods of time as there are no Transactions executed pursuant thereto currently in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "<u>Hedge Counterparties</u>" means any Person(s) selected by the Manager and consented to by the Majority Noteholders; *provided*, *however*, during any such time as (a) there are no Transactions currently in effect between the Issuer and any such Person under any applicable ISDA Master Agreement(s) or similar document(s) between the Issuer and such Person that remain(s) in place and effect at such time, then such Person shall be deemed to be not a Hedge Counterparty hereunder, and (b) there are no Transactions currently in effect between the Issuer and any Persons, then there shall be deemed to be no Hedge Counterparties hereunder (notwithstanding whether there remains in place and effect at such time any ISDA Master Agreement(s) or similar document(s) between the Issuer and any Person(s), provided that no Transactions have been executed pursuant thereto and are currently in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) "<u>Initial Maturity Date</u>" means, (i) with respect to the 2022-1 Notes, July 1, 2023, (ii) with respect to the 2022-2 Notes, the date that is 364 days after the Second Closing Date, and (iii) with respect to any Additional Notes, the date specified as the Initial Maturity Date in the Officer's Certificate with respect to such Additional Notes, delivered pursuant to <u>Section 2.16</u> of the Indenture.

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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;(viii) "<u>Transaction</u>" has the meaning specified in the ISDA Master 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) "<u>Warm Trigger Event</u>" will occur on a Quarterly Determination Date that occurs during any period other than the Covenant Suspension Period if, as of such Quarterly Determination Date and the immediately preceding Quarterly Determination Date, any of the following conditions are met: (a) the DSCR is less than 1.20 to 1.00, (b) the Production Tracking Rate is less than 80% or (c) the LTV is greater than 85%; *provided that*, a Warm Trigger Event shall be deemed to occur as of the conclusion of the Covenant Suspension Period if the conditions for a Warm Trigger Event are satisfied based on the relevant metrics as of the Quarterly Determination Date occurring in June 2023.

&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) Section 2.11(a) (Release of Collateral) of the Indenture is hereby amended and restated in its entirety as follows:

"(a) Subject to <u>Section 12.01</u> and any other restrictions in the terms of the Basic Documents, the Indenture Trustee shall release property from the lien of this Indenture only if (i) such release is (A) pursuant to a conveyance under Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement or (B) permitted in accordance with the terms of this Indenture (including pursuant to clause (e) of <u>Section 4.20</u>), (ii) the Issuer has delivered to the Indenture Trustee and Hedge Counterparties an Issuer Request accompanied by an Officer's Certificate of the Issuer and an Opinion of Counsel stating that such release is permitted by the terms of this Indenture and that the conditions precedent to such release have been satisfied (including the terms and conditions of this <u>Section 2.11(a)</u>), (iii) if such release is pursuant to <u>Section 2.11(a)(i)(A)</u> hereof, (A) the Indenture Trustee or Hedge Counterparty shall have received information reasonably requested by such Persons demonstrating that the Seller or the Manager, as applicable, is permitted to purchase the applicable Repurchased Interests pursuant to the terms of Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement, as applicable, and (B) concurrently with such release, the Issuer shall have had deposited an amount equal to the Buy-Out Price (as defined in the applicable Asset Purchase Agreement) into the Collection Account, and (iv) if such release is pursuant to clause (e) of <u>Section 4.20</u>, concurrently with such release, the Issuer shall have had deposited an amount equal to the Issuer Percentage of the Purchase Price (as those terms are defined in the Additional Agreement) into the Collection Account; provided, that, notwithstanding the foregoing, in the event the Issuer requests a release of all or substantially all of the Collateral, a written consent to such release from each Hedge Counterparty is required unless such release is being delivered in connection with the payment in full of all of the Secured Obligations."

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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;(c) Section 4.20 (Sale of Assets, Etc.) of the Indenture is hereby amended and restated in its entirety as follows:

"4.20 <u>Sale of Assets, Etc</u>. The Issuer shall not sell, transfer, convey, assign, exchange or dispose of any of its properties or assets in any single transaction or series of related transactions of any individual asset, or group of related assets, except (a) pursuant to a conveyance under Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement so long as (i) the Indenture Trustee or Hedge Counterparty has received information reasonably requested by such Persons demonstrating that the Seller or the Manager, as applicable, is permitted to purchase the applicable Repurchased Interests pursuant to the terms of Section 5.11(d) of the applicable Asset Purchase Agreement or Section 2(d)(iii) of the Management Services Agreement, as applicable, and (ii) concurrently with the release of the lien of this Indenture in accordance with Section 2.11(a), the Issuer shall have had deposited an amount equal to the Buy-Out Price (as defined in the applicable Asset Purchase Agreement) into the Collection Account, (b) as required by applicable Law, (c) for the abandonment of any assets no longer used or useful in the business of the Issuer, (d) for sales or disposal of Hydrocarbons in the ordinary course of business, and/or (e) pursuant to an "Approved Sale" as defined in the Additional 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;(d) Section 4.28 (Hedge Agreements) of the Indenture is hereby amended by inserting the following Section 4.28(e) immediately following Section 4.28(d):

"(e) Compliance with the provisions of this Section 4.28 shall not be required so long as the Covenant Suspension Period is in effect."

&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) Clause (xiii) of Section 5.01(a) of the Indenture is hereby amended and restated in its entirety as follows:

"(xiii) the DSCR on any Quarterly Determination Date that occurs during any period other than the Covenant Suspension Period is less than 1.10 to 1.00; 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;(f) Section 5.01(a) of the Indenture is hereby amended by inserting the following clause (xv):

"(xv) the occurrence of a Covenant Suspension Period Termination Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Clause (E)(1) of Section 8.06(i) of the Indenture (prior to giving effect to Section 3(h) of this Supplemental Indenture) is hereby amended by inserting the following at the conclusion of Clause (E)(1):

"*provided*, that no amounts shall be payable pursuant to this clause (E)(1) with respect to any Payment Date occurring during the period commencing with and including the Payment Date occurring on March 27, 2023 through the conclusion of the Covenant Suspension 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;&nbsp;&nbsp;&nbsp;&nbsp;(h) Clauses (E), (F), (G), and (H) of Section 8.06(i) of the Indenture are hereby re-alphabetized to be clauses (F), (G), (H), and (E) of Section 8.06(i), respectively, and then reordered alphabetically (as so re-alphabetized).

&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) Clause (E) of Section 8.06(i) of the Indenture (after giving effect to Section 3(h) of this Supplemental Indenture) is hereby amended and restated in its entirety as follows:

"(E) (1) to the Indenture Trustee and the Back-Up Manager, any amounts owed but not paid in accordance with clause (A) above; and (2) to the respective payees thereunder, any amounts owed pursuant to any of Section 2.1 or Section 2.4 of the Additional Agreement or Article 11 of any Note Purchase 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;(j) Clause (H) of Section 8.06(i) of the Indenture (after giving effect to Section 3(h) of this Supplemental Indenture) is hereby amended and restated in its entirety as follows:

"(H) *pro rata and pari passu* (1) (a) if the then applicable Excess Allocation Percentage is 100%, then to the Noteholders, (i) until the Outstanding Principal Balance of the 2022-1 Notes is reduced to zero, *pro rata* among the Noteholders of the 2022-1 Notes, based on the Outstanding Principal Balance of such Notes, then (ii) until the Outstanding Principal Balance of the 2022-2 Notes is reduced to zero, *pro rata* among the Noteholders of the 2022-2 Notes, based on the Outstanding Principal Balance of such Notes, the lesser of (A) the Excess Amortization Amount (subject to the second proviso of the definition of such term) with respect to such Payment Date and (B) the Outstanding Principal Balance of all outstanding Tranches, or (b) if the then applicable Excess Allocation Percentage is not 100% and if such Payment Date is on or after the Initial Maturity Date of an outstanding Tranche, then to the Noteholders, *pro rata*, among each such outstanding Tranche, based on the Outstanding Principal Balance of each such outstanding Tranche, and *pro rata* among the Noteholders in each such outstanding Tranche, the Outstanding Principal Balance of each such outstanding Tranche, and (2) to the Hedge Counterparties, *pro rata*, any termination amounts due and payable by the Issuer under the related Hedge Agreements but not paid in accordance with clause (F) above;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Commencement of Warm Back-Up Management Duties; Appointment of an Observer</u>. Issuer shall promptly instruct the Indenture Trustee to instruct the Back-Up Manager to commence Warm Back-Up Management Duties as specified in Section 2.4 of the Back-up Management Agreement. Solely for purposes of initiating duties of the Back-Up Manager (including appointment of an Observer (as defined in the Back-Up Management Agreement)), and not for any other purposes of or under the Basic Documents, a Warm Trigger Event shall be *deemed* to have occurred as of the Amendment Date and be continuing during the Covenant Suspension Period, *provided that*, following the expiration or early termination of the Covenant Suspension Period, the foregoing in this sentence shall have no further force and effect. For all other purposes of the Basic Documents, a Warm Trigger Event shall only have occurred or be deemed to have occurred, and shall only be continuing or deemed to be continuing, as and to the extent otherwise provided in the Indenture (and without reference to this <u>Section 4</u> of the Supplemental Indenture).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Covenant Suspension Period; Quarterly Determination Date</u>. Notwithstanding anything in the Indenture or in any other Basic Document to the contrary, the parties hereby agree that, during the Covenant Suspension Period, the DSCR, the Production Tracking Rate and the LTV shall not be calculated or tested (and any related reporting requirements with respect to the DSCR, the Production Tracking Rate and the LTV are hereby waived for such period); *provided*, *however*, and notwithstanding the definition of "Quarterly Determination Date", the Quarterly Determination Date for June 2023 shall be, and is hereby amended to be, July 3, 2023 (the "<u>July 2023 QDD</u>"); *provided further*, *however*, (a) calculations of DSCR and Production Tracking on the July 2023 QDD will be calculated as though such Quarterly Determination Date had actually occurred during the month of June 2023, (b) this <u>Section 5</u> shall not alter the dates on which any other Quarterly Determination Dates fall pursuant to the definition thereof, and (c) this <u>Section 5</u> shall not alter the dates on which any Payment Determination Date will occur (including the Payment Determination Date for June 2023, which for clarity will remain June 22, 2023).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Indenture Remains in Full Force and Effect</u>. This Supplemental Indenture amends or supplements the Indenture and shall be a part of and subject to all the terms thereof. Except as supplemented hereby, all of the terms, provisions and conditions of the Indenture and the Notes issued thereunder shall continue in full force and effect. In the event of a conflict between the terms and conditions of the Indenture and the terms and conditions of this Supplemental Indenture, then the terms and conditions of this Supplemental Indenture shall prevail.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Effect of Headings</u>. The Section headings herein are for convenience only and shall not affect the construction hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Successors and Assigns</u>. All covenants and agreements in this Supplemental Indenture by the Issuer shall bind its successors and assigns, whether so expressed or not. All agreements of the Indenture Trustee in this Supplemental Indenture shall bind its successors, co-trustees and agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Severability</u>. In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Governing Law</u>. THIS SUPPLEMENTAL INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS; PROVIDED THAT ANY MATTERS THAT RELATE TO REAL PROPERTY SHALL BE GOVERNED BY THE LAWS OF THE STATE WHERE SUCH PROPERTY IS LOCATED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Counterparts</u>. This Supplemental Indenture may be executed in any number of counterparts (including electronic PDF), each of which when so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. Each of the parties hereto agrees that the transactions consisting of this Supplemental Indenture may be conducted by electronic means. Each party agrees, and acknowledges that it is such party's intent, that if such party signs this Supplemental Indenture using an electronic signature, it is signing, adopting, and accepting this Supplemental Indenture and that signing this Supplemental Indenture using an electronic signature is the legal equivalent of having placed its handwritten signature on this Supplemental Indenture on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Supplemental Indenture in a usable format.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>The Indenture Trustee</u>. The Indenture Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Issuer.

[*Signature page follows*]

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

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| | |
|:---|:---|
| ALPINE SUMMIT FUNDING LLC | ALPINE SUMMIT FUNDING LLC |
| By: | /s/ Craig Perry |
|  | Name: Craig Perry<br>Title: President and Chief Executive Officer |
| UMB BANK, N.A., not in its individual capacity but solely as Indenture Trustee | UMB BANK, N.A., not in its individual capacity but solely as Indenture Trustee |
| By: | /s/ Rosemary Cabrera |
|  | Name: Rosemary Cabrera<br>Title: Assistant Vice President |

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## Exhibit 10.5

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**CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [\*\*\*], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.**

**SIDE LETTER AGREEMENT**

This SIDE LETTER AGREEMENT (this "<u>Agreement</u>") dated as of March 23, 2023 (the "<u>Agreement Date</u>"), among Alpine Summit Funding LLC, a Delaware limited liability company (the "<u>Issuer</u>"), Alpine Summit Funding Holdings LLC, as Delaware limited liability company ("<u>Holdings</u>"), Alpine Summit Energy Partners, Inc., a company incorporated under the Business Corporations Act (British Columbia) ("<u>Parent</u>"), HB2 Origination, LLC, a Delaware limited liability company ("<u>HB2</u>" or "<u>Manager</u>"), Ironroc Energy Partners LLC, a Texas limited liability company ("<u>Ironroc</u>"), Ageron Ironroc Energy, LLC, a Texas limited liability company ("<u>Ageron</u>" and, together with Ironroc, the "<u>Operators</u>"), and the Noteholders (as defined below).

<u>Recitals</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Issuer and UMB Bank N.A., a national banking association, as indenture trustee and not in its individual capacity (the "<u>Indenture Trustee</u>") are parties to that certain Amended and Restated Indenture, dated as of September 12, 2022 (as amended or supplemented from time to time, the "<u>Indenture</u>"), pursuant to which the Issuer has issued (i) Series 2022-1 Floating Rate Oil & Gas Asset-Backed Notes issued on April 29, 2022 (the "<u>2022-1 Notes</u>") and (ii) Series 2022-2 Floating Rate Oil & Gas Asset-Backed Notes issued on September 12, 2022 (the "<u>2022-2 Notes</u>" and, collectively with the 2022-1 Notes, the "<u>Notes</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Pursuant to that certain Note Purchase Agreement (the "<u>2022-1 Note Purchase Agreement</u>") dated as of April 29, 2022, among the Issuer, Parent, HB2, Ironroc, Holdings, and the purchasers listed on Schedule B thereto (the "<u>2022-1 Noteholders</u>"), the 2022-1 Noteholders purchased the 2022-1 Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Pursuant to that certain Note Purchase Agreement (the "<u>2022-2 Note Purchase Agreement</u>") dated as of September 12, 2022, among the Issuer, Parent, HB2, Ironroc, Ageron, Holdings, and the purchasers listed on Schedule B thereto (the "<u>2022-2 Noteholders</u>" and, together with the 2022-1 Noteholders, the "<u>Noteholders</u>"), the 2022-2 Noteholders purchased the 2022-2 Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Holdings executed that certain Guaranty Agreement and Holdings, the Issuer, and the Indenture Trustee entered into that certain the Holdings Pledge Agreement, each dated as of the Initial Closing Date, pursuant to which Holdings has pledged certain of its assets for the benefit of the Noteholders as secured parties under the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The Issuer delivered to the Noteholders on March 9, 2023 a Notice of Certain Events in which the Issuer indicated certain circumstances described therein are likely to impact the Issuer's ability to perform, for an uncertain duration, certain of its obligations under the Basic Documents, including likely failing for some period of time to have sufficient Available Funds to make timely payment in full of certain amounts payable under Section 8.06(i) of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The Issuer and the Noteholders desire (i) that the Indenture be amended on the Agreement Date, with such amendment effective as of December 31, 2022, pursuant to and as provided in the form of the first supplemental indenture attached hereto as <u>Exhibit A</u> (the "<u>Supplemental Indenture</u>") and (ii) in connection therewith to enter into this Agreement.

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NOW, THEREFORE, in consideration of the promises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1. <u>Defined Terms</u>. As used in this Agreement, each of the terms defined in the opening paragraph and the Recitals above shall have the meanings assigned to such terms therein. Each term defined in the Indenture and used herein (including in the opening paragraph and the Recitals above) without definition shall have the meaning assigned to such term in the Indenture unless expressly provided to the contrary. Article, Section, Schedule and Exhibit references are to Articles and Sections of and Schedules and Exhibits to the Indenture, unless otherwise specified. The words "hereof", "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The term "including" means "including, without limitation". Paragraph headings have been inserted in this Agreement as a matter of convenience for reference only and it is agreed that such paragraph headings are not a part of this Agreement and shall not be used in the interpretation of any provision of this Agreement.

Section 2. <u>Covenants and Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Advisor to Noteholders</u>. The Issuer shall pay the reasonable and documented out-of-pocket costs and expenses (including the reasonable fees) of one financial adviser to all of the Noteholders, taken together (the "<u>Advisory Firm</u>"), incurred during the Covenant Suspension Period. Issuer shall promptly provide the Advisory Firm with access to data, materials, and information concerning the business, oil and gas reserves, other assets, liabilities, operations, cash flows, properties, and business of the Issuer to which the Noteholders or the Back-Up Manager are entitled under the terms of the Basic Documents and that the Advisory Firm reasonably requests at any time and from time to time, and Issuer, the other Alpine Parties, and the Operators will fully cooperate with the reasonable requests of the Advisory Firm in connection with its efforts to perform the services that the Advisory Firm is engaged to perform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Sales Process for Certain Collateral</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;(a) <u>Inclusion in Sale Process</u>. Subject to the other terms and conditions set forth in this <u>Section 2.2</u> regarding any resulting sale, each of Parent and HB2 agrees, and each of the Noteholders consents, to include all of the Issuer's right, title, and interest in and to all of those Hydrocarbon wellbores identified on <u>Part 1</u> of <u>Schedule 1</u> attached hereto (the "<u>Applicable Issuer Interests</u>") in the sales marketing process currently contemplated by Parent and further described in that certain engagement letter dated March 7, 2023, between Stephens Inc. ("<u>Stephens</u>") and Parent (the "<u>Engagement Letter</u>") (the "<u>Sales Process</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;(b) <u>Noteholder Consent to an Approved Sale</u>. If Parent and/or HB2 determine to sell HB2's right, title, and interest in and to HB2's existing Hydrocarbon wellbores located in Webb County, Texas (a "<u>South Texas Sale</u>") pursuant to any "Transaction" as defined in and that is subject to the Engagement Letter, and *provided that* each condition set forth on <u>Part 2</u> of <u>Schedule 1</u> would be met with respect to such Transaction if the Applicable Issuer Interests were included therein, then each of Parent and HB2 agrees, and each of the Noteholders consents, to include within such Transaction and the related sales documentation all of the Issuer's right, title, and interest in and to all of the Applicable Issuer Interests (an "<u>Approved Sale</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;(c) <u>P</u><u>urchase Price.</u> The Noteholders and the Alpine Parties acknowledge and agree that, notwithstanding anything to the contrary in any Basic Document, the portion of the sales proceeds received in any Approved Sale in which the Applicable Issuer Interests are included and to which the Issuer will be entitled shall be, and is limited to, [\*\*\*] percent ([\*\*\*]%) (the "<u>Issuer Percentage</u>") of the aggregate net cash proceeds received by the Alpine Parties in such Approved Sale (i.e. after taking into account all applicable purchase price adjustments born by, and all costs and expenses allocated to, the Alpine Parties under the applicable Approved Sale documentation) (the "<u>Purchase Price</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;(d) <u>Fees and Expenses</u>. The Noteholders and the Alpine Parties acknowledge and agree that, notwithstanding anything to the contrary in any Basic Document, the Issuer shall be responsible for, and Parent and/or HB2 may deduct from the sales proceeds allocable to the Issuer pursuant to an Approved Sale in which the Applicable Issuer Interests are included, the Issuer Percentage of the aggregate amount of all out-of-pocket fees, costs, and expenses that are borne by any Alpine Party under the applicable Approved Sale documentation and/or that are otherwise reasonably incurred by any Alpine Party or any of their Affiliates in connection with the negotiation and/or consummation of such Approved Sale (including any and all fees of counsel related to the negotiating and/or drafting of the applicable Approved Sale documentation, fees and reimbursement of costs owing to Stephens pursuant to the Engagement Letter, and similar fees, costs, and expenses). For clarity, the remaining amount of such fees, costs, and expenses borne or incurred by the Alpine Parties in connection with the negotiation or consummation of, or pursuant to the terms of, any such Approved Sale and that are not allocated to the Issuer pursuant to the foregoing sentence shall be the responsibility of Parent and/or HB2.

&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) <u>Information</u>.<sup>.</sup> For so long as the Sales Process shall be continuing and/or the consummation of an Approved Sale is pending, HB2 shall, promptly following a written request therefor by the Majority Noteholders, provide the Majority Noteholders an update as to the status of the Sales Process as well as copies of any material documentation received or delivered by any Alpine Party from or to any prospective purchasers of the assets included in the Sales Process (e.g., marketing teasers, prospective purchaser indications of interest and/or firm offers, and executed definitive Approved Sale documentation) that are reasonably requested by the Majority Noteholders.

&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) <u>Use of Transportation Capacity</u>. During the Covenant Suspension Period, to the extent that HB2 or any of its Affiliate has contracted firm transportation capacity that could be used to transport production from the Applicable Issuer Interests, HB2 shall and shall cause any of its Affiliates to utilize that firm transportation capacity ratably (based on production attributable to the Applicable Issuer Interests, on the one hand, relative to production attributable to all other interests owned or operated by any of the other Alpine Parties or the Operators in all Hydrocarbon wells with respect to which such firm transportation capacity could be used (the "<u>Applicable Other Interests</u>"), on the other hand, in each case, assuming that none of the foregoing wells were curtailed or shut-in and excluding production otherwise being transported on an interruptible basis) for the benefit of production from all of the Applicable Issuer Interests, on the one hand, and the Applicable Other Interests, on the other hand. The foregoing covenant shall terminate upon the expiration or earlier termination of the Covenant Suspension Period.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Prior Side Letters</u>. The Issuer confirms and agrees that it shall not exercise maturity date extension rights with respect to (i) the 2022-1 Notes as set forth in that certain Amended and Restated Side Letter, dated as of September 12, 2022 from the Issuer and accepted and agreed by Kuvare Insurance Services LP and acknowledged by the 2022-1 Noteholders or (ii) the 2022-2 Notes as set forth in that certain Side Letter, dated as of September 12, 2022 from the Issuer and accepted and agreed by Kuvare Insurance Services LP and acknowledged by the 2022-2 Noteholders, in either case without the written consent of the Holders of the relevant Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Payment of Expenses</u>. Without limiting the rights of the 2022-1 Noteholders under Section 11.1 of the 2022-1 Note Purchase Agreement or of the 2022-2 Noteholders under Section 11.1 of the 2022-2 Note Purchase Agreement, and without limiting the rights of the Indenture Trustee under Article VI of the Indenture, the Issuer agrees that, within two (2) Business Days following the later of the Amendment Date and (with respect to any payee below) the date on which the Issuer receives such payee's wire transfer instructions in writing, the Issuer shall pay by wire transfer of immediately available funds: (i) to the independent reserve engineer previously engaged by the Noteholders, its current fees in the amount of $23,986.25, (ii) to Orrick, Herrington & Sutcliffe LLP, as counsel for the Noteholders, its current legal fees in the amount of $175,000, plus, as a retainer, an additional amount of $250,000 for legal fee reimbursements expected to be owed pursuant to the other terms of the Basic Documents by the Issuer to Orrick, Herrington & Sutcliffe LLP, as counsel for the Noteholders, provided that, promptly following Security Termination, the Noteholders shall cause Orrick, Herrington & Sutcliffe LLP to refund that portion, if any, of such retainer that exceeds such future legal fee reimbursements owed under the Basic Documents by the Issuer to Orrick, Herrington & Sutcliffe LLP, as counsel for the Noteholders, and (iii) to Porter Hedges LLP, as counsel for the Issuer, its current legal fees in the amount of $150,000.

Section 3. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Acknowledgement of 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;(a) Each Alpine Party represents and warrants as of the date hereof, that the execution, delivery, and performance of the Supplemental Indenture, this Agreement and each of the Basic Documents have been duly and validly authorized in accordance with the Organizational Documents of the applicable Alpine Parties and Operators; this Agreement and each of the applicable Basic Documents has been duly executed and delivered by the applicable Alpine Parties and Operators, and the Supplemental Indenture, when executed and delivered by the Issuer, will have been duly executed and delivered by the Issuer; and the Indenture (including as modified by the Supplemental Indenture, when executed and delivered by the Issuer and the Indenture Trustee) constitutes the legal, valid, and binding obligation of the Issuer, enforceable against the Issuer in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy or other similar Laws affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether such enforceability is considered in a Proceeding).

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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;(b) Each Alpine Party acknowledges, that on the date hereof, the Notes are payable in accordance with the terms of the Indenture, and each Alpine Party waives any defense, offset, counterclaim, or recoupment with respect thereto. Except as expressly provided in the Supplemental Indenture, nothing in this Agreement shall constitute a waiver or relinquishment of (a) any Default or Event of Default under the Indenture or any of the other Basic Documents, (b) any of the agreements, terms, or conditions contained in the Indenture or any of the other Basic Documents, (c) any rights or remedies of any Secured Party with respect to the Basic Documents, or (d) the rights of any Secured Party to collect the full amounts owing to it under the Basic Documents. This Agreement does not constitute a novation of rights, obligations, and liabilities of the respective parties existing under the Basic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Strict Performance</u>. Each Alpine Party hereby agrees and acknowledges that the Secured Parties require and will require strict performance by the Alpine Parties of all of their respective obligations, agreements, and covenants contained in this Agreement, the Indenture, and the other Basic Documents, and no inaction or (except as may be in writing) action by any such Secured Party regarding any Default or Event of Default is intended to be or shall be a waiver thereof. Each Alpine Party hereby also agrees and acknowledges that no course of dealing and no delay in exercising any right, power, or remedy conferred to any such Secured Party in this Agreement, the Indenture, or in any of the other Basic Documents or now or hereafter existing at law, in equity, by statute, or otherwise shall operate as a waiver of or otherwise prejudice any such right, power, or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>No Course of Dealings</u>. Each party hereto hereby agrees that, in no event and under no circumstance shall any past or future discussions with the Indenture Trustee or any other Secured Party, serve to (a) cause a modification of the Basic Documents, (b) establish a custom or course of dealing with respect to any of the Basic Documents, (c) operate as a waiver of any existing or future Default or Event of Default under the Basic Documents, (d) entitle any Alpine Party to any other or further notice or demand whatsoever beyond those required by the Basic Documents, or (e) except as otherwise provided in the Supplemental Indenture or any other Basic Document, in any way modify, change, impair, affect, diminish, or release any Alpine Party's obligations or liability under the Basic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Ratification and Affirmation</u>. Each Alpine Party hereby (a) acknowledges the terms of this Agreement; and (b) ratifies and affirms its obligations under and acknowledges its continued liability under each Basic Document to which it is a party and agrees that each Basic Document to which it is a party remains in full force and effect as expressly amended hereby and by the Supplemental Indenture and (c) represents and warrants to the Noteholders that as of the date hereof: (i) all of the representations and warranties contained in Sections 3.01 and 3.02 of the Indenture are true and correct, and (ii) upon effectiveness of the Supplemental Indenture, no Event of Default has occurred and is continuing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>RELEASE</u>. FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, EACH OF THE ISSUER, HOLDINGS, AND EACH OTHER ALPINE PARTY HEREBY, FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS, FULLY AND WITHOUT RESERVE, RELEASES AND FOREVER DISCHARGES THE INDENTURE TRUSTEE, EACH NOTEHOLDER, EACH OF THEIR RESPECTIVE AFFILIATES AND RELATED FUNDS, EACH OF THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, AND EACH OF THEIR RESPECTIVE PRESENT AND FORMER PARENTS, SHAREHOLDERS, PARTICIPANTS, TRUSTEES, PARTNERS, SUBSIDIARIES, DIRECTORS, OFFICERS, ATTORNEYS, EMPLOYEES, ADVISORS, AGENTS, EXPERTS, ACCOUNTANTS, CONSULTANTS, AND OTHER REPRESENTATIVES (COLLECTIVELY THE "<u>RELEASED PARTIES</u>" AND INDIVIDUALLY A "<u>RELEASED PARTY</u>") FROM ANY AND ALL ACTIONS, CLAIMS, DEMANDS, CAUSES OF ACTION, JUDGMENTS, EXECUTIONS, SUITS, DEBTS, LIABILITIES, COSTS, DAMAGES, EXPENSES, OR OTHER OBLIGATIONS OF ANY KIND AND NATURE WHATSOEVER, KNOWN OR UNKNOWN, DIRECT AND/OR INDIRECT, AT LAW OR IN EQUITY, WHETHER NOW EXISTING OR HEREAFTER ASSERTED (INCLUDING ANY OFFSETS, REDUCTIONS, REBATEMENT, CLAIMS OF USURY, OR CLAIMS WITH RESPECT TO THE NEGLIGENCE OF ANY RELEASED PARTY), FOR OR BECAUSE OF ANY MATTERS OR THINGS OCCURRING, EXISTING, OR ACTIONS DONE, OMITTED TO BE DONE, OR SUFFERED TO BE DONE BY ANY OF THE RELEASED PARTIES, IN EACH CASE, ON OR PRIOR TO THE DATE HEREOF AND ARE IN ANY WAY DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN ANY WAY CONNECTED TO ANY OF THIS AGREEMENT, THE INDENTURE, ANY OTHER BASIC DOCUMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (COLLECTIVELY, THE "<u>RELEASED MATTERS</u>"). EACH OF THE ISSUER, THE HOLDINGS, AND EACH OTHER ALPINE PARTY, BY EXECUTION HEREOF, HEREBY ACKNOWLEDGES AND AGREES THAT THE AGREEMENTS IN THIS SECTION ARE INTENDED TO COVER AND BE IN FULL SATISFACTION FOR ALL OR ANY ALLEGED INJURIES OR DAMAGES ARISING IN CONNECTION WITH THE RELEASED MATTERS. EACH OF THE ISSUER, THE HOLDINGS, AND EACH OTHER ALPINE PARTY HEREBY FURTHER AGREES THAT IT WILL NOT SUE ANY RELEASED PARTY ON THE BASIS OF ANY RELEASED MATTER RELEASED, REMISED, AND DISCHARGED BY THE ISSUER AND THE ALPINE PARTIES PURSUANT TO THIS SECTION. IN AGREEING TO THIS SECTION, EACH OF THE ISSUER, HOLDINGS, AND EACH OTHER ALPINE PARTY CONSULTED WITH, AND HAS BEEN REPRESENTED BY, LEGAL COUNSEL AND EXPRESSLY DISCLAIMS ANY RELIANCE ON ANY REPRESENTATIONS, ACTS, OR OMISSIONS BY ANY OF THE RELEASED PARTIES AND HEREBY AGREES AND ACKNOWLEDGES THAT THE VALIDITY AND EFFECTIVENESS OF THE RELEASES SET FORTH HEREIN DO NOT DEPEND IN ANY WAY ON ANY SUCH REPRESENTATIONS, ACTS, AND/OR OMISSIONS OR THE ACCURACY, COMPLETENESS, OR VALIDITY HEREOF. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT, THE INDENTURE, AND THE OTHER BASIC DOCUMENTS AND PAYMENT IN FULL OF THE OBLIGATIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Counterparts</u>. This Agreement may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Agreement by email or other electronic means shall be effective as delivery of a manually executed counterpart hereof. Each of the parties hereto agrees and acknowledges that (a) the transaction consisting of this Agreement may be conducted by electronic means, (b) it is such party's intent that, if such party signs this Agreement using an electronic signature, it is signing, adopting, and accepting this Agreement and that signing this Agreement using an electronic signature is the legal equivalent of having placed its handwritten signature on this Agreement on paper, and (c) it is being provided with an electronic or paper copy of this Agreement in a usable format.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>No Oral Agreement</u>. This Agreement, the Supplemental Indenture, and the other Basic Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties. There are no subsequent oral agreements between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>GOVERNING LAW</u>. ALL MATTERS ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Severability</u>. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; <u>provided</u> that no Alpine Party shall assign or delegate any of its rights or duties hereunder without the prior written consent of the Majority Noteholders, and any attempted assignment without such consent shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Basic Document</u>. This Agreement is a "Basic Document" as defined and described in the Indenture, and all of the terms and provisions of the Indenture relating to Basic Documents shall apply hereto.

[SIGNATURES BEGIN NEXT PAGE]

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

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| | |
|:---|:---|
| **ALPINE SUMMIT FUNDING LLC**, as Issuer | **ALPINE SUMMIT FUNDING LLC**, as Issuer |
| By: | /s/ Craig Perry |
|  | Name: Craig Perry<br>Title: President and Chief Executive Officer |
| **ALPINE SUMMIT ENERGY PARTNERS, INC.**, as Parent | **ALPINE SUMMIT ENERGY PARTNERS, INC.**, as Parent |
| By: | /s/ Craig Perry |
|  | Name: Craig Perry<br>Title: President and Chief Executive Officer |
| **ALPINE SUMMIT FUNDING HOLDINGS LLC**, as Holdings | **ALPINE SUMMIT FUNDING HOLDINGS LLC**, as Holdings |
| By: | /s/ Craig Perry |
|  | Name: Craig Perry<br>Title: President and Chief Executive Officer |
| **HB2 ORIGINATION, LLC**, as Manager | **HB2 ORIGINATION, LLC**, as Manager |
| By: | /s/ Craig Perry |
|  | Name: Craig Perry<br>Title: President and Chief Executive Officer |
| **AGERON IRONROC ENERGY, LLC**, as Operator | **AGERON IRONROC ENERGY, LLC**, as Operator |
| By: | /s/ Craig Perry |
|  | Name: Craig Perry<br>Title: President and Chief Executive Officer |

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*Signature Page to Side Letter Agreement* 

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| | |
|:---|:---|
| **IRONROC ENERGY PARTNERS LLC**, as Operator | **IRONROC ENERGY PARTNERS LLC**, as Operator |
| By: | /s/ Craig Perry |
|  | Name: Craig Perry<br>Title: President and Chief Executive Officer |

---

*Signature Page to Side Letter Agreement* 

------

---

| | |
|:---|:---|
|  | <u>NOTEHOLDERS</u>: |
| 2022-1 NOTEHOLDERS: |  |
|  | **LINCOLN BENEFIT LIFE COMPANY** |
|  | By: Kuvare Insurance Services LP, its Investment Manager |
|  | By: <u>/s/ Faisal Kassam</u><u> </u><br> Name: Faisal Kassam<br> Title: Managing Director |
|  | **GUARANTY INCOME LIFE INSURANCE COMPANY** |
|  | By: Kuvare Insurance Services LP, its Investment Manager |
|  | By: <u>/s/ Faisal Kassam</u><u> </u><br> Name: Faisal Kassam<br> Title: Managing Director |
|  | **UNITED LIFE INSURANCE COMPANY** |
|  | By: Kuvare Insurance Services LP, its Investment Manager |
|  | By: <u>/s/ Faisal Kassam</u><u> </u><br> Name: Faisal Kassam<br> Title: Managing Director |
|  | **KUVARE INSURANCE SERVICES LP, ON BEHALF OF NATIONAL GUARDIAN LIFE INSURANCE COMPANY, BY VIRTUE OF AUTHORITY GRANTED UNDER THE FUNDS WITHHELD COINSURANCE AGREEMENT DATED FEBRUARY 4, 2021** |
|  | By: <u>/s/ Faisal Kassam</u><u> </u><br> Name: Faisal Kassam<br> Title: Managing Director |

---

*Signature Page to Side Letter Agreement* 

------

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| | |
|:---|:---|
| 2022-2 NOTEHOLDERS: |  |
|  | **LINCOLN BENEFIT LIFE COMPANY** |
|  | By: Kuvare Insurance Services LP, its Investment Manager |
|  | By: <u>/s/ Faisal Kassam</u><u> </u><br> Name: Faisal Kassam<br> Title: Managing Director |
|  | **GUARANTY INCOME LIFE INSURANCE COMPANY** |
|  | By: Kuvare Insurance Services LP, its Investment Manager |
|  | By: <u>/s/ Faisal Kassam</u><u> </u><br> Name: Faisal Kassam<br> Title: Managing Director |
|  | **UNITED LIFE INSURANCE COMPANY** |
|  | By: Kuvare Insurance Services LP, its Investment Manager |
|  | By: <u>/s/ Faisal Kassam</u><u> </u><br> Name: Faisal Kassam<br> Title: Managing Director |

---

*Signature Page to Side Letter Agreement* 

------

## Exhibit 10.6

------

***Execution Version***

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ALPINE SUMMIT FUNDING LLC

$55,000,000

Series 2022-2 Floating Rate Oil & Gas Asset-Backed Notes due September 2023

______________

Note Purchase Agreement

______________

Dated September 12, 2022

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**Table of Contents**

SECTION HEADING PAGE

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| | |
|:---|:---|
| [SECTION 1. AUTHORIZATION OF NOTES](#page_6) | [1](#page_6) |
| [SECTION 2. SALE AND PURCHASE OF NOTES](#page_6) | [1](#page_6) |
| [SECTION 3. CLOSING](#page_7) | [2](#page_7) |
| [SECTION 4. CONDITIONS TO FUNDING AND PURCHASERS' OBLIGATIONS](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.1. Representations and Warranties](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.2. Performance; No Default](#page_7) | [2](#page_7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.3. Compliance Certificates](#page_8) | [3](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.4. Opinions of Counsel](#page_8) | [3](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.5. Purchase Permitted By Applicable Law, Etc.](#page_8) | [3](#page_8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.6. Sale and Delivery of Notes](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.7. Payment of Special Counsel Fees](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.8. Private Placement Numbers](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.9. Changes](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.10. Funding Instructions](#page_9) | [4](#page_9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.11. Basic Documents](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.12. Proceedings and Documents](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.13. Interest Reserve Account Initial Deposit](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.14. Litigation](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.15. Material Adverse Change](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.16. USA PATRIOT Act](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.17. Reserved.](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.18. Reserved.](#page_10) | [5](#page_10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.19. Security Interest](#page_11) | [6](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.20. Hedge Agreements](#page_11) | [6](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 4.21. Foreign Qualifications](#page_11) | [6](#page_11) |
| [SECTION 5. RESERVED](#page_11) | [6](#page_11) |
| [SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE ALPINE PARTIES](#page_11) | [6](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.1. Organization; Power and Authority](#page_11) | [6](#page_11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.2. Authorization, Etc.](#page_12) | [7](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.3. Disclosure Materials; Financial Statements and Internal Control Framework](#page_12) | [7](#page_12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.4. Organization and Ownership of the Alpine Parties](#page_13) | [8](#page_13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.5. Compliance with Laws, Other Instruments, Etc.](#page_14) | [9](#page_14) |

---

i

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.6. Consents, Governmental Authorizations, Etc.](#page_15) | [10](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.7. Litigation; Observance of Agreements, Statutes and Orders](#page_15) | [10](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.8. Taxes](#page_15) | [10](#page_15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.9. Title to Property; Leases](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.10. Licenses, Permits, Etc.](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.11. Compliance with ERISA](#page_16) | [11](#page_16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.12. Private Offering by the Issuer](#page_17) | [12](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.13. Use of Proceeds; Margin Regulations](#page_17) | [12](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.14. Existing Indebtedness; Future Liens](#page_17) | [12](#page_17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.15. Foreign Assets Control Regulations, Etc.](#page_18) | [13](#page_18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.16. No Election](#page_19) | [14](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.17. Investment Company; Volcker](#page_19) | [14](#page_19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.18. Environmental Matters](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.19. Security Interest](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.20. Brokerage Fees, Etc.](#page_20) | [15](#page_20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.21. Notes](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.22. Collateral](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.23. Trust Indenture Act](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.24. Factual Statements](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.25. Reserved.](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.26. Reserved.](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.27. Commission](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.28. Credit Risk Retention; Dodd Frank; Exchange Act](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.29. Register Notes](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.30. Solvency](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.31. Asset Purchase Representations](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 6.32. Commodity Pool Operator Representations](#page_22) | [17](#page_22) |
| [SECTION 7. REPRESENTATIONS OF THE PURCHASERS](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 7.1. Purchase for Investment](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 7.2. Investment Risks](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 7.3. Source of Funds](#page_23) | [18](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 7.4. Power and Authority](#page_25) | [20](#page_25) |
| [SECTION 8. INFORMATION AS TO THE ALPINE PARTIES.](#page_25) | [20](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 8.1. Financial and Business Information](#page_25) | [20](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 8.2. Officer's Certificate](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 8.3. Visitation](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 8.4. Electronic Delivery](#page_27) | [22](#page_27) |
| [SECTION 9. AFFIRMATIVE COVENANTS.](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.1. Compliance with Laws](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.2. Insurance](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.3. Maintenance of Properties](#page_27) | [22](#page_27) |

---

ii

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.4. Payment of Taxes and Claims](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.5. Corporate Existence, Etc.](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.6. Books and Records](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.7. Factual Statements](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.8. Closing Information](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.9. Qualifying the Notes](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.10. Reserved.](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.11. Transfer of Assets; Recordation](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.12. Restriction on Sale of Notes](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.13. Securities Act](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.14. Basic Documents](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.15. Sponsor](#page_30) | [25](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 9.16. Ratings on the Notes](#page_30) | [25](#page_30) |
| [SECTION 10. NEGATIVE COVENANTS](#page_30) | [25](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.1. Transactions with Affiliates](#page_30) | [25](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.2. Merger, Transfer, Consolidation, Etc.](#page_30) | [25](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.3. Line of Business](#page_31) | [26](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.4. Terrorism Sanctions Regulations](#page_31) | [26](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 10.5. Liens](#page_32) | [27](#page_32) |
| [SECTION 11. EXPENSES, INDEMNIFICATION, ETC.](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 11.1. Transaction Expenses](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 11.2. Certain Taxes](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 11.3. Indemnification](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 11.4. Survival; Remedies](#page_35) | [30](#page_35) |
| [SECTION 12. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT](#page_35) | [30](#page_35) |
| [SECTION 13. AMENDMENT AND WAIVER](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 13.1. Requirements](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 13.2. Solicitation of Holders of Notes](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 13.3. Binding Effect, Etc.](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 13.4. Notes Held by any Alpine Party, Etc.](#page_36) | [31](#page_36) |
| [SECTION 14. NOTICES.](#page_36) | [31](#page_36) |
| [SECTION 15. REPRODUCTION OF DOCUMENTS](#page_38) | [33](#page_38) |
| [SECTION 16. CONFIDENTIAL INFORMATION](#page_38) | [33](#page_38) |
| [SECTION 17. SUBSTITUTION OF PURCHASER](#page_39) | [34](#page_39) |
| [SECTION 18. MISCELLANEOUS](#page_40) | [35](#page_40) |

---

iii

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.1. Successors and Assigns](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.2. Accounting Terms](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.3. Severability](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.4. Construction, Etc.](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.5. Counterparts; Electronic Contracting](#page_41) | [36](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.6. Governing Law](#page_42) | [37](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Section 18.7. Jurisdiction and Process; Waiver of Jury Trial](#page_42) | [37](#page_42) |
| [SECTION 19. RIGHT OF FIRST REFUSAL](#page_43) | [38](#page_43) |

---

---

| |
|:---|
| Schedule A - Defined Terms |
| Schedule 6.3(a) - Closing Information; Financial Statements; Disclosure Documents |
| Schedule 6.3(b) - Financial Statements |
| Schedule 6.4(a) - Organizational and Ownership of the Alpine Parties |
| Schedule 6.4(c) - Alpine Parties and Affiliates Organizational Chart |
| Schedule B - Information Relating to Purchasers |

---

iv

------

**ALPINE SUMMIT FUNDING LLC**

Series 2022-2 Floating Rate Oil & Gas Asset-Backed Notes due September 2023<br>

September 12, 2022

To Each of the Purchasers Listed in<br><u>Schedule B</u> Hereto:

Ladies and Gentlemen:

Alpine Summit Funding LLC, a Delaware limited liability company (the "**Issuer**"), Alpine Summit Energy Partners, Inc., a company incorporated under the Business Corporations Act (British Columbia) ("**Parent**"), HB2 Origination, LLC, a Delaware limited liability company ("**Manager**" and "**Seller**"), Ironroc Energy Partners LLC, a Texas limited liability company ("**Ironroc**"), and Ageron Ironroc Energy, LLC, a Texas limited liability company ("**Ageron**" and together with Ironroc, each an "**Operator**" and collectively the "**Operators**"), Alpine Summit Funding Holdings LLC, a Delaware limited liability company ("**Holdings**" and, together with the Parent, the Manager, the Seller, the Operators and the Issuer, collectively, the "**Alpine Parties**"), agree with each of the Purchasers as follows:

**SECTION 1. AUTHORIZATION OF NOTES**.

The Issuer will authorize the issue and sale of $55,000,000 aggregate principal amount of its Series 2022-2 Floating Rate Oil & Gas Asset-Backed Notes due September 2023 (the "**Notes**"), in accordance with the terms set forth herein.

The Notes shall be issued pursuant to, and shall be substantially in the forms set forth in Exhibit A to, the indenture (as it may be amended, supplemented, restated or otherwise modified from time to time, the "**Indenture**"), dated April 29, 2022 and as amended and restated on the date hereof, by and between the Issuer, as issuer, and UMB Bank, N.A., as indenture trustee (in such capacity, the "**Indenture Trustee**"), as paying agent and as securities intermediary.

Certain capitalized and other terms used in this Note Purchase Agreement (this "**Agreement**") are defined in <u>Schedule A</u>. For purposes of this Agreement, the rules of construction set forth in <u>Section 18.4</u> shall govern.

**SECTION 2. SALE AND PURCHASE OF NOTES**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement and the Indenture and on the basis of the representations, warranties and agreements herein contained, the Issuer will issue and sell on the Second Closing Date to each Purchaser and each Purchaser, severally and not jointly, will purchase on the Second Closing Date from the Issuer, in accordance with <u>Section 3</u>, Notes in the principal amount specified for such Purchaser in <u>Schedule B</u>, at the purchase price (the "**Purchase Price**") of 100% of the principal amount thereof. The Purchasers' obligations hereunder are several and not joint obligations, and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Alpine Parties' respective obligations hereunder, including the obligation of the Issuer to issue and sell the Notes to the Purchasers on the Second Closing Date, are subject to the receipt by the Issuer on the Second Closing Date of the Purchase Price for the Notes from each of the applicable Purchasers.

**SECTION 3. CLOSING**.

The sale and purchase of the Notes to be purchased by each Purchaser shall occur on the Second Closing Date. On the Second Closing Date, the Issuer will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form set forth in Exhibit A to the Indenture (in such number and in such denominations of at least $250,000, as such Purchaser may request), dated the Second Closing Date and registered in such Purchaser's name (or in the name of its nominee), against delivery by such Purchaser to the Issuer of the Purchase Price therefor by wire transfer of immediately available funds.

**SECTION 4. CONDITIONS TO FUNDING AND PURCHASERS' OBLIGATIONS**.

Each Purchaser's obligation hereunder to purchase and pay for the Notes to be sold to such Purchaser on the Second Closing Date is subject to the fulfillment to such Purchaser's satisfaction of the following conditions (except to the extent such conditions are waived by such Purchaser in writing):

**Section 4.1. Representations and Warranties**. The representations and warranties of each of the Alpine Parties contained in this Agreement, the other Basic Documents and any certificate or document delivered pursuant thereto (as applicable) that were made as of or prior to the Second Closing Date shall be true and correct as of the respective date such representations and warranties were made, unless such representation or warranty expressly speaks as of an earlier date in which case such representation or warranty shall be true and correct as of such earlier date. The Indenture Trustee, for the benefit of each Secured Party, is entitled to rely on the representations and warranties of the Alpine Parties in the Basic Documents as though such representations and warranties were addressed to the Indenture Trustee for the benefit of each Secured Party.

**Section 4.2. Performance; No Default**. Each of the Alpine Parties shall have performed and complied in all material respects with all of its respective agreements and covenants contained in this Agreement and the other Basic Documents required to be performed or complied with by it prior to the Second Closing Date. Before and after giving effect to the issuance and sale of the Notes by the Issuer (and the application of the proceeds thereof as contemplated by <u>Section 6.13</u> and the other Basic Documents), no Material Event shall have occurred and be continuing.

------

**Section 4.3. Compliance Certificates**.

&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) *Officer's Certificate*. Each of the Alpine Parties shall have delivered to the Purchasers an Officer's Certificate, dated the Second Closing Date, certifying that the conditions specified in <u>Section 4</u> have been fulfilled.

&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) *Secretary's or Director's Certificate*. Each of the Alpine Parties shall have delivered to the Purchasers a certificate of its Secretary, Assistant Secretary or other Authorized Officer, dated the Second Closing Date, certifying and attaching thereto (or specifying any condition that has been waived): (i) a copy of each Organizational Document of such Alpine Party, and to the extent applicable, certified as of the Second Closing Date or a recent date prior thereto by the appropriate Governmental Authority; (ii) the names and specimen signatures of the officers or other authorized signatories of such Alpine Party who are authorized to execute documents and certificates delivered under this Agreement (with such amendments or modifications as may be approved by the Purchasers); (iii) resolutions or similar written directions or comments of the board of directors or board of managers of such Alpine Party approving and authorizing the execution, delivery and performance of this Agreement by such Alpine Party and the other applicable Basic Documents to which it is a party and, as applicable, delivery of the Notes; (iv) a good standing certificate from the applicable Governmental Authority of such Alpine Party's jurisdiction of formation (and, if currently required to be qualified as a foreign corporation therein, the State of Texas) to do business, each dated the Second Closing Date or a recent date prior thereto; and (v) such other documents as the Purchasers may reasonably request.

**Section 4.4. Opinions of Counsel**. Each Purchaser shall have received in form and substance reasonably satisfactory to such Purchaser, dated the Second Closing Date and addressed to such Purchaser and the Indenture Trustee: (a) opinions from Porter Hedges LLP ("**Porter Hedges**"), counsel for the Alpine Parties, covering certain corporate matters, the enforceability under New York and Texas law of the Basic Documents to be executed and delivered on the Second Closing Date, the creation of any security interests created thereby, perfection matters under New York and Texas law, true sale, absolute transfer and substantive consolidation matters, tax matters, securities law matters (including investment company and covered fund matters) and such other matters as each Purchaser may reasonably request; (b) memorandum of Porter Hedges regarding the U.S. Risk Retention Rules; (c) opinions from Alston and Bird, LLP, counsel for the Indenture Trustee, covering such matters as each Purchaser may reasonably request; (d) opinions from Willkie Farr & Gallagher LLP, counsel for the Back-up Manager, covering such matters as each Purchaser may reasonably request; and (e) opinions from Richards, Layton & Finger, P.A. ("**RLF**"), Delaware counsel for the Alpine Parties other than the Operators, covering certain corporate matters, the enforceability of the Holdings LLC Agreement and the Issuer LLC Agreement under Delaware law, perfection matters under Delaware law and such other matters as each Purchaser may reasonably request.

**Section 4.5. Purchase Permitted By Applicable Law, Etc.** On the Second Closing Date, such Purchaser's purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.

------

**Section 4.6. Sale and Delivery of Notes**. The Notes shall be sold by the Issuer to the Purchasers on the Second Closing Date in the manner set forth in <u>Section 3</u> hereof and shall be authenticated, executed and delivered by the Issuer to each Purchaser on the Second Closing Date. On the Second Closing Date, the Issuer shall sell to each Purchaser and each Purchaser shall, subject to the other terms of this Agreement, purchase the Notes to be purchased by it on the Second Closing Date as specified herein, including <u>Schedule B</u>.

**Section 4.7. Payment of Special Counsel Fees**; **Upfront Fee**. Without limiting <u>Section 11.1</u>, the Issuer shall have paid on or before the Second Closing Date, (i) the fees, charges and disbursements of the Purchasers' counsel and (ii) the fees required to be paid in accordance with the Alpine Side Letter relating to the Notes.

**Section 4.8. Private Placement Numbers**. Private Placement Numbers issued by Standard & Poor's CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Notes.

**Section 4.9. Changes** Each of the Alpine Parties shall not have changed its jurisdiction of formation, incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in <u>Schedule 6.3(b)</u> attached hereto, or if later, its date of formation. Since December 31, 2021, (i) there shall not have occurred any suspension or limitation of trading in securities generally on the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade or any setting of minimum or maximum prices for trading on such exchange, or a material disruption in commercial banking or securities settlement or clearance services in the United States or with respect to Clearstream or Euroclear systems in Europe; (ii) there shall not have occurred any general commercial banking moratorium declared by Federal, Delaware or New York authorities; and (iii) there shall not have occurred any outbreak or escalation of major hostilities in which the United States is involved, any declaration of war by Congress, or any other substantial national or international calamity or emergency if, in the reasonable judgment of the Purchasers, the effect of any such outbreak, escalation, declaration, calamity or emergency on the U.S. financial markets makes it impractical or inadvisable to proceed with the offering, sale of and payment for the Notes.

**Section 4.10. Funding Instructions**. Prior to the Second Closing Date (or such shorter time frame as acceptable to each Purchaser), each Purchaser shall have received written instructions signed by an Authorized Officer on letterhead of the Parent confirming the wiring instructions for the Collection Account including (i) the name and address of the transferee bank, (ii) such transferee bank's ABA number/Swift Code/IBAN and (iii) the account name and number into which the Purchase Price for the Notes is to be deposited.

------

**Section 4.11. Basic Documents**. Each of the Basic Documents to be executed and delivered on the Second Closing Date shall have been duly executed and delivered by the respective parties thereto.

**Section 4.12. Proceedings and Documents**. All corporate and other proceedings in connection with the consummation of the transactions contemplated by this Agreement and the other Basic Documents and all documents and instruments incident to the consummation of such transactions shall be satisfactory to such Purchaser and its counsel as of the Second Closing Date, and such Purchaser and its counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such counsel may reasonably request.

**Section 4.13. Interest Reserve Account Initial Deposit**. The amount deposited by the Issuer into the Interest Reserve Account after giving effect to the transactions contemplated on the Second Closing Date (which may be contemporaneously deducted from the Purchase Price with respect to the Notes and deposited into the Interest Reserve Account from the Collection Account) will be no less than the amount of the Interest Reserve Account Initial Deposit required to be deposited on the Second Closing Date.

**Section 4.14. Litigation**. There shall not exist any claim, action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, investigative, or informal) pending or, to the Knowledge of any of the Alpine Parties, threatened in any court or before any arbitrator or Governmental Authority that, singly or in the aggregate, could, if determined adversely to any Alpine Party and after taking into effect applicable insurance coverage, reasonably be expected to Materially and adversely impact (i) the issuance of the Notes, (ii) the power or right of the parties to enter into or perform their obligations under the Basic Documents, (iii) the consummation of the transactions contemplated by the Basic Documents, (iv) the purchase by the Issuer of any of the Second Wellbore Interests, or (v) the financial condition, business, operations, regulatory obligations, creditworthiness, properties or affairs of any of the Alpine Parties.

**Section 4.15. Material Adverse Change**. There shall not exist any Material Adverse Effect on the financial condition, business, operations, regulatory obligations, creditworthiness, properties (including, as to the Seller, the Second Wellbore Interests), or affairs of any of the Alpine Parties since December 31, 2021.

**Section 4.16. USA PATRIOT Act**. At least five (5) days prior to the Second Closing Date (or such shorter time frame as acceptable to each Purchaser), such Purchaser shall have received all documentation and other information with respect to the Alpine Parties required by such Purchaser under applicable "know-your-customer" and anti-money laundering rules and regulations, including the USA PATRIOT Act; *provided* that such Purchaser has provided at least ten (10) Business Day's prior written notice to the Issuer regarding the documentation and other information so required.

**Section 4.17. Reserved.** 

**Section 4.18. Reserved.**

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**Section 4.19. Security Interest**. Counsel to the Purchasers shall have received evidence satisfactory to them of the final executed copy of the Second Asset Purchase Agreement to effect the Seller's sale and transfer of its interests in the Second Wellbore Interests to the Issuer. Counsel to the Purchasers shall have received reasonably satisfactory copies of (i) UCC financing statements and final executed and recordable copies of all mortgages and deeds of trust and other instruments or documents necessary or advisable to perfect the Indenture Trustee's security interest in the Collateral and the proceeds thereof, (ii) any assignments, allonges, bond powers and other instruments or documents necessary or advisable to vest title in the Second Wellbore Interests to the Issuer and to grant a security interest in the Collateral to the Indenture Trustee, and (iii) UCC amendments and duly executed recordable release of any deeds of trust, mortgages, financing statements, fixture filings and security agreements, terminating any Liens, pledges or security interests in, to or under any of the Collateral (other than any Permitted Liens). The Issuer and Indenture Trustee shall have entered into control agreements or taken other actions for the Indenture Trustee to have a first priority perfected security interest in each of the Issuer Accounts, as provided in Section 9-104 and Section 9-106 of the UCC, as applicable.

**Section 4.20. Hedge Agreements**. The Purchasers shall have received evidence satisfactory to them of the final executed Hedge Agreements in form and substance acceptable to the Purchasers, and as promptly as possible following closing, the Issuer shall provide the Purchasers with copies of all trade confirmations in executed in connection with the issuance of the Notes.

**Section 4.21. Foreign Qualifications**. The Issuer shall have provided evidence to each Purchaser that the Issuer is qualified to conduct its business in the State of Texas. The Issuer is not required to obtain foreign qualifications in any other jurisdiction.

Delivery of an electronic counterpart of any documents by any Alpine Party under this <u>Section 4</u> (including e-mail transmission of a signed signature page of such documents) shall satisfy the requirements hereof.

**SECTION 5. RESERVED**

**SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE ALPINE PARTIES**

Each Alpine Party (both as to itself and as to each other Alpine Party, with respect to each of the representations and warranties contained in this Section 6), represents and warrants to each Purchaser that on and as of the Second Closing Date:

**Section 6.1. Organization; Power and Authority**.

&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) Each Alpine Party (i) is a corporation or limited liability company, as applicable, duly formed, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation, as applicable, and (ii) is duly qualified as a foreign corporation or limited liability company (as applicable) and is in good standing in each jurisdiction in which its ownership or lease of property or the conduct of its businesses requires such qualification or such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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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;(b) Each Alpine Party has the corporate or other organizational power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement, each other Basic Document to which it is a party and which is to be executed and delivered on the Second Closing Date, and the Notes (in the case of the Issuer) and to perform the provisions hereof and thereof.

**Section 6.2. Authorization, Etc.**

&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) This Agreement, the Notes and each other Basic Document to which any Alpine Party is a party have been duly authorized by all requisite corporate or company action on the part of such Alpine Party and have been duly executed and delivered by each such Alpine Party. This Agreement constitutes, and upon execution and delivery thereof each Note (assuming due authorization, execution and delivery thereof by the Indenture Trustee and upon authentication thereof by the Indenture Trustee at the direction of the Issuer) and each other Basic Document (assuming due authorization, execution and delivery thereof by any non-Alpine Party counterparties thereto) to which each Alpine Party is a party constitutes or will constitute, a legal, valid and binding obligation of each Alpine Party, as applicable, enforceable against such Alpine Party, as applicable, in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

&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) The execution and delivery by each Alpine Party of this Agreement and the other Basic Documents to which it is a party, (in the case of the Issuer) the issuance and sale of the Notes by the Issuer in the manner contemplated herein, and the performance by the Alpine Parties of this Agreement and the other Basic Documents to which it is a party, as applicable, will not conflict with, result in any breach of any of the terms and provisions of or constitute (with or without notice or lapse of time) a default under the certificate of incorporation, certificate of formation, memorandum and articles of association or limited liability company agreement, as applicable, of such Alpine Party.

**Section 6.3. Disclosure Materials; Financial Statements and Internal Control Framework**.

&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) The Alpine Parties have caused to be delivered or made available to each Purchaser the information set forth on <u>Schedule 6.3(a)</u> (collectively, the "**Closing Information**"). The Closing Information fairly presents, in all material respects, as of the date thereof, the general nature of the business and principal properties of the Alpine Parties other than the Operators. The Closing Information and the financial statements listed in <u>Schedule 6.3(b)</u> (collectively, the "**Disclosure Documents**"), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. The Second Wellbore Interests conformed as of the date of such descriptions, including supplements or modifications to such descriptions, in all material respects with the descriptions thereof, if any, contained in the Closing Information. Except as disclosed in the Disclosure Documents, since December 31, 2021, there has been no development or change in the financial condition, operations, business, properties or prospects of the Alpine Parties other than the Operators except changes that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. With respect to each Operator, since December 31, 2021, there has been no development or change in the financial condition, operations, business, properties or prospects of such Operator except changes that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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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;(b) The financial statements listed on <u>Schedule 6.3(b)</u> (including in each case the related schedules and notes) fairly present in all material respects the financial condition, financial performance and cash flows of the Parent and its Subsidiaries, as of the date of and for the periods presented, have been prepared in accordance with the applicable Accounting Standard consistently applied throughout the periods presented except as set forth in the notes thereto, and show all liabilities, direct and contingent, of the respective parties required to be shown in accordance with applicable Accounting Standard.

&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) Parent maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with the Applicable Accounting Standard and to maintain asset accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. To the extent applicable to Parent, Parent is in compliance in all material respects with National Instrument 52-109 - Certification of Disclosure in Issuer's Annual and Interim Filings of the Canadian Securities Administrators, as applicable to the Parent.

**Section 6.4. Organization and Ownership of the Alpine Parties**.

&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) <u>Schedule 6.4(a)</u> contains (except as noted therein), as of the date hereof, complete and correct lists of (i) the Alpine Parties and (ii) the sole members, directors or managers, as applicable, and officers of each Alpine Party.

&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) The Issuer has no, and shall not have any, Subsidiaries. Holdings has no Subsidiaries other than the Issuer.

&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) Attached as <u>Schedule 6.4(c)</u> is a true and correct depiction of the corporate organizational ownership structure of the Parent and its Subsidiaries (with certain of such Subsidiaries being referred to summary form) as of the date hereof.

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**Section 6.5. Compliance with Laws, Other Instruments, Etc.** 

&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) The execution and delivery by each Alpine Party of this Agreement and the other Basic Documents to which it is a party, (in the case of the Issuer) the issuance and sale of the Notes by the Issuer in the manner contemplated herein, and the performance by each of the Alpine Parties of this Agreement and the other Basic Documents to which it is a party, as applicable, will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of such Alpine Party under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease (other than any oil and gas lease), corporate charter, limited liability company agreement, memorandum of association, articles of association, regulations or by-laws, shareholders agreement or any other agreement or instrument to which such Alpine Party is bound or by which such Alpine Party or any of its properties may be bound or affected (other than pursuant to the Basic Documents), (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to such Alpine Party or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to such Alpine Party, except, in each case, as could not individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&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) The Issuer is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of any Alpine Party, any agreement relating thereto or any other contract or agreement (including its charter) which limits the amount of, or otherwise imposes restrictions on the incurrence of, Indebtedness of the Issuer of the type to be evidenced by the Notes (other than any such limitations or restrictions contained in the Basic Documents).

&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) Each of the Alpine Parties carry, or are covered by, insurance from insurers of recognized financial responsibility (or self-insurance) in such amounts and covering such risks as is adequate for the conduct of their respective businesses and the value of its respective properties and as is customary for companies engaged in similar businesses in similar industries, except as would not reasonably be expected to have a Material Adverse Effect. All such policies of insurance of the Alpine Parties are in full force and effect, the Alpine Parties are in compliance with the terms of such policies in all material respects, and none of the Alpine Parties nor any of Affiliates has received notice from any insurer or agent of such insurer that capital improvements or other expenditures are required or necessary to be made in order to continue such insurance, in each case, except as would not reasonably be expected to have a Material Adverse Effect. There are no claims by any Alpine Party under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause, except as would not reasonably be expected to have a Material Adverse Effect. No Alpine Party has any reason to believe that it will not be able to renew its existing insurance coverage, as when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not reasonably be expected to have a Material Adverse Effect.

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**Section 6.6. Consents, Governmental Authorizations, Etc.** No consent, permit, approval or authorization of, or order, registration, filing, qualification or declaration with, any Governmental Authority is required of any Alpine Party in connection with the execution, delivery or performance by any Alpine Party of this Agreement and the other Basic Documents to which it is a party and which are being executed and delivered on the Second Closing Date, (in the case of the Issuer) the issuance and sale of the Notes by the Issuer, or the performance by the Alpine Parties of the terms and provisions of this Agreement and the other Basic Documents to which it is a party, except for those that have been made or obtained or as required under Section 2(f) of the Management Services Agreement.

**Section 6.7. Litigation; Observance of Agreements, Statutes and Orders**.

&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) There are no actions, suits, investigations or proceedings pending or, to the Knowledge of any of the Alpine Parties, threatened against or affecting any Alpine Party or any property of any Alpine Party in any court or before any arbitrator of any kind or before or by any Governmental Authority (i) that asserts the invalidity of any Basic Document, (ii) that seeks to prevent the issuance of the Notes or transfer of any of the Second Wellbore Interests or the consummation of any of the transactions contemplated by any Basic Document to be executed and delivered on the Second Closing Date, (iii) that may adversely affect the federal or state income, excise, franchise or similar tax attributes of the Issuer or the Notes, (iv) that seeks any determination or ruling that might Materially and adversely affect the performance by any of the Alpine Parties, as applicable, of its obligations under, or the validity or enforceability of, any Basic Document or (v) that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&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) No Alpine Party is (i) in default (or any event that with notice, the passage of time or both would constitute a default) under any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority, (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in <u>Section 6.15</u>), or (iv) in default or in violation of its Organizational Documents, which, in each case, could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 6.8. Taxes**. Each of the Alpine Parties has filed all tax returns that are required to have been filed in any jurisdiction through the date hereof or has timely requested extensions thereof, and has paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which, individually or in the aggregate, is not Material or (ii) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the related Alpine Party has established adequate reserves in accordance with the applicable Accounting Standard. Such Alpine Party knows of no basis for any other tax or assessment that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of such Alpine Party in respect of U.S. federal, state or other taxes for all fiscal periods are adequate, in accordance with the applicable Accounting Standard, except to the extent of any inadequacy that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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**Section 6.9. Title to Property; Leases**(a) . Subject to the final sentence of this <u>Section 6.9</u>, each of the Alpine Parties has good and sufficient title to, leasehold interests in, or license or easement to use, its properties that individually or in the aggregate are Material, including all such properties (other than the Wellbore Interests) reflected in the most recent audited balance sheet referred to in <u>Section 6.3</u> or purported to have been acquired by such Alpine Party after such date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens other than Permitted Liens. Subject to the final sentence of this <u>Section 6.9</u>, all leases, licenses or easements of such Alpine Party that individually or in the aggregate are Material are valid and subsisting and are in full force and effect. Notwithstanding the foregoing or <u>Sections 6.19</u> or <u>6.22</u>, the Parties acknowledge and agree that (a) the parties to each of the Asset Purchase Agreements have agreed to a Title Failure (as defined in such Asset Purchase Agreement) mechanic set forth in Section 5.11 of such Asset Purchase Agreement to address any potential Title Failures identified with respect to the Wellbore Interests conveyed to the Issuer pursuant to such Asset Purchase Agreement and (b) the foregoing representations and warranties contained in this <u>Section 6.9</u> and the representations and warranties in <u>Sections 6.19</u> and <u>6.22</u> shall not be deemed to be, and the Alpine Parties make no, representations and warranties with respect to Title Failures (as defined in the applicable Asset Purchase Agreement) or otherwise to title to the Wellbore Interests, and this <u>Section 6.9</u> does not and <u>Sections 6.19</u> and <u>6.22</u> do not, and shall not be construed to, expand, replace or otherwise affect the matters set forth in Section 5.11 of either of the Asset Purchase Agreements.

**Section 6.10. Licenses, Permits, Etc.** Each of the Alpine Parties owns or possesses all consents, licenses, certificates, authorizations, permits, franchises, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, necessary to conduct the business associated with such Alpine Party's assets, except where the failure to possess such licenses, certificates, authorizations, permits, franchises, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, could not individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 6.11. Compliance with ERISA**.

&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) Each of the Alpine Parties and each ERISA Affiliate thereof have operated and administered each of their ERISA Plans in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. None of the Alpine Parties nor any ERISA Affiliate thereof maintains or contributes to or has any obligation to maintain or contribute to, any Plan that is subject to Title IV of ERISA, nor (in the case of the Issuer) does the Issuer or any ERISA Affiliate thereof have any liability under Title IV of ERISA, including any liability with respect to any Multiemployer Plan, except where such could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

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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;(b) The expected post-retirement benefit obligation (determined as of the last day of the Issuer's most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 715-60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Issuer is not Material.

&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) The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by the Issuer to each Purchaser in the first sentence of this <u>Section 6.11(c)</u> is made in reliance upon and subject to the accuracy of such Purchaser's representation in <u>Section 7.3</u> as to the sources of the funds to be used to pay the Purchase Price of the Notes to be purchased by such Purchaser.

**Section 6.12. Private Offering by the Issuer**. No Alpine Party nor anyone acting on its behalf has offered the Notes for sale to, or solicited any offer to buy the Notes from, or otherwise approached or negotiated in respect thereof with, any Person in a manner that would subject the issuance or sale of the Notes to the registration requirements of section 5 of the Securities Act or to the registration requirements of any Securities or blue sky laws of any applicable jurisdiction, including the jurisdiction of organization of the Issuer.

**Section 6.13. Use of Proceeds; Margin Regulations**. The Issuer will apply the proceeds of the issuance and sale of the Notes hereunder for the funding of the Interest Reserve Account in the amount required on the Second Closing Date, the payment of expenses and as partial consideration for the purchase of the Second Wellbore Interests. No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve any Alpine Party in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). As used in this <u>Section 6.13</u>, the terms "margin stock" and "purpose of buying or carrying" shall have the meanings assigned to them in said Regulation U.

**Section 6.14. Existing Indebtedness; Future Liens**.

&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) The Issuer has no outstanding Indebtedness (other than Permitted Indebtedness and the obligations contemplated by the Basic Documents).

&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) Except as contemplated by the Basic Documents, the Issuer has not agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness (other than Permitted Liens and the obligations contemplated by the Basic Documents) or to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness (other than Permitted Liens and the obligations contemplated by the Basic Documents).

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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;(c) The Issuer is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Issuer, any agreement relating thereto or any other agreement (including, but not limited to, its charter or any other Organizational Document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Issuer, except as provided in the Basic Documents.

**Section 6.15. Foreign Assets Control Regulations, Etc.**

&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) None of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity with respect to each Alpine Party is (i) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by the OFAC (an "**OFAC Listed Person**"), (ii) an agent, department, or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, (x) any OFAC Listed Person or (y) any Person, entity, organization, foreign country or regime that is subject to any OFAC Sanctions Program, or (iii) otherwise blocked, subject to sanctions under or engaged in any activity in violation of any U.S. Economic Sanctions Laws. None of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity with respect to any Alpine Party has been notified that its name appears or may in the future appear on a state list of Persons that engage in investment or other commercial activities in Iran or any other country that is subject to U.S. Economic Sanctions Laws.

&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) No part of the proceeds from the sale of the Notes hereunder: (A) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by such Alpine Party, any Alpine Party Affiliate or any Controlled Entity with respect to such Alpine Party, directly or indirectly, (i) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (ii) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (iii) otherwise in violation of any U.S. Economic Sanctions Laws; or (B) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws.

&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) (i) None of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity with respect to any Alpine Party (A) has violated, been found in violation of, or been charged or convicted under, any U.S. Economic Sanctions Laws or Anti-Money Laundering Laws, (B) to the Knowledge of any of the Alpine Parties, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws or Anti-Money Laundering Laws, (C) has been assessed civil or criminal penalties under any Anti-Money Laundering Laws or any U.S. Economic Sanctions Laws, or (D) has had any of its funds seized or forfeited in an action under any Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Each Alpine Party has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Alpine Parties and each Controlled Entity with respect to any Alpine Party is and will continue to be in compliance with all applicable current and future Anti-Money Laundering Laws and U.S. Economic Sanctions Laws.

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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;(d) (i) None of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity with respect to any Alpine Party (A) has violated, been found in violation of, or been charged or convicted under, any Anti-Corruption Laws, (B) to the Knowledge of any of the Alpine Parties, is under investigation by any U.S. or non-U.S. Governmental Authority for possible violation of Anti-Corruption Laws, (C) has been assessed civil or criminal penalties under any Anti-Corruption Laws or (D) has been or is a target of sanctions that have been imposed by the United Nations or the European Union;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To any of the Alpine Parties' Knowledge, none of the Alpine Parties, any Alpine Party Affiliate or any Controlled Entity has, within the last five years, directly or indirectly offered, promised, given, paid or authorized the offer, promise, giving or payment of anything of value to a Governmental Official or a commercial counterparty for the purposes of: (A) influencing any act, decision or failure to act by such Government Official in his or her official capacity or such commercial counterparty, (B) inducing a Governmental Official to do or omit to do any act in violation of the Governmental Official's lawful duty, or (C) inducing a Governmental Official or a commercial counterparty to use his or her influence with a government or instrumentality to affect any act or decision of such government or entity; in each case in order to obtain, retain or direct business or to otherwise secure an improper advantage in violation of any applicable law or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) No part of the proceeds from the sale of the Notes hereunder will be used by any Alpine Party, any Alpine Party Affiliate or any Controlled Entity with respect to such Alpine Party, directly or indirectly, for the purposes of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws; 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;(iv) Each Alpine Party has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Alpine Parties and each Controlled Entity with respect to any Alpine Party is and will continue to be in compliance with all applicable current and future Anti-Corruption Laws.

**Section 6.16. No Election**. No election has been, or will be, made or filed pursuant to which the Issuer is or will be classified as an association for U.S. federal income tax purposes under Treasury Regulation Section 301.7701-3(a).

**Section 6.17. Investment Company; Volcker**. No Alpine Party is required to be registered as an "investment company" under the 1940 Act as a result of relying on the exemption from registration set forth in Section 3(c)(9) thereunder, or other available exceptions or exclusions. Neither the Issuer nor the transactions contemplated under the Basic Documents constitute a "covered fund" for purposes of Section 619 of Dodd-Frank, otherwise known as the "Volcker Rule."

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**Section 6.18. Environmental Matters**.

&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) (i) No Alpine Party has Knowledge of any claim or received any written notice of any claim and (ii) no proceeding has been instituted asserting any claim against any Alpine Party or any of their respective real properties or other assets now or formerly owned, leased or operated by it, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.

&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) No Alpine Party has Knowledge of any facts which would give rise to any claim, public or private, of violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by any of them or to other assets of the Alpine Parties or their use, except, in each case, such as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&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) No Alpine Party has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them in a manner that constitutes a violation of any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&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) No Alpine Party has disposed of, nor to the Knowledge of the Alpine Party has any third-party retained by any Alpine Party disposed of, any Hazardous Materials on, in, or produced from any properties owned, leased or operated by such Alpine Party in a manner that constitutes a violation of any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&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) All buildings on all real properties now operated by any Alpine Party and, to the Knowledge of the Alpine Parties, all other buildings now owned or leased by any Alpine Party are in compliance with applicable Environmental Laws, except where failure to comply could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

**Section 6.19. Security Interest**. Subject to the final sentence of <u>Section 6.9</u>, after giving effect to the transactions contemplated by the Basic Documents to occur on the Initial Closing Date and the Second Closing Date, the Issuer will have valid legal and beneficial title to the Collateral, free and clear of all Liens, security interests or encumbrances other than Permitted Liens and will not have assigned to any Person any of its right, title or interest in any such Collateral other than pursuant to the Basic Documents (other than Permitted Liens).

**Section 6.20. Brokerage Fees, Etc**. Other than as contemplated by this Agreement and the Alpine Side Letter and as agreed between the Alpine Parties, the Alpine Parties are not a party to any other contract, agreement or understanding with any person or entity that would give rise to a valid claim against the Alpine Parties for a brokerage commission, finder's fee or like payment in connection with the issuance and sale of the Notes.

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**Section 6.21. Notes**. The Issuer has duly authorized, issued and executed, and shall have instructed the Indenture Trustee to authenticate, the Notes. When the Notes have been duly executed and delivered by the Issuer, authenticated by the Indenture Trustee in accordance with the Indenture and delivered and paid for pursuant to this Agreement, the Notes will be duly issued, will constitute legal, valid and binding obligations of the Issuer enforceable against the Issuer in accordance with their terms and will be entitled to the benefits and security afforded by the Indenture, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors' rights generally or by equitable principles relating to enforceability. On the Second Closing Date, the Notes will conform in all material respects to the description thereof in the Indenture.

**Section 6.22. Collateral**. The Issuer has duly authorized, executed and delivered the Indenture and, subject to the final sentence of <u>Section 6.9</u>, the Issuer has granted a security interest in the Collateral together with any assignments, allonges, bond powers and other instruments or documents relating thereto to the Indenture Trustee in accordance with the terms of the applicable Basic Documents. Subject to the final sentence of <u>Section 6.9</u>, the Issuer's grant of a security interest in the Collateral to the Indenture Trustee pursuant to the applicable Basic Documents and the filing of the UCC-1 financing statements and the Mortgages will vest in the Indenture Trustee, for the benefit of the Noteholders and the Hedge Counterparties, a first priority perfected security interest, mortgage or deed of trust therein, subject to no prior Lien, mortgage, security interest, pledge, adverse claim, charge or other encumbrance other than Permitted Liens.

**Section 6.23. Trust Indenture Act**. The Indenture is not required to be qualified under the Trust Indenture Act of 1939, as amended.

**Section 6.24. Factual Statements**. The factual statements contained in the opinions provided by Porter Hedges and RLF on the Second Closing Date that are described in <u>Section 4.4</u> are true and correct as stated therein.

**Section 6.25. Reserved.**

**Section 6.26. Reserved.**

**Section 6.27. Commission**. None of such Alpine Party or any of its Affiliates has received an order from the Commission, any state securities commission or any foreign government or agency thereof preventing or suspending the offering of the Notes, and to the best of such Alpine Party's Knowledge, no such order has been issued and no proceedings for that purpose have been instituted.

**Section 6.28. Credit Risk Retention; Dodd Frank; Exchange Act**. The Notes are not subject to the legal requirements imposed by Regulation RR of the Securities Act, 17 C.F.R. § 246.1, et seq. or by Dodd-Frank. The Issuer is not required to maintain a website pursuant to Rule 17g-5(a)(3)(iii) of the Exchange Act. The Issuer is not required to file any reports with the SEC pursuant to Rule 15Ga-2 under the Exchange Act.

**Section 6.29. Register Notes**. Subject to compliance by each Purchaser with its representations and warranties set forth in <u>Section 7</u>, it is not necessary in connection with the offer, sale and delivery of Notes to such Purchaser in the manner contemplated by the Indenture and this Agreement to register the offer and sale of such Notes under the Securities Act.

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**Section 6.30. Solvency**. Each Alpine Party is currently solvent and will be solvent at all relevant times prior to, and will not be rendered insolvent by, the transfer or sale of the Second Wellbore Interests to the Issuer under the Second Asset Purchase Agreement. The transfer of the Second Wellbore Interests under the Second Asset Purchase Agreement is not made in contemplation of insolvency and is not intended to defraud or disadvantage creditors of any Alpine Party.

**Section 6.31. Asset Purchase Representations**. Without representing or warranting as to Seller's title to the Wellbore Interests, Seller's sale to the Issuer of the Initial Wellbore Interests on the Initial Closing Date and the Second Wellbore Interests on Second Closing Date pursuant to the applicable Asset Purchase Agreements, vested or will vest in the Issuer all of Seller's right, title and interest in and to the respective Wellbore Interests, in each case subject to no prior Lien, mortgage, security interest, pledge, adverse claim, charge or other encumbrance other than Permitted Liens.

**Section 6.32. Commodity Pool Operator Representations**. The Issuer is not (i) a "commodity pool" as defined in Section 1a(10) of the Commodity Exchange Act or any rule or regulation relating thereto or any interpretation thereof by the Commodity Futures Trading Commission or (ii) a "financial end-user" as defined in either 17 CFR § 23.151 or 12 CFR § 349.2, in either such case, as such may be amended, modified or supplemented from time to time.

**SECTION 7. REPRESENTATIONS OF THE PURCHASERS**.

**Section 7.1. Purchase for Investment**. Each Purchaser severally and not jointly represents to each Alpine Party that it is (a) an "accredited investor" as defined in Rule 501(a)(1), (2), (3), or (7) of Regulation D under the Securities Act, and (b) a "qualified purchaser" (as defined in the 1940 Act) that is a "**qualified institutional buyer**" (as defined in Rule 144A under the Securities Act). Each Purchaser severally represents that it is purchasing the Notes for its own account or for one or more separate accounts of qualified purchasers that are qualified institutional buyers maintained or managed by such Purchaser and not with a view to the distribution thereof, *provided* that the disposition of such Purchaser's or their property shall at all times be within such Purchaser's or their control. Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Alpine Parties are not required to register the Notes.

**Section 7.2. Investment Risks**.

&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) Each Purchaser severally represents and warrants that: (i) such Purchaser, with the assistance of such Purchaser's advisors, understands the risks of an investment in the Notes; (ii) such Purchaser is aware that there are substantial risks incident to an investment in the Notes and such Purchaser has made an independent investment decision to purchase the Notes after conducting such investigation as such Purchaser has deemed appropriate, which has included a review of the terms of the Notes, the other Basic Documents and related matters, of the risks relating to an investment in the Notes, and of the tax, accounting and regulatory implications relating to an investment in the Notes; and (iii) such Purchaser severally represents that it has such knowledge and experience in investing in securities (including, without limitation, securities backed by commercial loan assets (including venture loans and sponsor finance loans) and related financial and business matters) and is capable of evaluating the merits and risks of investment in the Notes.

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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;(b) Each Purchaser severally represents and warrants that: (i) such Purchaser has evaluated the risks of investing in the Notes; (ii) such Purchaser has sought such accounting, legal, tax, regulatory, business, financial and investment advice as it has considered necessary to make an informed investment decision; (iii) such Purchaser understands there are substantial risks of loss incidental to the purchase of the Notes and is able to bear such risks; (iv) can afford a complete loss of its investment in the Notes; and (v) has determined that the Notes are a suitable investment for it.

&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) Each Purchaser severally represents that (i) the Issuer and the other Alpine Parties (or one or more of their affiliates) have furnished or provided such Purchaser with access to, and such Purchaser has had an opportunity to review, (A) the Closing Information and (B) such other information concerning the Notes and the underlying assets as is relevant to its decision to purchase the Notes, including the Basic Documents, (ii) such Purchaser has had the opportunity to ask questions of the Issuer and the other Alpine Parties concerning the Alpine Parties, their respective business and the terms and conditions of the Notes and the other Basic Documents, (iii) any questions arising from such Purchaser's review of such information have been answered by the Issuer or another Alpine Party (or one or more of their affiliates) to such Purchaser's satisfaction and (iv) such Purchaser has received all information, including any information regarding the underlying assets, that such Purchaser believes to be necessary or appropriate in connection with its consideration of an investment in the Notes.

&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) Each Purchaser severally represents and warrants that it is not purchasing the Notes as a result of or subsequent to (i) any advertisement, article, notice or other communications published in any newspaper, magazine or similar media (including any internet site that is not password protected) or broadcast over television or radio or (ii) any seminar or meeting whose attendees, including such Purchaser, had been invited as a result of, subsequent to or pursuant to any of the foregoing.

**Section 7.3. Source of Funds**. Each Purchaser's acquisition and holding of Notes will not cause the Issuer or its managers or equity holders to be a fiduciary under ERISA. Each Purchaser severally and not jointly represents that at least one of the following statements is an accurate representation as to each source of funds (a "**Source**") to be used by such Purchaser to pay the Purchase Price of the Notes to be purchased by such Purchaser hereunder:

&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) the Source is an "insurance company general account" (as the term is defined in the United States Department of Labor's Prohibited Transaction Exemption ("**PTE**") 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the "**NAIC Annual Statement**")) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser's state of domicile; 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;(b) the Source is a separate account that is maintained solely in connection with such Purchaser's fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account and do not constitute plan assets within the meaning of ERISA Section 3(42); 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;(c) the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Issuer in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; 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;(d) the Source constitutes assets of an "investment fund" (within the meaning of Part VI of PTE 84-14 (the "**QPAM Exemption**")) managed by a "qualified professional asset manager" or "QPAM" (within the meaning of Part VI of the QPAM Exemption), no employee benefit plan's assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM maintains an ownership interest in the Issuer that would cause the QPAM and the Issuer to be "related" within the meaning of Part VI(h) of the QPAM Exemption, and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been disclosed to the Issuer in writing pursuant to this clause (d); 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;(e) the Source constitutes assets of a "plan(s)" (within the meaning of Part IV(h) of PTE 96-23 (the "**INHAM Exemption**")) managed by an "in-house asset manager" or "INHAM" (within the meaning of Part IV(a) of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of "control" in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Issuer and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Issuer in writing pursuant to this clause (e); 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;(f) the Source is a governmental plan; 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;(g) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Issuer in writing pursuant to this clause (g); 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;(h) the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA or any plan subject to Section 4975 of the Code.

As used in this <u>Section 7.3</u>, the terms "**employee benefit plan,**" "**governmental plan,**" and "**separate account**" shall have the respective meanings assigned to such terms in section 3 of ERISA.

**Section 7.4. Power and Authority**. Each Purchaser severally represents and warrants that it has full power and authority (corporate, regulatory and other) to execute and deliver this Agreement and to purchase and hold the Notes.

**SECTION 8. INFORMATION AS TO THE ALPINE PARTIES.** 

**Section 8.1. Financial and Business Information**. The Issuer shall deliver or cause to be delivered to the Indenture Trustee on behalf each holder of a Note:

&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) Copies of the financials delivered pursuant to Section 7.01(a) and 7.01(b) of the Indenture*.*

&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) *Reserved.*

&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) *Reserved.*

&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) *Notice of Material Event* - copies of any notices delivered pursuant to Section 7.01(c) of the Indenture.

&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) *ERISA Matters* - promptly, and in any event within five (5) days after any Alpine Party becomes aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that such Alpine Party or an ERISA Affiliate thereof proposes to take with respect thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) with respect to any ERISA Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof that could reasonably be expected to have a Material Adverse Effect; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any ERISA Plan, or the receipt by such Alpine Party or any ERISA Affiliate thereof of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; 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;(iii) any event, transaction or condition that could result in the incurrence of any liability by such Alpine Party or any ERISA Affiliate thereof pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Issuer or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse Effect;

&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) *Notices from Governmental Authority* - promptly, and in any event within thirty (30) days of receipt thereof, copies of any notice to an Alpine Party from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Resignation or Replacement of Auditors* - within ten (10) days following the date on which the Issuer's or Parent's auditors resign or the Issuer or Parent elects to change auditors, as the case may be, notification thereof, together with such further information as the Majority Noteholders may reasonably request; 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;(h) *Requested Information* - with reasonable promptness, on an annual basis (unless any Material Event has occurred and is continuing), such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Alpine Parties that relates to the ability of the Alpine Parties to perform their obligations hereunder and under the Notes as from time to time may be reasonably requested in writing by the Majority Noteholders.

**Section 8.2. Officer's Certificate**. Each set of financial statements delivered to the Indenture Trustee pursuant to <u>Section 8.1(a)</u> shall be accompanied by a certificate of a Senior Financial Officer of Parent certifying that such individual has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Parent and its consolidated subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Material Event or, if any such condition or event existed or exists (including, to the Knowledge of any Alpine Party, any such event or condition resulting from the failure of an Alpine Party to comply with any Environmental Law, where such failure can reasonably be expected to constitute a Material Event), then specifying the nature and period of existence thereof and what action the Alpine Parties shall have taken or propose to take with respect thereto.

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**Section 8.3. Visitation**. Each Alpine Party shall permit the representatives of each Noteholder visitation and inspection in accordance with Section 7.02 of the Indenture.

**Section 8.4. Electronic Delivery**. Financial statements, opinions of independent certified public accountants, other information and Officer's Certificates that are required to be delivered pursuant to <u>Section 8.1</u> and <u>Section 8.2</u> shall be deemed to have been delivered if the applicable Alpine Parties satisfy any of the following requirements with respect thereto:

&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) such financial statements and related Officer's Certificate(s) satisfying the requirements of <u>Section 8.2</u> are delivered to the Indenture Trustee (for prompt further distribution to each Purchaser or any Holder of Notes) or as communicated from time to time in a separate writing delivered by the Indenture Trustee to the Alpine Parties; 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;(b) if applicable, such financial statements and related Officer's Certificate(s) satisfying the requirements of <u>Section 8.2</u> are timely posted by or on behalf of the Parent on IntraLinks or on any other similar website to which each holder of Notes has free access.

Notice or communications posted to an Internet or intranet website (including any data room containing information relating to the Alpine Parties) shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address of notification that such notice or communication is available and identifying the website address therefor.

**SECTION 9. AFFIRMATIVE COVENANTS.** 

Each Alpine Party covenants (as to itself), that from and after the date of execution of this Agreement and until no Note is outstanding:

**Section 9.1. Compliance with Laws**. Without limiting <u>Section 10.4</u>, the Issuer will comply with all laws, ordinances or governmental rules or regulations to which it is subject (including ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in <u>Section 6.15</u>), and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of its properties or to the conduct of its business, in each case, to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.2. Insurance**. The Issuer will maintain, either directly or with its Affiliates, with financially sound and reputable insurers, insurance with respect to its properties and business against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

**Section 9.3. Maintenance of Properties**. The Issuer will maintain and keep, or cause to be maintained and kept, its properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, *provided* that this <u>Section 9.3</u> shall not prevent the Issuer from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Issuer has concluded that such discontinuance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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**Section 9.4. Payment of Taxes and Claims**. The Issuer will file all tax returns required to be filed by it in any jurisdiction or timely request extensions thereof and pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent, *provided* that the Issuer does not need to pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Issuer on a timely basis in good faith and in appropriate proceedings, and the Issuer has established adequate reserves therefor in accordance with the applicable Accounting Standard on the books of the Issuer, or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

**Section 9.5. Corporate Existence, Etc.** Subject to <u>Section 10.2</u>, the Issuer will at all times preserve and keep its company existence and all rights and franchises of the Issuer in full force and effect unless, in the good faith judgment of the Issuer, the termination of or failure to preserve and keep in full force and effect such company existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect.

**Section 9.6. Books and Records**. The Issuer will maintain proper books of record and account in conformity with the applicable Accounting Standard and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Issuer. The Issuer will keep books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets. The Issuer has devised a system of internal accounting controls sufficient to provide reasonable assurances that its books, records, and accounts accurately reflect all transactions and dispositions of assets and the Issuer will continue to maintain such system.

**Section 9.7. Factual Statements**. The factual statements contained in opinions provided by Porter Hedges and RLF on the Second Closing Date that are described in <u>Section 4.4</u> shall remain true and correct as stated therein.

**Section 9.8. Closing Information**. The Issuer will promptly advise each Purchaser and its counsel of any order or communication suspending or preventing, or threatening to suspend or prevent, the offer and sale of the Notes or examinations that may lead to such an order or communication, by any authority administering any applicable laws, as soon as practicable after an Alpine Party obtains Knowledge thereof, and will use its reasonable efforts to prevent the issuance of any such order or communication or to obtain as soon as possible its lifting, if issued.

**Section 9.9. Qualifying the Notes.** Upon the request of the Purchasers, each Alpine Party will use commercially reasonable efforts to assist the Purchasers in arranging for the qualification of the Notes for sale and determination of their eligibility for investment under the laws of such jurisdictions in the United States, or as necessary to qualify for clearing through DTC, as the Purchasers shall reasonably designate from time to time and will continue to use commercially reasonable efforts to assist the Purchasers in maintaining such qualifications in effect so long as desirable for the resale thereof; provided, however, that no Alpine Party shall be required to register the Notes under the Securities Act or blue sky laws of any applicable jurisdiction or shall be required to qualify to do business in any jurisdiction where it is now not qualified or to take any action which would subject it to general or unlimited service of process in any jurisdiction in which it is now not subject to service of process.

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**Section 9.10. Reserved**.

**Section 9.11. Transfer of Assets; Recordation**. Effective as of no later than the Second Closing Date, each Alpine Party will, as applicable, have caused its books and records relating to the Collateral to be marked to show the transfers of the Wellbore Interests from the Seller to the Issuer, and the pledge of the Collateral by the Issuer to the Indenture Trustee under the Indenture, and from and after the Second Closing Date, each Alpine Party shall not take any action inconsistent with the Issuer's ownership of the Wellbore Interests, other than as expressly permitted by the Basic Documents. Each Alpine Party shall cause the recordation of each of the documents required to be recorded after the Second Closing Date under the Management Services Agreement to which it is a party, and shall provide or cause to be provided to the Purchasers evidence of recordation of such documents.

**Section 9.12. Restriction on Sale of Notes**. For the period beginning on the date of this Agreement and ending thirty (30) days after the Second Closing Date, unless waived by the Majority Noteholders, no Alpine Party or any of its respective Affiliates will offer to sell or sell notes (other than the Notes) collateralized by, or certificates evidencing an ownership or beneficial interest in, assets of the Issuer.

**Section 9.13. Securities Act**. No Alpine Party, nor any of its respective Affiliates or agents, will, directly or indirectly, make offers or sales of any Security, or solicit offers to buy any Security, under any circumstances that would require the registration of the Notes under the Securities Act. Without limitation of the foregoing, (i) no Alpine Party, nor any of its respective Affiliates or agents, will engage in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with any offer or sale of the Notes that would require the registration of the Notes under the Securities Act and (ii) no Alpine Party, nor any of its respective Affiliates or agents will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any Security (as defined in the Securities Act) the offering of which Security will be integrated with the sale of the Notes in a manner that would require the registration of the Notes under the Securities Act.

**Section 9.14. Basic Documents**. So long as any of the Notes are outstanding, notwithstanding anything else herein or in any Basic Document, no such Alpine Party shall, without the prior written consent of the Majority Noteholders, amend any of the Basic Documents in any material respect, unless such amendment is authorized and permitted under the terms of the Basic Documents, as evidenced by an Officer's Certificate of the Alpine Parties. For the avoidance of doubt, the consent right under this <u>Section 9.14</u> is in addition to any amendment requirements set forth in each Basic Document.

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**Section 9.15. Sponsor**. If applicable, to the extent required, the Alpine Parties shall comply in all respects with the requirements of the U.S. Risk Retention Rules with respect to the Notes.

**Section 9.16. Ratings on the Notes**. To the extent the Purchasers shall pursue having the Notes rated by a Rating Agency, each such Alpine Party will use commercially reasonable efforts to assist the Purchasers in obtaining such ratings. In addition, to the extent the SVO requires additional information related to the Notes, each such Alpine Party will use commercially reasonable efforts to procure such information for the Purchasers.

**SECTION 10. NEGATIVE COVENANTS**

Each Alpine Party covenants (as to itself), that from and after the date of execution of this Agreement and until no Note is outstanding:

**Section 10.1. Transactions with Affiliates**. Neither the Issuer nor Holdings will enter into directly or indirectly any transaction or group of related transactions (including, the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate, except (a) as contemplated by the Basic Documents or (b) in the ordinary course and pursuant to the reasonable requirements of the Issuer's business and upon fair and reasonable terms no less favorable to the Issuer than would be obtainable in a comparable arm's length transaction with a Person not an Affiliate.

**Section 10.2. Merger, Transfer, Consolidation, Etc.**(a)

&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) Neither the Issuer nor Holdings shall consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person (whether through a corporate distribution or otherwise), except pursuant to and in accordance with the repurchase rights under the Asset Purchase Agreements and the Management Services Agreement. Holdings shall at all times directly own all of the equity in the Issuer. At all times, all of the equity in Holdings shall be directly owned by one (and only one) of the Parent, the Manager or the Seller.

&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) Parent will not and no other Alpine Party will consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person, unless (other than with respect to the Issuer or Holdings):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease all or substantially all of the assets of such Alpine Party as an entirety, as the case may be, (a) with respect to any Alpine Party other than the Parent, shall be a solvent corporation or limited liability company organized and existing under the laws of the United States or any state thereof (including the District of Columbia), or with respect to Parent, shall be a solvent corporation or limited liability company, (b) shall have executed and delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of the Basic Documents to which such Alpine Party is a party, and (c) shall have caused to be delivered to each holder of any Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Majority Noteholders, to the effect that (1) all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof and that all conditions in the Indenture with respect to such merger, consolidation, conveyance, transfer, or lease have been satisfied and (2) such consolidation, merger, conveyance, transfer or lease of assets shall not have a Material Adverse Effect on the Notes;

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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;(ii) each Alpine Party shall reaffirm its obligations under the Basic Documents to which it is a party in writing at such time pursuant to documentation that is reasonably acceptable to the Purchasers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) immediately before and immediately after giving effect to such transaction or each transaction in any such series of transactions, no Material Event shall have occurred and be continuing; 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;(iv) no such conveyance, transfer or lease of substantially all of the assets of such Alpine Party shall have the effect of releasing any Alpine Party or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this <u>Section 10.2</u>, from its liability under this Agreement or the Notes;

provided, however, any change of ownership of an Operator that results in the Operator being a wholly owned, direct or indirect, subsidiary of HB2 shall not be subject to the provisions of this <u>Section 10.2(b)</u>.

**Section 10.3. Line of Business**. The Issuer shall not at any time engage in any business other than those related to the ownership of the Wellbore Interests and other Collateral and the transactions contemplated by the Indenture and the other Basic Documents to which it is a party and other activities reasonably related or incidental thereto; <u>provided</u>, <u>however</u>, that the Issuer shall not engage in any business or activity or enter into any contractual arrangement (other than any business or activity in which the Issuer is engaged on the Second Closing Date or any contractual arrangement provided for in, or as permitted by, the Basic Documents and arrangements entered into as a result thereof and each other document required to be executed and delivered by the Issuer in accordance with the provisions thereof) that would (i) subject the Noteholders to regulation or oversight by any Governmental Body (other than the Governmental Bodies which regulate insurance companies and, following foreclosure, regulations applicable to assets held as a result of such foreclosure) or cause the Noteholders to breach any Law or regulation or guideline of any Governmental Body or require holders to obtain a consent, waiver or clarification by any Governmental Body or (ii) cause any of the representations and warranties of the Issuer contained in any of the Basic Documents to be inaccurate as of the date made or deemed made.

**Section 10.4. Terrorism Sanctions Regulations**. No Alpine Party nor any Controlled Entity with respect to such Alpine Party will (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or any Person that is the target of sanctions imposed by the United Nations or by the European Union, (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any Noteholder or any affiliate of such holder to be in violation of, or subject to sanctions under, any U.S. Economic Sanctions Laws, Anti-Corruption Laws or Anti-Money Laundering Laws applicable to such Noteholder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws, Anti-Corruption Laws or Anti-Money Laundering Laws, or (c) engage, nor shall any Affiliate of either engage, in any activity that could subject such Person or any holder to sanctions under CISADA or any similar law or regulation with respect to Iran or any other country that is subject to U.S. Economic Sanctions Laws.

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**Section 10.5. Liens**. Neither the Issuer nor Holdings will, directly or indirectly, create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any of its property or assets (including the Collateral), whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits, except for (i) Permitted Liens or (ii) in the case of Holdings, its pledge of the Membership Interests in the Issuer pursuant to the Holdings Pledge Agreement.

**SECTION 11. EXPENSES, INDEMNIFICATION, ETC.**

**Section 11.1. Transaction Expenses**. Each of the Issuer and Holdings agrees, jointly and severally, to pay: (i) all documented out-of-pocket fees, costs or expenses, if any, of brokers and finders related to any of the Collateral or the Notes in connection with the sale of the Notes (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes ("**Excluded Broker Fees**")), (ii) any other documented out-of-pocket cost, fee or expenses in connection with any amendments, waivers or consents requested by an Alpine Party under or in respect of this Agreement, any Basic Document or the Notes (whether or not such amendment, waiver or consent becomes effective), (iii) any and all wire transfer fees that any bank or other financial institution deducts from any payment under a Note to the holder thereof or otherwise charges to a holder of a Note with respect to a payment under such Note, (iv) the reasonable and document out-of-pocket costs and expenses (including the reasonable fees) of one financial adviser to all of the Purchasers, taken together, and the reasonable and documented fees of one special outside counsel to the financial advisor and, if reasonably required by the Purchasers, one local outside counsel in each relevant jurisdiction or otherwise retained with the Issuer's consent (such consent not to be unreasonably withheld or delayed), incurred in connection with the insolvency or bankruptcy of any Alpine Party and relating to, or in connection with any work-out or restructuring of, the transactions contemplated by any Basic Document, (v) any judgment, liability, obligation, claim, order, decree, fine, penalty, cost, fee, or expenses resulting from the consummation of the transactions contemplated hereby and by the other Basic Documents, including the use of the proceeds of the Notes by the Issuer, but excluding any Excluded Broker Fees, (vi) the documented out-of-pocket costs and expenses incurred by any Purchaser in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or any Basic Document or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or any Basic Document, or by reason of being a holder of any Note (it being understood that the Indenture Trustee shall act on behalf of each Secured Party in exercising any rights with respect to the Collateral in accordance with the terms of the Basic Documents), (vii) if reasonably required by the Purchasers, the reasonable and documented out-of-pocket costs and expenses of one local outside counsel in each relevant jurisdiction or otherwise retained with the Issuer's consent (such consent not to be unreasonably withheld or delayed) in connection with the closing of the sale of the Notes, and (viii) the documented out-of-pocket costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with the SVO. If required by the NAIC, the Issuer shall obtain and maintain at its own cost and expense a Legal Entity Identifier (LEI).

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All amounts payable pursuant to this <u>Section 11.1</u> shall be paid promptly following demand but in any event within thirty (30) days following delivery of an invoice therefor by any of the Purchasers or such holder of Notes to the applicable Alpine Party.

**Section 11.2. Certain Taxes**. Each Alpine Party agrees, jointly and severally, to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery of this Agreement or any Basic Document or the execution and delivery (but not the transfer) of any of the Notes in the United States or any other jurisdiction where any Alpine Party has assets and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Alpine Parties pursuant to this <u>Section 11.2</u>, and will save each holder of a Note to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by such Alpine Parties under this <u>Section 11.2</u>.

**Section 11.3. Indemnification**.

&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) Each of Holdings and the Issuer, jointly and severally, agrees to indemnify and hold harmless each Purchaser, their respective Affiliates and their respective officers, directors, employees, advisors and agents (each, an "**Indemnified Person**") from and against any and all actual and direct losses, claims, damages and liabilities (collectively, "**Losses**") incurred or suffered by any Indemnified Person to the extent relating to any of the following, including related to any claim, litigation, investigation or proceeding relating to any of the following (whether brought by a third-party or a party to this Agreement, and regardless of whether the Indemnified Person is a party thereto), and to reimburse each Indemnified Person within thirty (30) days after demand for any reasonable and documented out-of-pocket legal expenses of such Indemnified Person, and all other reasonable and documented out-of-pocket expenses incurred in connection with, investigating or defending against any claim with respect to any of the following: (A) any acts or omissions of any of the Alpine Parties, their Affiliates or their managers, members, officers, directors, agents, advisors or employees constituting negligence, gross negligence, willful misconduct or bad faith in the performance of any of their duties under this Agreement or any Basic Document, (B) any breach or alleged breach of any representations, warranties, covenants or agreements in this Agreement or any Basic Document by the Alpine Parties, or (C) any untrue statement or alleged untrue statement of a material fact contained in any of the Closing Information, or the omission or alleged omission therefrom of a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the foregoing indemnity will not, as to any Indemnified Person, apply to Losses or related legal or other expenses to the extent they (x) are found by a final, non-appealable judgment of a court of competent jurisdiction to have been caused by the bad faith, willful misconduct or negligence of such Indemnified Person or (y) result from a claim brought by the Issuer against any Indemnified Person for breach of such Indemnified Person's representations, warranties, or obligations hereunder or under applicable law, if the Issuer has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

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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;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Parent, the Manager, the Operators and the Seller, jointly and severally, agrees to indemnify and hold harmless each Indemnified Person from and against any and all Losses incurred or suffered by any Indemnified Person to the extent relating to any of the following, including related to any claim, litigation, investigation or proceeding relating to any of the following (whether brought by a third-party or a party to this Agreement, and regardless of whether the Indemnified Person is a party thereto), and to reimburse each Indemnified Person within thirty (30) days after demand for any reasonable and documented out-of-pocket legal expenses of such Indemnified Person, and all other reasonable and documented out-of-pocket expenses incurred in connection with, investigating or defending against any claim with respect to any of the following: (A) any acts or omissions of any of the Parent, the Manager, the Operators, or the Seller, their Affiliates (other than Holdings and the Issuer), or their managers, members, officers, directors, agents, advisors or employees constituting negligence, gross negligence, willful misconduct or bad faith in the performance of any of the duties of the Parent, the Manager, the Operators, or the Seller under this Agreement or any Basic Document, (B) any breach or alleged breach of any representations, warranties, covenants or agreements in this Agreement or any Basic Document by any of the Parent, the Manager, the Operators, or the Seller, or (C) any untrue statement or alleged untrue statement of a material fact contained in any of the Closing Information, or the omission or alleged omission therefrom of a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the foregoing indemnity will not, as to any Indemnified Person, apply to Losses or related legal or other expenses to the extent they (x) are found by a final, non-appealable judgment of a court of competent jurisdiction to have been caused by the bad faith, willful misconduct or negligence of such Indemnified Person or (y) result from a claim brought by such Alpine Party or the Issuer against any Indemnified Person for breach of such Indemnified Person's representations, warranties, or obligations hereunder or under applicable law, if such Alpine Party or the Issuer has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) For purposes of this <u>Section 11.3</u>, any claim of, and Losses resulting from, any breach of any representation or warranty or covenant made by an Alpine Party in this Agreement or any Basic Document shall be determined without regard to any materiality, context of disclosure, knowledge or other similar qualification contained in or otherwise applicable to such representation, warranty or covenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding anything to the contrary in this <u>Section 11</u> or any other provision of this Agreement, nothing herein shall be interpreted to provide any guaranty of payment or performance of the Notes by any Alpine Party other than Holdings and the Issuer and Losses shall not include, and no Alpine Party (other than Holdings and the Issuer) will have any obligation to repay or satisfy, any of the Secured Obligations.

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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;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in this <u>Section 11</u> or any other provision of this Agreement, no term, condition or other provision set forth in this Agreement shall limit or otherwise impair any right or remedy provided or available to the Indenture Trustee or any other Secured Party under the Indenture.

**Section 11.4. Survival; Remedies**. The obligations of the Alpine Parties under this <u>Section 11</u> will survive the payment or transfer of any Note, the enforcement, amendment or (except as and to the extent expressly waived) waiver of any provision of this Agreement, the Indenture, any other Basic Document or the Notes, and the termination of this Agreement. The remedies provided for in this <u>Section 11</u> are not exclusive and shall not limit any rights or remedies which may otherwise be available to any Indemnified Person at law or in equity.

**SECTION 12. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT**

All indemnities and representations and warranties contained herein shall survive the execution and delivery of this Agreement, the Notes and the other Basic Documents, the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note. All statements contained in any certificate or other instrument delivered on or after the Second Closing Date by or on behalf of an Alpine Party pursuant to this Agreement shall be deemed representations and warranties of such Alpine Party under this Agreement. Subject to the preceding sentence, this Agreement, the Notes and the Basic Documents embody the entire agreement and understanding between each Purchaser and each other holder of a Note and the Alpine Parties with respect to the matters contemplated hereby and supersede all prior agreements and understandings relating to the subject matter hereof.

**SECTION 13. AMENDMENT AND WAIVER**

**Section 13.1. Requirements**. This Agreement may be amended, and the observance of any term hereof may be waived (either retroactively or prospectively), only with the written consent of the Alpine Parties and the Majority Noteholders. For the avoidance of doubt, the consent right under this <u>Section 13.1</u> regarding any amendment hereunder is in addition to any amendment requirements set forth in each Basic Document. Any draft of an amendment or waiver of this Agreement shall be provided in writing to each Purchaser.

**Section 13.2. Solicitation of Holders of Notes**.

&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) *Solicitation*. The Issuer will provide each holder of a Note with sufficient information, to enable such holder to make an informed and considered decision with respect to any amendment, waiver or consent proposed by an Alpine Party in respect of any of the provisions hereof. The Issuer will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this <u>Section 13</u> to each holder of a Note promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

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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;(b) *Payment*. Except as provided in the Basic Documents, the Issuer will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an inducement to the entering into by such holder of any waiver or amendment of any of the terms and provisions hereof or of any Basic Document or any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of a Note even if such holder did not consent to such waiver or amendment.

&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) *Consent in Contemplation of Transfer*. Any consent given pursuant to this <u>Section 13</u> or any Basic Document by a holder of a Note that has transferred or has agreed to transfer its Note to an Alpine Party, any Subsidiary or any other Affiliate of an Alpine Party in connection with such consent shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.

**Section 13.3. Binding Effect, Etc.** Any amendment or waiver consented to as provided in this <u>Section 13</u> or in any Basic Document (amended in accordance with its terms) applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Issuer without regard to whether such Note has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Material Event not expressly amended or waived or impair any right consequent thereon. No course of dealing between the any Alpine Party and any holder of a Note and no delay in exercising any rights hereunder or under any Note or any other Basic Document shall operate as a waiver of any rights of any holder of such Note.

**Section 13.4. Notes Held by any Alpine Party, Etc.** Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, any Basic Document or the Notes, or have directed the taking of any action provided herein or in any Basic Document or the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Alpine Parties or any of its Affiliates shall be deemed not to be outstanding.

**SECTION 14. NOTICES.**

Except to the extent otherwise provided in <u>Section 8.4</u>, all notices and communications provided for hereunder shall be in writing and sent (a) by registered or certified mail with return receipt requested (postage prepaid), or (b) by an internationally recognized overnight delivery service (with charges prepaid), or (c) by electronic delivery to the e-mail addresses set forth below. Any such notice must be sent:

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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;(i) if to the Indenture Trustee, to:

UMB Bank, N.A.

100 William Street, Suite 1850

New York, NY 10038

Attention:

E-Mail:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in <u>Schedule B</u>, or at such other address as such Purchaser or nominee shall have specified to the Issuer in writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Issuer in writing; 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;(iv) if to the Operators, to:

Ironroc Energy Partners LLC; Ageron Ironroc Energy, LCC

2445 Technology Forest Blvd, Suite 1010

The Woodlands, TX, 77381

Attention:

Email:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) if to any Alpine Party other than the Operators, to:

Alpine Summit Energy Partners, Inc.

3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

With copies (which shall not constitute notice) to:

Porter Hedges LLP

1000 Main, 36<sup>th</sup> Floor

Houston, TX 77002

Attention: E. James Cowen

Email: jcowen@porterhedges.com

or, in each case, at such other address as the Issuer shall have specified to the holder of each Note in writing.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received. Unless the Indenture Trustee otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement, which acknowledgement the recipient shall be obligated to promptly provide), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or other communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.

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**SECTION 15. REPRODUCTION OF DOCUMENTS**.

This Agreement and all documents relating thereto, including (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser on the Second Closing Date, and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced (except the Notes themselves). The Issuer agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This <u>Section 15</u> shall not prohibit the Issuer or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

**SECTION 16. CONFIDENTIAL INFORMATION**.

For the purposes of this <u>Section 16</u>, "**Confidential Information**" means information delivered to any Purchaser by or on behalf of the Alpine Parties in connection with the transactions contemplated by or otherwise pursuant to this Agreement or any other Basic Document that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Alpine Parties, *provided* that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser's behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Alpine Parties, provided that the source of such information is not known by such Purchaser receiving such information to be prohibited from transmitting such information to such Purchaser by a contractual, legal, fiduciary or other obligation, or (d) constitutes financial statements delivered to such Purchaser under <u>Section 8.1</u> that are otherwise publicly available. Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, *provided* that such Purchaser may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Notes), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with this <u>Section 16</u>, (iii) any other holder of any Note, (iv) any qualified institutional buyer to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this <u>Section 16</u>), (v) any Person from which it offers to purchase any Security of the Issuer (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this <u>Section 16</u>), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser's investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party or (z) to the extent such Purchaser reasonably determines such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser's Notes, this Agreement or any other Basic Document. Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this <u>Section 16</u> as though it were a party to this Agreement. On reasonable request by the Issuer in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Issuer embodying this <u>Section 16</u>. Notwithstanding anything to the contrary herein, each Purchaser may place customary advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of customary information on the Internet or worldwide web, and circulate similar promotional materials, in each case, after the Second Closing Date in the form of a "tombstone" or otherwise describing the names of the Alpine Parties and their affiliates, and the amount, type and closing date of the Notes and the Contemplated Transactions, at its own expense; provided, however, that no such tombstone, promotional announcement or other marketing material will disclose the name of any Purchaser without that Purchaser's prior written consent.

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In the event that as a condition to receiving access to information relating to any Alpine Party in connection with the transactions contemplated by or otherwise pursuant to this Agreement or any other Basic Document, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through a secure website, a secure virtual workspace or otherwise) which is different from this <u>Section 16</u>, this <u>Section 16</u> shall not be amended thereby and, as between such Purchaser or such holder and the Issuer, this <u>Section 16</u> shall supersede any such other confidentiality undertaking.

**SECTION 17. SUBSTITUTION OF PURCHASER**.

Subject to the provisions set forth in the Indenture, each Purchaser shall have the right to substitute any one of its Affiliates, Related Funds or another Purchaser or any one of such other Purchaser's Affiliates or Related Funds (a "**Substitute Purchaser**") as the purchaser of the Notes that it has agreed to purchase hereunder, by written notice to the Issuer, which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall contain such Substitute Purchaser's agreement to be bound by this Agreement and shall contain a confirmation by such Substitute Purchaser of the accuracy with respect to it of the representations set forth in <u>Section 7</u>. Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this <u>Section 17</u>), shall be deemed to refer to such Substitute Purchaser in lieu of such original Purchaser. In the event that such Substitute Purchaser is so substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the Notes then held by such Substitute Purchaser, upon receipt by the Issuer of notice of such transfer, any reference to such Substitute Purchaser as a "Purchaser" in this Agreement (other than in this <u>Section 17</u>), shall no longer be deemed to refer to such Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

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**SECTION 18. MISCELLANEOUS**.

**Section 18.1. Successors and Assigns**. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including any subsequent holder of a Note) whether so expressed or not. Except for the Indemnified Persons and the parties hereto, nothing in this Agreement is intended or shall be construed to give any other Person any rights, powers, claims, remedies or privileges hereunder. Subject to <u>Section 10.2</u>, no Alpine Party may assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of the Majority Noteholders.

**Section 18.2. Accounting Terms**. All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with the applicable Accounting Standard. Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with the applicable Accounting Standard, and (ii) all financial statements shall be prepared in accordance with the applicable Accounting Standard. For purposes of determining compliance with this Agreement (including <u>Section 9</u> and <u>Section 10</u>), any election by the Issuer to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic No. 825-10-25 - *Fair Value Option,* International Accounting Standard 39 - *Financial Instruments: Recognition and Measurement* or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.

**Section 18.3. Severability**. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

**Section 18.4. Construction, Etc.** Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

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Defined terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) subject to <u>Section 18.1</u>, any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, unless otherwise specified, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

**Section 18.5. Counterparts; Electronic Contracting**.

&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) This Agreement may be executed in any number of counterparts (including electronic PDF), each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. Each of the parties hereto agrees that the transaction consisting of this Agreement and the other Basic Documents may be conducted by electronic means (other than with respect to the Notes). Each party agrees, and acknowledges that it is such party's intent, that if such party signs this Agreement or the other Basic Documents (other than the Notes) using an electronic signature, it is signing, adopting, and accepting this Agreement and the other Basic Documents (other than the Notes), and that signing this Agreement and the other Basic Documents (other than the Notes) using an electronic signature is the legal equivalent of having placed its handwritten signature on this Agreement and the other Basic Documents (other than the Notes) on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Agreement in a usable format. Delivery of an electronic signature to, or a signed copy of, this Agreement and such other Basic Documents (other than the Notes) by facsimile, email or other electronic transmission (including Adobe "fill and sign" or such other provider as specified in writing by the Issuer) shall be fully binding on the parties to the same extent as the delivery of the signed originals and shall be admissible into evidence for all purposes. The words "execution," "execute," "signed," "signature," and words of like import in or related to any document to be signed in connection with this Agreement and the other Basic Documents (other than the Notes), or the keeping of records in electronic form, shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act of 2000, the New York State Electronic Signatures and Records Act, or any state laws based on the Uniform Electronic Transactions Act. Notwithstanding the foregoing, if any party shall request manually signed counterpart signatures to any Basic Document, each of the applicable Alpine Parties hereby agrees to use their reasonable endeavors to provide such manually signed signature pages as soon as reasonably practicable (but in any event within five days of such request or such longer period as the requesting Purchaser or other holder of a Note and the Alpine Parties may mutually agree).

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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;(b) The parties agree to electronic contracting and signatures with respect to each Note delivered hereunder in registered form. Delivery of an electronic signature to, or a signed copy of, any Note in the name of a particular Purchaser or other holder of a Note by facsimile, email or other electronic transmission and shall be fully binding on the Issuer to the same extent as the delivery of the signed original of any such Note and shall be admissible into evidence for all purposes, and the Issuer hereby expressly waives any defense related to a Purchaser's or holder's failure to present an original Note resulting from the Purchaser's or holder's failure to receive an original Note. The Issuer further agrees that it shall produce a physical, manually signed Note for delivery to each Purchaser or other holder of a Note in accordance with the instructions provided by such Purchaser or such holder as soon as reasonably practicable (but in any event within two (2) Business Days of such request or such longer period as the requesting Purchaser or holder and the Issuer may mutually agree).

**Section 18.6. Governing Law**. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD PERMIT THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

**Section 18.7. Jurisdiction and Process; Waiver of Jury Trial**. 

&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) Each party hereto irrevocably submits to the exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, each party hereto irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

&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) Each party hereto agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in <u>Section 18.7(a)</u> brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment.

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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;(c) Each party hereto consents to process being served by or on behalf of any other party in any suit, action or proceeding of the nature referred to in <u>Section 18.7(a)</u> by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in <u>Section 14</u> or at such other address of which such holder shall then have been notified pursuant to said Section. Each party hereto agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

&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) Nothing in this <u>Section 18.7</u> shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes hereto may have to bring proceedings against any other party hereto in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

&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 PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.**

**SECTION 19. RIGHT OF FIRST REFUSAL**.

So long as any of the Notes are outstanding (the "**ROFR Period**"), Kuvare shall be afforded a right of first refusal related to any transaction relating to an asset backed securitization of oil and gas wellbore interests utilizing bankruptcy remove special purpose vehicles with any Person by the Alpine Parties (including any affiliate) (a "**Restricted Transaction**"). If, at any time during the ROFR Period, an Alpine Party wishes to consummate a Restricted Transaction, the Alpine Parties shall provide written notice to Kuvare of the material financial and other terms and conditions agreed to for such Restricted Transaction (the "**ROFR Notice**"). Kuvare shall, within ten (10) Business Days of its receipt of such ROFR Notice, notify the Alpine Parties in writing of whether they want to enter into the Restricted Transaction identified in the ROFR Notice. If, by the expiration of the such ten (10) Business Day period, Kuvare has not accepted the ROFR Notice, at any time during the 180 day period following the expiration of such period, the Alpine Parties may consummate the Restricted Transaction with the counterparty identified in the ROFR Notice on the material financial and other terms and conditions that are the same or more favorable to the Alpine Parties the material financial and other terms and conditions set forth in the ROFR Notice.

\* \* \* \* \*

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If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Agreement and return it to the Issuer, whereupon this Agreement shall become a binding agreement between you and the other parties hereto.

Very truly yours,

**ALPINE SUMMIT FUNDING LLC<br>**

<br> By: <u>/s/ Craig Perry</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Craig Perry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: President and Chief Executive Officer

**HB2 ORIGINATION, LLC<br>**

<br> By: <u>/s/ Craig Perry</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Craig Perry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: President and Chief Executive Officer

**ALPINE SUMMIT ENERGY PARTNERS, INC.<br>**

<br> By: <u>/s/ Craig Perry</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Craig Perry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: President and Chief Executive Officer

**ALPINE SUMMIT FUNDING HOLDINGS LLC<br>**

<br> By: <u>/s/ Craig Perry</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Craig Perry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: President and Chief Executive Officer

**IRONROC ENERGY PARTNERS LLC**

<br> By: <u>/s/ Craig Perry</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Craig Perry

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Executive Officer

*[Signature Page to Note Purchase Agreement]*

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**AGERON IRONROC ENERGY, LLC**

By: <u>/s/ Michael McCoy</u><u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Michael McCoy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Chief Executive Officer

*[Signature Page to Note Purchase Agreement]*

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This Agreement is hereby

accepted and agreed to as

of the date hereof.

**GUARANTY INCOME LIFE INSURANCE COMPANY** 

By: Kuvare Insurance Services LP, its Investment Manager

By: <u>/s/ Faisal Kassam</u>_________________<br>Name: Faisal Kassam

Title: Authorized Signatory

**LINCOLN BENEFIT LIFE COMPANY**

By: Kuvare Insurance Services LP, its Investment Manager

By: <u>/s/ Faisal Kassam</u>_________________<br>Name: Faisal Kassam

Title: Authorized Signatory

**UNITED LIFE INSURANCE COMPANY**

By: Kuvare Insurance Services LP, its Investment Manager

By: <u>/s/ Faisal Kassam</u>_________________<br>Name: Faisal Kassam

Title: Authorized Signatory

*[Signature Page to Note Purchase Agreement]*

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<u>**SCHEDULE A**</u><br>**Defined Terms**

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term. Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the Indenture:

"**1940 Act**" means the Investment Company Act of 1940, as amended.

"**Ageron**" is defined in the preamble.

"**Agreement**" means this Agreement, including all Schedules attached to this Agreement, as it may be amended, restated, supplemented or otherwise modified from time to time.

"**Alpine Party**" is defined in the preamble.

"**Alpine Side Letter**" means, collectively, (a) the Amended and Restated Side Letter dated as of the Second Closing Date, by and between the Issuer and Kuvare Insurance Services LP and acknowledged by the purchasers party thereto and (b) the Side Letter dated as of the Second Closing Date by and between the Issuer and Kuvare Insurance Services LP and acknowledged by the Purchasers.

"**Anti-Corruption Laws**" means any Law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.

"**Anti-Money Laundering Laws**" means any Law or regulation in a U.S. or any non U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.

"**Applicable Accounting Standard**" shall have the meaning assigned to such term in the Indenture.

"**Asset Purchase Agreements**" means, collectively, the Initial Asset Purchase Agreement and the Second Asset Purchase Agreement.

"**Authorized Officer**" means, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president, vice president (or the equivalent thereof), chief financial officer, treasurer, chief investment officer, chief operating officer, chief administrative officer or chief legal officer of such Person; provided that the secretary or assistant secretary of such Person shall have delivered an incumbency certificate to the Indenture Trustee as to the authority of such Authorized Officer.

"**Blocked Person**" means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under, or engaged in any activity in violation of, U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).

Schedule A-1

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"**Business Day**" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed.

"**CISADA**" means the Comprehensive Iran Sanctions, Accountability and Divestment Act.

"**Closing Information**" is defined in <u>Section 6.3</u>.

"**Code**" means the Internal Revenue Code of 1986, as amended from time to time, and Treasury Regulations promulgated thereunder.

"**Collateral**" shall have the meaning assigned to such term in the Indenture.

"**Commission**" means the U.S. Securities and Exchange Commission.

"**Confidential Information**" is defined in <u>Section 16</u>.

"**Contemplated Transactions**" shall have the meaning assigned to such term in the Indenture.

"**Controlled Entity**" means (i) any of the Issuer's Controlled Affiliates and (ii) Parent and its Controlled Affiliates. As used in this definition, "**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms "**Controlled**" and "**Controlling**" shall have meanings correlative to the foregoing.

"**Disclosure Documents**" is defined in <u>Section 6.3</u>.

"**Dodd-Frank**" means the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Pub. L. No. 111-203, 124 Stat. 1376 (2010).

"**Environmental Laws**" shall have the meaning assigned to such term in the Asset Purchase Agreements.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

"**ERISA Affiliate**" means any trade or business (whether or not incorporated) that is treated as a single employer together with Parent or any of its Subsidiaries under section 414 of the Code.

"**Event of Default**" shall have the meaning assigned to such term in the Indenture.

Schedule A-2

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"**Excluded Broker Fees**" is defined in Section 11.1.

"**Governmental Authority**" means: (a) the government of (i) the United States of America or any state or other political subdivision thereof, or (ii) any other jurisdiction in which any Alpine Party conducts all or any part of its business, or which asserts jurisdiction over any properties of any Alpine Party; or (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

"**Governmental Official**" means any governmental official or employee, employee of any government-owned or government-controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.

"**Hazardous Materials**" shall have the meaning assigned to the term "Hazardous Substance" in the Asset Purchase Agreements.

"**holder**" means, with respect to any Note, the Person in whose name such Note is registered in the Note Register; *provided, however,* that if such Person is a nominee, then for the purposes of <u>Section 8</u>, <u>Section 13.2</u> and <u>Section 14</u> and any related definitions in this <u>Schedule A</u>, "holder" shall also mean the beneficial owner of such Note.

"**Holdings**" is defined in the preamble.

"**Indemnified Person**" is defined in <u>Section 11.3</u>.

"**Indenture**" is defined in <u>Section 1</u>.

"**Indenture Trustee**" is defined in <u>Section 1</u>.

"**INHAM Exemption**" is defined in <u>Section 7.3(e)</u>.

"**Initial Asset Purchase Agreement**" means the Asset Purchase Agreement, dated as of the Initial Closing Date, between Seller and the Issuer.

"**Initial Closing Date**" shall have the meaning assigned to such term in the Indenture.

"**Initial Wellbore Interests**" means, collectively, the "Wellbore Interests" under, and as defined in, the Initial Asset Purchase Agreement.

"**Ironroc**" is defined in the preamble.

"**Issuer**" is defined in the preamble.

"**Knowledge**" means, with respect to any Alpine Party, the actual knowledge (following reasonable inquiry of direct reports) of any Knowledge Person of such entity.

"**Knowledge Person**" means (a) with respect to Issuer and Holdings, any of the following Authorized Officers thereof (or, as applicable, their respective successors to such Authorized Officer positions): Craig Perry (President and Chief Executive Officer), Michael McCoy (Chief Operating Officer) and Darren Moulds (Chief Financial Officer), (b) with respect to the Parent, the Seller, and the Manager, any of the following Authorized Officers thereof (or, as applicable, their respective successors to such Authorized Officer positions): Craig Perry (Chairman and Chief Executive Officer), Michael McCoy (Chief Operating Officer), Darren Moulds (Chief Financial Officer), and Chris Nilan (Senior Managing Director), (c) with respect to Ironroc, any of the following Authorized Officers thereof (or, as applicable, their respective successors to such Authorized Officer positions): Craig Perry (Chief Executive Officer) and Michael McCoy (President and Chief Operating Officer), and (d) with respect to Ageron, any of the following Authorized Officers thereof (or, as applicable, their respective successors to such Authorized Officer positions): Michael McCoy (Chief Executive Officer).

Schedule A-3

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"**Kuvare**" means Kuvare Insurance Services LP.

"**Losses**" is defined in <u>Section 11.3</u>.

"**Management Services Agreement**" shall have the meaning assigned to such term in the Indenture.

"**Manager**" is defined in the preamble.

"**Material**" means material in relation to the business, operations, affairs, condition (financial or otherwise), assets or properties of the applicable Alpine Parties, taken as a whole, or are necessary for the performance of obligations under the Basic Documents.

"**Material Adverse Effect**" means, with respect to a Person, a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of such Person, (b) the ability of such Person to perform its obligations under this Agreement, the Basic Documents and the Notes, or (c) the validity or enforceability of this Agreement, a Basic Document or the Notes.

"**Material Event**" shall have the meaning assigned to such term in the Indenture.

"**Multiemployer Plan**" means any ERISA Plan that is a "multiemployer plan" (as such term is defined in section 4001(a)(3) of ERISA).

"**NAIC**" means the National Association of Insurance Commissioners or any successor thereto.

"**NAIC Annual Statement**" is defined in <u>Section 7.3(a)</u>.

"**Notes**" is defined in <u>Section 1</u>.

"**OFAC Listed Person**" is defined in <u>Section 6.15(a)</u>.

"**OFAC**" means the Office of Foreign Assets Control of the United States Department of the Treasury.

Schedule A-4

------

"**OFAC Sanctions Program**" means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.

"**Office Notice**" is defined in <u>Section 4.4</u>.

"**Officer's Certificate**" means a certificate of a Senior Financial Officer or of any other officer of the applicable Alpine Party whose responsibilities extend to the subject matter of such certificate.

"**Operator**" and "**Operators**" are defined in the preamble.

"**Organizational Documents**" of any entity means (a) in the case of a corporation, the articles or certificate of incorporation (or the equivalent of such items under state applicable law) and the bylaws of such corporation, (b) in the case of a limited liability company, the certificate or articles of existence or formation and the operating agreement of such limited liability company, (c) in the case of a limited partnership, the certificate of formation and limited partnership agreement of such limited partnership and the Organizational Documents of the general partner of such limited partnership, and (d) any equivalent documents to the foregoing under the state applicable law where such entity was organized or formed.

"**Parent**" is defined in the preamble.

"**PBGC**" means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.

‎"**Permitted Indebtedness**" shall have the meaning assigned to such term in the ‎Indenture.‎

"**Permitted Liens**" means, collectively, the "Permitted Encumbrances" under, and as defined in, each of the Asset Purchase Agreements.

"**Person**" means any individual, corporation, limited liability company, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization, business entity, Governmental Authority or government or any agency or political subdivision thereof.

"**property**" or "**properties**" means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

"**PTE**" is defined in <u>Section 7.3(a)</u>.

"**Purchase Price**" is defined in <u>Section 2(a)</u>.

"**Purchaser**" or "**Purchasers**" means each of the purchasers that has executed and delivered this Agreement to the Issuer, *provided, however,* that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to the Indenture shall cease to be included within the meaning of "Purchaser" of such Note for the purposes of this Agreement upon such transfer.

Schedule A-5

------

"**QPAM Exemption**" is defined in <u>Section 7.3.d)</u>.

"**Rating Agency**" shall have the meaning assigned to such term in the Indenture.

"**Porter Hedges**" is defined in <u>Section 4.4</u>.

"**Related Fund**" means, with respect to any holder of any Note, any fund or entity that (i) invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.

"**Restricted Transaction**" is defined in <u>Section 19</u>.

"**ROFR Notice**" is defined in <u>Section 19</u>.

"**ROFR Period**" is defined in <u>Section 19</u>.

"**RLF**" is defined in <u>Section 4.4</u>.

"**Second Asset Purchase Agreement**" means the Asset Purchase Agreement, dated as of the Second Closing Date, between Seller and the Issuer.

"**Second Closing Date**" shall have the meaning assigned to such term in the Indenture.

"**Second Wellbore Interests**" means, collectively, the "Wellbore Interests" under, and as defined in, the Second Asset Purchase Agreement.

"**Secured Parties**" shall have the meaning assigned to such term in the Indenture.

"**Securities**" or "**Security**" shall have the meaning specified in section 2(1) of the Securities Act.

"**Securities Act**" means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

"**Seller**" is defined in the preamble.

"**Senior Financial Officer**" means the chief financial officer, principal accounting officer, treasurer or comptroller of any Alpine Party (as applicable).

"**Source**" is defined in <u>Section 7.3</u>.

"**Substitute Purchaser**" is defined in <u>Section 17</u>.

"**SVO**" means the Securities Valuation Office of the NAIC or any successor to such Office.

Schedule A-6

------

"**Treasury Regulations**" shall mean regulations, including proposed or temporary regulations, promulgated under the Code. References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations.

"**U.S. Economic Sanctions Laws**" means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.

"**U.S. Risk Retention Rules**" means risk retention regulations in 17 C.F.R. Part 246 as such regulation may be amended from time to time and subject to such clarification and interpretation as have been provided by the Commission in an adopting release or by the staff of the Commission, or as may be provided in writing by the Commission or its staff from time to time.

"**USA PATRIOT Act**" means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (signed into law October 26, 2001), as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

"**Wellbore Interests**" means, collectively, the Initial Wellbore Interests and the Second Wellbore Interests.

Schedule A-7

------

## Exhibit 10.7

------

***Execution Version***

**Asset Purchase Agreement**

**Dated September 12, 2022, By And Between**

**Alpine Summit funding LLC, and**

**HB2 Origination, LLC**

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [**ARTICLE 1 DEFINITIONS**](#page_5) | [**1**](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.01 Definitions](#page_5) | [1](#page_5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.02 Interpretation](#page_21) | [17](#page_21) |
| [**ARTICLE 2 SALE AND TRANSFER OF WELLBORE INTERESTS; CLOSING**](#page_22) | [**18**](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.01 Sale and Purchase](#page_22) | [18](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.02 Purchase Price; Closing Settlement Statement](#page_22) | [18](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.03 Costs and Expenses](#page_22) | [18](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.04 Intention of the Parties](#page_22) | [18](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.05 Closing](#page_23) | [19](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.06 Closing Obligations](#page_23) | [19](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.07 Allocations and Adjustments](#page_24) | [20](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.08 Assumption](#page_25) | [21](#page_25) |
| [**ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER**](#page_26) | [**22**](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.01 Organization and Good Standing](#page_26) | [22](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.02 Authority](#page_26) | [22](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.03 No Conflict](#page_27) | [23](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.04 Taxes](#page_27) | [23](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.05 Legal Proceedings; Orders](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.06 Brokers](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.07 Compliance with Legal Requirements and Governmental Authorizations](#page_28) | [24](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.08 Take-or-Pay Arrangements](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.09 Preferential Rights and Consents](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.10 Plugging and Abandonment](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.11 Timely Payment](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.12 Imbalances](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.13 Reserve Report](#page_29) | [25](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.14 Environmental Matters](#page_30) | [26](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.15 Wells](#page_30) | [26](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.16 Compliance with Leases and Applicable Easements](#page_31) | [27](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.17 Material Contracts](#page_31) | [27](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.18 Compliance with Material Contracts; Necessary Contracts](#page_31) | [27](#page_31) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.19 Non-Consent Operations](#page_32) | [28](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.20 Suspense Funds](#page_32) | [28](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.21 Hedges](#page_32) | [28](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.22 Bankruptcy](#page_32) | [28](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.23 Current Commitments](#page_32) | [28](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.24 Sufficiency of Assets](#page_33) | [29](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.25 Burdens](#page_33) | [29](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.26 Security Agreements](#page_33) | [29](#page_33) |
| [**ARTICLE 4 POST-CLOSING COVENANTS AND OBLIGATIONS**](#page_33) | [**29**](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.01 Books and Records](#page_33) | [29](#page_33) |
| [**ARTICLE 5 INDEMNIFICATION; REMEDIES**](#page_33) | [**29**](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.01 Survival](#page_33) | [29](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.02 Indemnification and Payment of Damages by Seller](#page_33) | [29](#page_33) |

---

i

------

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.03 Indemnification and Payment of Damages by Issuer](#page_34) | [30](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.04 Materiality and Knowledge; Limitations](#page_34) | [30](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.05 Exclusive Remedy](#page_34) | [30](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.06 Compliance with Express Negligence Rule](#page_35) | [31](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.07 Limitations of Liability](#page_35) | [31](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.08 No Duplication](#page_35) | [31](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.09 Third Party Claims](#page_36) | [32](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.10 Direct Claims.](#page_36) | [32](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.11 Title Matters](#page_37) | [33](#page_37) |
| [**ARTICLE 6 GENERAL PROVISIONS**](#page_40) | [**36**](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.01 Expenses.](#page_40) | [36](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.02 Notices.](#page_40) | [36](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.03 Jurisdiction; Service of Process](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.04 Waiver of Jury Trial](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.05 Further Assurances](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.06 Waiver](#page_41) | [37](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.07 Entire Agreement and Modification](#page_42) | [38](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.08 Assignments, Successors, and Third-Party Rights](#page_42) | [38](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.09 Severability](#page_42) | [38](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.10 Governing Law](#page_42) | [38](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.11 Counterparts](#page_43) | [39](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.12 Confidentiality](#page_43) | [39](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.13 No Recourse](#page_43) | [39](#page_43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.14 Issuer's Obligations](#page_44) | [40](#page_44) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.15 No Petition](#page_44) | [40](#page_44) |

---

ii

------

<u>**EXHIBITS AND SCHEDULES**</u>

---

| |
|:---|
| Exhibit A Schedule of Wells |
| Exhibit B Schedule of Leases |
| Exhibit C Excluded Assets |
| Exhibit D Form of Wellbore Assignment and Bill of Sale |
| Exhibit E Form of Management Services Agreement |
| Exhibit F Form of Joint Operating Agreement |
| Exhibit G Form of Precautionary Mortgage |
| Schedule 3.04 Taxes |
| Schedule 3.05 Legal Proceedings; Orders |
| Schedule 3.07 Compliance with Legal Requirements and Governmental Authorizations |
| Schedule 3.09 Preferential Rights; Consents |
| Schedule 3.12 Imbalances |
| Schedule 3.14 Environmental Matters |
| Schedule 3.15 Wells |
| Schedule 3.16 Compliance with Leases |
| Schedule 3.17 Material Contracts |
| Schedule 3.23 Current Commitments |
| Schedule 3.25 Burdens |

---

iii

------

<u>**ASSET PURCHASE AGREEMENT**</u>

This Asset Purchase Agreement (this "<u>**Agreement**</u>") is made as of September 12, 2022 (the "<u>**Closing Date**</u>"), by and between (i) HB2 Origination, LLC, a Delaware limited liability company ("<u>**Seller**</u>"), and (ii) Alpine Summit Funding LLC, a Delaware limited liability company ("<u>**Issuer**</u>"). Seller and Issuer are sometimes hereinafter referred to individually as a "<u>**Party**</u>" and collectively as the "<u>**Parties**</u>."

**RECITALS**

WHEREAS, Seller desires to sell to Issuer, and Issuer desires to purchase from Seller, the Wellbore Interests (as defined herein).

**AGREEMENT**

For and in consideration of the promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:

**ARTICLE 1**<br>**DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.01 <u>**Definitions**</u> For purposes of this Agreement, in addition to other capitalized terms defined in this Agreement, the following terms have the meanings specified or referred to in this <u>ARTICLE 1</u> when capitalized:

"<u>**Affiliate**</u>" (including its derivatives and similar terms) means, when used with respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person. For purposes of this Agreement, (a) solely for purposes of this Agreement and the other applicable Basic Documents (and notwithstanding that such entities are not affiliates in fact of one another), each Operator shall be deemed to be an Affiliate of Seller, and (b) Seller and its subsidiaries (other than Issuer and its subsidiaries), on the one hand, and Issuer and its subsidiaries, on the other hand, shall not be considered Affiliates of one another.

"<u>**Affiliate Contracts**</u>" means those Contracts between Issuer or Seller, on the one hand, and any Affiliate of Seller on the other hand, but excluding the Basic Documents and Ancillary Agreements.

"<u>**Agreement**</u>" has the meaning set forth in the preamble to this Agreement.

"<u>**Allocation Schedule**</u>" has the meaning set forth in <u>Section 2.07(d)</u>.

"<u>**Ancillary Agreements**</u>" means all agreements (other than this Agreement) entered into by Issuer and/or Seller (but as to which no Third Party is a party) in connection with the Contemplated Transactions.

"<u>**Applicable Contracts**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Applicable Easements**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Asset Taxes**</u>" means ad valorem, property, severance, production, sales, use and similar Taxes based upon or measured by the ownership or operation of the Wellbore Interests, the production of Hydrocarbons therefrom or the receipt of proceeds therefrom (excluding, for the avoidance of doubt, any income, franchise or similar Taxes and Transfer Taxes).

"<u>**Assumed Hedge Contracts**</u>" means all Hedge Contracts that are assumed by, or novated to, the Issuer.

------

"<u>**Assumed Liabilities**</u>" has the meaning set forth in <u>Section 2.08</u>.

"<u>**Basic Documents**</u>" has the meaning set forth in the Indenture.

"<u>**Burden**</u>" means any and all royalties (including lessors' royalties and non-participating royalties), overriding royalties, reversionary interests, net profits interests, production payments and other burdens upon, measured by or payable out of production.

"<u>**Business Day**</u>" means any day (other than a Saturday or Sunday) on which commercial banks in New York, New York are generally open for business.

"<u>**Buy-Out Price**</u>" means, for any Wellbore Interest, an amount equal to (i) the value ascribed to the Wellbore Interest in the applicable Well on the most recent Indenture Reserve Report *less* (ii) the following net amount, with each payment or offset discounted at a discount rate of 10% from the Effective Time through the date the payment or offset was made: (a) revenues received by Issuer for production from such Well from and after the date of that Indenture Reserve Report *less* (b) costs and expenses associated with the maintenance and operation of such Well from and after the date of that Indenture Reserve Report.

"<u>**Cash Purchase Price**</u>" has the meaning set forth in <u>Section 2.02</u>.

"<u>**Central Prevailing Time**</u>" means, with respect to any particular time in question, Central Standard Time or Central Daylight Time in effect at such time.

"<u>**Claim**</u>" means any notice, claim, demand, allegation, cause of action, chose in action, or other communication alleging or asserting any Liability or seeking contribution, indemnification, cost recovery, or compensation for Damages or injunctive or other equitable relief.

"<u>**Closing**</u>" means the closing of the Contemplated Transactions.

"<u>**Closing Date**</u>" has the meaning set forth in the preamble to this Agreement.

"<u>**Closing Documents**</u>" means the Issuer's Closing Documents and the Seller's Closing Documents.

"<u>**Code**</u>" means the Internal Revenue Code of 1986, as amended from time to time, and Treasury Regulations promulgated thereunder.

"<u>**Completed Depths**</u>" means, with respect to a Wellbore Interest, the geological zone and depth open to production and from which Hydrocarbons are being produced from the applicable Well as of the Effective Time.

"<u>**Consent**</u>" means any approval, consent, ratification, waiver, or other authorization or expiration of the period for the same (including any Governmental Authorization) from any Person that is required to be obtained in connection with the execution or delivery of this Agreement or the consummation of the Contemplated Transactions; *provided*, *however*, "Consent" does not include any Preferential Purchase Right.

"<u>**Contemplated Transactions**</u>" means all of the transactions contemplated by this Agreement.

"<u>**Contract**</u>" means any contract, agreement or other legally binding arrangement, whether oral or in writing; *provided*, *however*, "Contracts" does not include any Leases or any other instrument creating any oil and gas mineral interest or other real property interest.

"<u>**Control**</u>" and its derivatives shall mean, with respect to any Person, the possession, directly or indirectly, of the power to exercise or determine the voting of more than 50% of the voting rights in a corporation, and, in the case of any other type of entity, the right to exercise or determine the voting of more than 50% of the equity interests having voting rights, or otherwise to direct or cause the direction of the management and policies of such Person, whether by Contract or otherwise.

------

"<u>**Conveyances**</u>" means the instruments of conveyance transferring title of the Wellbore Interests to Issuer. At Closing, the Parties shall execute, acknowledge, and deliver one (1) original of a Wellbore Assignment and Bill of Sale substantially in the form of <u>Exhibit D</u> for each county in which the Wellbore Interests are located.

"<u>**Conveyed Claims**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**COPAS**</u>" means the Council of Petroleum Accountants Societies.

"<u>**Covered Liabilities**</u>" means the Seller Covered Liabilities or the Issuer Covered Liabilities, as applicable.

"<u>**Custody Transfer Points**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Customary Post-Closing Consents**</u>" has the meaning set forth in the definition of "Permitted Encumbrances".

"<u>**Damages**</u>" means any and all claims, demands, payments, charges, judgments, assessments, losses, liabilities, damages, penalties, fines, expenses, costs, fees, settlements, and deficiencies, including any reasonable attorneys' fees, legal, and other costs and expenses suffered or incurred therewith, including liabilities, costs, losses and damages for personal injury or death or property damage or environmental damage or remediation.

"<u>**Defensible Title**</u>" means such title of Seller (immediately before the Closing) and Issuer (as of immediately after the Closing) to each Wellbore Interest in a Well and the applicable Lease that, subject to Permitted Encumbrances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) obligates Seller (as of immediately prior to the Closing) and Issuer (as of immediately after the Closing), as to such Wellbore Interest, to bear not more than the Working Interest set forth for such Wellbore Interest in <u>Exhibit A</u> as to the Completed Depths for such Wellbore Interest, throughout the duration of the productive life of the applicable Well and the plugging, abandonment or salvage thereof, except (i) to the extent any increase in the Working Interest is accompanied by a proportionate increase in Seller's Net Revenue Interest in such Wellbore Interest, and (ii) increases resulting from contribution requirements provided for under applicable operating agreements with respect to defaulting co-owners other than Seller or its Affiliates for defaults occurring after the Closing Date or reflected on <u>Exhibit A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) entitles Seller (as of immediately prior to the Closing) and Issuer (as of immediately after the Closing), as to such Wellbore Interest, to not less than the Net Revenue Interest set forth for such Wellbore Interest in <u>Exhibit A</u> as to the Completed Depths for such Wellbore Interest, throughout the duration of the productive life of the applicable Well and the plugging, abandonment or salvage thereof, except decreases resulting from rights of Third Parties to make up past underproduction or pipelines to make up past under deliveries; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is free and clear of all Encumbrances.

"<u>**Discharge Date**</u>" means the date on which the Indenture is satisfied and discharged in accordance with Article XI of the Indenture.

------

"<u>**Effective Time**</u>" means 12:01 a.m., Central Prevailing Time on September 1, 2022.

"<u>**Encumbrance**</u>" means any equitable interest, privilege, lien, charge, pledge, mortgage, deed of trust, production payment, collateral assignment, security interest, attachment, right of first refusal, option, easement, covenant, encroachment, Burden, defect or irregularity in title, or other arrangement or encumbrance substantially equivalent to any of the foregoing or other adverse claim whatsoever.

"<u>**Environmental Defect**</u>" means an event or condition with respect to any Wellbore Interest which causes (or would, if known, cause) any Wellbore Interest to be subject to any Liability or remediation obligation, in each case, under any Environmental Law.

"<u>**Environmental Law**</u>" means any Legal Requirement relating to the environment, natural resources, health and safety, Hazardous Substances, industrial hygiene, or environmental conditions on, under, or about any applicable property, including soil, groundwater, surface water, soil gas, and indoor and ambient air conditions, or the reporting, investigation or remediation of environmental contamination and includes the Comprehensive Environmental Response, Compensation and Liability Act, including the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. § 9601 <u>et</u> <u>seq</u>.; the Resource Conservation and Recovery Act, including the Hazardous and Solid Waste Amendments Act of 1984, 42 U.S.C. § 6901 <u>et</u> <u>seq</u>.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 <u>et</u> <u>seq</u>.; the Clean Air Act, 42 U.S.C. § 7401 <u>et</u> <u>seq</u>.; the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 <u>et</u> <u>seq</u>.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 through 2629; the Oil Pollution Act, 33 U.S.C. § 2701 <u>et</u> <u>seq</u>.; the Emergency Planning and Community Right to Know Act, 42 U.S.C. § 11001 <u>et</u> <u>seq</u>.; the Safe Drinking Water Act, 42 U.S.C. §§ 300f through 300j; the Rivers and Harbors Act of 1899, 33 U.S.C. § 401 <u>et</u> <u>seq</u>.; and the Occupational Safety and Health Act, 29 U.S.C. § 651 <u>et</u> <u>seq</u>.; as any of the foregoing may be amended as of the Closing, as well as common law.

"<u>**Environmental Liabilities**</u>" means any Liability or other responsibility arising from or under either an Environmental Law or a Third Party Claim relating to the environment, and which relates to the ownership or operation of the Wellbore Interests.

"<u>**Environmental Matters**</u>" means the effect of, or any matters covered by or constituting, Environmental Defects, Environmental Laws, or Environmental Liabilities.

"<u>**Excluded Assets**</u>" has the meaning set forth in <u>Exhibit C</u>.

"<u>**GAAP**</u>" means generally accepted accounting principles.

"<u>**Gathering Facilities**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Governmental Authorization**</u>" means any approval, consent, license, permit, certificate, clearance, franchise, Order, registration, variance, exemption, waiver, or other authorization issued, granted, given, or otherwise made available by or under the authority of any Governmental Body or pursuant to any Legal Requirement.

"<u>**Governmental Body**</u>" means any (a) nation, state, county, city, town, village, district, or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign, tribal or other government; (c) governmental, quasi-governmental, regulatory or administrative authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal); (d) multi-national organization or body; (e) arbitral panel, commission, body or other authority exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature; or (f) any court or governmental tribunal, including any tribal authority having or asserting jurisdiction.

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"<u>**Hazardous Substance**</u>" means any waste, chemical, material or other substance that is listed, defined, designated or classified as hazardous, radioactive or toxic or a pollutant or a contaminant under any Environmental Law, or otherwise regulated under any Environmental Law, including petroleum and all derivatives thereof, asbestos or asbestos-containing materials in any form or condition, and polychlorinated biphenyls.

"<u>**Hedge Contract**</u>" means any Contract to which Seller or any of its Affiliates is a party with respect to any swap, forward, future or derivative transaction or option or similar agreement, whether exchange traded, "over-the-counter" or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions, in each case, with respect to or encumbering any of the Wellbore Interests.

"<u>**Holdings**</u>" means Alpine Summit Funding Holdings LLC, a Delaware limited liability company, which is a direct subsidiary of Seller and the direct parent entity of Issuer.

"<u>**Hydrocarbons**</u>" means oil, gas, carbon dioxide and other hydrocarbons produced or processed in association therewith (whether or not such item is in liquid or gaseous form), including all crude oils, condensates and natural gas liquids at atmospheric pressure and all gaseous hydrocarbons (including wet gas, dry gas and residue gas) or any combination thereof, and any minerals produced in association therewith.

"<u>**Imbalance**</u>" or "<u>**Imbalances**</u>" shall mean any over-production, under-production, over-delivery, under-delivery or similar imbalance of Hydrocarbons produced from or allocated to the Wells regardless of whether such over-production, under-production, over-delivery, under-delivery or similar imbalance arises at the platform, wellhead, pipeline, gathering system, transportation system, processing plant or other location.

"<u>**Indemnified Party**</u>" has the meaning set forth in <u>Section 5.09</u>.

"<u>**Indemnifying Party**</u>" has the meaning set forth in <u>Section 5.09</u>.

"<u>**Indenture**</u>" means that certain Amended and Restated Indenture dated of even date herewith by and between Issuer and the Indenture Trustee.

"<u>**Indenture Reserve Report**</u>" means the "Reserve Report" as defined in the Indenture, which, until the date of delivery of a subsequent "Reserve Report" under the Indenture, will be the Reserve Report as defined herein.

"<u>**Indenture Trustee**</u>" means UMB Bank N.A., a national banking association.

"<u>**Independent Expert**</u>" has the meaning set forth in <u>Section 5.11(f)</u>.

"<u>**Independent Expert Decision**</u>" has the meaning set forth in <u>Section 5.11(f)</u>.

"<u>**Initial Asset Purchase Agreement**</u>" means the Asset Purchase Agreement dated as of April 29, 2022, by and between Seller and Issuer.

"<u>**Initial Reserve Engineers**</u>" means Austin Consulting Petroleum Engineers Inc.

"<u>**Issuer**</u>" has the meaning set forth in the preamble to this Agreement.

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"<u>**Issuer Books and Records**</u>" means, **INSOFAR AND ONLY INSOFAR** as relating to the Wellbore Interests, the following: all lease files; land files, including unrecorded agreements related thereto; well files; division order files; abstracts; title opinions; land surveys; logs; maps; and other books, records, data, files, and accounting records; but, in each case, excluding any and all (a) books, records, data, files, maps, and accounting records to the extent disclosure or transfer is restricted or prohibited by third-party agreement or applicable Legal Requirements, (b) attorney-client privileged communications and work product of Seller's legal counsel (other than title opinions), (c) reserve studies and evaluations, and (d) records relating to the negotiation and consummation of the acquisition of the Wellbore Interests pursuant to this Agreement.

"<u>**Issuer Indemnity Group**</u>" has the meaning set forth in <u>Section 5.02</u>.

"<u>**Issuer's Closing Documents**</u>" means the documents executed and/or delivered by Issuer at the Closing.

"<u>**Joint Operating Agreement**</u>" shall mean the Amended and Restated Joint Operating Agreement by and between Issuer and Operators, in the form attached hereto as <u>Exhibit F</u>.

"<u>**Knowledge**</u>" means the actual knowledge (without any duty of inquiry) of any of the following Representatives of Seller: Craig Perry (Chairman and Chief Executive Officer), Michael McCoy (Chief Operating Officer), Darren Moulds (Chief Financial Officer), and Chris Nilan (Senior Managing Director).

"<u>**Lands**</u>" has the meaning set forth in the definition of "Leases".

"<u>**Leases**</u>" means all oil and gas leases, subleases, mineral fees, leaseholds, and other similar interests of Seller covering or contributing to Seller's interest in any Well, including all interests set forth on <u>Exhibit A</u> and all of Seller's applicable working interests, leasehold interests, overriding royalty interests, royalty interests, net profits interests, carried interests, and similar rights and interests in the lands covered by such leases and the lands pooled, unitized, or communitized with the lands covered by such leases (those lands, collectively, the "<u>**Lands**</u>").

"<u>**Legal Requirement**</u>" means any federal, state, local, municipal, foreign, international, multinational or other law (including common law), Order, code, constitution, ordinance, rule (including rules of common law), regulation, statute, treaty (including any income tax treaty), license, permit, authorization, approval, consent, decree, injunction, binding judicial or administrative interpretation or other legally enforceable directive or requirement, in each case, enacted, promulgated, issued or entered by a Governmental Body.

"<u>**Liabilities**</u>" shall mean all debts, guarantees, assurances, commitments, liabilities, responsibilities, costs, expenses, damages, fines, penalties, deficiencies, settlements, sanctions, interest and obligations of any nature or kind (including legal and accounting fees and expenses and costs of investigation and litigation and damages for personal injury or death or property damage), whether accrued or fixed, absolute or contingent, matured or unmatured, liquidated or unliquidated, or known or unknown, and including those arising under any Legal Requirement or action and those arising under any Contract, agreement, obligation, indenture, instrument, lease, promise, arrangement, release, warranty, commitment or undertaking, or any equitable relief that is imposed, including any reasonable attorneys' fees, legal, and other costs and expenses suffered or incurred therewith.

"<u>**Majority Noteholders**</u>" has the meaning set forth in the Indenture.

"<u>**Management Services Agreement**</u>" means the Amended and Restated Management Services Agreement by and between Issuer and Seller, in the form attached hereto as <u>Exhibit E</u>.

"<u>**Material Contracts**</u>" has the meaning set forth in <u>Section 3.17</u>.

"<u>**Midstream Contracts**</u>" has the meaning set forth in <u>Section 3.17</u>.

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"<u>**Net Revenue Interest**</u>" means, for any Wellbore Interest, the holder's share of the Hydrocarbons produced, saved and marketed therefrom (after satisfaction of all Burdens).

"<u>**Non-Party Affiliate**</u>" has the meaning set forth in <u>Section 6.13</u>.

"<u>**Noteholders**</u>" has the meaning set forth in the Indenture.

"<u>**Operator**</u>" means each of (a) Ironroc Energy Partners LLC, a Texas limited liability company, solely in its capacity as operator under the Joint Operating Agreement of that portion of the Contract Area (as defined in the Joint Operating Agreement) not constituting the Ageron Contract Area (as defined in the Joint Operating Agreement), and (b) Ageron Ironroc Energy, LLC, solely in its capacity as operator under the Joint Operating Agreement of the Ageron Contract Area.

"<u>**Order**</u>" means any award, decision, injunction, judgment, order, ruling, subpoena, or verdict entered, issued, made, or rendered by any court, administrative agency, or other Governmental Body or by any arbitrator.

"<u>**Organizational Documents**</u>" means (a) the Articles or certificate of incorporation and the bylaws of a corporation; (b) the Articles of organization and regulations of a limited liability company; (c) the certificate of limited partnership and limited partnership agreement of a limited partnership; and (d) any amendment to any of the foregoing.

"<u>**Party**</u>" and "<u>**Parties**</u>" has the meaning set forth in the preamble to this Agreement.

"<u>**Permitted Consent**</u>" means any Consent (a) that is a Customary Post-Closing Consent, (b) required under any applicable maintenance of uniform interest provision under any joint operating agreement, or (c) with respect to which (i) such Consent may not be unreasonably withheld pursuant to the express terms of the applicable Lease or Contract, provided that a request for Consent shall have been provided at least 5 Business Days before the Closing in accordance with the terms of the applicable Lease or Contract and such Person shall not have responded and denied or refused to provide such Consent, and (ii) there is no provision in the applicable Lease or Contract expressly stating that an assignment (including by operation of Legal Requirements) in violation thereof (1) is null, unenforceable, void or voidable, (2) triggers the payment of specified liquidated damages, or (3) causes termination or provides a right of termination to a Person other than Seller (and after Closing, Issuer) of the applicable Lease, Applicable Easement, or Contract.

"<u>**Permitted Encumbrance**</u>" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Encumbrances for Taxes that are not yet due and payable or that are being contested in good faith by appropriate Proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the terms and conditions of, and all Encumbrances arising under, (i) all Applicable Contracts and Leases, except with respect to any such Encumbrances arising thereunder and securing amounts past due, and (ii) all Assumed Hedge Contracts and Basic Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Consents or Preferential Purchase Rights with respect to which prior to Closing (i) waivers or consents have been obtained from the appropriate Person, or (ii) the applicable period of time for asserting such rights has expired without any exercise of such rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Permitted Consents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights-of-way, permits, surface leases, and other similar rights on, over, or in respect of any of the Wellbore Interests to the extent they do not materially impair the use, ownership or operation of the Wells, Applicable Easements, and Leases as currently used, owned, and operated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) vendor's, materialman's, mechanic's, repairman's, carrier's, warehousemen's, workmen's, construction or other like liens arising by operation of law in the ordinary course of business or incident to the construction or improvement of any property in respect of obligations which are not yet due or delinquent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all rights to consent by, required notices to or filings with Governmental Bodies in connection with the conveyance of the Wellbore Lease Rights to Issuer if the same are customarily sought and received after assignment, disposition or transfer of interests therein (collectively, "<u>**Customary Post-Closing Consents**</u>"), and Customary Post-Closing Consents shall include any consents required in connection with the sale, disposition, transfer, or conveyance of federal, state, tribal, or other governmental oil and gas leases or interests therein or related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) defects or irregularities in the chain of title: (i) consisting of the failure to recite marital status or omissions of heirship Proceedings in documents; (ii) arising out of lack of evidence of, or other defects with respect to, authorization, execution, delivery, acknowledgement, or approval of any instrument in Seller's chain of title unless Issuer provides affirmative evidence that such action did not occur and has resulted in a claim of superior title from a Third Party; (iii) resulting from lack of survey, unless a survey is expressly required by applicable Legal Requirements; (iv) resulting from failure to record rights-of-way, releases of liens, production payments, or mortgages that have expired by their own terms or the enforcement of which are barred by the applicable statute(s) of limitations or prescription; or (v) resulting from or related to probate proceedings or the lack thereof that have been outstanding for ten (10) years or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) conventional rights of reassignment obligating Seller to reassign Seller's interest in any portion of the Wellbore Lease Rights to a Third Party, if such rights have not been triggered as of the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Burdens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) rights of a common owner of any interest in a Well or Lease, held by Seller (or Issuer after Closing) and such common owner as tenants in common or through common ownership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Encumbrances created under deeds of trust, mortgages, and similar instruments by the lessor under a Lease, unless a complaint of foreclosure has been filed or any similar action taken by the mortgagee thereunder and such instrument has not been subordinated to the Wellbore Interests affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) defects based on the failure of the records of any Governmental Body to reflect Seller (as of immediately prior to the Closing) and Issuer (as of immediately after the Closing) as the record owner of the Wellbore Interest in any Lease or Well if Seller (as of immediately prior to the Closing) and Issuer (as of immediately after the Closing) is reflected as the record owner of the Wellbore Interest in the Lease or Well in the applicable county real property records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) defects, gaps, or irregularities that have been cured by possession under any applicable statutes of limitation for adverse possession or for prescription or under marketable title or similar Legal Requirements or standards or the doctrine of laches, or that have existed for more than twenty (20) years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) irregularities or defects based solely on (i) lack of information in Seller's files, lack of Third Party records, or the unavailability of information from regulatory agencies, (ii) references to a document that is not in Seller's files, (iii) references to an unrecorded document to which neither Seller nor any of its Affiliates is a party and which is dated earlier than January 1, 1990, or (iv) any changes in Legal Requirements following the Closing Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) irregularities, defects, or loss of title affecting ownership interests in formations or depths other than the applicable Completed Depths for a Wellbore Interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) any matters set forth on <u>Exhibit A</u>, <u>Exhibit B</u>, or <u>Schedule 3.12</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) all other Encumbrances, irregularities, and defects affecting a Wellbore Interest, but only to the extent that they do not, individually or in the aggregate, materially impair the use, ownership or operation of the applicable Well, Applicable Easements, and Lease(s) as currently used, owned, and operated.

Notwithstanding the foregoing, if any matter described in the foregoing clauses (a) through (r), (but excluding any matter described in clauses (b)(ii), (i) (unless as of Closing the passage of time or action by a Third Party that such Third Party was entitled to take as of Closing would trigger such rights, in which case clause (i) shall not be excluded), and (q)) that exists before or as of the Closing causes or results in, as of or at any time after the Effective Time or Closing, a Protected Outcome to occur for a reason other than the breach of or failure to satisfy any obligation owed by, failure to comply with Legal Requirements by, or other election, action, deemed non-consent under a joint operating agreement by, or fault of Issuer after Closing (provided, and without limiting the foregoing limitations in this sentence, Issuer shall have no obligation to take any action to prevent the occurrence of a Protected Outcome other than as may be required by Legal Requirements for which Issuer is responsible or by contractual obligations of Issuer, in each case excluding Retained Liabilities), and either (A) such Protected Outcome has either been alleged or asserted in writing by any Person other than by, or on behalf of, Issuer or its successors and assigns (provided that the Noteholders or Issuer may assert the basis or occurrence of a Protected Outcome in connection with a credit bid or following an allegation from or action by some other Third Party (including a potential buyer in a sale of the Wellbore Interests in a foreclosure sale) that asserts superior title or facts or a claim that, if accurate or valid in whole or in part, would constitute the existence of a Protected Outcome or otherwise provides a reasonable basis to support the existence of a Protected Outcome, in which case this clause (A) shall be satisfied) or (B) any Person has suspended or withheld (or threatened to suspend or withhold) from Issuer timely payment of any revenues on the basis of such Protected Outcome or that would otherwise have been due to Issuer but for such Protected Outcome, then (i) such matter shall, as of the occurrence of a Protected Outcome (with any dispute as to the occurrence of a Protected Outcome being subject to resolution pursuant to <u>Section 5.11(f)</u>), cease to be a Permitted Encumbrance for purposes of the definition of Defensible Title, (ii) such Protected Outcome shall be deemed to have existed as of immediately following the Closing, and (iii) Issuer shall be entitled to the remedies in <u>Section 5.11</u> with respect to any Title Failure occurring as a result of the application of the forgoing clauses (i) and (ii).

"<u>**Person**</u>" means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture, unincorporated organization, limited liability entity, estate, trust, association, organization, labor union, or other entity or Governmental Body.

"<u>**Plugging and Abandonment Obligations**</u>" means, to the extent allocable to the Wellbore Interests, any and all Claims, Liabilities, and Damages resulting from, arising out of, or otherwise related to any of the following: (a) the plugging, replugging, and/or abandonment of the Wells and the dismantling, salvaging, removal, abandonment, disposal, capping, and/or burying of all Well Facilities (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities); (b) to the extent related to the items described in clause (a) above, the restoration of the surface and subsurface of the Leases and Lands to the condition required by applicable Legal Requirements, Governmental Authorizations, Orders, Leases, and Applicable Contracts; and (c) all other Claims and Losses relating to the items described in clause (a) or (b) above and either arising under the Leases or Applicable Contracts or asserted by Governmental Bodies or Third Parties.

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"<u>**Precautionary Mortgage**</u>" has the meaning set forth in <u>Section 2.04</u>.

"<u>**Preferential Purchase Right**</u>" means any right or agreement that enables any Person to purchase or acquire any Wellbore Interest or any interest therein or portion thereof as a result of or in connection with the execution or delivery of this Agreement or the consummation of the Contemplated Transactions.

"<u>**Proceeding**</u>" means any action, arbitration, audit, hearing, litigation, or suit (whether civil, criminal, administrative, investigative, or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator.

"<u>**Property Costs**</u>" means all costs and expenses attributable to the development, operation and/or ownership of the Wellbore Interests, including, but not limited to, (a) all bonuses and rentals, royalties, overriding royalties, shut-in royalties, minimum royalties, and renewal and extension payments required to renew and extend Wellbore Lease Rights, (b) all operating expenses and capital expenditures, and (c) all Asset Taxes, <u>provided</u> that the Retained Liabilities shall not be "Property Costs".

"<u>**Protected Outcome**</u>" means, with respect to a Wellbore Interest, Issuer, as of immediately after the Closing or at any time thereafter throughout the duration of the productive life of the applicable Well and the plugging, abandonment or salvage thereof, (a) being entitled to a Net Revenue Interest as to the Completed Depths for such Wellbore Interest less than the Net Revenue Interest set forth in <u>**Exhibit A**</u> for such Wellbore Interest, or (b) being obligated to bear a Working Interest as to the Completed Depths for such Wellbore Interest in an amount greater than the Working Interest set forth in <u>**Exhibit A**</u> (unless Issuer's Net Revenue Interest for such Completed Depth is greater than the Net Revenue Interest set forth in <u>**Exhibit A**</u> for such Completed Depth and such increase is in the same or greater proportion as any increase in such Working Interest).

"<u>**Representative**</u>" means, with respect to any Person, any director, officer, manager, employee, agent, consultant, advisor, or other representative of such Person, including legal counsel, accountants, financial advisors, or other representatives.

"<u>**Repurchased Interest**</u>" has the meaning set forth in the definition of "Retained Liabilities".

"<u>**Reserve Report**</u>" means that certain reserve report dated September 6, 2022, prepared by the Initial Reserve Engineers as of September 1, 2022, with respect to the Wells.

"<u>**Retained Gathering Facilities**</u>" means all right, title, and interests in and to the Gathering Facilities to the extent not constituting a part of the Wellbore Interests (i.e., being the remaining undivided interest of all of Seller's right, title, and interest therein after taking into account the conveyance of the Wellbore Interests therein to Issuer in accordance with this Agreement and the Conveyances).

"<u>**Retained Hedge Contracts**</u>" means all Hedge Contracts other than the Assumed Hedge Contracts.

"<u>**Retained Liabilities**</u>" means, except for Plugging and Abandonment Obligations, Asset Taxes allocated to Issuer pursuant to <u>Section 2.07(b)</u>, and Liabilities, Damages, and obligations under the Assumed Hedge Contracts, all of the following Liabilities, Damages, and obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) costs and expenses allocable to the Wellbore Interests to the extent incurred during or attributable to the period prior to the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liabilities for Burdens allocable to the Wellbore Interests to the extent attributable to production from the Wells during the period prior to the Effective Time;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) excluding (1) Property Costs allocable to the Wellbore Interests to the extent attributable to the period from the Effective Time until the Closing Date and incurred in the ordinary course and not as a result of any failure by Seller or its Affiliates to comply with the standards set forth in applicable operating agreements and (2) Liabilities for Burdens allocable to the Wellbore Interests to the extent attributable to production from the Wells during the period from the Effective Time until the Closing Date, all other Liabilities, Damages, and obligations incurred during or otherwise attributable to the period prior to the Closing Date and that are related or attributable to the development, operation or ownership of the Seller Assets, the Wellbore Interests, the Wells or the Leases or any breach or violation of or failure to comply with the Leases, including: (i) any such Environmental Liability or Environmental Defect incurred during or attributable to the period prior to the Closing Date; (ii) any such Liabilities for personal injuries or death, property damage, torts, breach of contract or violation of any Legal Requirement or Governmental Authorization incurred during or attributable to the period prior to the Closing Date; (iii) Liabilities and obligations arising out of, resulting from, or attributable to any Third Party claim related to the gross negligence or willful misconduct of Seller or any of its Affiliates in connection with the operation by Seller or any of its Affiliates of any Well or Well Facilities during the period prior to the Closing Date; (iv) any disposal of any Hazardous Substances offsite of the Leases or any lands pooled therewith that occurred or was conducted prior to the Closing Date and associated with the operation or ownership of any Well or Well Facility; and (v) all Liabilities arising under any mortgage, pledge, security agreement or security instrument to which Seller or any of its Affiliates is a party including, without limitation, any such mortgage, security agreement or pledge which grants a lien or security interest in after acquired property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Liabilities, Damages and obligations to the extent attributable to: (i) the Excluded Assets and not to any Wellbore Interests, regardless of whether arising before, on, or after the Effective Time; (ii) any indebtedness for borrowed money obligations of Seller or its Affiliates, regardless of whether such Liabilities arose before, on, or after the Effective Time; (iii) any Seller Taxes, regardless of whether arising before, on, or after the Effective Time; (iv) any Transfer Taxes, regardless of whether arising before, on, or after the Effective Time and (v) cumulative oil overproduction from the Animal Lease (TRRC Lease No. 27940), including the Animal 2H Well (API No. 42-287-32760), in excess of its allowables occurring during the period prior to the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Liabilities, Damages, and obligations to the extent related to any Wellbore Interest repurchased by Seller pursuant to <u>Section 5.11(d)</u> (each, a "<u>**Repurchased Interest**</u>"), but solely to the extent such Liabilities, Damages, and obligations are attributable to the period from and after the effective date of that repurchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Liabilities, Damages, and obligations with respect to any Environmental Defect that was incurred, or offsite disposal of any Hazardous Substances that occurred or was conducted, in each case, prior to the Closing Date and associated with the Wellbore Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Liabilities, Damages, and obligations under any Retained Hedge Contracts.

provided, however, Retained Liabilities does not include any "Assumed Liabilities" under, and as that term is defined in, the Initial Asset Purchase Agreement.

"<u>**Seller**</u>" has the meaning set forth in the preamble to this Agreement.

"<u>**Seller Assets**</u>" means all assets, rights, titles, interests and properties of every kind, nature, character or description (whether real, personal, mixed or otherwise) held by Seller and/or any of its Affiliates immediately prior to the Closing, excluding the Wellbore Interests.

"<u>**Seller Indemnity Group**</u>" has the meaning set forth in <u>Section 5.03</u>.

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"<u>**Seller Taxes**</u>" means (a) Asset Taxes allocated to Seller pursuant to <u>Section 2.07(b)</u>, without duplication of any amount that was included as a Property Cost and resulted in a reduction of the Cash Purchase Price, and (b) income or franchise Taxes imposed on Seller, any of its direct or indirect owners or Affiliates (other than Issuer), or any combined, unitary or consolidated group of which any of the foregoing is or was a member.

"<u>**Seller's Closing Documents**</u>" means the documents required under <u>Section 2.06(a)</u> to be executed and/or delivered by Seller or any Affiliate of Seller at the Closing.

"<u>**Straddle Period**</u>" means any period beginning before and ending on or after the day of the Effective Time.

"<u>**Tax**</u>" or "<u>**Taxes**</u>" means any (a) and all federal, state, provincial, local, foreign and other taxes, levies, fees, imposts, duties, assessments, and other governmental charges imposed by any Governmental Body, including income, profits, franchise, withholding, employment, social security (or similar), disability, occupation, ad valorem, property, value added, capital gains, sales, goods and services, use, real or personal property, capital stock, license, branch, payroll, estimated, unemployment, severance, compensation, utility, stamp, occupation, premium, windfall profits, transfer, gains, production and excise taxes, and customs duties, together with any interest, penalties, fines or additions thereto, (b) liability for any amounts of the type described in clauses (a), (c), and (d) of a predecessor entity, as a transferee or arising by operation of law, (c) liability for the payment of any amounts of the type described in clauses (a), (b), or (d) as a result of being a member of an affiliated, consolidated, combined, or unitary group for any period (including any arrangement for group or consortium Tax relief or similar arrangement), and (d) liability for the payment of any amounts of the type described in clauses (a), (b), or (c) as a result of any express or implied obligation to indemnify any other person or as a result of any obligation under any agreement or arrangement to make any payment determined by reference to the Tax liability of a Third Party.

"<u>**Tax Returns**</u>" means any report, return, election, document, estimated tax filing, declaration or other filing related to Taxes filed or required to be filed with any Governmental Body, including any amendments thereof and any attachments thereto.

"<u>**Third Party**</u>" shall mean any Person other than the Parties or their respective Affiliates.

"<u>**Third Party Claim**</u>" has the meaning set forth in <u>Section 5.09</u>.

"<u>**Threatened**</u>" means that a demand or statement has been delivered in writing to Seller or its Affiliates prior to the Closing Date and that would lead a prudent Person to conclude that such a claim, Proceeding, dispute, action, or other matter is reasonably likely to be asserted, commenced, taken, or otherwise pursued in the future.

"<u>**Title Adjustment Amount**</u>" has the meaning set forth in <u>Section 5.11(e)</u>.

"<u>**Title Credit**</u>" means any right, circumstance or condition with respect to a Wellbore Interest that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) obligates Seller (and after Closing, will obligate Issuer) to bear a Working Interest as to such Wellbore Interest that is less than the Working Interest set forth for such Wellbore Interest in <u>Exhibit A</u> as to the Completed Depths for such Wellbore Interest (to the extent, and solely to the extent, such right, circumstance or condition decreases Seller's (and after Closing, Issuer's) Working Interest in a greater proportion than any accompanying decrease in Seller's (and after Closing, Issuer's) Net Revenue Interest in such Wellbore Interest from the Net Revenue Interest set forth for such Wellbore Interest in <u>Exhibit A</u>); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) entitles Seller (and after Closing, will entitle Issuer) to a Net Revenue Interest as to such Wellbore Interest that is greater than the Net Revenue Interest set forth for such Wellbore Interest in <u>Exhibit A</u> as to the Completed Depths for such Wellbore Interest.

"<u>**Title Credit Amount**</u>" means the amount resulting from a Title Credit by which the value of the Wellbore Interest in the applicable Well is increased as a result of the existence of such Title Credit, which shall be determined in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if a Title Credit affects the applicable Wellbore Interest for less than its full productive life, the Title Credit Amount shall be reduced to take into account the applicable time period only, using generally accepted engineering analysis and present value calculations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to clause (a) above in this definition:

&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 Title Credit is an increase in the Net Revenue Interest of Seller (and after the Closing, Issuer) with respect to any Wellbore Interests from that set forth on <u>Exhibit A</u> and the Working Interest that Seller is obligated to bear with respect to such Wellbore Interest is proportionately increased from that set forth on <u>Exhibit A</u>, in each case, throughout the duration of the productive life of the applicable Well and the plugging and abandonment or salvage thereof, then the Title Credit Amount shall be equal to the product of (1) the value ascribed to the Wellbore Interest in the applicable Well on the most recent Indenture Reserve Report (without giving effect to the Title Credit), *multiplied by* (2) a fraction, (A) the numerator of which is the difference between such Person's actual Net Revenue Interest for the applicable Wellbore Interest and the Net Revenue Interest set forth on <u>Exhibit A</u> for the applicable Wellbore Interest, and (B) the denominator of which is the Net Revenue Interest set forth on <u>Exhibit A</u> for such Wellbore Interest; 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;(ii) if the Title Credit is not of the type described in subpart (i) above, the Title Credit Amount shall be determined by taking into account the value ascribed to the Wellbore Interests in the applicable Well on the most recent Indenture Reserve Report (without giving effect to the Title Credit), the portion of such Wellbore Interest that is affected by the Title Credit, the legal effect of the Title Credit, the potential economic effect of the Title Credit over the life of the affected Well and such other reasonable factors as are necessary to make a proper evaluation.

"<u>**Title Credit Notice**</u>" has the meaning set forth in <u>Section 5.11(b)</u>.

"<u>**Title Failure**</u>" means, as to any Wellbore Interest, any lien, defect or other condition that causes Seller as of immediately prior to the Closing or Issuer as of immediately after the Closing not to have Defensible Title in and to such Wellbore Interest.

"<u>**Title Failure Amount**</u>" means the amount resulting from a Title Failure by which the value of the Wellbore Interest in the applicable Well is reduced as a result of the existence of such Title Failure, which shall be determined in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate amount of all Title Failure Amounts attributable to all Title Failures, other than Encumbrances, affecting any Wellbore Interest shall not exceed the value ascribed to the Wellbore Interests in the applicable Well on the most recent Indenture Reserve Report (without giving effect to the Title Failure);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Title Failure Amount with respect to an Encumbrance shall not exceed the cost to cure the related Title Failure (if the cost to cure is reasonably determinable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if a Title Failure affects the applicable Wellbore Interest for less than its full productive life, the Title Failure Amount shall be reduced to take into account the applicable time period only, using generally accepted engineering analysis and present value calculations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in determining the Title Failure Amount of an individual Title Failure, such Title Failure Amount shall be without duplication of any other Title Failure Amount calculated hereunder based on or arising out of the same underlying objections to title to the applicable Wellbore Interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to clauses (a) through (d) above in this definition:

&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 Title Failure is a decrease in the Net Revenue Interest to which Seller (and after the Closing, Issuer) is entitled with respect to such Wellbore Interest and the Working Interest that Seller (and after the Closing, Issuer) is obligated to bear with respect to such Wellbore Interest is proportionately reduced from that set forth in <u>Exhibit A</u>, in each case, throughout the duration of the productive life of the applicable Well and the plugging and abandonment or salvage thereof, the Title Failure Amount shall be equal to the product of (1) the value ascribed to the Wellbore Interest in the applicable Well on the most recent Indenture Reserve Report (without giving effect to the Title Failure), *multiplied by* (2) a fraction, (A) the numerator of which is the excess of the Net Revenue Interest set forth on <u>Exhibit A</u> for the applicable Wellbore Interest over Seller's actual Net Revenue Interest, and (B) the denominator of which is the Net Revenue Interest set forth on <u>Exhibit A</u> for such Wellbore Interest;

&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 Title Failure is an Encumbrance or other charge which is undisputed and liquidated in amount, then the Title Failure Amount shall be the amount necessary to be paid to remove the Title Failure from the affected Wellbore Interest; 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;(iii) if the Title Failure is not of the type described in subpart (i) or (ii) above, the Title Failure Amount shall be determined by taking into account the value ascribed to the Wellbore Interest in the applicable Well on the most recent Indenture Reserve Report (without giving effect to the Title Failure), the portion of the Wellbore Interest that is affected by the Title Failure, the legal effect of the Title Failure, the reasonably anticipated cost to cure the Title Failure, the potential economic effect of the Title Failure over the life of the Wellbore Interest and such other reasonable factors as are necessary to make a proper evaluation.

"<u>**Title Failure Notice**</u>" has the meaning set forth in <u>Section 5.11(a)</u>.

"<u>**Title Matters**</u>" has the meaning set forth in <u>Section 5.11(h)</u>.

"<u>**Transfer Taxes**</u>" means any and all sales, use, transfer (including real property transfer) and other similar Taxes, if any, imposed or required in connection with the assignment of the Wellbore Interests to Issuer or the filing or recording of all assignments related to the conveyance of the Wellbore Interests to Issuer.

"<u>**Unit Rights**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Well**</u>" has the meaning set forth in the definition of "Wellbore Interests".

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"<u>**Well Facilities**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Wellbore Facilities**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Wellbore Interests**</u>" means the following, but excluding the Excluded Assets:

&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) with respect to each Hydrocarbon well set forth on <u>Part I</u> of <u>Exhibit A</u>, an undivided eighty-five percent (85%) (the "<u>**Conveyed Interest**</u>") of all of Seller's right, title, and interest in and to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 wellbore of such Well, as such wellbore has been completed as of the Effective Time or may be extended or otherwise reworked or recompleted at any time thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all Hydrocarbons produced from or attributable to the wellbore of such Well from and after the Effective Time, and all proceeds or accounts receivable resulting from the sale of any such Hydrocarbons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Leases, in each case, **INSOFAR AND ONLY INSOFAR** as the rights thereunder are necessary or used to (A) own, operate, and maintain such Well, (B) participate in and perform subsequent operations at any time applicable to such Well (including maintenance, repair, workovers, reworks, or extensions (including lateral extensions) of the wellbore of such Well), or (C) produce, store, and transport Hydrocarbons from the wellbore of such Well;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any units or pooled or communitized lands arising on account of the Leases having been unitized or pooled into such units, pools or communitized lands, and all unitization, pooling or communitization agreements, declarations or designations and statutorily, judicially or administratively created drilling, spacing and/or production units, whether recorded or unrecorded, in each case, **INSOFAR AND ONLY INSOFAR** as necessary or used to (A) own, operate, and maintain such Well, (B) participate in and perform subsequent operations at any time applicable to such Well (including maintenance, repair, workovers, reworks, or extensions (including lateral extensions) of the wellbore of such Well), or (C) produce, store, and transport Hydrocarbons from the wellbore of such Well;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all tangible personal property, fixtures, and improvements, in each case, **INSOFAR AND ONLY INSOFAR** as necessary for or used in connection with the ownership or operation of, or for the production or transportation of Hydrocarbons from, such Well or the other Wellbore Interests therein (including (i) all wellheads, casing, tubing, pumps, motors, gauges, valves, heaters, treaters, water lines, and vessels and (ii) all flowlines, pipelines, meters, separators, heater treaters, vapor recovery units, tanks, and any other associated equipment), in each case, to the extent the foregoing (A) are located up to, or constitute a part of, the wellhead of such Well or (B) are located between the wellhead of such Well and the outlet valve of the individual gas meter applicable to such Well (for gas) or the outlet valves of the oil tank battery and water tank battery of the facilities applicable to such Well (for oil and water);

&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) with respect to each Hydrocarbon well set forth on <u>Part II</u> of <u>Exhibit A</u> (such wells, together with the wells described in <u>clause (a)</u> of this definition, collectively, the "<u>**Wells**</u>", and each, a "<u>**Well**</u>"), all of Seller's right, title, and interest in and to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 wellbore of such Well, as such wellbore has been completed as of the Effective Time or may be extended or otherwise reworked or recompleted at any time 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all Hydrocarbons produced from or attributable to the wellbore of such Well from and after the Effective Time, and all proceeds or accounts receivable resulting from the sale of any such Hydrocarbons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Leases, in each case, **INSOFAR AND ONLY INSOFAR** as the rights thereunder are necessary or used to (A) own, operate, and maintain such Well, (B) participate in and perform subsequent operations at any time applicable to such Well (including maintenance, repair, workovers, reworks, or extensions (including lateral extensions) of the wellbore of such Well), or (C) produce, store, and transport Hydrocarbons from the wellbore of such Well (such rights to and under the Leases, together with the Conveyed Interest in the rights described in <u>clause (a)(iii)</u> of this definition, collectively, the "<u>**Wellbore Lease Rights**</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;(iv) any units or pooled or communitized lands arising on account of the Leases having been unitized or pooled into such units, pools or communitized lands, and all unitization, pooling or communitization agreements, declarations or designations and statutorily, judicially or administratively created drilling, spacing and/or production units, whether recorded or unrecorded, in each case, **INSOFAR AND ONLY INSOFAR** as necessary or used to (A) own, operate, and maintain such Well, (B) participate in and perform subsequent operations at any time applicable to such Well (including maintenance, repair, workovers, reworks, or extensions (including lateral extensions) of the wellbore of such Well), or (C) produce, store, and transport Hydrocarbons from the wellbore of such Well (such rights to and under the foregoing, together with the Conveyed Interest in the rights described in <u>clause (a)(iv)</u> of this definition, collectively, the "<u>**Unit Rights**</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;(v) all tangible personal property, fixtures, and improvements, in each case, **INSOFAR AND ONLY INSOFAR** as necessary for or used in connection with the ownership or operation of, or for the production or transportation of Hydrocarbons from, such Well or the other Wellbore Interests therein (including (i) all wellheads, casing, tubing, pumps, motors, gauges, valves, heaters, treaters, water lines, and vessels and (ii) all flowlines, pipelines, meters, separators, heater treaters, vapor recovery units, tanks, and any other associated equipment), in each case, to the extent the foregoing (A) are located up to, or constitute a part of, the wellhead of such Well or (B) are located between the wellhead of such Well and the outlet valve of the individual gas meter applicable to such Well (for gas) or the outlet valves of the oil tank battery and water tank battery of the facilities applicable to such Well (for oil and water) (the foregoing in this <u>clause (b)(v)</u>, together the Conveyed Interest in the assets and interests described in <u>clause (a)(v)</u> of this definition, collectively, the "<u>**Wellbore Facilities**</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;(c) all Contracts, in each case, **INSOFAR AND ONLY INSOFAR** as, and then only to the extent, pertaining to (a) the ownership of the Wellbore Interests (including existing joint operating agreements to the extent covering or relating to any of the Wells or Wellbore Lease Rights) or (b) the gathering, treating, storing, transporting, processing, or selling of Hydrocarbons from the Wells (and not to the extent pertaining to the ownership of, or the gathering, treating, storing, transporting, processing, or selling of Hydrocarbons from, any Excluded Assets) (collectively, the "<u>**Applicable Contracts**</u>"); including, to the extent pertaining to the other Wellbore Interests, all Material Contracts and Midstream Contracts listed on <u>Schedule 3.17</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;(d) with respect to each Well, (i) (x) in respect of those Gathering Facilities (as defined below) in which Issuer owns the Existing Assignee Interest (as defined in the Conveyance), an undivided six and one-quarter percent (6.25%), and (y) in respect of all other Gathering Facilities, an undivided twenty-five percent (25%), in each case, of all of Seller's legal right, title, and interest (together with and limited to the beneficial ownership, rights, and obligations set forth in the applicable Conveyance) in and to all tangible personal property, fixtures, and improvements, in each case, **INSOFAR AND ONLY INSOFAR** as necessary for or used in connection with the gathering, treating, storing, transporting, processing, or selling of Hydrocarbons from such Well (including all flowlines, pipelines, meters, and other similar equipment), in each case, to the extent the foregoing are located between the Wellbore Facilities applicable to such Well (for gas) as described in the foregoing <u>clauses (a)(v)(ii)</u> and <u>(b)(v)(ii)</u> and the locations at which custody to the Hydrocarbons and other production from such Well transfers from Seller to the respective counterparties pursuant to the applicable gas Marketing Contracts described on <u>Schedule 3.17</u> (such locations, the "<u>**Custody Transfer Points**</u>", and the foregoing in this <u>clause (d)</u>, collectively, the "<u>**Gathering Facilities**</u>" (which defined term, for clarity, includes all of Seller's right, title, and interest in and to the foregoing in this <u>clause (d)</u>, including both the undivided percentage interests thereof included within the Wellbore Interests as well as that portion constituting the Retained Gathering Facilities) and, together with the Wellbore Facilities, the "<u>**Well Facilities**</u>") and (ii) the rights to the use of all of the Gathering Facilities (including both the portion constituting Wellbore Interests and the portion constituting Retained Gathering Facilities) as set forth in Section 1.3 of the Conveyance, including the highest priority call on capacity thereon for transportation of Hydrocarbons;

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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;(e) with respect to each Well, a non-exclusive, perpetual, assignable, cost-free license to use all rights-of-way, easements, access or crossing licenses, and permits, in each case, **INSOFAR AND ONLY INSOFAR** as necessary for or used in connection with the ownership, operation or maintenance of, or the production, gathering, treating, storing, transporting, processing, or selling of Hydrocarbons from, such Well (collectively, the "<u>**Applicable Easements**</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;(f) copies (but not the originals) of the Issuer Books and Records; 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;(g) all rights, claims, and causes of action (including all rights of indemnity, recovery, set-off or refunds against Third Parties) of Seller, including rights, claims, and causes of action against Third Parties under Contracts that are not Applicable Contracts, in each case, **INSOFAR AND ONLY INSOFAR** as such rights, claims, or causes of action relate to the Assumed Liabilities or to title to the Wellbore Interests (collectively, the "<u>**Conveyed Claims**</u>").

"<u>**Wellbore Lease Rights**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Wells**</u>" has the meaning set forth in the definition of "Wellbore Interests".

"<u>**Working Interest**</u>" means, for any Wellbore Interest, that share of costs and expenses associated with the exploration, maintenance, development, and operation of the applicable Well (and the applicable Wellbore Lease Rights) that the holder of the Wellbore Interest is required to bear and pay, including the plugging and abandonment of and all other operations related to such Well, but without regard to the effect of any Burdens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.02 <u>**Interpretation**</u>. All references in this Agreement or the Ancillary Agreements to Exhibits, Schedules, Annexes, Articles, Sections, subsections and other subdivisions refer to the corresponding Exhibits, Schedules, Annexes, Articles, Sections, subsections and other subdivisions of or to this Agreement or the Ancillary Agreements unless expressly provided otherwise. Titles appearing at the beginning of any Articles, Sections, subsections and other subdivisions of this Agreement or the Ancillary Agreements are for convenience only, do not constitute any part of this Agreement or the Ancillary Agreements, 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 or other subdivision unless expressly so limited. The words "this Article," "this Section" and "this subsection," and words of similar import, refer only to Article, Section or subsection 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 GAAP, as in effect on the date of this Agreement. The word "or" is not exclusive and shall have the same meaning as "and/or" unless the context requires otherwise. 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. Appendices, Annexes and Exhibits referred to herein are attached to and made a part of this Agreement. Unless expressly stated otherwise, references to any Legal Requirement, Contract, or Lease shall mean such Legal Requirement, Contract, or Lease as it may be amended from time to time.

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**ARTICLE 2**<br>**SALE AND TRANSFER OF WELLBORE INTERESTS; CLOSING**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.01 <u>**Sale and Purchase**</u>. On the terms and conditions of this Agreement, Seller agrees to sell and convey to Issuer, and Issuer agrees to purchase from Seller, the Wellbore Interests. For the avoidance of doubt, Issuer shall be entitled to the proceeds of volumes of Hydrocarbons produced from the Wellbore Interests from and after the Effective Time as if the Closing had occurred at the Effective Time, even if the Conveyances are not valid until the Closing Date. Notwithstanding anything else in this Agreement, the Wellbore Interests shall not include, and there is excepted, reserved, and excluded from the Contemplated Transactions, the Excluded Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.02 <u>**Purchase Price; Closing Settlement Statement**</u>. The base cash portion of the purchase price for the Wellbore Interests is $____________ (the "<u>**Cash Purchase Price**</u>"). To the extent that the value of the Wellbore Interests exceeds such Cash Purchase Price, such difference shall be deemed to be an increase in the value of the equity interest of Seller in Holdings and an increase in the value of the equity interest of Holdings in Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.03 <u>**Costs and Expenses**</u>. If Closing occurs, Seller shall pay, or cause to be paid, (a) all recording fees and expenses for the recording of the Conveyances in the local real estate records and (b) all reasonable expenses of (i) Issuer's legal counsel in connection with the negotiation, review, structuring, and closing of this Agreement and the Issuer's Closing Documents and (ii) all advisors, consultants and independent Third Parties engaged by or on behalf of Seller or its Affiliates or Issuer in preparing or reviewing this Agreement and the Issuer's Closing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.04 <u>**Intention of the Parties**</u>. It is the intention of Seller and Issuer that the assignment and transfer contemplated herein and by the Conveyances shall constitute (and shall be construed and treated for all purposes, other than for U.S. federal, state, or local income Tax purposes, as) a true and complete sale of the Wellbore Interests as described in the Conveyances, conveying Defensible Title thereto from Seller to Issuer free and clear of any Encumbrances, other than Permitted Encumbrances (rather than the grant of a security interest to secure a debt or other obligation of Seller), and that the right, title, and interest in and to the Wellbore Interests vested in Issuer at Closing and prior to any and all rights arising thereafter of all other Persons (including lien creditors, secured lenders, purchasers, and any other Person) claiming by or through Seller. However, Seller hereby grants to Issuer a first priority perfected security interest in all of Seller's right, title and interest in, to and under the Wellbore Interests assigned to Issuer pursuant to the Conveyances in case such Conveyances are deemed to be a pledge to secure a loan (in spite of the express intent of the Parties). Contemporaneously with Closing, Seller shall execute, acknowledge and deliver to Issuer a Precautionary Wellbore Interest Deed of Trust, Mortgage, Assignment of As-Extracted Collateral, Security Agreement, Fixture Filing and Financing Statement, substantially in the form attached hereto as <u>Exhibit G</u> (a "<u>**Precautionary Mortgage**</u>") describing the Wellbore Interests as collateral, and such Precautionary Mortgage shall be recorded in the local land records where the Wells are located. Promptly following the written request of Seller at any time after the Closing and the delivery of the Precautionary Mortgage and Conveyances, Issuer shall (at the cost and expense of Seller) deliver such releases and similar instruments as are reasonably requested by Seller for purposes of evidencing that the Precautionary Mortgage is not, or is no longer, an Encumbrance on or affecting any Excluded Asset or, as applicable, any Repurchased Interest.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.05 <u>**Closing**</u>. The Closing shall take place simultaneously with the execution of this Agreement and be deemed effective as of the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.06 <u>**Closing Obligations**</u>. At the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller shall deliver (and execute, as appropriate), or cause to be delivered (and executed, as appropriate), to Issuer:

&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) duly executed counterparts of the Conveyances;

&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 recordable release in a form acceptable to Issuer of any trust, mortgages, financing statements, fixture filings and security agreements, in each case, securing indebtedness for borrowed money made by Seller or its Affiliates affecting the Wellbore Interests (including corresponding authorizations to file UCC-3 termination statement releases in all applicable jurisdictions);

&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 certificate of non-foreign entity status whereby Seller (or its regarded parent if Seller is a disregarded entity for U.S. federal income tax purposes) certifies that it is not a "foreign person" within the meaning of Section 1445 of the Code;

&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) counterparts of the Precautionary Mortgages and UCC-1 filings in connection therewith, duly executed by Seller, in sufficient counterparts to facilitate filing in the official public records with the applicable Governmental Bodies in each county where any of the Wellbore Interests are located;

&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 counterpart of the Management Services Agreement duly executed by Seller;

&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) a counterpart of the Joint Operating Agreement duly executed by each Operator; 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;(vii) such documents as Issuer or counsel for Issuer may reasonably request and which are reasonably required to consummate the Contemplated Transaction in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Issuer shall deliver (and execute, as appropriate), or cause to be delivered (and executed, as appropriate), to Seller:

&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) an amount in cash equal to the Cash Purchase Price;

&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) duly executed counterparts of the Conveyances;

&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) counterparts of the Precautionary Mortgages, duly executed by Issuer, in sufficient counterparts to facilitate filing in the official public records with the applicable Governmental Bodies in each county where any of the Wellbore Interests are located;

&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) a duly executed counterpart of the Management Services 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;(v) a duly executed counterpart of the Joint Operating 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;(vi) such documents as Seller or counsel for Seller may reasonably request and which are reasonably required to consummate the Contemplated Transaction in accordance with the terms of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.07 <u>**Allocations and Adjustments**</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after Closing, Issuer shall be entitled to all revenues, proceeds, income and production from or attributable to the Wellbore Interests from and after the Effective Time (other than any Excluded Assets), and shall be responsible for (and entitled to any refunds with respect to) all Property Costs attributable to the Wellbore Interests and incurred from and after the Effective Time (excluding Property Costs allocable to the Wellbore Interests that are attributable to the period from the Effective Time until the Closing Date and incurred other than in the ordinary course or as a result of any failure by Seller or its Affiliates to comply with the standards set forth in applicable operating agreements). Seller shall be entitled to all revenues, proceeds, income, accounts receivable, and production from or attributable to the Wellbore Interests prior to the Effective Time (and any other Excluded Assets). Seller shall be responsible for (and entitled to any refunds with respect to) all Property Costs attributable to the Wellbore Interests and incurred prior to the Effective Time or otherwise constituting Retained Liabilities. "<u>**Earned**</u>" and "<u>**incurred**</u>," as used in this Agreement, shall be interpreted in accordance with GAAP and COPAS standards; *provided* that the allocation of any Asset Taxes between the pre- and post-Effective Time periods shall be determined in accordance with <u>Section 2.07(b)</u>. Notwithstanding anything herein to the contrary, for purposes of allocating revenues, production, proceeds, income, accounts receivable, and products under this <u>Section 2.07</u> (if any), (i) liquid Hydrocarbons produced into storage facilities will be deemed to be "from or attributable to" any Wells to the extent they are above load lines in tanks, and (ii) gaseous Hydrocarbons and liquid Hydrocarbons produced into pipelines will be deemed to be "from or attributable to" any Wells when they pass through the delivery point sales meters on the pipelines through which they are transported.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From and after Closing, Issuer shall be responsible for all Asset Taxes attributable to the Wellbore Interests for (a) all Tax periods that begin on or after the day of the Effective Time, and (b) that portion of any Straddle Period beginning on and including the day of the Effective Time. From and after Closing, Seller shall be responsible for all Asset Taxes attributable to the Wellbore Interests for (x) all Tax periods ending prior to the day of the Effective Time, and (y) that portion of any Straddle Period ending on and including the day immediately preceding the day of the Effective Time. In the case of any Straddle Period, any Asset Taxes that are (i) attributable to the severance or production of Hydrocarbons shall be allocated to the period in which the severance or production giving rise to such Asset Taxes occurred, (ii) based upon or related to sales or receipts or imposed on a transactional basis (other than such Asset Taxes described in clause (i)), shall be allocated to the period in which the transaction giving rise to such Asset Taxes occurred, and (iii) ad valorem, property or other Taxes imposed on a periodic basis shall be prorated on a daily basis (with an equal amount thereof allocated to each day in the applicable Straddle Period), with Issuer liable for the portion allocated to the period beginning on and including the day of the Effective Time and Seller liable for the portion allocated to the period ending on and including the day immediately preceding the day of the Effective Time. Issuer shall be entitled to all deductions, credits, and refunds pertaining to Asset Taxes allocated to Issuer under this <u>Section 2.07(b)</u>, and Seller shall be entitled to deductions, credits, and refunds pertaining to Asset Taxes allocated to Seller under this <u>Section 2.07(b)</u>. If the amount of such Asset Taxes for part, or all, of the Wellbore Interests is not available on the Closing Date, proration of Asset Taxes shall be estimated and made on the basis of Asset Taxes assessed in the previous year, with a subsequent adjustment of such proration to be made between the Parties when actual Asset Tax figures are available. Notwithstanding the foregoing, Issuer shall be responsible for the preparation and timely filing of any Tax Returns with respect to Asset Taxes that are required to be filed on or after the Closing Date, and (subject to its right to reimbursement pursuant to this <u>Section 2.07</u>) for the payment to the applicable Governmental Body of all Asset Taxes due with respect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) From and after the Closing, (i) if a Party receives revenues that belong to the other Party under this Agreement, the Party receiving the revenues agrees to hold such revenues in trust for the benefit of the other Party and remit those revenues to such other Party within 30 days following such first Party's receipt thereof, (ii) if a Party incurs or receives an invoice for an expense or obligation which is owed by the other Party, then such Party shall promptly notify the Party obligated to pay the same, and (iii) if a statement of an obligation is received by a Party, which is partially an obligation of both Seller and Issuer, then the Parties shall consult with each other, and each shall promptly pay its portion of such obligation to the obligee. After Closing, in the event a Party pays monies for Property Costs which are the obligation of the other Party, then such other Party shall, within 30 days after the end of the month in which the applicable invoice and proof of payment of such invoice were received, reimburse the Party which paid such amounts. To the extent any operator or other Third Party recoups any amounts that are the responsibility of Seller (either as a Retained Liability or pursuant to <u>Section 2.07(a)</u>) by offsetting such amounts against post-Effective Time production revenues paid to Issuer, then Issuer may provide written notice and evidence of such offsetting to Seller and, within 30 days after the end of the month in which such notice is received, Seller shall pay Issuer such amounts and thereafter Seller shall promptly pay the applicable operator or Third Party any remaining amounts owed by Seller to avoid any further netting or offsetting of Issuer's revenues. To the extent any operator or other Third Party recoups any amounts that are the responsibility of Issuer by offsetting such amounts against production revenues payable to Seller or its Affiliates in respect of production attributable to any Excluded Assets, then Seller may provide written notice and evidence of such offsetting to Issuer and, within 30 days after the end of the month in which such notice is received, Issuer shall pay Seller such amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent required by Section 1060 of the Code and any Treasury Regulations promulgated thereunder, Seller and Issuer shall cooperate to prepare a schedule allocating the purchase price (as determined for U.S. federal income tax purposes) for the Wellbore Interests among the Wellbore Interests in accordance with Code Section 1060 and the Treasury Regulations promulgated thereunder (the "<u>**Allocation Schedule**</u>"). To the extent permitted under Code Section 1060 and any Treasury Regulations promulgated thereunder, the Allocation Schedule shall be prepared in a manner consistent with the Cash Purchase Price allocation as set forth in <u>Exhibit A</u>. To the extent required by Section 1060 of the Code and any Treasury Regulations promulgated thereunder, Seller and Issuer shall cooperate in the preparation of Internal Revenue Service Form 8594, pursuant to Treasury Regulation Section 1.1060-1, to report the allocation of the Cash Purchase Price among the Wellbore Interests in the manner set forth on the Allocation Schedule. Except as required by applicable Legal Requirements, none of the Parties (or their applicable Affiliates) shall take any position on its Tax Returns that is inconsistent with the allocation of the Cash Purchase Price as so agreed or as adjusted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.08 <u>**Assumption**</u>. Issuer shall assume, pay, and discharge, insofar as allocable to the Wellbore Interests and only to the extent not constituting Retained Liabilities, subject to Seller's indemnity obligations under <u>Section 5.02</u> and obligations with respect to title matters pursuant to <u>Section 5.11</u> (subject to the limitations and restrictions in <u>ARTICLE 5</u>), any and all of the following Liabilities, Damages and obligations (collectively, the "<u>**Assumed Liabilities**</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the extent allocable to the Wellbore Interests, all Liabilities, Damages, and obligations incurred during or otherwise attributable to the period from and after the Closing Date and that are related or attributable to the operation or ownership of the Wells, Wellbore Lease Rights, Unit Rights, Well Facilities (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities), and Applicable Contracts, including: (i) any Environmental Liability or Environmental Defect attributable to the operation or ownership of any Well or Well Facility (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities) during the period from and after the Closing Date; (ii) Liabilities for personal injuries or death, property damage, torts, breach of contract or violation of any Legal Requirement or Governmental Authorization attributable to the operation or ownership of any Well or Well Facility (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities) during the period from and after the Closing Date; (iii) any Liabilities for disposal of any Hazardous Substances offsite of the Leases or any lands pooled therewith that occurred or was conducted from and after the Closing Date and associated with the operation or ownership of any Well or Well Facility (excluding, with respect to the Gathering Facilities, that portion of the foregoing to the extent allocable to the Retained Gathering Facilities); (iv) costs and expenses allocable to the Working Interests to the extent incurred during or attributable to the period from and after the Closing Date; and (v) Liabilities for Burdens allocable to the Working Interests to the extent attributable to production from the Wells during the period from and after the Closing Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Property Costs to the extent attributable to the period from the Effective Time until the Closing Date and incurred in the ordinary course and not as a result of any failure by Seller or its Affiliates to comply with the standards set forth in applicable operating agreements; and (ii) Liabilities for Burdens allocable to the Wellbore Interests to the extent attributable to production from the Wells during the period from the Effective Time until the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Plugging and Abandonment Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Asset Taxes allocated to Issuer pursuant to <u>Section 2.07(b)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Liabilities, Damages, and obligations under the Assumed Hedge Contracts.

**ARTICLE 3**<br>**REPRESENTATIONS AND WARRANTIES OF SELLER** 

Seller represents and warrants to Issuer as of the Effective Time and the Closing as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.01 <u>**Organization and Good Standing**</u>. Seller is duly organized, validly existing, and in good standing under the Legal Requirements of the State of Delaware and every state in which it is required to be qualified to do business, and Seller has full power and authority under its Organizational Documents to conduct its business as it is now being conducted, and to own or use the properties and assets that it purports to own or use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.02 <u>**Authority**</u>. The execution, delivery, and performance of this Agreement, the Closing Documents and the Contemplated Transactions have been duly and validly authorized and approved in accordance with the Organizational Documents of Seller and applicable Legal Requirements. This Agreement has been duly executed and delivered by Seller and all instruments executed and delivered by Seller at or in connection with the Closing have been duly executed and delivered by Seller. This Agreement constitutes the legal, valid, and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy or other similar Legal Requirements affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law). Upon the execution and delivery by Seller of the Conveyances at the Closing, and without representing or warranting as to Seller's title to the Wellbore Interests, such Conveyances shall constitute legal, valid, and binding transfers and conveyances of ownership of all legal and beneficial interest of Seller in the Wellbore Interests to Issuer. Upon the execution and delivery by Seller or any Affiliate of Seller of any of Seller's Closing Documents, Seller's Closing Documents shall constitute the legal, valid, and binding obligations of Seller or the applicable Affiliate, enforceable against Seller or the applicable Affiliate in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy or other similar Legal Requirements affecting the rights and remedies of creditors generally and by general principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.03 <u>**No Conflict**</u>. Assuming the receipt of all Consents, neither the execution and delivery of this Agreement or any of Seller's Closing Documents by Seller, nor the consummation or performance of any of the Contemplated Transactions by Seller, will (with or without notice or lapse of time or both):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contravene, conflict with, or result in a violation of (A) any provision of the Organizational Documents of Seller, or (B) any resolution adopted by the board of directors, board of managers or members of Seller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) materially contravene or conflict with, or result in a material violation of, or give any Governmental Body or other Person the right to notification of or to challenge any of the Contemplated Transactions, to terminate, accelerate, or modify any terms of, or to exercise any remedy or obtain any relief under, any applicable Legal Requirement or Order;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) materially contravene or conflict with, or result in a material violation of any of the terms or requirements of, or give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate, or modify, any Governmental Authorization that relates to the Wellbore Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) result in the imposition or creation of any material Encumbrance or give rise to any right of termination, cancellation, or acceleration under any of the terms, conditions, or provisions of any Lease, Material Contract, Applicable Easement, note, bond, mortgage, indenture, license, or other material agreement with respect to any of the Wellbore Interests; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) materially contravene or conflict with, or result in a material violation of any obligation of Seller which would render Issuer liable for such contravention, conflict or violation, either individually or on a joint and several basis with Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.04 <u>**Taxes**</u>. Except as set forth in <u>Schedule 3.04</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Tax Returns with respect to Asset Taxes required to be filed by Seller have been timely filed. All such Tax Returns are correct and complete in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Asset Taxes that have become due and payable by Seller have been properly and timely paid in accordance with applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There is not currently in effect any extension or waiver of any statute of limitations of any jurisdiction regarding the assessment or collection of any Asset Taxes of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There are no material administrative or judicial Proceedings pending or, to Seller's Knowledge, Threatened against Seller relating to or in connection with any Asset Taxes relating to the Wellbore Interests.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There are no Tax sharing, Tax allocation, Tax indemnity, or similar agreements or arrangements under which any member of the Issuer Indemnity Group could have any liability after the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) None of the Wellbore Interests are subject to any agreement or arrangement that constitutes a partnership for U.S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No member of the Issuer Indemnity Group will be required to include any item of income, or exclude any deduction, in the computation of taxable income for any taxable period or portion thereof ending after the Effective Time as a result of (i) any installment sale, deferred intercompany transaction, or open transaction disposition made on or prior to the Effective Time, (ii) any prepaid amount received prior to the Effective Time, or (iii) any change of method of Tax accounting, closing agreement, or intercompany transaction made or entered into prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Issuer is, and since its date of formation has been, disregarded as an entity separate from its owner for U.S. federal income Tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) There are no material liens or Encumbrances on any of the Wellbore Interests that arose as a result of Seller's failure (or alleged failure) to pay any Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Contemplated Transactions will not be taxable transactions for income Tax purposes for Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.05 <u>**Legal Proceedings; Orders**</u>. Except as set forth in <u>Schedule 3.05</u>, there is no pending Proceeding against Seller or any of its Affiliates (a) that relates to or may affect the ownership or operation of any of the Wellbore Interests; or (b) that challenges, or that may have the effect of preventing, delaying, making illegal, or otherwise interfering with, any of the Contemplated Transactions. To Seller's Knowledge, no Proceeding of the type referenced above has been Threatened. To Seller's Knowledge, there is no Order that specifically relates to, and that adversely affects, the current use or ownership of the Wellbore Interests to which Seller, any of its Affiliates, or any of the Wellbore Interests, is subject. There is no Order or Proceeding restraining, enjoining, or otherwise prohibiting or making illegal the consummation of the Contemplated Transactions or, to Seller's Knowledge and except as set forth on <u>Schedule 3.15</u>, which, if determined adversely to Seller or any of its Affiliates, could result in a material diminution of the benefits to Issuer contemplated by this Agreement or the Contemplated Transactions exceeding $100,000 (net to the Wellbore Interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.06 <u>**Brokers**</u>. Neither Seller nor any of its Affiliates has incurred any obligation or Liability, contingent or otherwise, for broker's or finder's fees with respect to the Contemplated Transactions other than obligations that are the sole responsibility of Seller or its applicable Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.07 <u>**Compliance with Legal Requirements and Governmental Authorizations**</u>. Except as set forth in <u>Schedule 3.07</u> and except for Environmental Matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Wellbore Interests have been owned and, as applicable, operated by Seller and its Affiliates in all material respects in accordance with all applicable Legal Requirements of all Governmental Bodies having or asserting jurisdiction relating to the ownership and operation thereof, other than any violations that have been resolved to the satisfaction of all applicable Governmental Bodies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Governmental Authorizations required for Seller's or any of its Affiliates' ownership and, as applicable, operation of the Wellbore Interests have been obtained, no material violations exist or have been recorded in respect of such Governmental Authorizations that remain uncured or outstanding, and Seller and its Affiliates are in compliance in all material respects with such Governmental Authorizations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Seller nor any of its Affiliates has Knowledge of or has received any written notice of any material violation of any applicable Legal Requirement or Governmental Authorization in connection with the ownership or operation of the Wellbore Interests that has not been corrected or settled, and there are no Proceedings pending or, to Seller's Knowledge, Threatened against Seller or any of its Affiliates that might result in any material modification, revocation, termination or suspension of any Governmental Authorization or would require any material corrective or remedial action for which Seller or any of its Affiliates may have any obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.08 <u>**Take-or-Pay Arrangements**</u>. Neither Seller nor any of its Affiliates has received any prepayments or buydowns, or entered into any take-or-pay or forward sale arrangements, such that Issuer will be obligated after the Effective Time to make deliveries of production from its interest in the Wells without receiving full payment therefor (excluding Imbalances and Burdens).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.09 <u>**Preferential Rights and Consents**</u>. Except for any Preferential Purchase Rights that have been waived or have expired in accordance with the terms thereof, there are no Preferential Purchase Rights applicable to the Wellbore Interests that will be triggered by the execution of this Agreement or consummation of the Contemplated Transactions. Except as set forth on <u>Schedule 3.09</u>, for Consents that have been obtained, and for the maintenance of uniform interest provisions in the joint operating agreements listed in <u>Schedule 3.17</u>, there are no Consents applicable to the Wellbore Interests that will be triggered by the execution of this Agreement or consummation of the Contemplated Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>**Plugging and Abandonment**</u>. Neither Seller nor any of its Affiliates has received any written notices, claims, or demands from any Governmental Bodies or other Third Parties to plug and abandon any Wells, and, to Seller's Knowledge, no such notice, claim, or demand is Threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>**Timely Payment**</u>. Seller and each of its Affiliates has paid when due, in all material respects, its share of all costs and expenses billed to, and payable by, such Person relating to the ownership, use, or operation of the Wellbore Interests (including all material bills for labor, materials and supplies used or furnished for use in connection with the Wellbore Interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>**Imbalances**</u>. Except as set forth in <u>Schedule 3.12</u>, there are no Imbalances attributable to the Wellbore Interests operated by Seller or its Affiliates, and to Seller's Knowledge, the other Wellbore Interests, in each case, as of the date set forth in <u>Schedule 3.12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 <u>**Reserve Report**</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The data relating to the lease ownership, production history, operating history and Leases and Contracts that Seller or any of its Affiliates provided to the Initial Reserve Engineers to prepare the Reserve Report are, to Seller's Knowledge, true and correct in all material respects. In providing such information, neither Seller nor its Affiliates knowingly and intentionally omitted any information necessary to make such data not misleading in the context in which they were provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Well operated by Seller or its Affiliate and, to Seller's Knowledge, each other Well is, and continues to be, producing (except for any temporary interruptions due to ordinary maintenance or repair) from its respective Completed Depths.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 <u>**Environmental Matters**</u>. Except as set forth in <u>Schedule 3.14</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to the Wellbore Interests, neither Seller nor any of its Affiliates has entered into any agreements with, or is or was a party under, any consents, Orders, decrees or judgments of, any Governmental Body (in each case) issued or arising under Environmental Laws that impose obligations on or limit the ownership, operation, or use of any of the Wellbore Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither Seller nor any of its Affiliates has received written notice from any Person of any, and to Seller's Knowledge there has been no, release or disposal of any Hazardous Substance concerning any land, facility, asset or property included in the Wellbore Interests which would reasonably be expected to: (i) materially interfere with or prevent compliance by Seller or any of its Affiliates with any Environmental Law or the terms of any Governmental Authorization issued pursuant thereto; or (ii) give rise to or result in any Environmental Liabilities or material Damages exceeding $100,000 (net to the Wellbore Interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Excluding joint operating agreements and contracts pursuant to which any of the Wellbore Interests were acquired, neither Seller nor any of its Affiliates has entered into any Contract or agreement to assume or undertake any Liability or responsibility of any Third Party for (i) remediation of any actual or alleged presence or release of Hazardous Substances or (ii) any other Damages under Environmental Laws, in each case, which relate to the Wellbore Interests and for which Issuer will have any liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To Seller's Knowledge, (i) there are no Environmental Defects affecting the Wellbore Interests that, individually, or in the aggregate with respect to Environmental Defects that arise out of or relate to the same or substantially similar incident or condition (as such incident or condition may affect multiple assets), would be reasonably likely to result in Damages exceeding $100,000 (net to the Wellbore Interests) and (ii) the Wellbore Interests, and Seller and its Affiliates with respect to the ownership and operation thereof, are in compliance with all Environmental Laws except for matters that, individually or in the aggregate, would not reasonably be likely to result in Liabilities or Damages exceeding $200,000 (net to the Wellbore Interests).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 <u>**Wells**</u>. Except as set forth in <u>Schedule 3.15</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Wells drilled by Seller or its Affiliates and, to Seller's Knowledge, all other Wells have been drilled and completed within the limits permitted by each applicable Lease, Contract, pooling or unit agreement and by applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All drilling and completion of Wells drilled and completed by Seller and its Affiliates as operator (and all related development and operations) and, to Seller's Knowledge, all other drilling and completion of the Wells (and all related development and operations) have been conducted in material compliance with all applicable Legal Requirements (other than Environmental Laws) and in accordance with prudent industry standards, other than any violations that have been resolved to the satisfaction of all applicable Governmental Bodies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Well operated by Seller or its Affiliates and, to Seller's Knowledge, no other Well is subject to penalties on allowables after the Effective Time or the Closing Date because of any overproduction or any other violation of applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Well operated by Seller or its Affiliates and, to Seller's Knowledge, no other well: (i) is shut in, temporarily abandoned, suspended or otherwise inactive such that the applicable operator is obligated by applicable Legal Requirements, Lease or Contract to plug or abandon or (ii) is otherwise currently subject to an order from a Governmental Body requiring that such Well be plugged and abandoned or currently obligated by any applicable Legal Requirement, Lease or Contract to be plugged and abandoned.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 <u>**Compliance with Leases and Applicable Easements**</u>. Except as set forth in <u>Schedule 3.16</u>, Seller and each of its Affiliates is in material compliance with respect to its ownership and, as applicable, operation of each of the Leases and Applicable Easements, including all express and implied covenants thereunder. No written demands or notices of default or non-compliance or dispute (including those received electronically) with respect to any of the Leases or Applicable Easements have been issued by or received by Seller or any of its Affiliates that remain uncured or outstanding. To Seller's Knowledge, no event has occurred that with notice or lapse of time, or both, would constitute a material breach or default of any of the Leases or Applicable Easements by any party thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 <u>**Material Contracts**</u>. <u>Schedule 3.17</u> sets forth each of the following Applicable Contracts to which Seller or its Affiliate is a party (or a successor to a party) (collectively, the "<u>**Material Contracts**</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any such Contract that is an indenture, mortgage, loan, credit agreement, sale-leaseback, guaranty of any obligation, bond, letter of credit, or similar Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any such Contract that constitutes a partnership agreement, joint venture agreement, joint development agreement, joint operating agreement, farmin or farmout agreement, exploration agreement, participation agreement or similar Contract where the primary obligation has not been completed prior to the Effective Time, insofar as the same is applicable to any Wellbore Interest (in each case, excluding any tax partnership);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any such Contract containing a guarantee by Seller or any of its Affiliates, insofar as the same is applicable to any Wellbore Interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Affiliate Contract, other than any Closing Document or Ancillary Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Contract that constitutes an area of mutual interest agreement or any other agreement that purports to restrict, limit or prohibit the manner in which, or the locations in which, Seller or any of its Affiliates (or after Closing, Issuer) conducts business that will be binding on Issuer after Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Contract that can reasonably be expected to result in aggregate payments or other Liabilities owed or borne by, or aggregate revenues to, Issuer of more than $100,000 (net to the Wellbore Interests) during the current or any subsequent fiscal year (based solely on the terms thereof and current volumes, without regard to any expected increase in volumes or revenues); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) each Contract that is (A) for the gathering, treatment, storage, transportation or processing of Hydrocarbons produced from the Wellbore Interests or (B) for the sale, purchase, exchange, or other disposition of Hydrocarbons produced from the Wellbore Interests, in each case at or downstream of the applicable Custody Transfer Points (whether or not set forth on <u>Schedule 3.17</u>, the foregoing in this <u>clause (g)</u>, collectively, the "<u>**Midstream Contracts**</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 <u>**Compliance with Material Contracts; Necessary Contracts**</u>. Each of the Material Contracts is valid, binding and (subject to effects of bankruptcy, insolvency, reorganization, moratorium and similar Legal Requirements, as well as to principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law)) enforceable against and by Seller or its applicable Affiliate and, to Seller's Knowledge, each other party thereto and will be, as of the consummation of the Contemplated Transactions, valid, binding and (subject to effects of bankruptcy, insolvency, reorganization, moratorium and similar Legal Requirements, as well as to principles of equity (regardless of whether such enforceability is considered in a Proceeding in equity or at law)) enforceable against and by Issuer (to the extent included in the Wellbore Interests) and each other party thereto. Neither Seller nor any of its Affiliates has, and, to Seller's Knowledge, no other party thereto has, violated or breached in any material respect any Material Contract and, to Seller's Knowledge, there are no existing facts or circumstances which upon notice or the passage of time or both would constitute a violation or breach thereof. There are no Contracts other than the Applicable Contracts that are necessary for Issuer to own (as owned by Seller as of immediately prior to Closing), and gather, treat, store, transport, process, sell, purchase, exchange or otherwise dispose of Hydrocarbons from (as Hydrocarbons therefrom are being gathered, treated, stored, transported, processed, sold, purchased, exchanged or otherwise disposed of as of immediately prior to Closing), and participate in operations (including maintenance, repair, workovers and reworks) with respect to the Completed Depths in, any Wellbore Interests. Except as set forth on <u>Schedule 3.17</u>, there is no Contract included in the Wellbore Interests that is an indenture, mortgage (other than customary liens under applicable joint operating agreements), loan, credit agreement, sale-leaseback, guaranty of any obligation, bond, letter of credit or similar contract. Neither Seller nor any of its Affiliates has received any unresolved written notice of any actual or potential breach, termination, cancellation or material default with respect to any Material Contract. None of the Material Contracts are oral contracts or agreements. Prior to the Closing Date, Seller has made available to counsel to the Majority Noteholders complete and accurate copies of each Material Contract (and all amendments and supplements thereto).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 <u>**Non-Consent Operations**</u>. No operations are being conducted or have been conducted with respect to the Wellbore Interests as to which Seller elected to be a non-consenting party under the terms of the applicable operating agreement and with respect to which Seller has not yet recovered its full participation or that would cause Seller not to have Defensible Title in any Well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20 <u>**Suspense Funds**</u>. All proceeds from the sale of Hydrocarbons produced from the Wellbore Interests operated by Seller or its Affiliates and, to Seller's Knowledge, the other Wellbore Interests are being received by Seller in a timely manner and are not being held in suspense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21 <u>**Hedges**</u>. Except for the Assumed Hedge Contracts, there are no Hedge Contracts with respect to the sale of Hydrocarbons from the Wellbore Interests (a) that are currently binding on the Wellbore Interests and that will be binding on the Wellbore Interests after the Closing or (b) that will be binding on the Wellbore Interests after the Closing and that are not Basic Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.22 <u>**Bankruptcy**</u>. There are no bankruptcy, reorganization or arrangement Proceedings pending, being contemplated by or to Seller's Knowledge Threatened against Seller or any Affiliate of Seller. Seller is not now insolvent, and it will not be rendered insolvent by any of the Contemplated Transactions. As used herein, "insolvent" means that the sum of Seller's debts and other probable liabilities exceeds the present fair saleable value of Seller's assets (after giving effect to amounts that could reasonably be received by reason of indemnity, offset, insurance or other similar arrangement). Immediately after giving effect to the consummation of the Contemplated Transactions, (a) Seller will not have unreasonably small capital with which to conduct its present or proposed business, or will have incurred or intended to incur, or believes that it will incur, debt beyond its ability to pay such debt as such debt matures, and (b) Seller will have assets (calculated at fair market value) that exceed or will exceed its liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.23 <u>**Current Commitments**</u>. Except as set forth on <u>Schedule 3.23</u>, (a) Seller and its Affiliates have not received any authorizations for expenditures relating to ownership of the Wellbore Interests that could require any expenditure to be paid or borne by Issuer at or after Closing and (b) Seller is not subject to any other binding capital commitments relating to ownership of the Wellbore Interests that will require, individually, an expenditure to be paid or borne by Issuer at or after Closing in an amount in excess of $100,000 (net to the Wellbore Interests). Issuer acknowledges that the amounts, if any, shown on <u>Schedule 3.23</u> with respect to such operations or projects are estimates only and Seller makes no representation or warranty concerning the actual costs of the operations or activities to which such estimated expenditures relate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.24 <u>**Sufficiency of Assets**</u>. No Affiliate of Seller owns any interest in any Well Facilities or Applicable Contracts. Subject to the limitations set forth in the Joint Operating Agreement, the Wellbore Interests and the rights of Issuer as of the Closing Date under the Basic Documents are sufficient to permit the Issuer to effect the gathering, processing, transportation, and sale of Hydrocarbons produced from or attributable to the Wells as such sales occurred by Seller or its Affiliates immediately prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.25 <u>**Burdens**</u>. Except as set forth in <u>Schedule 3.25</u>, and except for amounts owed to Third Parties that are held in suspense and amounts disputed in good faith, Seller and its Affiliates have properly and timely paid, or caused to be paid, in all material respects, all Burdens due upon the Seller's and its Affiliates' interest in production from the Wells prior to the Effective Time in accordance with the applicable Leases and Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.26 <u>**Security Agreements**</u>. Excluding the Assumed Hedge Contracts and the Basic Documents, Seller is not a party to any mortgage, pledge, security agreement or any other security interest to which Issuer is or would as of Closing become bound.

**ARTICLE 4**<br>**POST-CLOSING COVENANTS AND OBLIGATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.01 <u>**Books and Records**</u>. (a) From and after the Closing until the Discharge Date, Seller shall afford Issuer and its Affiliates and representatives reasonable access, during normal business hours and upon reasonable advance notice, to the Issuer Books and Records and shall permit Issuer and its Affiliates and representatives to examine and copy such Issuer Books and Records to the extent reasonably requested by such party and (b) from and after termination of the Management Services Agreement until the Discharge Date, Seller shall, and shall cause Seller's Representatives to, furnish all information reasonably requested by Issuer and its Affiliates and representatives in connection with financial reporting, Third Party litigation, or any other business purpose, *provided* that the foregoing in this clause (b) shall not require Seller or any of its Representatives to incur any material expense or to create or furnish any information, reports, or data not already in the possession of Seller or its Affiliates at the time of such request or that differ materially from the information required to be provided to Issuer under the Management Services Agreement. Until the Discharge Date, except to the extent pursuant to and consistent with its ordinary course document and electronic retention policies, Seller shall not destroy, alter or otherwise dispose of any such Issuer Books and Records that are material to the ownership and operation of the Wellbore Interests.

**ARTICLE 5**<br>**INDEMNIFICATION; REMEDIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.01 <u>**Survival**</u>. Notwithstanding any Legal Requirement regarding any statute of limitations to the contrary, all representations and warranties contained in this Agreement shall survive the Closing until the Discharge Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.02 <u>**Indemnification and Payment of Damages by Seller**</u> . Except as otherwise limited in this <u>ARTICLE 5</u>, from and after the Closing, Seller shall defend, indemnify, and hold harmless Issuer and its Representatives, equityholders, controlling Persons, members, partners, and Affiliates (collectively, "<u>**Issuer Indemnity Group**</u>") for, and shall pay to the Issuer Indemnity Group the amount of any Damages arising from, the following (collectively, the "<u>**Seller Covered Liabilities**</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach of any representation or warranty made by Seller in this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach by Seller of any covenant or obligation of Seller in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Retained Liabilities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) subject to <u>Section 5.11(h)</u>, the breach of any maintenance of uniform interest provision under a joint operating agreement caused by or resulting from the Contemplated Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.03 <u>**Indemnification and Payment of Damages by Issuer**</u>. Except as otherwise limited in this <u>ARTICLE 5</u> and except to the extent Issuer is entitled to indemnity under <u>Section 5.02</u>, from and after the Closing, Issuer shall defend, indemnify, and hold harmless Seller, its Affiliates, and its and their Representatives, equityholders, controlling Persons, members, and partners (collectively, "<u>**Seller Indemnity Group**</u>") for, and shall pay to Seller Indemnity Group the amount of any Damages arising from, the following (collectively, the "<u>**Issuer Covered Liabilities**</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any breach by the Issuer Indemnity Group of any covenant or obligation of Issuer in this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Assumed Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.04 <u>**Materiality and Knowledge; Limitations**</u>. Solely for purposes of <u>Section 5.02</u>, any claims of or Liabilities associated with or any indemnification with respect to any breach of any representation or warranty of Seller in this Agreement shall be determined without regard to any materiality, material adverse effect, Knowledge, knowledge, or other similar qualification contained in or otherwise applicable to such representation or warranty; *provided*, *however*, the foregoing shall not have any application for any other purposes (including for any other purposes under this Agreement, for any purposes under any Basic Document or Ancillary Agreement, or for purposes of any other rights or remedies of any member of the Issuer Indemnity Group at law or in equity, including in the case of fraud), and for all such other purposes all such materiality, material adverse effect, Knowledge, knowledge, and other similar qualifications contained in or otherwise applicable to any such representation or warranty shall apply and be given their full effect. Seller acknowledges that it and Issuer are under common control and management, that the management of Issuer therefore has knowledge of the matters with respect to which Seller has knowledge. Seller hereby acknowledges that, regardless of any investigation made (or not made) by or on behalf of Issuer, and regardless of the results of any such investigation, Issuer has entered into the transactions contemplated by this Agreement in express reliance upon the representations, warranties and covenants of Seller made in this Agreement and the Ancillary Agreements. To the fullest extent permitted by applicable law, the rights of Issuer to indemnification or any other remedy under this Agreement or the Ancillary Agreements shall not be impacted or limited by any knowledge that Issuer may have acquired, or could have acquired, whether before or after the Effective Time, or by any investigation or diligence by Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.05 <u>**Exclusive Remedy**</u>. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT (OTHER THAN IN THE CASE OF FRAUD), THE PARTIES AGREE THAT, FROM AND AFTER CLOSING, <u>SECTION 2.07</u> AND THIS <u>ARTICLE 5</u>, AS APPLICABLE, CONTAIN THE PARTIES' EXCLUSIVE REMEDIES AGAINST EACH OTHER WITH RESPECT TO BREACHES OF THE REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS OF THE PARTIES CONTAINED IN THIS AGREEMENT. The Parties have agreed that should any representation or warranty of any Party prove inaccurate, incomplete, or untrue, the other Party shall have the specific rights and remedies herein specified as the exclusive remedy therefor, but that (other than in the case of fraud) no other rights, remedies, or causes of action (whether at law or in equity or whether in contract or in tort or otherwise) are permitted to any Party hereto as a result of the failure, breach, inaccuracy, incompleteness, or untruth of any such representation and warranty. Seller and Issuer acknowledge that, following Closing, specific performance or the payment of money, as limited by the terms of this Agreement, shall be adequate compensation for breach of any representation, warranty, covenant, or agreement contained herein or for any other claim arising in connection with or with respect to the Contemplated Transactions. As such, following Closing, Issuer and Seller each waive any right to rescind this Agreement or any of the Contemplated Transactions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.06 <u>**Compliance with Express Negligence Rule**</u>. **The Parties agree that the obligations of the indemnifying Party to indemnify the Indemnified Party shall be without regard to the negligence or strict liability of the Indemnified Party, whether the negligence or strict liability is active, passive, joint, concurrent, comparative, contributory, or sole, except to the extent such Damages were occasioned by the gross negligence or willful misconduct of the Indemnified Party or any Representative thereof.** The foregoing is a specifically bargained for allocation of risk among the Parties, which the Parties agree and acknowledge satisfies the express negligence rule and conspicuousness requirement under applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.07 <u>**Limitations of Liability**</u>. **Neither Seller nor Issuer shall be entitled to recover from the other Party any consequential (which, for clarity, shall not be construed to include actual direct damages), indirect, special, punitive, exemplary, remote or speculative** **damages** **arising under or in connection with the Contemplated Transactions. Each Party waives any right to recover any consequential (which, for clarity, shall not be construed to include actual direct damages), indirect, special, punitive, exemplary, remote or speculative damages arising in connection with or with respect to the Contemplated Transactions**, in each case, except to the extent constituting actual direct Damages. The limitations in this <u>Section 5.07</u> shall not be applicable to the rights and remedies expressly provided under <u>Section 5.11</u> or to the extent that a Third Party has made claims against an Indemnified Party for any consequential, indirect, special, punitive, exemplary, remote or speculative damages arising under or in connection with the Contemplated Transactions. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The amount of any Damages for which any of the Issuer Indemnity Group or Seller Indemnity Group is entitled to indemnification under this Agreement or in connection with or with respect to the Contemplated Transactions shall be reduced by any corresponding insurance proceeds actually received by any such Indemnified Party under any insurance arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Issuer Indemnity Group or Seller Indemnity Group will be entitled to indemnification under this <u>ARTICLE 5</u> for, from, or against, and Damages shall not include, any Claim or Liability based on or arising from any change in, or in the judicial interpretation of, any applicable Legal Requirement(s) taking effect after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the Seller Indemnity Group other than Seller shall have any liability to any of the Issuer Indemnity Group hereunder in connection with the Contemplated Transactions, and none of the Issuer Indemnity Group other than Issuer shall have any liability to any of the Seller Indemnity Group hereunder in connection with the Contemplated Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties shall treat, for Tax purposes, any amounts paid under this <u>ARTICLE 5</u> as an adjustment to the Cash Purchase Price, unless otherwise required by a change in law after the date hereof, a closing agreement with an applicable Tax authority or a final judgment of a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.08 <u>**No Duplication**</u>. Any liability for indemnification hereunder shall be determined without duplication of recovery by reason of the state of facts giving rise to such liability constituting a breach of more than one representation, warranty, covenant, or agreement in this Agreement. In addition, no Indemnified Party will be entitled to indemnification under this <u>ARTICLE 5</u> for, from, or against, and Damages shall not include, any Claim or Liability with respect to any item to the extent an adjustment therefor has already been made to the Cash Purchase Price, or other recovery has already been obtained, under the terms of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.09 <u>**Third Party Claims**</u>. If a claim by a Third Party (a "<u>**Third Party Claim**</u>") is made against a member of the Issuer Indemnity Group or Seller Indemnity Group (as applicable, the "<u>**Indemnified Party**</u>") and if such Indemnified Party intends to seek indemnity with respect thereto under this <u>ARTICLE 5</u>, such Indemnified Party shall promptly notify the Party which the Indemnified Party asserts is obligated to indemnify the Indemnified Party pursuant to this <u>ARTICLE 5</u> (the "<u>**Indemnifying Party**</u>") of such claim in writing setting out in reasonable detail a description of the facts underlying such Third Party Claim and enclosing a copy of all papers (if any) served with respect to the Third Party Claim. The Indemnifying Party shall have 30 days after receipt of such notice to notify the Indemnified Party that it will, and to commence to, undertake, conduct, and control, through counsel of its own choosing and at its own expense, the settlement or defense thereof and the Indemnified Party shall cooperate with the Indemnifying Party in connection therewith; *provided* that the Indemnifying Party shall permit the Indemnified Party to participate in (but not control) such settlement or defense through counsel chosen by such Indemnified Party at the expense of such Indemnified Party; *provided*, *further* that, to the extent that the Indemnified Party reasonably appears to have defenses available to it that are different from or additional to those available to the Indemnifying Party, the assertion of such different or additional defenses by such counsel shall be at the expense of the Indemnifying Party. So long as the Indemnifying Party, at its own cost and expense, (a) has within such 30 days notified the Indemnified Party that it will, and has commenced to, undertake the defense of, and has agreed to assume full responsibility for (subject to the terms and limitations contained in this <u>ARTICLE 5</u>), all Covered Liabilities allocated to it under this Agreement with respect to such Third Party Claim, (b) is reasonably contesting such Third Party Claim in good faith by appropriate Proceedings timely initiated and diligently conducted or is reasonably attempting to settle such Third Party Claim, and (c) has taken such action (including the posting of a bond, deposit, or other security) as may be necessary, if applicable, to prevent foreclosure of a lien against or attachment of the property of the Indemnified Party for payment of such Third Party Claim, the Indemnified Party shall not pay or settle any such claim and the Indemnifying Party shall have full control of such defense and Proceedings, including any compromise or settlement thereof (unless the compromise or settlement includes the payment of any amount by, the performance of any obligation by, or the limitation of any material right or benefit of, the Indemnified Party, in which event such settlement or compromise shall not be effective without the consent of the Indemnified Party, which shall not be unreasonably withheld or delayed). Notwithstanding compliance by the Indemnifying Party with the preceding sentence, the Indemnified Party shall have the right to pay or settle any such Third Party Claim; *provided* that, if the Indemnifying Party is in material compliance with the preceding sentence at the time of such payment or settlement by the Indemnified Party, then the Indemnifying Party shall have no responsibility to make any payment or reimbursement with respect to such claim or the settlement thereof. If, within 30 days after the receipt of the Indemnified Party's notice of a claim of indemnity hereunder in respect of a Third Party Claim, the Indemnifying Party does not notify the Indemnified Party that the Indemnifying Party elects, at its cost and expense, to undertake the defense thereof and assume full responsibility for all Covered Liabilities allocated to it under this Agreement with respect to such Third Party Claim (subject to the terms and limitations contained in this <u>ARTICLE 5</u>), or if the Indemnifying Party gives such notice and thereafter fails to contest or attempt to settle such Third Party Claim in good faith or to take such action as may reasonably be necessary, if applicable, to prevent foreclosure of a lien against or attachment of the Indemnified Party's property as contemplated above, the Indemnified Party shall have the right to contest, settle, or compromise the claim but shall not thereby waive any right to indemnity therefor pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>**Direct Claims.**</u> For any claim for indemnification not based upon a Third Party Claim, the Indemnified Party shall deliver to the Indemnifying Party a notice in writing describing in reasonable detail the facts giving rise to such claim, the basis upon which indemnification is being sought, and the estimated amount of Covered Liabilities (if known or reasonably capable of estimation) attributable to such claim. The Indemnifying Party shall have 30 days (or if such breach or liabilities cannot be cured within 30 days, such longer period as is reasonably necessary to cure, so long as the Indemnifying Party is using good faith efforts to cure) from its receipt of such notice to (a) cure the liabilities complained of, (b) admit its liability for such liabilities or (c) dispute the claim for such liabilities. If the Indemnifying Party does not notify the Indemnified Party within such time period that it has cured the liabilities complained of, that it admits its liability for such liabilities, or that it disputes the claim for such liabilities, then the Indemnifying Party shall be deemed to have disputed liability with respect to such matter. If the Indemnifying Party does not admit or otherwise does deny or dispute its liability against a direct claim for indemnification by an Indemnified Party within the time period set forth in this <u>Section 5.10</u>, then the Indemnified Party may pursue its rights and remedies under this Agreement, at law or in equity with respect to such claim for indemnification, or withdraw such claim.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>**Title Matters**</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Issuer may, from time to time, deliver to Seller, on or before the Discharge Date, one or more written notices asserting the existence of Title Failure(s) (a "<u>**Title Failure Notice**</u>"). Each Title Failure Notice shall include (i) a description, in reasonable detail, of each Title Failure asserted thereunder and the Wellbore Interests affected thereby, (ii) if Issuer believes such Title Failure is reasonably susceptible of being cured, the curative actions that Issuer reasonably anticipates are required to cure such Title Failure, (iii) Issuer's calculation of the Title Failure Amount for each Title Failure asserted thereunder and (iv) any documents or information in Issuer's possession reasonably necessary for Seller to determine the existence of each Title Failure asserted thereunder. For thirty (30) days following delivery of a Title Failure Notice, Issuer and Seller will in good faith negotiate the validity and Title Failure Amounts of the Title Failure(s) asserted thereunder using the criteria set forth in this Agreement, and, if Issuer and Seller are unable to agree on the validity or Title Failure Amount of one or more Title Failure(s) asserted in such Title Failure Notice during such thirty (30) day period, then such matters shall be resolved pursuant to <u>Section 5.11(f)</u> and the time periods set forth in <u>Section 5.11(c)</u> and <u>Section 5.11(d)</u> shall be tolled with respect to the Title Failure(s) under dispute until finally resolved pursuant to <u>Section 5.11(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller may, from time to time (including at any time following receipt of a Title Failure Notice), deliver to Issuer, on or before the Discharge Date one or more written notices asserting the existence of Title Credit(s) (a "<u>**Title Credit Notice**</u>"). Each Title Credit Notice shall include (i) a description, in reasonable detail, of each Title Credit asserted thereunder and the Wellbore Interests affected thereby, (ii) Seller's calculation of the Title Credit Amount for each Title Credit asserted thereunder and (iii) any documents or information in Seller's possession reasonably necessary for Issuer to determine the existence of each Title Credit asserted thereunder and Seller's calculation of the associated Title Credit Amount. For twenty (20) Business Days following delivery of a Title Credit Notice, Issuer and Seller will in good faith negotiate the validity and Title Credit Amounts of the Title Credit(s) asserted thereunder using the criteria set forth in this Agreement, and, if Issuer and Seller are unable to agree on the validity or Title Credit Amount of a one or more Title Credit(s) asserted in such Title Credit Notice during such twenty (20) Business Day period, then such matters shall be resolved pursuant to <u>Section 5.11(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Title Failure asserted pursuant to a Title Failure Notice delivered pursuant to <u>Section 5.11(a)</u> is reasonably susceptible of being cured, Seller shall have a period of ninety (90) days following receipt of such Title Failure Notice to attempt in good faith to cure the identified Title Failure (or if such Title Failure cannot be cured within such ninety (90)-day period, such longer period as is reasonably necessary to cure such Title Failure, so long as Seller is using good faith efforts to cure such Title Failure, but with such period not to exceed in any event 12 months following receipt of such Title Failure Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to Title Failures affecting a Well that are asserted pursuant to Title Failure Notices delivered pursuant to <u>Section 5.11(a)</u>, if the aggregate Title Failure Amount(s) of such Title Failures exceed 50% of the then applicable Buy-Out Price for such Well, then Seller shall have the option to, within thirty (30) days following (i) if the Title Failures are not reasonably susceptible of being cured, then delivery of the applicable Title Failure Notice, or (ii) if the Title Failures are reasonably susceptible of being cured, then the last day of the period specified in <u>Section 5.11(c)</u>, repurchase all of the Wellbore Interests related to the affected Well for an amount equal to the Buy-Out Price for the affected Well (by paying such amount directly to Issuer) and, upon such payment, Issuer shall assign to Seller (in an assignment substantially in the form of the Conveyances) the Wellbore Interests related to such Well free and clear of any Encumbrances by, through, or under Issuer, but not otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to <u>Section 5.11(f)</u>, with respect to any (x) aggregate Title Failure Amounts for all Title Failures asserted pursuant to Title Failure Notices delivered pursuant to <u>Section 5.11(a)</u> and which Title Failures have not been cured pursuant to <u>Section 5.11(c)</u> and do not relate to a Repurchased Interest under <u>Section 5.11(d)</u> (as finally determined by agreement of the Parties pursuant to <u>Section 5.11(a)</u> or pursuant to <u>Section 5.11(f)</u> and that have not previously been included in the calculation of a Title Adjustment Amount pursuant to this <u>Section 5.11(e)</u>), *less* (y) aggregate Title Credit Amounts for all Title Credits asserted as of such time pursuant to Title Credit Notices delivered pursuant to <u>Section 5.11(b)</u> (as finally determined by agreement of the Parties pursuant to <u>Section 5.11(b)</u> or pursuant to <u>Section 5.11(f)</u>) and that have not previously been applied pursuant to this <u>Section 5.11(e)</u> (such net amount, the "**Title Adjustment Amount**"), Seller shall, within thirty (30) days following (i) if the Title Failures are not reasonably susceptible of being cured, then delivery of the applicable Title Failure Notice, or (ii) if the Title Failures are reasonably susceptible of being cured, then the last day of the period specified in <u>Section 5.11(c),</u> pay Issuer an amount in cash equal to the Title Adjustment Amount (by paying such amount directly to Issuer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any disputes regarding Title Failures, Title Failure Amounts, Title Credits, Title Credit Amounts, the appropriate cure of any Title Failure, the occurrence or existence of a Protected Outcome or whether or to what extent a Title Failure has been cured, in each case, that are not resolved within thirty (30) days following either Party submitting a written notice of dispute may be submitted by a Party, with written notice to the other Party, to an independent expert (the "<u>**Independent Expert**</u>"), who shall serve as the sole and exclusive arbitrator of any such dispute. The Independent Expert shall be selected by Issuer and Seller (acting reasonably and in good faith) within fifteen (15) days following the date said notice is received by the other Party. The Independent Expert must (i) be a neutral party who has never been an officer, director or employee of or performed material work for a Party or any Party's Affiliate within the preceding five (5)-year period and (ii) agree in writing to keep strictly confidential the specifics and existence of the dispute as well as all proprietary records of the Parties reviewed by the Independent Expert in the process of resolving such dispute. For any title matter, the Independent Expert must have not less than ten (10) years' experience as a lawyer with experience in oil and gas titles involving properties in the same geographic region in which the Wellbore Interests are located. If Issuer and Seller fail to select an Independent Expert within the fifteen (15) day period referred to in this <u>Section 5.11(f)</u> above, within three (3) Business Days thereafter, each of Issuer and Seller shall choose an Independent Expert meeting the qualifications set forth above, and such experts shall promptly choose a third Independent Expert (meeting the qualifications provided for herein) who alone shall resolve the disputes between Issuer and Seller regarding Title Failures, Title Failure Amounts, Title Credits, Title Credit Amounts, the appropriate cure of any Title Failure, or whether or to what extent a Title Failure has been cured. Issuer and Seller shall each bear its own costs and expenses incurred in connection with any such Proceeding and one-half (1/2) of the costs and expenses of the Independent Expert. Disputes to be resolved by an Independent Expert shall be resolved in accordance with the Commercial Arbitration Rules of the AAA as supplemented to the extent necessary to determine any procedural appeal questions by the Federal Arbitration Act (Title 9 of the United States Code), but only to the extent such rules do not conflict with the terms of this Agreement, mutually agreed procedures and rules and, failing such agreement, in accordance with the rules and procedures for non-administered arbitration set forth in the commercial arbitration rules of the American Arbitration Association. The decision and award of the Independent Expert shall be binding upon the Parties and final and non-appealable to the maximum extent permitted by Legal Requirements and judgment thereon may be entered in a court of competent jurisdiction and enforced by any Party as a final judgment of such court. Within fifteen (15) days following the receipt by either Party of written notice of a dispute, the Parties will exchange their written description of the proposed resolution of the disputed matters. Provided that no resolution has been reached, within five (5) Business Days following the selection of the Independent Expert, the Parties shall submit to the Independent Expert the following: (i) this Agreement, (ii) Issuer's written description of the proposed resolution of the disputed matters, together with any relevant supporting materials, (iii) Seller's written description of the proposed resolution of the disputed matters, together with any relevant supporting materials, and (iv) the written notice of the dispute. The Independent Expert shall make its determination by written decision within fifteen (15) days following receipt of the materials (the "<u>**Independent Expert Decision**</u>"). The Independent Expert Decision with respect to the disputed matters shall be limited to the selection of the single proposal for the resolution of the aggregate disputed matters proposed by a Party that best reflects the terms and provisions of this Agreement (*i.e.*, the Independent Expert must select either Issuer's proposal or Seller's proposal for resolution of the aggregate disputed matters). The Independent Expert shall act as an expert for the limited purpose of determining the specific matters submitted for resolution herein and shall not be empowered to award other Damages, attorney fees, interest, or penalties to either Party with respect to any other matter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary herein, with respect to the Wellbore Interests, Issuer shall assume all risk of loss with respect to: (i) changes in commodity or product prices and any other market factors or conditions from and after the Effective Time; (ii) production declines or any adverse change in the production characteristics or downhole condition of a Well, including any Well watering out or experiencing a collapse in the casing or sand infiltration; and (iii) depreciation of any Well Facilities (excluding as to Seller's interest in the Retained Gathering Facilities) that constitute personal property through ordinary wear and tear, and none of the foregoing shall constitute Title Failures or otherwise give rise to any Claims by Issuer hereunder or under any other Seller Closing Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding anything to the contrary in this Agreement or in any other Seller Closing Document, this <u>Section 5.11</u> constitutes the entire and exclusive rights and remedies of Issuer against any member of the Seller Indemnity Group with respect to any Title Failures or other title matters or deficiencies in title with respect to the Wellbore Interests or of Seller against any member of the Issuer Indemnity Group with respect to any Title Credits or other title matters or benefits in title with respect to the Wellbore Interests (collectively, "<u>**Title Matters**</u>"). In this regard and notwithstanding anything to the contrary in this Agreement or in any other Seller Closing Document, if a Title Failure or other Title Matter constitutes, or results from any matter or circumstance which constitutes, either (1) a breach of any representation or warranty of Seller set forth in this Agreement or in any other Seller Closing Document or (2) a matter for which Seller has agreed to indemnify Issuer under <u>Section 5.02(d)</u>, then Issuer shall only be entitled to assert such matter (i) as to the portion thereof constituting a Title Failure, as a Title Failure as and to the extent permitted by this <u>Section 5.11</u>, and (ii) as to any Liability or Damage (other than such Title Failure) incurred by Issuer and owed to any Third Party, as the basis of the breach of any such representation or warranty (and claim under <u>Section 5.02(a)</u>) and/or the basis of a claim under <u>Section 5.02(d)</u>, as applicable.

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**ARTICLE 6**<br>**GENERAL PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.01 <u>**Expenses**</u>. Except as otherwise expressly provided in this Agreement, each Party to this Agreement shall bear its respective expenses incurred in connection with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including all fees and expenses of agents, Representatives, counsel, and accountants. However, the prevailing Party in any legal Proceeding brought under or to enforce this Agreement shall be entitled to recover court costs and reasonable attorneys' fees from the non-prevailing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.02 <u>**Notices**</u>. All notices, consents, waivers, and other communications under this Agreement must be in writing and shall be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by electronic mail with receipt acknowledged (with the receiving Party affirmatively obligated to promptly acknowledge receipt), or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate recipients, addresses, and fax numbers set forth below (or to such other recipients, addresses, or fax numbers as a Party may designate by notice to the other Party):

<u>NOTICES TO SELLER</u>:

HB2 Origination, LLC <br>3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

With a copy (which shall not constitute notice) to:

HB2 Origination, LLC <br>3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

<u>NOTICES TO ISSUER</u>:

Alpine Summit Funding LLC

c/o HB2 Origination, LLC

3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

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With a copy (which shall not constitute notice) to:

HB2 Origination, LLC <br>3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.03 <u>**Jurisdiction; Service of Process**</u>. EACH PARTY TO THIS AGREEMENT HEREBY SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, THE COURTS OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF. EACH PARTY (i) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR SUCH COVERED CLAIMS, (ii) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT, AND (iii) AGREES THAT IT WILL NOT BRING ANY COVERED CLAIM IN ANY COURT OTHER THAN SUCH COURTS. EACH PARTY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE JURISDICTION AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY NON-APPEALABLE JUDGMENT RENDERED THEREBY, IN EACH CASE, IN CONNECTION WITH SUCH COVERED CLAIMS. A COPY OF ANY SERVICE OF PROCESS SERVED UPON THE PARTIES IN CONNECTION WITH A COVERED CLAIM SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LEGAL REQUIREMENTS, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY A PARTY REFUSES TO ACCEPT SERVICE, EACH PARTY AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LEGAL REQUIREMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.04 <u>**Waiver of Jury Trial**</u>. EACH OF THE PARTIES HERETO HEREBY WAIVES AND AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO COVERED CLAIMS. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THE TRANSACTIONS UNDER THIS AGREEMENT AND THE CLOSING DOCUMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.05 <u>**Further Assurances**</u>. The Parties agree (a) to furnish upon request to each other such further information, (b) to execute, acknowledge, and deliver to each other such other documents, and (c) to do such other acts and things, all as the other Party may reasonably request and which are reasonably necessary for the purpose of carrying out the intent of this Agreement and the Closing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.06 <u>**Waiver**</u>. The rights and remedies of the Parties are cumulative and not alternative. Neither the failure nor any delay by either Party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement shall operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege shall preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable Legal Requirements, (a) no claim or right arising out of this Agreement or the documents referred to in this Agreement can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other Party; (b) no waiver that may be given by a Party shall be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one Party shall be deemed to be a waiver of any obligation of such Party or of the right of the Party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.07 <u>**Entire Agreement and Modification**</u>. This Agreement supersedes all prior discussions, communications, and agreements (whether written or oral) between the Parties with respect to its subject matter and constitutes (along with the Closing Documents and Ancillary Agreements) a complete and exclusive statement of the terms of the agreement between the Parties with respect to its subject matter. This Agreement may not be amended or otherwise modified except by a written agreement executed by both Parties and subject to any additional requirements specified in the Indenture, including, without limitation, where required under the Indenture, the written consent of the Majority Noteholders, which are third party beneficiaries for purposes of this Section 6.07. The Parties hereby agree that, until such time as the Indenture is terminated and the notes thereunder are satisfied, the Parties will not amend this Agreement to modify or alter the definition of the term "Permitted Encumbrance" without the prior consent of the applicable Holders of the then Outstanding Notes (as such terms are defined in the Indenture) in accordance with the terms of Section 9.02(a)(iv) of the Indenture. In the event of a conflict between the terms and provisions of this Agreement and the terms and provisions of any Schedule or Exhibit hereto, the terms and provisions of this Agreement shall govern, control, and prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.08 <u>**Assignments, Successors, and Third-Party Rights**</u>. Neither Party may assign any of its rights, liabilities, covenants, or obligations under this Agreement without the prior written consent of the other Party (which consent may be granted or denied at the sole discretion of the other Party), *provided, however*, the Parties consent to the pledge and assignment by Issuer to the Indenture Trustee of Issuer's rights under this Agreement as more particularly set forth in the Indenture. In the event of a permitted assignment pursuant to the preceding sentence, such assignment nevertheless shall not relieve such assigning Party of any of its obligations under this Agreement without the prior written consent of the other Party. Subject to the preceding sentence, this Agreement shall apply to, be binding in all respects upon, and inure to the benefit of the successors and permitted assigns of the Parties. Nothing expressed or referred to in this Agreement shall be construed to give any Person other than the Parties or the parties to any other agreement contemplated herein (and (a) Issuer Indemnity Group and Seller Indemnity Group who are entitled to indemnification under <u>ARTICLE 5</u> and (b) Non-Party Affiliates under <u>Section 6.13</u>), any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement, any other agreement contemplated herein, and all provisions and conditions hereof and thereof, are for the sole and exclusive benefit of the Parties and the parties to such other agreements (and (x) Issuer Indemnity Group and Seller Indemnity Group who are entitled to indemnification under <u>ARTICLE 5</u> and (y) Non-Party Affiliates under <u>Section 6.13</u>), and their respective successors and permitted assigns. Notwithstanding anything herein to the contrary, the Indenture Trustee shall be a third-party beneficiary to this Agreement and may enforce on Issuer's behalf the provisions hereof as if it were a Party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.09 <u>**Severability**</u>. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree shall remain in full force and effect to the extent not held invalid or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 <u>**Governing Law**</u>. This Agreement and any claim or cause of action (whether based in statute, tort, contract or otherwise) based upon or arising under this Agreement or any of the Closing Documents, based upon or arising in connection with any dealings between the Parties relating to the subject matter of this Agreement or any of the Closing Documents or the negotiation or performance of this Agreement or any of the Closing Documents (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or any of the Closing Documents or as an inducement to enter into this Agreement or any of the Closing Documents), or otherwise relating to the Contemplated Transactions ("<u>**Covered Claims**</u>") shall be governed by the internal laws of the State of Texas, including its statutes of limitations, without regard to any borrowing statute that would result in the application of the statute of limitations of any other jurisdiction, provided that any matter that relates to real property the legal effect of which as related to such real property is dependent on the substantive laws of the State where such real property is located or other jurisdiction having authority over such matter as related to such real property shall be governed by the substantive laws of the State where such real property is located or such other jurisdiction having authority over such matter as related to such real property, as applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 <u>**Counterparts**</u>. This Agreement may be executed and delivered (including by facsimile or electronic transmission) in one or more counterparts, each of which shall be deemed to be an original copy of this Agreement, and each of which may be executed by less than all of the Parties, and shall be enforceable and effective against the Parties actually executing such counterparts, and all of which, when taken together, shall be deemed to constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 <u>**Confidentiality**</u>. Each Party shall keep confidential, and cause its Affiliates and instruct its Representatives to keep confidential, all terms and provisions of this Agreement; *provided* that disclosure thereof shall be permitted: (a) to the lenders, swap counterparties, insurers, owners, and investors of any Party (or their trustees or other Representatives), to the Affiliates of any such Party, lender, owner or investor, and to any rating agency providing a rating for the obligations of Seller or Issuer or any Affiliate thereof and to any regulatory authority with jurisdiction of any such party; (b) to the directors, managers, officers, employees, agents, consultants, engineers, auditors and attorneys of any Party or any Person described in the preceding clause (a); (c) in the course of any trial or other action between any of the Parties, their lenders, swap counterparties, insurers, owners or investors, or the Affiliates of any such Party, lender, swap counterparty, insurer, owner or investor; (d) as required by any applicable securities Legal Requirements or other Legal Requirements (including any subpoena, interrogatory, or other similar requirement for such information to be disclosed); and (e) in connection with any direct or indirect assignment or potential assignment of or investment in such Party's, lender's, swap counterparty's, owner's or investor's rights or assets (*provided* that each such assignee or potential assignee is made aware that such information is required to be held in confidence). This <u>Section 6.12</u> shall not prevent either Party from recording the Conveyances delivered at Closing or from complying with any disclosure requirements of Governmental Bodies that are applicable to the transfer of the Wellbore Interests. The covenant set forth in this <u>Section 6.12</u> shall survive for twelve (12) months after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 <u>**No Recourse**</u>. Notwithstanding anything that may be expressed or implied in this Agreement or any document, agreement, or instrument delivered contemporaneously herewith, and notwithstanding the fact that any Party may be a partnership or limited liability company, each Party hereto, by its acceptance of the benefits of this Agreement, covenants, agrees and acknowledges that no Persons other than the Parties shall have any obligation hereunder and that it has no rights of recovery hereunder against, and no recourse hereunder or under any documents, agreements, or instruments delivered contemporaneously herewith or in respect of any oral representations made or alleged to be made in connection herewith or therewith shall be had against, any former, current or future director, officer, agent, Affiliate, manager, assignee, incorporator, controlling Person, fiduciary, Representative or employee of any Party (or any of their successors or permitted assignees), against any former, current, or future general or limited partner, manager, stockholder or member of any Party (or any of their successors or permitted assignees) or any Affiliate thereof or against any former, current or future director, officer, agent, employee, Affiliate, manager, assignee, incorporator, controlling Person, fiduciary, Representative, general or limited partner, stockholder, manager or member of any of the foregoing, but in each case not including the Parties (each, but excluding for the avoidance of doubt, the Parties, a "<u>**Non-Party Affiliate**</u>"), whether by or through attempted piercing of the corporate veil, by or through a claim (whether in tort, contract or otherwise) by or on behalf of such Party against the Non-Party Affiliates, by the enforcement of any assessment or by any Proceeding, or by virtue of Legal Requirements, or otherwise; it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on, or otherwise be incurred by any Non-Party Affiliate, as such, for any obligations of the applicable Party under this Agreement or the transactions contemplated hereby, under any documents or instruments delivered contemporaneously herewith, in respect of any oral representations made or alleged to be made in connection herewith or therewith, or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, such obligations or their creation. Except to the extent otherwise expressly set forth in, and subject in all cases to the terms and conditions of and limitations herein, this Agreement may only be enforced against, and any claim or cause of action of any kind based upon, arising out of, or related to this Agreement, or the negotiation, execution or performance of this Agreement, may only be brought against the entities that are expressly named as Parties hereto and then only with respect to the specific obligations set forth herein with respect to such Party. Each Non-Party Affiliate is expressly intended as a third-party beneficiary of this <u>Section 6.13</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 <u>**Issuer's Obligations**</u>. Notwithstanding any provisions herein to the contrary, but subject to and without limitation of any right under the Joint Operating Agreement or Management Services Agreement to net or offset amounts owing to Issuer against any Assumed Liabilities owing by Issuer, all out-of-pocket payment obligations of Issuer under or in connection with this Agreement are nonrecourse obligations of Issuer payable solely from the Collateral (as defined in the Indenture) in accordance with the priorities set forth in Section 8.06 of the Indenture, and following realization of the Collateral and its reduction to zero, any claims of a Person against Issuer under this Agreement shall be extinguished and shall not thereafter revive. It is understood that the foregoing provision shall not limit the right of any Person claiming hereunder to name Issuer as a party defendant in any proceeding or in the exercise of any other remedy, so long as no judgment in the nature of a deficiency judgment shall be asked for or (if obtained) enforced against Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 <u>**No Petition**</u>. Seller, by entering into this Agreement, hereby covenants and agrees that, solely in its capacity as a creditor of Issuer, it will not at any time institute against Issuer, or join in any institution against Issuer of, any involuntary bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings, or other Proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to this Agreement.

**[Signature Page Follows]**

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***Execution Version***

IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the date first written above.

<u>**SELLER:**</u>

**HB2 ORIGINATION, LLC**

By: <u>/s/ Craig Perry</u><u> </u>

Craig Perry

President and Chief Executive Officer

<u>**ISSUER:**</u>

**ALPINE SUMMIT FUNDING LLC**

By: <u>/s/ Craig Perry</u><u> </u>

Craig Perry

President and Chief Executive Officer

*Signature Page to Asset Purchase Agreement*

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## Exhibit 10.8

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***Execution Version***

<u>**AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT**</u>

**THIS AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT** (this "<u>**Agreement**</u>") is entered into as of September 12, 2022 (the "<u>**Amendment Date**</u>"), between Alpine Summit Funding LLC, a Delaware limited liability company (the "<u>**Issuer**</u>"), and HB2 Origination, LLC, a Delaware limited liability company (the "<u>**Manager**</u>"). The Manager and the Issuer may be referred to herein collectively as the "<u>**Parties**</u>" and each as a "<u>**Party**</u>".

**WHEREAS**, Manager and Issuer entered into (a) that certain Asset Purchase Agreement, dated as of April 29, 2022 (the "<u>**Initial Asset Purchase Agreement**</u>"), and (b) certain Conveyances (as defined in the Initial Asset Purchase Agreement), pursuant to which the Issuer has purchased and acquired certain Wellbore Interests (as defined in the Initial Asset Purchase Agreement) from the Manager, as further described in the Initial Asset Purchase Agreement and the Conveyances delivered pursuant thereto (collectively, the "<u>**Initial Asset Transfer Documents**</u>") and upon the terms and subject to the conditions described therein;

**WHEREAS**, the Issuer and the Manager entered into that certain Management Services Agreement, dated as of April 29, 2022 (the "<u>**Initial Management Services Agreement**</u>"), to provide for, among other things, the performance by the Manager of certain of the Issuer's duties and obligations related to the ownership of the Assets acquired pursuant to the Initial Asset Purchase Agreement, in each case, upon the terms and subject to the conditions described therein;

**WHEREAS**, Manager and Issuer have entered into (a) that certain Asset Purchase Agreement, dated as of the Amendment Date (the "<u>**Second Asset Purchase Agreement**</u>" and, together with the Initial Asset Purchase Agreement, the "<u>**Asset Purchase Agreements**</u>"), and (b) certain Conveyances (as defined in the Second Asset Purchase Agreement), pursuant to which the Issuer has purchased and acquired certain additional Wellbore Interests (as defined in the Second Asset Purchase Agreement) from the Manager, as further described in the Second Asset Purchase Agreement and the Conveyances delivered pursuant thereto (collectively, the "<u>**Second Asset Transfer Documents**</u>" and, together with the Initial Asset Transfer Documents, the "<u>**Asset Transfer Documents**</u>") and upon the terms and subject to the conditions described therein;

**WHEREAS**, the Issuer and the Manager desire to amend and restate the Initial Management Services Agreement to also provide for, among other things, the performance by the Manager of certain of the Issuer's duties and obligations related to the ownership of the Assets acquired pursuant to the Second Asset Purchase Agreement (in addition to the Assets acquired pursuant to the Initial Asset Purchase Agreement), in each case, upon the terms and subject to the conditions described herein;

**WHEREAS**, the compensation arrangements set forth in this Agreement are designed to compensate the Manager for the Services (as defined below).

**NOW**, **THEREFORE**, in consideration of the foregoing premises and the respective agreements hereinafter set forth and the mutual benefits to be derived herefrom, the receipt and sufficiency of which are hereby acknowledged, the Manager and the Issuer hereby agree 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;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Engagement</u>. The Issuer hereby engages the Manager, and the Manager hereby agrees, to perform, or to cause to be performed, the Services during the Term, subject to and in accordance with the Management Standards and the terms of this Agreement. The Issuer shall furnish the Manager with any powers of attorney and other documents necessary or appropriate to enable the Manager to carry out the 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;2. <u>Services of the Manager</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;(a) During the Term, the Manager shall have full power and authority to, and shall, in its commercially reasonable discretion in accordance with the Management Standards and the terms of this Agreement, take (or refrain from taking) any and all actions which the Manager determines to be necessary or desirable in connection with the performance of the Services, and such actions shall be for the sole benefit of, and on behalf of, the Issuer.

&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) As part of the Services, the Manager shall respond on behalf of the Issuer to any proposal regarding joint operations, proposed Well joint costs, Well elections, or requests for authorization for expenditure, including capital expenditures (as such term is defined in accordance with the applicable Accounting Standard), in each case pursuant to the terms of the applicable operating, unitization, or communitization agreements or pooling orders (each such proposal, election, or request, an "<u>**AFE**</u>") for any Well received by the Issuer from any Working Interest owner in the Assets or the operator of any Well (including an Operator) under the terms of any operating agreement or in accordance with applicable Law. Subject to the remaining terms of this <u>Section 2</u>, in the event the Issuer receives from any Person (including an Operator) an AFE for any workover, refrac, rework, or extension (including lateral extensions of any Well to the extent permitted under the applicable operating, unitization, or communitization agreement or pooling order), the Manager shall review such AFE and, acting in accordance with the Management Standards and the Manager's good faith determination that participating (or not participating) in the operation covered by such AFE (an "<u>**AFE Operation**</u>") would be in the best interest of the Issuer and would not (as of the date such determination is made) reasonably be expected to adversely affect the Issuer or the Noteholders or the Hedge Counterparties, on behalf of the Issuer elect whether (a) to consent or non-consent to participation in such AFE Operation ("<u>**Consent Election**</u>"); and (b) if applicable, to participate for the Issuer's share of any other non-consenting Working Interest owners' interest in such AFE Operation ("<u>**Additional Interest Election**</u>" and, together with the Consent Election, the "<u>**Elections**</u>"). The Manager shall make Elections on behalf of the Issuer within the required time period set forth in the applicable proposal or as otherwise required under the underlying contract containing such obligation, subject to the Manager's obligations under <u>Section 2(e)</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;(c) If the Manager determines that it is in the best interest of the Issuer, pursuant to <u>Section 2(b)</u>, to participate in an AFE Operation or, if applicable, participate for the Issuer's share of any other non-consenting Working Interest owners, and, at the time of such Election, the Issuer has adequate Excess Funds available to pay for all of the Issuer's costs set forth in the applicable AFE for such AFE Operation, then the Issuer shall be solely responsible for all costs and expenses related to the operations contemplated in such AFE.

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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;(d) If the Manager determines that it is in the best interest of the Issuer, pursuant to <u>Section 2(b)</u>, to participate in an AFE Operation or, if applicable, participate for the Issuer's share of any other non-consenting Working Interest owners, but, at the time of such Election, the Issuer does not have adequate Excess Funds available to pay for all of the Issuer's costs set forth in the applicable AFE for such AFE Operation, then, subject to <u>Section 2(e)</u>, the Manager may elect one of the following options:

&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) elect, on behalf of the Issuer, to non-consent the AFE Operation and/or not participate in the Additional Interest Election;

&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 (x) the Election is not a Material Election or, if a Material Election, the Manager determines in its reasonable judgement that the Issuer is reasonably expected to recover any AFE Cover Amount within six (6) months (taking into consideration any non-consent penalties) or (y) the Manager otherwise requests consent from the Noteholders as contemplated by <u>Section 2(e)</u> and the Majority Noteholders provide or are deemed to have provided their consent pursuant to <u>Section 2(e)</u>, then, in either such case, elect, on behalf of the Issuer, to consent to such AFE Operation and/or participate in the Additional Interest Election, in which case, (A) the Issuer shall pay any amounts owed by it with respect to such AFE Operation up to the amount of any available unused Excess Funds, (B) the Manager shall advance the costs owed by the Issuer with respect to such AFE Operation (including, as applicable, the amounts necessary for an Additional Interest Election) that are in excess of the amount paid by the Issuer under <u>clause (A)</u> (if any) (the "<u>**AFE Cover Amount**</u>"), and (C) the Manager shall be entitled to recover such AFE Cover Amount by receiving (as part of the reimbursement for Direct Expenses hereunder, and treated as an Administrative Expense under the Indenture) each following month (as permitted under the Indenture), until the Manager has been reimbursed the full AFE Cover Amount, payments on account of such AFE Cover Amount from the Issuer pursuant to Section 8.06 of the Indenture; 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;(iii) if (x) the Election is a Material Election, (y) the Manager determines in its reasonable judgement that the Issuer is not reasonably expected to recover any AFE Cover Amount within six (6) months (taking into consideration any non-consent penalties) and (z) the Manager requests consent from the Noteholders as contemplated by <u>Section 2(e)</u> and the Majority Noteholders do not provide and are not deemed to have provided their consent pursuant to <u>Section 2(e)</u>, then, elect to purchase from the Issuer the Well subject to such AFE, in which case, (A) the Manager will consent, on behalf of the Issuer, to such AFE Operation, (B) the Manager will pay to the applicable operator or Working Interest owner all costs owed by the Issuer under such AFE and will not be entitled to compensation from the Issuer for those costs, (C) the Manager will pay to the Issuer the then applicable Buy-Out Price for the affected Well and (D) the Issuer shall assign to the Manager (or its designated Affiliate) all right, title, and interest in and to such Well and related Wellbore Interests pursuant to an assignment and bill of sale substantially in the form of the Conveyances and free and clear of any Encumbrances (as defined in the Asset Purchase Agreements) by, through, or under the Issuer, but not otherwise (any such Well and related Wellbore Interests so purchased by the Manager, "<u>**Repurchased Interests**</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;(e) If the Issuer's total share of estimated costs associated with any Election as set forth in the applicable AFE, as determined as of the date such Election is made, exceeds $325,000, net to the Issuer's interest (a "<u>**Material Election**</u>"), then the Manager shall not be permitted to affirmatively consent or non-consent, on behalf of the Issuer, to such Election without the Majority Noteholders' written consent or, as provided in this <u>Section 2(e)</u>, deemed consent; <u>provided</u>, <u>however</u>, the Manager may elect to consent to any Material Election if the amounts owed under the applicable AFE are paid solely out of Excess Funds or if the Manager makes an election in accordance with the requirements of <u>Section 2(d)(iii)</u>. Promptly, and in no event more than five (5) Business Days following the Manager's receipt of any AFE for which a Material Election would apply or in respect of which Manager otherwise seeks the consent of the Majority Noteholders, the Manager shall provide written notice (an "<u>**AFE Notice**</u>") to the Indenture Trustee and the Back-Up Manager regarding such Election (i) enclosing the AFE and all material information supplied to or otherwise available to the Issuer with respect to that AFE, including the amount of the Issuer's Working Interest and Net Revenue Interest in the Well to which the AFE relates, and the amount of the Issuer's estimated share of the cost of the AFE Operation or the amount estimated to be paid with respect to the Additional Interest Election, as applicable, (ii) identifying the deadline for the Issuer to respond to the AFE (the "<u>**AFE Deadline**</u>"), (iii) identifying the Manager's recommendation as to whether the Issuer should consent or non-consent to the applicable AFE Operation and/or, if applicable, to participate in or not participate in a related Additional Interest Election, (iv) identifying the amount of Excess Funds estimated to be available at the Issuer to pay for any affirmative Election, and (v) if applicable, identifying the Manager's election under <u>Section 2(d)</u>. On or prior to the earlier of (A) five (5) Business Days following the Manager's providing the AFE Notice to the Indenture Trustee and (B) one (1) Business Day prior to the AFE Deadline (so long as the Manager provided the AFE Notice to the Indenture Trustee two (2) Business Days prior to the AFE Deadline), the Majority Noteholders shall provide the Manager with written notice of consent to or rejection of Manager's proposal. If the Majority Noteholders fail to timely respond to any AFE Notice, then the Majority Noteholders shall be deemed to have consented to the Manager's proposal (and, if applicable, the Manager's election under <u>Section 2(d)</u>) and the Manager shall be permitted to make the Election (on the Issuer's behalf) to participate or not participate and take such related actions as were proposed in the applicable AFE Notice (including any purchase of the applicable Wellbore Interests by the Manager pursuant to an election under <u>Section 2(d)(iii)</u>), subject, in each case, to the satisfaction of any other applicable requirements for such Election contained in <u>Section 2(d)</u>, except that the Majority Noteholders shall not be deemed to have consented to Manager's proposal and Manager shall not be permitted to make the Election (on the Issuer's behalf) to participate in the proposed operations contemplated in the applicable AFE Notice unless the applicable AFE Notice includes bold, capitalized text stating that the failure to respond by the applicable date will be deemed consent.

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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;(f) Manager shall initiate the recordation or filing of the documents listed on <u>Exhibit D</u> (collectively, the "<u>**Recorded Documents**</u>") with the applicable recording or filing offices set forth on <u>Exhibit D</u>, (i) in the case of <u>Part I</u> of <u>Exhibit D</u>, within twenty-one (21) days following the Closing of the Initial Asset Purchase Agreement, and (ii) in the case of <u>Part II</u> of <u>Exhibit D</u>, within twenty-one (21) days following the Closing of the Second Asset Purchase Agreement; <u>provided</u>, that, to the extent after such initial delivery the applicable recording or filing office has returned, rejected or otherwise failed to record or file any of the Recorded Documents, the Manager shall continue to expeditiously cause the recording or filing of the Recorded Documents as soon as practicable thereafter; <u>provided</u>, <u>further</u>, that with respect to the UCC-3 assignments to be filed in connection with certain of the State UCC filings set forth at the end of each subpart of <u>Exhibit D</u>, each such UCC-3 assignment shall be filed promptly upon receipt of evidence of receipt of the immediately prior UCC filing, in sequential order with respect to each such State UCC filing and applicable assignments. The filings to be made in county records will be made in the following order for each jurisdiction: (1) Mortgage Releases, (2) Precautionary Mortgages, (3) Assignments and Bills of Sale, (4) Mortgages, and (5) JOA Recording Supplements. The State UCC filings to be made that are listed at the end of each subpart of <u>Exhibit D</u> will be filed with the UCC-3 partial release filings made first, if applicable, and any UCC-1 filings made after such UCC-3 partial release filings, and with any applicable UCC-3 assignments made after such UCC-1 filings in the order provided in such subpart of <u>Exhibit D</u>, in each case, in the applicable jurisdiction. Within ten (10) Business Days of each calendar month, Manager shall provide counsel to the Noteholders copies of Recorded Documents received during the immediately preceding calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Upon the written request of the Majority Noteholders, from time to time, the Manager (i) shall cause the Issuer to enforce any audit rights under the Joint Operating Agreement or any Existing JOA (as defined in the Joint Operating Agreement) to which the Issuer is a party, and (ii) shall engage on behalf of the Issuer such third party consultants, as may be reasonably acceptable to the Majority Noteholders, to undertake such audits. Further, the Manager shall determine in good faith, in accordance with the Management Standards, and in accordance with the best interest of the Issuer, whether to, on behalf of the Issuer, diligently pursue and enforce any rights implicated by the findings of such audits. For the avoidance of doubt, the Back-Up Manager shall be under no obligation to conduct any audit; <u>provided</u>, <u>however</u>, in the event that the Back-Up Manager serves as the Interim Successor Manager (as such term is defined in the Back-Up Management Agreement), or, if applicable, the Successor Manager, the Back-Up Manager may engage an auditor to undertake an audit in connection with the foregoing provided that such audit shall be at the Issuer's expense and treated as an Administrative Expense under the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>General Provisions</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;(a) <u>Standard of Service</u>. The Services shall be provided (i)(A) to the extent applicable, in substantially the same manner as they have been performed by the Manager (or its Affiliates) or, as applicable, by the applicable Operator, in each case, with respect to the respective Assets during the 12-month period immediately preceding the Closing of the Asset Purchase Agreement pursuant to which such Assets were acquired by Issuer and (B) otherwise, or to the extent of any applicable changed circumstances, consistent with such standards as the Manager would implement or observe if the Assets were owned by the Manager at such time, in each case, including with respect to the nature, timing, quality, and manner of such Services, and (ii) in accordance with <u>Section 9</u>, the Applicable Contracts, and prudent industry practices (the "<u>**Management Standards**</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;(b) <u>Personnel</u>. The Manager shall provide, to the extent necessary to perform the Services, sufficient numbers of its or its Affiliates' personnel, including (if necessary) its contractors or consultants (collectively, "<u>**Representatives**</u>"), to conduct the Services. The Issuer may consult with the Manager's Representatives who are providing the Services, and the Manager shall make such Representatives reasonably available to the Issuer for such consulting until the end of the 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;(c) <u>Direction of Services</u>. Except with respect to the means or method by which Manager performs the Services (which will at all times be subject to the direction or control of Manager), and subject to <u>Section 11</u>, the provision of the Services hereunder is at all times subject to the direction of the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>No Investment Advice</u>. In its capacity as manager of the Issuer, the Manager shall not provide any investment advice to the Issuer, nor shall its responsibilities under this Agreement include (or be deemed to include) the duties or responsibilities of an investment adviser under the Investment Advisers Act of 1940, as amended, and the rules thereunder. Nothing herein shall be deemed to create an advisory relationship between the Manager and the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Management Fee; Expense Reimbursement</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;(a) <u>Management Fee</u>. In consideration for the Services to be provided by the Manager hereunder, on each Payment Date (as defined in the Indenture), the Manager shall be paid pursuant to and in accordance Section 8.06 of the Indenture, a monthly fee equal to $41,666.67 for the preceding Collection Period (as defined in the Indenture) (the "<u>**Management Fee**</u>"). Other than the Management Fee and the amounts that the Issuer is expressly required to pay the Manager, in its capacity as such, under this Agreement, the Issuer shall not be charged hereunder for any of the Manager's or its Affiliates' general and administrative expenses or overhead. In addition to the Manager's right to net and set off amounts owing to the Issuer against any Third Party Operator Expenses as set forth in <u>Section 5(b)</u> below, all payments of fees and expenses of the Manager hereunder shall be paid pursuant to and in accordance with Section 8.06 of the Indenture.

&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) <u>Expense Reimbursement</u>. The Manager shall be reimbursed for all reasonable and documented out of pocket third party fees and expenses (other than Non-Reimbursable Expenses), without any markup, as have been incurred by the Manager and its Group Members in connection with ascertaining the Manager's duties in respect of, and rendering, the Services in accordance with the terms of this Agreement (including costs and expenses related to tax compliance and services, preparation of reserve reports, title work, accounting services, legal services, Third Party Operator Expenses, and AFE Cover Amounts) (collectively, the "<u>**Direct Expenses**</u>") in accordance with Section 8.06 of the Indenture; provided, however, and notwithstanding the foregoing, and as provided in and subject to the terms of <u>Part 5</u> of the definition of Management Services on <u>Exhibit A</u> and the terms of Articles XVI.I.2, XVI.I.3, XVI.I.4, and XVI.O of the Joint Operating Agreement as and to the extent incorporated herein as provided in <u>Exhibit A</u>), the Manager shall also have the right to net or set off (and retain as reimbursement or pay to the applicable Third Party Operator) the Issuer's share of proceeds of production from the Wellbore Interests against Third Party Operator Expenses due under the applicable Existing JOAs or similar agreements with the applicable Third Party Operators. Except for and without limiting Manager's right to net and set off amounts owing to the Issuer against any Third Party Operator Expenses as set forth above in this <u>Section 5(b)</u>, Direct Expenses shall be treated as Administrative Expenses under the Indenture.

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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;6. <u>Monthly Statements</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;(a) From and after the date of this Agreement, in accordance with Section 8.08(d) of the Indenture, the Manager shall submit to the Issuer and the Indenture Trustee (with a copy to the Back-Up Manager) an invoice (each a "<u>**Monthly Invoice**</u>") setting forth (i) the Management Fee (or portion thereof) due for the next succeeding calendar month during the Term and (ii) any Direct Expenses incurred and paid by the Manager during any prior month during the Term (to the extent the same has not been accounted for in a prior Monthly Invoice) and accompanied by such supporting documentation in Manager's possession regarding the nature, purpose, payee, and amount of such Direct Expenses as shall be reasonably requested by the Issuer, the Indenture Trustee, or the Back-Up Manager. In addition, the Manager will provide to the parties set forth above in this <u>Section 6(a)</u> a summary of any costs of approved AFEs that have been deducted from cash due to the Issuer.

&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) All amounts due to the Manager under this Agreement, unless netted and set off by the Manager as and to the extent permitted in <u>Section 5(b)</u>, shall be paid by the Paying Agent (as defined in the Indenture) on behalf of the Indenture Trustee in accordance with Section 8.06 of the Indenture.

&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) The Parties shall seek to resolve all disputes regarding Monthly Invoices expeditiously and in good faith and the Issuer shall pay all undisputed amounts, unless netted and set off by the Manager as and to the extent permitted in <u>Section 5(b)</u>, in accordance with Section 8.06 of the Indenture. The Manager shall continue performing the Services in accordance with this Agreement pending resolution of any dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Term; Manager Termination Event; 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;(a) This Agreement shall continue in full force and effect until the earlier of (i) the final payment or other liquidation of the last Asset and (ii) satisfaction and discharge of the Indenture pursuant to Section 11.01 of the Indenture (the "<u>**Term**</u>"); provided that solely upon the occurrence and during the continuance of a Manager Termination Event, the Indenture Trustee (at the direction of the Majority Noteholders) or the Majority Noteholders shall have the right to terminate this Agreement and thereby end the Term, subject to the provisions of <u>Section 7(e)</u> of this Agreement, upon delivery of written notice of such termination (a "<u>**Termination Notice**</u>") to the Manager and the Back-Up Manager. No termination of this Agreement, whether pursuant to this <u>Section 7</u> or otherwise, shall affect the Issuer's obligations with respect to the payment of any fees (including Management Fees), costs or expenses incurred, paid by, or owed to the Manager in rendering Services hereunder and not reimbursed or paid by the Issuer as of the effective date of such termination or any rights or obligations of the Manager or the Issuer under <u>Section 14</u> (as it relates to events and circumstances which occurred prior to the effective date of such termination) or under <u>Section 7(e)</u>. This <u>Section 7</u>, <u>Section 5(b)</u>, <u>Sections 14</u> through <u>17</u>, and <u>Sections 20</u> through <u>35</u> shall survive any termination of this Agreement; provided that <u>Sections 14</u> through <u>16</u> shall only survive in so far as they relate to events and circumstances which occurred prior to the effective date of such termination.

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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;(b) Upon receipt by the Manager of a Termination Notice, all rights, powers, duties, obligations, and responsibilities of the Manager, in its capacity as such, under this Agreement and the other Basic Documents (other than with respect to the payment of any amounts owed the Manager or any claims of Manager hereunder or its obligations with respect to Disentanglement), including with respect to the Issuer Accounts (as defined in the Indenture) or otherwise, will vest in and be assumed by the successor Manager hereunder (the "<u>**Successor Manager**</u>"). If no Successor Manager has been appointed by the Majority Noteholders, then the Back-Up Manager will serve as the Interim Successor Manager (as such term is defined in the Back-Up Management Agreement) and will work with the Majority Noteholders to implement the Transition Plan (as defined in the Back-Up Management Agreement) until a Successor Manager (other than the Back-Up Manager) has been appointed.

&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) From and during the continuation of a Manager Termination Event, each of the Issuer and the Indenture Trustee are hereby irrevocably authorized and empowered to execute and deliver, on behalf of the Manager, as attorney-in-fact or otherwise, all documents and other instruments, and to do or accomplish all other acts or take other measures necessary or appropriate, to effect such vesting and assumption by the Successor Manager.

&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) Following the delivery of a Termination Notice to the Manager pursuant to <u>Section 7(a)</u>, the Manager shall reasonably cooperate with the Indenture Trustee, the Issuer, and the Back-Up Manager to effectuate a transfer of the Services and otherwise promptly take all reasonable actions required to assist in effecting a complete transition and shall transfer to the Issuer or any other Person entitled thereto all Collateral, if any, held by the Manager and copies of any and all Asset Records and Issuer Books and Records in its control.

&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) Upon the termination of the Manager following a Manager Termination Event, the Manager will (i) reasonably assist the Back-Up Manager in providing the Hot Back-Up Management Duties (as defined in the Back-Up Management Agreement) until a Successor Manager (other than the Back-Up Manager) is appointed, (ii) reasonably cooperate with the Back-Up Manager, the Majority Noteholders, the Indenture Trustee, and the Majority Noteholders in connection with the implementation of a Transition Plan (as defined in the Back-Up Management Agreement) and the complete transition to a Successor Manager, without interruption or adverse impact on the provision of Services (the "<u>**Disentanglement**</u>"), and (iii) use its commercially reasonable efforts to not materially reduce the existing staff and resources of the Manager devoted to or shared with the provision of the Services prior to the date of any notice of termination and allow reasonable access to the Manager's premises, systems, and offices during the Disentanglement Period (as defined below) (such activities described in the foregoing <u>clauses (i)</u> through <u>(iii)</u>, inclusive, being referred to as "<u>**Continuity of Services**</u>"). The Manager will reasonably cooperate with the Successor Manager and otherwise promptly take all actions required to assist in effecting a complete Disentanglement and will follow any reasonable directions that may be provided by the Back-Up Manager, the Majority Noteholders, the Indenture Trustee, and the Majority Noteholders for purposes of such Disentanglement. The Manager will provide all information in its control and assistance regarding the terminated Services as is reasonably required for Disentanglement and Continuity of Services, including reasonable data conversion and migration services, interface specifications, and related services. All services relating to Disentanglement and Continuity of Services, including all reasonable training for personnel of the Back-Up Manager (including in its capacity as the Interim Successor Manager (as such term is defined in the Back-Up Management Agreement)), the Successor Manager, or the Successor Manager's designated alternate service provider in the performance of the applicable Services, will be deemed a part of the Services to be performed by the Manager. So long as the Manager continues to provide the Services (whether or not the Manager has been terminated as Manager) during the period commencing on the (A) delivery of a termination notice to the Manager or (B) delivery of a resignation notice by the Manager and ending on the date on which a Successor Manager or the re-engaged Manager assumes all of the obligations of the Manager under the Management Agreement and provision of Continuity of Services ceases (such period, the "<u>**Disentanglement Period**</u>"), the Manager will continue to be paid the Management Fee. The Manager will also be entitled to reimbursement of (and, in the case of Third Party Operator Expenses, to net and set off as and to the extent permitted in <u>Section 5(b)</u>) its Direct Expenses incurred in the provision of any Disentanglement services or other Continuity of 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;8. <u>Reserved</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;9. <u>Compliance with Laws</u>. In the performance of Services pursuant to this Agreement, Manager will comply with applicable Laws. The Manager will use its best efforts to remedy (as promptly as reasonably practicable) any violation of any such applicable Law by the Manager of which it has Knowledge. The Manager will within five (5) Business Days notify the Issuer, the Back-Up Manager, a Responsible Officer of the Indenture Trustee, and the Majority Noteholders of any violation of applicable Law by the Manager in the performance of the Services pursuant to this Agreement of which the Manager has Knowledge, and the Manager will transmit promptly to the Issuer, the Back-Up Manager, a Responsible Officer of the Indenture Trustee, and the Majority Noteholders a copy of any citation or other written communication received by the Manager from any third party setting forth any such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Separateness</u>. The Manager will pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from its assets as the same shall become due and payable (subject, however, to the right of Manager to contest payment of the same by appropriate proceedings, diligently conducted, and without limitation of its right to reimbursement therefor as and to the extent provided in <u>Section 5(b)</u>), except for amounts paid or to be paid on the Issuer's behalf pursuant to contractual arrangements providing for operating, maintenance, or administrative services (including pursuant to the Joint Operating Agreement as well as including any Third Party Operator Expenses), which amounts will be paid from the Issuer's assets. The Manager will observe all limited liability company or organizational formalities and maintain books, records, financial statements, and bank accounts separate from those of the Issuer. The Manager will be, and at all times will hold itself out to the public as, a legal entity separate and distinct from the Issuer. The Manager will conduct and operate its business in its own name. The Manager will hold all of its assets in its own name and will not commingle its funds and other assets with the funds and other assets of the Issuer, except as otherwise permitted by the Basic Documents (including the Joint Operating Agreement). The Manager will not conduct the business of or act on behalf of the Issuer except as permitted by this Agreement or the Joint Operating 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;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Emergencies</u>. Notwithstanding anything to the contrary in this Agreement, if the Manager reasonably believes there is any emergency which could cause actual or imminent harm to or loss of life of any person, material damage to any Asset, liabilities arising under violations of Law, or a discharge of materials or other environmental damage, then the Manager may in the exercise of its reasonable discretion and at the Issuer's expense, act for and on behalf of the Issuer in any manner reasonably necessary or useful under the circumstances without the necessity of giving prior notice to the Issuer, the Indenture Trustee, or the Noteholders or receiving any approval or consent from the Issuer, the Indenture Trustee, or the Noteholders. If Manager takes any such action pursuant to this <u>Section 11</u>, then the Manager will promptly notify the Issuer and the Back-Up Manager of such emergency and of the actions and/or expenditures approved by the Manager as soon thereafter as is reasonably practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Manager's Insurance</u>. The Manager will at all times maintain such insurance and in such amounts as described on <u>Exhibit B</u> and such additional insurance as would reasonably be obtained with respect to the Assets and business of the Issuer, as determined by the Manager in accordance with the Management Standards. Such insurance shall be maintained with financially sound and reputable insurance companies. The Issuer will be named as an additional insured in respect of all such insurance policies maintained by Manager pursuant to this <u>Section 12</u>, with waiver of subrogation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Responsibility</u>. All matters pertaining to the employment, supervision, compensation, promotion, and discharge of any employees or personnel of the Manager or its Affiliates are the responsibility of the Manager, which is (or its Affiliate is) in all respects the employer of any such employees. All such employment arrangements are solely the concern of the Manager and, if applicable, its Affiliates, and the Issuer will have no liability or control (other than as provided for in the Basic Documents) with respect thereto. Nothing in this <u>Section 13</u> limits the Manager's obligations or liabilities 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;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Indemnification; Specific Performance</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;(a) <u>Issuer Indemnification</u>. Subject to and without limiting any rights of the Issuer under the Asset Purchase Agreements or any other Basic Document, the Issuer agrees to indemnify and hold harmless the Manager and each of the Manager's Group Members (each, a "<u>**Manager Indemnified Party**</u>") against and from any and all loss, liability, suits, claims, costs, damages, and expenses (including reasonable and documented attorneys' fees and disbursements) related to the acts and omissions of the Manager in providing the Services to the extent under and in accordance with the terms of this Agreement or as otherwise specifically required to be borne by Manager pursuant to the terms of this Agreement; provided that the Issuer shall have no duty to indemnify the Manager Indemnified Parties (x) to the extent the foregoing result from the fraud, negligence, or willful misconduct of any Manager Indemnified Party, (y) in respect of any cost or expense for which the Manager is already compensated through payment of the Management Fee or other cost and expense reimbursement pursuant to the provisions of this Agreement, or in respect of any Non-Reimbursable Expenses, or (z) in respect of any loss, liability, suit, claim, cost, damage, or expense for which Manager is required to indemnify an Issuer Group Member in accordance with <u>Section 14(b)</u> or pursuant to any other Basic Document.

&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) <u>Manager Indemnification</u>. The Manager agrees to indemnify and hold harmless the Issuer, the Back-Up Manager, and the Indenture Trustee and each of the Issuer's Group Members (each, an "<u>**Issuer Indemnified Party**</u>" and, together with each Manager Indemnified Party, each an "<u>**Indemnified Party**</u>") against and from any and all loss, liability, suits, claims, costs, damages, and expenses (including reasonable and documented attorneys' fees and disbursements) arising directly from, or relating to, (i) the failure of the Manager to perform or observe its obligations, in its capacity as the Manager, under this Agreement or any other Basic Document, (ii) the breach by the Manager of any representation, warranty or covenant made by the Manager, in its capacity as the Manager, under this Agreement or any other Basic Document, (iii) the Manager's bad faith, gross negligence or willful misconduct in the performance of its duties, in its capacity as the Manager, under this Agreement or any other Basic Document, or (iv) any inaccurate or incomplete information provided by the Manager (excluding information created or provided by any third party), in its capacity as the Manager, and included in any notice, certificate, or other document delivered by the Manager, in its capacity as such, pursuant to the other Basic Documents; provided that Manager shall have no duty to indemnify the Indenture Trustee or the Back-Up Manager to the extent the foregoing result from or are due to (x) a failure of the Indenture Trustee or the Back-Up Manager (or any of their respective Group Members) to perform under this Agreement or any other Basic Document due to such party's bad faith, gross negligence, or willful misconduct or (y) the bad faith, gross negligence, or willful misconduct of the Indenture Trustee or the Back-Up Manager or any of their respective Group 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;(c) Neither this <u>Section 14</u> nor any other provision of this Agreement shall limit or restrict the rights of the Issuer or the Manager, other than in its capacity as Manager, including any and all rights to indemnification, under the Basic Documents.

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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;(d) In addition to its rights under <u>Section 14(b)</u>, the Issuer shall be entitled to specifically enforce the performance by the Manager of its obligations under this Agreement, including the re-performance (if reasonably possible) by the Manager in accordance with this Agreement of any Service that is performed other than 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;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Third Party Claims</u>. If a claim by a third party is made against an Indemnified Party and if such Indemnified Party intends to seek indemnity with respect thereto under <u>Section 14</u> (each, a "<u>**Third Party Claim**</u>"), then such Indemnified Party shall promptly notify the Party which the Indemnified Party asserts is obligated to indemnify the Indemnified Party pursuant to this <u>Section 14</u> (the "<u>**Indemnifying Party**</u>") of such claim in writing, setting out in reasonable detail a description of the facts underlying such Third Party Claim and enclosing a copy of all papers (if any) served with respect to the Third Party Claim. The Indemnifying Party shall have thirty (30) days after receipt of such notice to notify the Indemnified Party that it will, and to commence to, undertake, conduct, and control, through counsel of its own choosing and at its own expense, the settlement or defense thereof and the Indemnified Party shall cooperate with the Indemnifying Party in connection therewith; provided that the Indemnifying Party shall permit the Indemnified Party to participate in (but not control) such settlement or defense through counsel chosen by such Indemnified Party at the expense of such Indemnified Party; provided, further that, to the extent that the Indemnified Party reasonably appears to have defenses available to it that are different from or additional to those available to the Indemnifying Party, the assertion of such different or additional defenses by such counsel shall be at the expense of the Indemnifying Party. So long as the Indemnifying Party, at its own cost and expense, (a) has within such thirty (30) days notified the Indemnified Party that it will, and has commenced to, undertake the defense of, and has agreed to assume full responsibility for (subject to the terms and limitations contained in this Agreement), such Third Party Claim, (b) is reasonably contesting such Third Party Claim in good faith by appropriate proceedings timely initiated and diligently conducted or is reasonably attempting to settle such Third Party Claim, and (c) has taken such action (including the posting of a bond, deposit, or other security) as may be necessary, if applicable, to prevent foreclosure of a lien against or attachment of the property of the Indemnified Party for payment of such Third Party Claim, the Indemnified Party shall not pay or settle any such Third Party Claim without the written consent of the Indemnifying Party and the Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof (unless the compromise or settlement includes the payment of any amount by, the performance of any obligation by, or the limitation of any material right or benefit of, the Indemnified Party, in which event such settlement or compromise shall not be effective without the consent of the Indemnified Party, which shall not be unreasonably withheld or delayed). Notwithstanding compliance by the Indemnifying Party with the preceding sentence, if the Indemnified Party pays or settles any such claim without the written consent of the Indemnifying Party and the Indemnifying Party is in material compliance with the preceding sentence at the time of such payment or settlement by the Indemnified Party, then the Indemnifying Party shall have no responsibility to make any payment or reimbursement with respect to such Third Party Claim or the settlement thereof. If, within thirty (30) days after the receipt of the Indemnified Party's notice of a claim of indemnity hereunder in respect of a Third Party Claim, the Indemnifying Party does not notify the Indemnified Party that the Indemnifying Party elects, at its cost and expense, to undertake the defense thereof and assume full responsibility with respect thereto (subject to the terms and limitations contained in this Agreement), or if the Indemnifying Party gives such notice and thereafter fails to contest or attempt to settle such Third Party Claim in good faith or to take such action as may reasonably be necessary, if applicable, to prevent foreclosure of a lien against or attachment of the Indemnified Party's property as contemplated above, the Indemnified Party shall have the right to defend, prosecute, contest, settle, or compromise the claim and shall not thereby waive any right to indemnity therefor pursuant to 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;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Direct Claims</u>. In the case of a claim for indemnification under <u>Section 14(a)</u> or <u>14(b)</u> which is not based upon a Third Party Claim (a "<u>**Claim**</u>"), the Indemnified Party shall deliver to the Indemnifying Party a notice in writing describing in reasonable detail the facts giving rise to such Claim, the basis upon which indemnification is being sought, and the estimated amount of liabilities (if known or reasonably capable of estimation) attributable to such Claim. The Indemnifying Party shall have thirty (30) days (or if such breach or liabilities cannot be cured within 30 days, such longer period as is reasonably necessary to cure, so long as the Indemnifying Party is using good faith efforts to cure) from its receipt of such notice to (a) cure the liabilities complained of, (b) admit its liability for such liabilities or (c) dispute the Claim for such liabilities. If the Indemnifying Party does not notify the Indemnified Party within such thirty (30) day period that it has cured the liabilities complained of, that it admits its liability for such liabilities, or that it disputes the Claim for such liabilities, then the Indemnifying Party shall be deemed to have denied liability with respect to such matter. If the Indemnifying Party does not admit or otherwise does deny its liability against a direct Claim for indemnification by an Indemnified Party within the thirty (30) day time period set forth in this <u>Section 16</u>, then the Indemnified Party shall diligently and in good faith pursue its rights and remedies under this Agreement, at law or in equity with respect to such Claim, or will withdraw such Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Limitations on Liability</u>. **No Indemnified Party shall be entitled to recover from any Party any consequential (which, for clarity, shall not be construed to include actual direct damages), indirect, special, punitive, exemplary, remote, or speculative damages arising under or in connection with this Agreement or the provision of Services hereunder. Each Party waives (for itself and on behalf of its respective Indemnified Parties) any right to recover any consequential (which, for clarity, shall not be construed to include actual direct damages), indirect, special, punitive, exemplary, remote, or speculative damages arising in connection with or with respect to this Agreement or the provision of Services hereunder**, in each case, except to the extent constituting actual direct damages. The limitations in this <u>Section 17</u> shall not be applicable to the extent that a third party has made claims against an Indemnified Party for any consequential, indirect, special, punitive, exemplary, remote, or speculative damages arising under or in connection with this Agreement or the provision of Services hereunder. In addition the amount of any damages for which any of the Issuer Indemnified Parties or Manager Indemnified Parties is entitled to indemnification under this Agreement shall be reduced by any corresponding insurance proceeds actually received by any such Indemnified Party under any insurance arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Representations and Warranties</u>. As of the date hereof, the Manager represents and warrants to the Issuer that:

&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) The Manager is duly qualified to do business in each jurisdiction where the Assets are located. This Agreement and each Basic Document to which it is a party in its capacity as the Manager (and transactions contemplated under the Basic Documents to the extent applicable to the Manager in its capacity as such) have been duly and validly authorized by all necessary limited liability company action on the part of the Manager and constitutes the legal, valid, and binding obligation of the Manager, enforceable against the Manager in accordance with their terms. The Manager has all requisite power and authority to enter into and consummate the transactions contemplated by 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;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the execution and delivery by the Manager of this Agreement or, in its capacity as the Manager, any Basic Document to which it is a party nor the consummation or performance of the transactions contemplated hereby by the Manager shall (i) contravene, conflict with, or result in a violation of any provision of the organizational or other governing documents of Manager or any material agreement or other material instrument to which it is a party or which is applicable to any of its assets, (ii) contravene, conflict with, or result in a violation of any resolution adopted by the board of managers or members (or similar governing body) of Manager or (iii) contravene, conflict with, or result in a violation of, or give any Governmental Body or other Person the right to challenge the transactions contemplated hereby, to terminate, accelerate, or modify any terms of, or to exercise any remedy or obtain any relief under, any agreement or any Law to which the Manager may be subject.

&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) Other than as set forth on Schedule 3.05 to any Asset Purchase Agreement, there is no suit, action or litigation by any Person by or before any Governmental Body, and no arbitration proceedings, (in each case) pending, or to the Manager's Knowledge, threatened, against the Manager that would have the effect of preventing, delaying, making illegal, or otherwise interfering with the Manager's ability to perform its obligations under this Agreement or, in its capacity as the Manager, any other Basic Document to which it is a party.

&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) No consent, approval, authorization, or order of any Governmental Body is required for the consummation by the Manager of the transactions contemplated herein, except for those consents, approvals, authorizations, or orders that previously have been obtained or cannot be obtained prior to the actual performance by the Manager of its obligations under this Agreement and except where the lack of such consent, approval, authorization, or order would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Manager as Independent Contractor</u>. The Manager and the Issuer agree that the Manager shall perform the Services hereunder as an independent contractor, with the Manager retaining control over and responsibility for its own operations and personnel. Nothing in this Agreement shall, or shall be deemed to, create or constitute any joint venture, partnership, employment, or any other relationship between the Manager and the Issuer other than the independent contractor contractual relationship established hereby. The Manager owns, operates, manages, acquires, and sells assets, including wellbore interests and hydrocarbons, other than those owned, operated, and managed by the Issuer, and, for the avoidance of doubt, nothing in this Agreement shall be construed to prevent the Manager or any of its Affiliates from owning, operating, managing, acquiring, or selling assets of any kind for its or their own account or for the account of others (other than the Issuer) at any time. Without limiting the Manager's duties and obligations as set forth in this Agreement, the Manager and the Issuer agree that the Manager owes no fiduciary duties or trust obligations of any nature with respect to the Assets or to the Issuer. Neither the Manager nor its directors, officers, or employees shall be considered employees or agents of the Issuer as a result of this Agreement nor shall any of them have authority to contract in the name of or bind the Issuer, except as expressly agreed to in writing by the Issuer.

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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;20. <u>Force Majeure</u>. Each Party shall be excused from performance and shall not be considered to be in default with respect to any obligation hereunder, except the obligation to comply with Laws, to segregate funds as required hereunder, or any payment or indemnity obligations, if and to the extent that its failure of, or delay in, performance is due to a Force Majeure Event; provided, that: (a) such Party gives the other Party written notice describing the particulars of the Force Majeure Event as soon as is reasonably practicable, but no later than two (2) Business Days after Knowledge of the occurrence of the Force Majeure Event; (b) the suspension of performance is of no greater scope and of no longer duration than is reasonably required by the Force Majeure Event; (c) no obligations of such Party that arose before the occurrence causing the suspension of performance shall be excused as a result of the occurrence; (d) such Party uses best efforts to overcome or mitigate the effects of such occurrence; and (e) when such Party is able to resume performance of its obligations under this Agreement, such Party shall give the other Party written notice to that effect and shall promptly resume performance hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Definitions</u>. As used in this Agreement, the following terms shall have the meanings given to such terms in this <u>Section 21.</u> To the extent a term is used but not defined herein, it shall have the meaning set forth in the Indenture.

&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) "<u>**Accounting Standard**</u>" means, with respect to a Person, (a) United States generally accepted accounting principles ("<u>**GAAP**</u>"); or (b) International Financial Reporting Standards ("<u>**IFRS**</u>"), depending on which accounting standard is normally applied by such Person with respect to the filing of its reporting, as applicable, in each case, consistently applied.

&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) "<u>**Additional Interest Election**</u>" has the meaning set forth in <u>Section 2(b)</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;(c) "<u>**Administrative Expenses**</u>" has the meaning given to such term in the Indenture.

&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) "<u>**AFE**</u>" has the meaning set forth in <u>Section 2(b)</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;(e) "<u>**AFE Cover Amount**</u>" has the meaning set forth in <u>Section 2(d)(ii)</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;(f) "<u>**AFE Deadline**</u>" has the meaning set forth in <u>Section 2(e)</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;(g) "<u>**AFE Notice**</u>" has the meaning set forth in <u>Section 2(e)</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;(h) "<u>**AFE Operation**</u>" has the meaning set forth in <u>Section 2(b)</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;(i) "<u>**Affiliate**</u>" means, as to any Person, any other Person which directly or indirectly controls, or is under common control with, or is controlled by, such Person. As used in this definition, "<u>**control**</u>" (including, with it correlative meanings, "<u>**controlled by**</u>" and "<u>**under common control with**</u>") shall mean possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership interests, by contract or otherwise). For purposes of this Agreement, the Issuer and its subsidiaries, on the one hand, and Manager and its subsidiaries (other than the Issuer and its subsidiaries), on the other hand, shall not be considered Affiliates of one another, and none of the Operators (or any of their subsidiaries), HB2 Energy, Inc. (or any of its parent entities), or any natural person who is a direct owner of equity interests of the Manager are Affiliates of either Party.

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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;(j) "<u>**Agreement**</u>" has the meaning set forth in the Preamble to 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;(k) "<u>**Alpine Parties**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>**Amendment Date**</u>" has the meaning set forth in the Preamble to 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;(m) "<u>**Applicable Contracts**</u>" has the meaning set forth in <u>Exhibit A</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;(n) "<u>**Asset Purchase Agreements**</u>" has the meaning set forth in the Recitals of 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;(o) "<u>**Asset Records**</u>" has the meaning set forth in <u>Exhibit A</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;(p) "<u>**Asset Services**</u>" has the meaning set forth in <u>Exhibit A</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;(q) "<u>**Asset Transfer Documents**</u>" has the meaning set forth in the Recitals of 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;(r) "<u>**Assets**</u>" means, collectively, the "Wellbore Interests" under and as defined in each of the Conveyances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>**Back-Up Management Agreement**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>**Back-Up Manager**</u>" has the meaning given such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>**Bankrupt**</u>" means, with respect to any Person: (i) the filing by such Person of a voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form, of its debts under the U.S. Bankruptcy Code (or corresponding provisions of future Laws) or any other insolvency Law, or a Person's filing an answer consenting to or acquiescing in any such petition; (ii) the making by such Person of any assignment for the benefit of its creditors or the written or judicial admission by a Person of its inability generally to pay its debts as they mature; or (iii) the expiration of 60 days after the filing of an involuntary petition under the U.S. Bankruptcy Code (or corresponding provisions of future Laws) seeking an application for the appointment of a receiver for the assets of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of its debts under any other insolvency Law, unless the same shall have been vacated, set aside or stayed within such 60-day 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>**Basic Documents**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>**Business**</u>" has the meaning set forth in <u>Exhibit A</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;(x) "<u>**Business Day**</u>" means a day other than a Saturday, Sunday or other day on which banks in New York City or Houston, Texas are authorized or required by Law to close.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>**Buy-Out Price**</u>" has, with respect to any Wellbore Interest, the meaning given to such term in the Asset Purchase Agreement pursuant to which such Wellbore Interest was acquired by the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>**Change of Control**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>**Claim**</u>" has the meaning set forth in <u>Section 16</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;(bb) "<u>**Closing**</u>" has, with respect to an Asset Purchase Agreement and the Assets acquired by the Issuer pursuant thereto, the meaning given to such term in such Asset Purchase 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;(cc) "<u>**Collateral**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>**Collection Account**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>**Consent Election**</u>" has the meaning set forth in <u>Section 2(b)</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;(ff) "<u>**Consolidated Borrowed Debt**</u>" means, when determined, the total debt for borrowed money of the Manager, the Issuer, and each of their direct and indirect Subsidiaries (as defined in the Indenture), on a consolidated basis, as determined in accordance with the applicable Accounting Standard (including, for the avoidance of doubt, the Notes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>**Consolidated Total Assets**</u>" means, when determined, the total assets of the Manager, the Issuer, and each of their respective direct and indirect Subsidiaries (as defined in the Indenture), on a consolidated basis, as determined in accordance with the applicable Accounting Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>**Conveyances**</u>" means, collectively, the "Conveyances" under and as defined in each of the Asset Purchase Agreements.

&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>**Debtor Relief Laws**</u>" means (i) the United States Bankruptcy Code and (ii) all other applicable liquidation, conservatorship, bankruptcy, moratorium, arrangement, receivership, insolvency, reorganization, suspension of payments, adjustment of debt, marshalling of assets or similar debtor relief Laws of the United States, any state or any foreign country from time to time in effect affecting the rights of creditors generally.

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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;(jj) "<u>**Direct Expenses**</u>" has the meaning set forth in <u>Section 5(b)</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;(kk) "<u>**Disentanglement**</u>" has the meaning set forth in <u>Section 7(e)</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;(ll) "<u>**Elections**</u>" has the meaning set forth in <u>Section 2(b)</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;(mm) "<u>**Excess Funds**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "<u>**Existing JOA**</u>" has the meaning given to such term in the Joint Operating 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;(oo) "<u>**Force Majeure Event**</u>" means any condition, event or circumstance, if, and only to the extent: (i) such condition, event or circumstance is not within the reasonable control of the Party affected; (ii) such condition, event or circumstance, despite the exercise of reasonable diligence, could not be prevented, avoided or removed by such Party or was not reasonably foreseeable; (iii) such condition, event or circumstance has a material adverse effect on the ability of the affected Party to fulfil its obligations under this Agreement; (iv) such condition, event or circumstance is not the result of any failure of the affected Party or any of its Affiliates to perform any of its obligations under a Basic Document or Applicable Contract; and (v) such condition, event or circumstance arose after the Closing of the Initial Asset Purchase Agreement (with respect to Assets acquired under the Initial Asset Purchase Agreement) or after the Closing of the Second Asset Purchase Agreement (with respect to Assets under the Second Asset Purchase 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;(pp) "<u>**Governmental Body**</u>" has the meaning set forth in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "<u>**Group Member**</u>" means, with respect to a Person, such Person, its Affiliates, and its and their respective members, managers, directors, officers, agents, representatives and employees; provided that Manager is not a Group Member of Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "<u>**Indemnified Party**</u>" has the meaning set forth in <u>Section 14(b)</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;(ss) "<u>**Indemnifying Party**</u>" has the meaning set forth in <u>Section 15</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;(tt) "<u>**Indenture**</u>" means that certain Amended and Restated Indenture dated of even date herewith by and between the Issuer and UMB Bank, N.A., as indenture trustee (the "<u>**Indenture Trustee**</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;(uu) "<u>**Initial Asset Purchase Agreement**</u>" has the meaning set forth in the Recitals of 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;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "<u>**Initial Asset Transfer Documents**</u>" has the meaning set forth in the Recitals of 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;(ww) "<u>**Issuer**</u>" has the meaning set forth in the Preamble to 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;(xx) "<u>**Issuer Books and Records**</u>" means, collectively, the "Issuer Books and Records" under and as defined in each of the Asset Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) "<u>**Issuer Indemnified Party**</u>" has the meaning set forth in <u>Section 14(b)</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;(zz) "<u>**Joint Operating Agreement**</u>" has the meaning set forth in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) "<u>**Key Person**</u>" means Craig Perry (President and Chief Executive Officer), Darren Moulds (Chief Financial Officer), William Wicker (Chief Investment Officer), Michael McCoy (Chief Operating Officer), Reagan Brown (Chief Administrative Officer), Chrystie Holmstrom (Chief Legal Officer), and Chris Nilan (Senior Managing 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;(bbb) "<u>**Key Person Event**</u>" means any circumstance whereby either (a) Craig Perry ceases to be the President and Chief Executive Officer of the Manager or (b) three or more of the seven (7) Key Persons cease to be an officer of Manager (each a "<u>**Retiring Key Person**</u>") for a period longer than sixty (60) consecutive days, and by the end of the Replacement Period the Manager does not employ a total of at least four (4) Key Persons and/or Replacement Key Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) "<u>**Knowledge**</u>" has the meaning set forth in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) "<u>**Laws**</u>" and "<u>**laws**</u>" has the meaning set forth in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) "<u>**Majority Noteholders**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) "<u>**Management Fee**</u>" has the meaning set forth in <u>Section 5(a)</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;(ggg) "<u>**Management Services**</u>" has the meaning set forth in <u>Exhibit A</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;(hhh) "<u>**Management Standards**</u>" has the meaning set forth in <u>Section 3(a)</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;(iii) "<u>**Manager**</u>" has the meaning set forth in the Preamble to 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;(jjj) "<u>**Manager Indemnified Party**</u>" has the meaning set forth in <u>Section 14(a)</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;(kkk) "<u>**Manager Termination Event**</u>" means the occurrence of one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any Alpine Party becomes Bankrupt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any Alpine Party dissolves, liquidates, or terminates its existence;

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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;(iii) any failure by the Manager to remit to the Issuer (or cause to be remitted) funds received by the Manager or Manager's Affiliates and required to be remitted to the Issuer pursuant to this Agreement within two (2) Business Days of the date such funds are required to be remitted or caused to be remitted by the Manager, in its capacity as such, in accordance with the Basic Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any failure of the Manager to provide any certificate or report required to be provided by the Manager, in its capacity as such, pursuant to any Basic Document within the later of (A) thirty (30) Business Days of its due date and (B) provided that the Manager has not failed on more than two (2) occasions during the Term to provide any such certificate or report within thirty (30) Business Days of its due date, two (2) Business Days following the date on which the Manager has received from the Issuer, the Indenture Trustee, or a Noteholder a written notice of such failure and requiring the same to be remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 breach of a representation or warranty of the Manager in this Agreement or, to the extent made in its capacity as the Manager, any other Basic Documents to which it is a party which proves to have been incorrect in any material respect (disregarding any materiality or knowledge qualifier included therein) as of the time when the same shall have been made, or a default by the Manager in the due performance and observance of any covenant (other than those specified in <u>clauses (iii)</u> or <u>(iv)</u> of this definition) set forth in this Agreement or, to the extent made in its capacity as the Manager, any other Basic Document to which it is a party and, in each case, such default shall continue or not be cured or remedied, or the circumstance or condition in respect of which such representation or warranty was incorrect in any material respect shall not have been eliminated or otherwise cured or remedied, within the longer of (A) any applicable grace or cure periods provided for in the applicable Basic Document or (B) if no such other specific grace or cure period is provided in the applicable Basic Document, a period of thirty (30) days (subject to the proviso below), in the case of each of the foregoing <u>clauses (A)</u> and <u>(B)</u>, after the earlier of (1) the date on which the Manager or any Affiliate has actual Knowledge of such default or breach and (2) the date on which the Manager or an Affiliate has been notified thereof in writing by the Issuer, the Indenture Trustee, or a Noteholder requiring the same to be remedied; *provided*, *however*, where <u>clause (v)(B)</u> of this definition is applicable, as long as the Manager is diligently attempting to cure such breach or default (so long as such failure or breach or default is capable of being cured), such cure period shall be extended by an additional period as may be required to cure such breach or default, but in no event more than an additional sixty (60) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any final, non-appealable order against the Manager decreeing the dissolution of the Manager is entered that is in effect for more than ten (10) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) a final, non-appealable judgment for an amount in excess of $5,000,000 (exclusive of any portion thereof which is insured) is rendered against the Manager or Parent and has not been paid when due or otherwise discharged or stayed;

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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;(viii) an acceleration of more than $5,000,000 of the Indebtedness for borrowed money of the Manager or Parent, which Indebtedness for borrowed money has not been paid when due or otherwise discharged or which acceleration has not been rescinded and annulled;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 report furnished pursuant to Section 8.08 of the Indenture showing (A) the Consolidated Total Assets as of the last day of the most recent calendar quarter ending prior to the Amendment Date fails to show, as of the date reflected in such report, Consolidated Total Assets of at least $100,000,000 or (B) the Consolidated Total Assets less the Consolidated Borrowed Debt as of the last day of the most recent calendar quarter ending after the Amendment Date fails to show, as of the date reflected in such report, a difference between (1) Consolidated Total Assets *less* (2) Consolidated Borrowed Debt of at least $100,000,000; <u>provided</u>, <u>however</u>, that if any such report does not meet the foregoing requirements, the direct and indirect equity owners of the Manager may cure such default by contributing cash to make up any such shortfall within 45 days after the delivery of such report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) (A) this Agreement or a material portion thereof ceases to be in full force and effect or enforceable in accordance with its terms (other than in accordance with the express termination provisions hereof) and such cessation or unenforceability would have a Material Adverse Effect or (B) the Manager asserts as much (whether or not as to such effect) in writing (other than following a termination of this Agreement pursuant to the express provisions hereof); and/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;(xi) any Change of Control (other than a Permitted Change of Control) shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lll) "<u>**Material Adverse Effect**</u>" means a material adverse effect on the ability of the Manager to perform any material obligation under this Agreement or, in its capacity as the Manager, any other Basic Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmm) "<u>**Material Election**</u>" has the meaning set forth in <u>Section 2(e)</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;(nnn) "<u>**Monthly Invoice**</u>" has the meaning set forth in <u>Section 6(a)</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;(ooo) "<u>**Mortgages**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ppp) "<u>**Net Revenue Interest**</u>" has the meaning given to such term in the Asset Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qqq) "<u>**Non-Reimbursable Expenses**</u>" has the meaning set forth in <u>Exhibit 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;(rrr) "<u>**Noteholder**</u>" has the meaning given to such term in the Indenture.

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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;(sss) "<u>**Oil & Gas Company**</u>" means an entity engaged in one or more of the businesses having an NAICS code beginning with 21, 22 or 324.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ttt) "<u>**Operator**</u>" has the meaning given to such term in the Joint Operating 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;(uuu) "<u>**Party**</u>" and "<u>**Parties**</u>" have the meaning set forth in the Preamble to 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;(vvv) "<u>**Permitted Change of Control**</u>" means any Change of Control with respect to which each of the following have been satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Alpine Parties shall have delivered to the Issuer and the Indenture Trustee a written certification reaffirming the obligations of each Alpine Party under the Basic Documents to which it is a party pursuant to a certification reasonably acceptable to the Majority Noteholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) no Material Event (as defined in the Indenture) shall have occurred and will not occur with the passage of time, and will not occur due to such Change of Control; 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;(iii) at least one of the following conditions has been satisfied: (A) no Key Person Event has occurred within twelve (12) months of the date of such Change of Control or will occur in connection with such Change of Control; or (B) the acquirer is a publicly traded Oil & Gas Company with an enterprise value of at least $1.0 billion; or (C) the Majority Noteholders consent to such Change of Control (such consent not to be unreasonably withheld, conditioned, or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(www) "<u>**Person**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxx) "<u>**Precautionary Mortgages**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yyy) "<u>**Recorded Documents**</u>" has the meaning set forth in <u>Section 2(f)</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;(zzz) "<u>**Replacement Key Person**</u>" means any of: (i) any person that has been an officer, vice president, or other senior position of the Manager or any of its oil and gas subsidiaries for at least two (2) years as of such date, (ii) any person that has previously served as a senior executive of any private oil and gas company with an enterprise value of over $500,000,000 or of a public oil and gas company, (iii) any person that has at least ten (10) years' experience in a role substantially similar to that of the Key Person being replaced, or (iv) any other person that is acceptable to the Majority Noteholders in their reasonable discretion.

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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;(aaaa) "<u>**Replacement Period**</u>" means the one hundred twenty (120) day period following the date when the third (3<sup>rd</sup>) Key Person becomes a Retiring Key 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;(bbbb) "<u>**Representatives**</u>" has the meaning set forth in <u>Section 3(b)</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;(cccc) "<u>**Retiring Key Person**</u>" has the meaning set forth in the definition of "Key Person Event".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dddd) "<u>**Second Asset Purchase Agreement**</u>" has the meaning set forth in the Recitals of 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;(eeee) "<u>**Second Asset Transfer Documents**</u>" has the meaning set forth in the Recitals of 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;(ffff) "<u>**Services**</u>" has the meaning set forth in <u>Exhibit A</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;(gggg) "<u>**Successor Manager**</u>" has the meaning set forth in <u>Section 7(b)</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;(hhhh) "<u>**Term**</u>" has the meaning set forth in <u>Section 7(a)</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;(iiii) "<u>**Termination Notice**</u>" has the meaning set forth in <u>Section 7(a)</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;(jjjj) "<u>**Third Party Claim**</u>" has the meaning set forth in <u>Section 15</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;(kkkk) "<u>**Third Party Operator**</u>" has the meaning given to such term in the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(llll) "<u>**Third Party Operator Expenses**</u>" means the amount of operating expenses and capital expenses payable or paid to Third Party Operators and chargeable to the Issuer's account with respect to the Wellbore Interests, including Asset Taxes, Burdens, lease operating expenses, capital expenditure projects and workovers; provided, however, Third Party Operator Expenses exclude any such amounts constituting AFE Cover Amounts (but which AFE Cover Amounts, for clarity, still constitute Direct Expenses and Administrative Expenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mmmm) "<u>**Wellbore Interests**</u>" means, collectively, the "Wellbore Interests" under and as defined in each of the Asset Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nnnn) **"**<u>**Wellbore Lease Rights**</u>" means, collectively, the "Wellbore Lease Rights" under and as defined in each of the Asset Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oooo) "<u>**Wells**</u>" means, collectively, the "Wells" under and as defined in each of the Asset Purchase Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pppp) "<u>**Working Interest**</u>" has the meaning given to such term in the Asset Purchase Agreements.

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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;22. <u>Article and Section Headings, Construction</u>. The headings of Sections, Article, Exhibits, and Schedules in this Agreement are provided for convenience only and shall not affect its construction or interpretation. Unless expressly provided to the contrary, all references to "<u>Section</u>", "<u>Article</u>", "<u>Exhibit</u>", or "<u>Schedule</u>" refer to the corresponding Section, Article, Exhibit, or Schedule of this Agreement. Unless expressly provided to the contrary, the words "<u>hereunder</u>", "<u>hereof</u>", "<u>herein</u>", and words of similar import are references to this Agreement as a whole and not any particular Section, Article, Exhibit, Schedule, or other provision of this Agreement. Unless expressly provided to the contrary, any reference to any Law or agreement shall refer to such Law or agreement, as may be amended, restated, supplemented, or otherwise modified from time to time and, for any such agreement, shall include any appendices, schedules, exhibits, and side letters executed in connection therewith. Each definition of a defined term herein shall be equally applicable both to the singular and the plural forms of the term so defined. All words used in this Agreement shall be construed to be of such gender or number, as the circumstances require. Unless otherwise expressly provided, the word "<u>including</u>" does not limit the preceding words or terms and (in its various forms) means including without limitation. With respect to the determination of any period of time, the word "<u>from</u>" means "<u>from and including</u>", and the words "<u>to</u>" and "<u>until</u>" each means "<u>to but excluding</u>". The word "<u>will</u>" shall be construed to have the same meaning and effect as the word "<u>shall</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;23. <u>Notices</u>. All notices and other communications hereunder shall be in writing and shall be deemed sufficiently given for all purposes hereof if (a) delivered in Person, by courier or by registered or certified United States mail to the Person to be notified, with receipt obtained, or (b) sent by e-mail transmission, with acknowledgement of receipt obtained (provided that the receiving Party shall be obligated to affirmatively acknowledge receipt via reply e-mail promptly following receipt of such notice or communication), in each case to the appropriate address or number as set forth below (or at such other address or number for a Party as shall be specified by like notice). Each notice shall be deemed effective on receipt by the addressee as aforesaid; provided that, notice received by e-mail transmission after 5:00 p.m. at the location of the addressee of such notice shall be deemed received on the first Business Day following the date of such electronic receipt. Until changed pursuant to the foregoing, notices to the Parties shall be addressed as follows:

&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>If to the Manager, addressed to</u>:

HB2 Origination, LLC

3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

With a copy to:

HB2 Origination, LLC

3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

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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;(ii) <u>If to the Issuer, addressed to</u>:

Alpine Summit Funding LLC

c/o HB2 Origination, LLC

3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

With a copy to:

HB2 Origination, LLC

3322 West End Avenue, Suite 450

Nashville, TN 37203

Attention:

Email:

&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>If to the Indenture Trustee, addressed to</u>:

UMB Bank, N.A.

100 William Street, Suite 1850

New York, NY 10038

Attention: ABS Structured Finance

Email:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>Entire Agreement; Amendments</u>. This Agreement and the other Basic Documents contain the entire agreement among the Parties with respect to the subject matter hereof and thereof, and there are no agreements, understandings, representations, or warranties among the Parties other than those set forth or referred to herein or therein. This Agreement may not be waived, modified, or amended except by an instrument or instruments in writing signed by the Party against whom enforcement of any such modification or amendment is sought and, to the extent required under the Indenture, with the consent of the Majority Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>Waiver of Breach</u>. The waiver by either Party of a breach of any provision of this Agreement by the other Party shall not operate or be construed as a waiver of any subsequent breach of that provision or any other provision hereof. Any waiver of a provision hereunder by the Issuer shall require the consent of the Majority Noteholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>Assignment</u>. Neither the Manager nor the Issuer may assign its rights or obligations under this Agreement without the express written consent of the other and the consent of the Majority Noteholders; provided that the Manager may assign its rights or obligations under this Agreement to any of its Affiliates (other than the Issuer or any of the Issuer's subsidiaries) without the express written consent of the Issuer but with the consent of the Majority Noteholders; provided that no assignment by the Manager will release Manager from its obligations hereunder. Notwithstanding the foregoing, the Manager hereby consents to the pledge and assignment by the Issuer to the Indenture Trustee of the Issuer's rights under this Agreement as more particularly set forth in the Indenture.

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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;27. <u>Successors and Third-Party Beneficiaries</u>. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, legal representatives, successors, and assigns. The Indenture Trustee and the Back-Up Manager shall each be a third-party beneficiary to this Agreement and may enforce the provisions hereof as if it were a party 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;28. <u>Counterparts</u>. This Agreement may be executed and delivered by each Party in separate counterparts, each of which when so executed and delivered shall be deemed an original and both of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission or other electronic imaging means (including by .pdf) shall be effective as delivery of a manually executed counterpart of this Agreement. Each of the Parties agrees that the transaction consisting of this Agreement may be conducted by electronic means. Each Party agrees, and acknowledges that it is such Party's intent, that if such Party signs this Agreement using an electronic signature, it is signing, adopting, and accepting this Agreement and that signing this Agreement using an electronic signature is the legal equivalent of having placed its handwritten signature on this Agreement on paper. Each Party acknowledges that it is being provided with an electronic or paper copy of this Agreement in a usable format.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. <u>GOVERNING LAW; CONSENT TO JURISDICTION</u>. THIS AGREEMENT AND THE LEGAL RELATIONS BETWEEN THE PARTIES UNDER THIS AGREEMENT AND ANY CLAIMS, PROCEEDINGS, ACTIONS OR DISPUTES WITH RESPECT THERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). EACH PARTY TO THIS AGREEMENT SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY, THE COURTS OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF. EACH PARTY (A) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR SUCH ACTIONS OR PROCEEDINGS, (B) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT, AND (C) AGREES THAT IT WILL NOT BRING ANY SUCH ACTION OR PROCEEDING IN ANY COURT OTHER THAN SUCH COURTS. EACH PARTY ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE JURISDICTION AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY NON-APPEALABLE JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTIONS OR PROCEEDINGS. A COPY OF ANY SERVICE OF PROCESS SERVED UPON THE PARTIES SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS. IF ANY AGENT APPOINTED BY A PARTY REFUSES TO ACCEPT SERVICE, EACH PARTY AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY TO SERVE PROCESS IN ANY OTHER MANNER 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;&nbsp;&nbsp;&nbsp;&nbsp;30. <u>WAIVER OF JURY TRIAL</u>. EACH OF THE PARTIES HERETO HEREBY WAIVES AND AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER, BASED UPON OR ARISING IN CONNECTION WITH ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER HEREOF, OR OTHERWISE RELATING TO THE PERFORMANCE OF THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THE TRANSACTIONS UNDER THIS AGREEMENT AND THE ASSET TRANSFER DOCUMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. <u>No Strict Construction</u>. Each Party has had substantial input into the drafting and preparation of this Agreement and has had the opportunity to exercise business discretion in relation to the negotiation of the details of this Agreement. This Agreement is the result of arm's-length negotiations from equal bargaining positions. This Agreement shall not be construed against either Party, and no consideration shall be given or presumption made on the basis of who drafted this Agreement or any particular provision hereof or who supplied the form of 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;32. <u>Severability</u>. Any provision of this Agreement held to be invalid, illegal, or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality, or unenforceability without affecting the validity, legality, and enforceability of the remaining provisions hereof, and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. <u>No Recourse</u>. Notwithstanding any provisions herein to the contrary, all of the obligations of the Issuer under this Agreement are nonrecourse obligations of the Issuer payable solely from the Collateral in accordance with the priorities set forth in Section 8.06 of the Indenture, and following realization of the Collateral and its reduction to zero, any claims of a Person against the Issuer under this Agreement shall be extinguished and shall not thereafter revive. It is understood that the foregoing provision shall not limit the right of any Person claiming hereunder to name the Issuer as a party defendant in any proceeding or in the exercise of any other remedy, so long as no judgment in the nature of a deficiency judgment shall be asked for or (if obtained) enforced against the Issuer. In addition, none of the Manager Indemnified Parties other than the Manager shall have any liability to any of the Issuer Indemnified Parties hereunder, and none of the Issuer Indemnified Parties other than the Issuer shall have any liability to any of the Manager Indemnified Parties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. <u>Non-Petition Covenant</u>. To the fullest extent permitted by Law and notwithstanding any prior termination of this Agreement, the Manager agrees that, solely in its capacity as a creditor of the Issuer, it shall not file, commence, join, or acquiesce in a petition or proceeding, or cause the Issuer to file, commence, join, or acquiesce in an involuntary petition or proceeding, that causes (a) the Issuer to be a debtor under any Debtor Relief Law or (b) a trustee, conservator, receiver, liquidator, or similar official to be appointed for the Issuer or any substantial part of its property.

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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;35. <u>Conflict with Joint Operating Agreement</u>. Notwithstanding anything herein to the contrary, no provision in this Agreement, express or implied, shall enlarge, restrict, or otherwise modify the terms of the Joint Operating Agreement or constitute a waiver or release by either of the Issuer or the Manager of any liability, duty, obligation, or commitment imposed or right conferred upon it by the terms of the Joint Operating Agreement. In the event of a conflict between the terms of this Agreement and the terms of the Joint Operating Agreement, the terms of the Joint Operating Agreement shall prevail. For the avoidance of doubt, notwithstanding anything herein to the contrary, (a) none of the payments made by the Issuer to the Manager under this Agreement will constitute payment for services provided under the Joint Operating Agreement and (b) none of the services or charges which the Operators provide or make with respect to the Assets as "Operator" under the Joint Operating Agreement will be considered Services or Direct Expenses, respectively, under this Agreement irrespective of the nature of such services or charges. The relationship and agreement between Ironroc Energy Partners LLC and Ageron Ironroc Energy, LLC, each as "Operator", and Alpine Summit Funding LLC, as "Non-Operator", under the Joint Operating Agreement is intended to be separate and distinct from the relationship and agreement between HB2 Origination, LLC, as the "Manager", and Alpine Summit Funding LLC, as the "Issuer", under this Agreement. Any obligations, service, or right of the Operators under the Joint Operating Agreement shall not be considered "Services" hereunder.

[Remainder of page intentionally left blank]

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***Execution Version***

**IN WITNESS WHEREOF**, the parties have caused this Management Services Agreement to be duly executed and delivered on the date and year first above written.

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| | |
|:---|:---|
| **ALPINE SUMMIT FUNDING LLC**, as Issuer | **ALPINE SUMMIT FUNDING LLC**, as Issuer |
| By: | /s/ Craig Perry |
|  | Craig Perry |
|  | President and Chief Executive Officer |

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---

| | |
|:---|:---|
| **HB2 ORIGINATION, LLC**, as Manager | **HB2 ORIGINATION, LLC**, as Manager |
| By: | /s/ Craig Perry |
|  | Craig Perry |
|  | President and Chief Executive Officer |

---

*[Signature Page to Amended and Restated Management Services Agreement]*

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## Exhibit 10.9

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$65,000,000

FIRST AMENDED AND RESTATED CREDIT AGREEMENT<br>dated <br>September 30, 2022<br>between<br>HB2 ORIGINATION, LLC,<br>*as Borrower*<br>AND<br>BANK7,<br>*as Lender*

------

Reducing Revolving Credit Facility<br>

------

<u>**TABLE OF CONTENTS**</u>

---

| | |
|:---|:---|
| [ARTICLE I DEFINITIONS](#page_6) | [1](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.1. Definitions](#page_6) | [1](#page_6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.2. Accounting Terms and Determinations; Changes in Accounting](#page_21) | [16](#page_21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.3. References](#page_22) | [17](#page_22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.4. Amendment of Defined Instruments](#page_23) | [18](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.5. Joint Preparation; Construction of Indemnities and Releases](#page_23) | [18](#page_23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1.6. Time References](#page_24) | [19](#page_24) |
| [ARTICLE II TERMS OF FACILITIES](#page_24) | [19](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.1. Reducing Revolving Line of Credit](#page_24) | [19](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.2. Method of Borrowing](#page_24) | [19](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.3. Note](#page_24) | [19](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.4. Certain Payments and Prepayments of Principal](#page_24) | [19](#page_24) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.5. Interest Rates; Payment of Interest](#page_25) | [20](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.6. Fees; Authorized Payments by Lender](#page_25) | [20](#page_25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.7. Termination of Commitment; Maturity of Note; Right of Borrower to Terminate Commitments](#page_26) | [21](#page_26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[2.8. Determination of Borrowing Base; Automatic Reductions in Borrowing Base; Borrowing Base Deficiency; Notice of Redeterminations; Requests for Reductions in Borrowing Base](#page_26) | [21](#page_26) |
| [ARTICLE III GENERAL PROVISIONS](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.1. General Provisions as to Payments and Loans](#page_27) | [22](#page_27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.2. Telephonic Notices; Notification of Interest Rates](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.3. Default Interest](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.4. Prepayments Permitted](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[3.5. LATE CHARGE](#page_28) | [23](#page_28) |
| [ARTICLE IV COLLATERAL](#page_28) | [23](#page_28) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[4.1. Security](#page_28) | [23](#page_28) |
| [ARTICLE V CONDITIONS PRECEDENT TO ADVANCES](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.1. All Advances](#page_29) | [24](#page_29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.2. Initial Advance](#page_30) | [25](#page_30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[5.3. Conditions Precedent for the Benefit of the Lender](#page_32) | [27](#page_32) |
| [ARTICLE VI REPRESENTATIONS AND WARRANTIES](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.1. Existence and Power](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.2. Authorization; Contravention](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.3. Binding Effect](#page_32) | [27](#page_32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.4. Subsidiaries; Ownership](#page_33) | [28](#page_33) |

---

i

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---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.5. Disclosure](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.6. Financial Information](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.7. Litigation](#page_33) | [28](#page_33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.8. ERISA Plans](#page_34) | [29](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.9. Taxes and Filing of Tax Returns](#page_34) | [29](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.10. Title to Properties; Liens; Environmental Liability](#page_34) | [29](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.11. Business Compliance](#page_34) | [29](#page_34) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.12. Licenses, Permits, Etc](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.13. Compliance with Laws](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.14. Governmental Consent](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.15. Investment Company Act](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.16. State Utility; No Governmental Limitations on Liens](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.17. Refunds; Certain Contracts](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.18. No Default](#page_35) | [30](#page_35) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.19. Anti-Terrorism Laws](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.20. Flood Matters](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.21. Solvency](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.22. Eligible Contract Participant](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[6.23. Hedging Transactions](#page_36) | [31](#page_36) |
| [ARTICLE VII COVENANTS](#page_36) | [31](#page_36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.1. Use of Proceeds](#page_37) | [32](#page_37) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.2. Financial Statements; Reserve and Other Reports; Certain Required Notices from Borrower; Additional Information](#page_37) | [32](#page_37) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.3. Inspection of Properties and Books](#page_39) | [34](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.4. Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders](#page_39) | [34](#page_39) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.5. Payment of Taxes and Claims](#page_40) | [35](#page_40) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.6. Payment of Debt; Additional Debt; Payment of Accounts](#page_41) | [36](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.7. Negative Pledge](#page_41) | [36](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.8. Loans and Advances to Others; Investments; Restricted Payments; Subsidiaries](#page_41) | [36](#page_41) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.9. Consolidation, Merger, Maintenance, Change of Control; Disposition of Property; Restrictive Agreements; Hedging Agreements; Modification of Organizational Documents; Issuance of Equity Interests](#page_42) | [37](#page_42) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.10. Primary Business; Continuous Operations; Location of Borrower's Office; Ownership of Assets](#page_44) | [39](#page_44) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.11. Operation of Properties and Equipment; Compliance with and Maintenance of Contracts; Duties as Nonoperator](#page_44) | [39](#page_44) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.12. Transactions with Affiliates](#page_45) | [40](#page_45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.13. Plans](#page_45) | [40](#page_45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.14. Compliance with Laws and Documents](#page_45) | [40](#page_45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.15. Intetionally Omitted](#page_45) | [40](#page_45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.16. Tax Shelter](#page_45) | [40](#page_45) |

---

ii

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---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.17. Additional Documents; Quantity of Documents; Title Data; Additional Information](#page_46) | [41](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.18. \[Reserved\]](#page_46) | [41](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.19. Exceptions to Covenants](#page_46) | [41](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.20. Anti-Terrorism Laws](#page_46) | [41](#page_46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[7.21 New Development Partnerships](#page_46) | [41](#page_46) |
| [ARTICLE VIII DEFAULTS; REMEDIES](#page_47) | [42](#page_47) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.1. Events of Default; Acceleration of Maturity](#page_47) | [42](#page_47) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.2. Suits for Enforcement](#page_49) | [44](#page_49) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.3. Remedies Cumulative](#page_49) | [44](#page_49) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[8.4. Remedies Not Waived](#page_50) | [45](#page_50) |
| [ARTICLE IX MISCELLANEOUS](#page_50) | [45](#page_50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.1. Amendments, Waivers and Consents](#page_50) | [45](#page_50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.2. Highest Lawful Interest Rate](#page_50) | [45](#page_50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.3. Indemnity](#page_51) | [46](#page_51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.4. Expenses](#page_51) | [46](#page_51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.5. Taxes](#page_52) | [47](#page_52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.6. Survival](#page_52) | [47](#page_52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.7. Applicable Law; Venue](#page_52) | [47](#page_52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.8. WAIVER OF JURY TRIAL AND EXEMPLARY DAMAGES](#page_53) | [48](#page_53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.9. Waiver of Deficiency Statute; Other Waivers](#page_53) | [48](#page_53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.10. Headings](#page_53) | [48](#page_53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.11. Counterparts](#page_53) | [48](#page_53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.12. Invalid Provisions, Severability](#page_54) | [49](#page_54) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.13. Communications Via Internet](#page_54) | [49](#page_54) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.14. USA Patriot Act Notice](#page_54) | [49](#page_54) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.15. EXCULPATION PROVISIONS](#page_54) | [49](#page_54) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.16. Advice to Seek Legal and Accounting Advice](#page_55) | [50](#page_55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.17. Increased Cost and Reduced Return](#page_55) | [50](#page_55) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[9.18. Taxes](#page_56) | [51](#page_56) |
| [ARTICLE X SETOFF; TREATMENT OF PARTIAL PAYMENTS](#page_56) | [51](#page_56) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.1. Setoff](#page_56) | [51](#page_56) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[10.2. Adjustments](#page_57) | [52](#page_57) |
| [ARTICLE XI BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS](#page_57) | [52](#page_57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.1. Successors and Assigns](#page_57) | [52](#page_57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.2. Participations; Voting Rights; Setoffs by Participants](#page_57) | [52](#page_57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[11.3. Dissemination of Information](#page_58) | [53](#page_58) |
| [ARTICLE XII NOTICES](#page_58) | [53](#page_58) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.1. Notices](#page_58) | [53](#page_58) |

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iii

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[12.2. Change of Address](#page_58) | [53](#page_58) |

---

[ARTICLE XIII ENTIRE AGREEMENT](#page_59)<sub>1</sub>

FORM OF BORROWING BASE CERTIFICATE

SCHEDULE 6.4.1 SUBSIDIARIES

SCHEDULE 6.7 LITIGATION

SCHEDULE 6.23 HEDGING TRANSACTIONS

SCHEDULE 12.1 NOTICE ADDRESSES

iv

------

FIRST AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of September 30, 2022, by and between HB2 Origination, LLC, a Delaware limited liability company, and Bank7, an Oklahoma banking corporation. Certain terms used herein are defined in <u>Section 1.1</u>.

RECITALS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are parties to the Credit Agreement dated March 10, 2022, as amended by the First Amendment to Credit Agreement dated August 31, 2022 (collectively, the "<u>Existing Credit Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Borrower and Lender desire to amend and restate the terms of the Existing Agreement as set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE I<br>DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. *Definitions*. The following terms, as used herein, have the following meanings:

"**Acceptable Commodity Hedging Transaction**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Commodity Hedging Transactions meeting each of the following criteria unless a variation therefrom is consented to in writing by the Lender:

&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 quantity of gaseous and liquid hydrocarbons owned by the Loan Parties subject to Commodity Hedging Transactions (other than floors covered by <u>clause (b)</u> below) at the time of entering into such Commodity Hedging Transactions shall not, without the prior written approval of the Lender, be greater than (x) for natural gas, 95% of the monthly Projected Production of natural gas, (y) for oil, 95% of the monthly Projected Production of oil and (z) for condensate and natural gas liquids, including gas processing plant products, 95% of the monthly Projected Production of such liquids, in each case from the Oil and Gas Properties of the Loan Parties used in determining the Borrowing Base and not the subject of Commodity Hedging Transactions under <u>clause (b)</u> 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;(ii) The counterparty thereto must be an Approved Swap Counterparty;

&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 Lender shall have received first and prior perfected security interests pursuant to security agreements in form and substance reasonably satisfactory to the Lender in the Borrower's right, title and interest in and to its Commodity Hedging Transactions and the Hedging Agreements under which they arise; 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;(iv) The Commodity Hedging Transaction is a standard commodity hedging arrangement entered into in the ordinary course of business for the principal purpose of protecting against fluctuations in commodity prices or commodity basis risk and not for purpose of speculation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Commodity Hedging Transactions in the form of minimum price guarantees or "floors", limited to 100% of the monthly Projected Production from the Borrower's Oil and Gas Properties not subject to Commodity Hedging Transactions under <u>clause (a)</u> above and otherwise satisfying the requirements of <u>subclauses (ii) through (iv)</u> of <u>clause (a)</u> of this definition.

"**Acceptable Hedging Transactions**" means Acceptable Commodity Hedging Transactions.

"**Advance**" See Loan.

"**Affiliate**" means, with respect to a Person, (a) any Person owning, Controlling or holding with power to vote 10% or more of the outstanding voting interests of the referenced Person, (b) any Person 10% or more of whose outstanding voting interests are directly or indirectly owned, Controlled or held with power to vote by the referenced Person, (c) any Person directly or indirectly Controlling, Controlled by or under common Control with the referenced Person, (d) any relative within the third degree of kindred of the referenced Person, or (e) any officer, director, limited liability company manager, trustee, beneficiary, employee or general partner of the referenced Person or of any Person referred to in <u>clauses (a), (b), (c) or (d)</u> of this definition. The term Affiliate shall include Affiliates of Affiliates (and so on).

"**Agreement**" means this First Amended and Restated Credit Agreement, as the same may hereafter be amended, restated, supplemented or otherwise modified from time to time.

"**Alpine SEP**" means Alpine Summit Energy Partners, Inc., a British Columbia corporation.

"**Anti-Terrorism Laws**" mean any Laws relating to terrorism or money laundering, including Executive Order No. 13224 and the USA Patriot Act.

"**Approved Swap Counterparty**" means CME Group, Inc. and each other swap counterparty approved in writing not to be unreasonably withheld by the Lender from time to time (provided that the Lender may condition such consent for any particular swap counterparty on the delivery of a parent guaranty or other credit support for such swap counterparty's obligations on terms acceptable to the Lender); *provided, however*, the Lender may, by giving written notice to the Borrower, reasonably elect to revoke such swap counterparty's status as an Approved Swap Counterparty for purposes of any Hedging Transactions entered into following such notice.

"**Board of Governors**" means the Board of Governors of the Federal Reserve System.

"**Borrower**" means HB2 Origination, LLC, a Delaware limited liability company, and its successors and permitted assigns.

"**Borrower Requested Determination**" has the meaning given such term in <u>Section 2.8.1</u>.

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"**Borrowing Base**" means the lesser of (i) $65,000,000 or (ii) 40.00% of the most recent Reserve Report Value. Notwithstanding the foregoing, no Oil and Gas Property utilized to calculate the Borrowing Base may constitute more than 25.00% of the Reserve Report Value and therefore, for the purposes of calculating the Reserve Report Value, the valuation of any Oil and Gas Property that exceeds 25.00% of the Reserve Report Value shall be limited to 25.00% of the Reserve Report Value. The Borrowing Base is deemed to be $17,373,964.00 as of the Closing Date.

"**Borrowing Base Certificate**" means a borrowing base certificate substantially in the form of attached hereto or in such other form as the Lender may approve in its sole discretion, which in either such case may, but is not required as a condition to its effectiveness to be, executed or acknowledged by the Borrower.

"**Borrowing Base Deficiency**" means, as of any date, the amount (if any) by which the outstanding principal balance of the Note exceeds the Borrowing Base.

"**Borrowing Base Surplus**" means, at any time, the amount (if any) by which the Borrowing Base exceeds the unpaid principal balance of the Note.

"**Borrowing Date**" means a date on which an Advance is made or is to be made to the Borrower hereunder.

"**Business Day**" means any day that is not a Saturday, Sunday or other day on which commercial banks in Oklahoma City, Oklahoma, are authorized or required by Law to remain closed.

"**Capitalized Lease**" of a Person means any lease of Property by such Person as lessee which would be capitalized on a balance sheet of such Person prepared in accordance with IFRS.

"**Capitalized Lease Obligations**" of a Person means the amount of the obligations of such Person under Capitalized Leases which would be shown as a liability on a balance sheet of such Person prepared in accordance with IFRS.

"**Change of Control Event**" means (a) the failure of Alpine SEP to control 50.10% of the voting Equity Interests of the Borrower; (b) the failure of Craig Perry to directly or indirectly own and Control at least 27.5% of (i) every class of voting Equity Interests of the Borrower, and (ii) all economic interests in the Borrower, or (c) the failure of Craig Perry to continue to serve as a manager or officer of each Loan Party and remain actively involved in their day-to-day management and operations.

"**Closing**" means the consummation of the transactions contemplated herein.

"**Closing Date**" means the date of this Agreement.

"**Collateral**" means the Property pledged as security for the Note and the other Obligations.

**"Collateral Value**" means 40.00% of the Reserve Report Value of each Oil and Gas Property forming part of the Borrowing Base.

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"**Commitment**" means the obligation of the Lender to make Loans for the account of the Borrower hereunder, subject to the terms hereof, up to the lesser of the face amount of the Note or the Borrowing Base as in effect from time to time. The outstanding principal of the Note shall not exceed at any time the lesser of (a) the face amount of the Note or (b) the Borrowing Base as in effect from time to time.

"**Commodity Exchange Act**" means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute, or any rule, regulations or order of the U.S. Commodity Futures Trading Commission (or the application or interpretation of any thereof).

"**Commodity Hedging Transaction**" means any swap transaction, cap, floor, collar, exchange transaction, forward transaction, or other exchange or protection transaction relating to hydrocarbons or any option with respect to any such transaction, including derivative financial instruments.

"**Contingent Obligation**". See Guarantee.

"**Control**," "**Controlling**" and "**Controlled by**" mean the ability (directly or indirectly through one or more intermediaries) to direct or cause the direction of the management or affairs of a Person, whether through the ownership of voting interests, by contract or otherwise.

"**CT**", with respect to any stated time of day, means such time of day generally in effect in the Central Time Zone as in effect in the State of Oklahoma.

"**Debt**" of any Person means at any date, without duplication:

&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 obligations of such Person for money borrowed, including (a) the obligations of such Person for money borrowed by a partnership of which such Person is a general partner, (b) obligations, whether or not assumed, which are secured in whole or in part by the Property of such Person or payable out of the proceeds or production from Property of such Person, and (c) any obligations of such Person in respect of letters of credit and repurchase agreements;

&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) all obligations of such Person evidenced by notes, debentures, bonds or similar instruments;

&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 obligations of such Person to pay the deferred purchase price of Property or services (except trade accounts arising in the ordinary course of business if interest is not paid or accrued thereon);

&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 Capitalized Lease Obligations of such 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;(v) all liabilities which in accordance with applicable accounting principles would be included in determining total liabilities as shown on the liability side of a balance sheet;

&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) all obligations of such Person under Hedging Agreements and Hedging Transactions that are due and payable as of such date (including all early termination or settlement amounts, other transaction payments, costs, expenses and interest thereon, if applicable);

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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;(vii) all Guarantees by such 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;(viii) all Off-Balance Sheet Debt; 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;(ix) all Disqualified Stock.

"**Default**" means the occurrence of an Event of Default or any event which with notice, lapse of time or both would, unless cured or waived, become an Event of Default.

"**Default Rate**" means a per annum interest rate equal to five percent (5.00%) *plus* the Floating Rate from time to time in effect, but in no event exceeding the Highest Lawful Rate.

"**Development Partnership**" means a limited partnership, having a Subsidiary of the Borrower as the general partner, which is acquiring and developing Oil and Gas Properties in part using the proceeds of this Loan.

"**Discretionary Determination**" has the meaning given such term in <u>Section 2.8.1</u>.

"**Disqualified Stock**" means Equity Interest issued by any of the Loan Parties or any of their respective Subsidiaries that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the occurrence or happening of any event or circumstance, (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the Final Maturity Date, or (b) requires the declaration or payment of any dividend or other distribution on or prior to the date that is 91 days after the Final Maturity Date, in each case unless the consideration paid and payable upon such maturity or redemption (in the case of <u>clause (a)</u> preceding) or as a result of such dividend or other distribution (in the case of <u>clause (b)</u> preceding) is payable and paid solely in Equity Interests of the issuer which is not Disqualified Stock.

"**Distributions**" means dividends, distributions or other payments to Persons on account of their being the holders of Equity Interests in the Borrower or any other Loan Party (other than dividends, distributions or other payments made by a Guarantor to the Borrower).

"**Dollars**" and "**$**" means dollars in lawful currency of the United States of America.

"**ECP**" means an "eligible contract participant," as such term is defined from time to time in the Commodity Exchange Act (determined after giving effect to any "keepwell, support or other agreement" for the benefit of the applicable Person and any and all guarantees of such Person's Swap Obligations by any other Loan Party).

"**Environmental Complaint**" means any written or oral complaint, order, directive, claim, citation, notice of environmental report or investigation, or other notice by any Governmental Authority or any other Person with respect to (a) air emissions, (b) spills, releases, or discharges to soils, any improvements located thereon, surface water, groundwater, or the sewer, septic, waste treatment, storage, or disposal systems servicing any Property of any Loan Party, (c) solid or liquid waste disposal, (d) the use, generation, storage, transportation, or disposal of any Hazardous Substance, or (e) other environmental, health, or safety matters affecting any Property of any Loan Party or the business conducted thereon.

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"**Environmental Law**" means (a) the following federal laws as they may be cited, referenced, and amended from time to time: the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act, the Comprehensive Environmental Response, Compensation and Liability Act, the Endangered Species Act, the Resource Conservation and Recovery Act, the Hazardous Materials Transportation Act, the Superfund Amendments and Reauthorization Act, and the Toxic Substances Control Act; (b) any and all equivalent environmental statutes of any state in which Property of any Loan Party is situated, as they may be cited, referenced and amended from time to time; (c) any rules or regulations promulgated under or adopted pursuant to the above federal and state laws; and (d) any other equivalent federal, state, or local statute or any requirement, rule, regulation, code, ordinance, or order adopted pursuant thereto, including those relating to the generation, transportation, treatment, storage, recycling, disposal, handling, or Release of Hazardous Substances.

"**Environmental Liability**" means any claim, demand, obligation, cause of action, accusation, allegation, order, violation, damage, injury, judgment, penalty or fine, cost of enforcement, cost of remedial action or any other cost or expense whatsoever, including reasonable attorneys' fees and disbursements, resulting from the violation or alleged violation of any Environmental Law or the imposition of any Environmental Lien.

"**Environmental Lien**" means a Lien in favor of a Tribunal or other Person (i) for any liability under an Environmental Law or (ii) for damages arising from or costs incurred by such Tribunal or other Person in response to a release or threatened release of Hazardous Substances into the environment.

"**Equity Interest**" means, with respect to any Person, any ownership or other equity interest in such Person and rights to convert into an ownership or other equity interest in such Person or to otherwise acquire an ownership or other equity interest in such Person and ownership of or rights to share in the revenues or profits of such Person, including without limitation any stock, share, voting trust certificate, limited or general partnership interest, member interest, bond debenture, note, or other evidence of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instrument commonly known as a "security" or any certificate of interest, share or participation in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire any of the foregoing.

"**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended from time to time, together with all presently effective and future regulations issued pursuant thereto.

"**Event of Default**" has the meaning stated in <u>Section 8.1</u> hereof.

"**Excluded Swap Obligation**" means, with respect to any Loan Party, (i) any Swap Obligation that is illegal because the Loan Party that is a party to the Swap Obligation was not an ECP at the time of its entry into such Swap Obligation, and (ii) any Swap Obligation if, and to the extent that, all or a portion of any Guaranty of such Loan Party of, or the grant by the Loan Party of a security interest to secure, such Swap Obligation (or any guaranty thereof) is or becomes illegal under the Commodity Exchange Act by virtue of such Loan Party's failure for any reason to constitute an ECP at the time the Guaranty of such Loan Party (if applicable) or the grant of such security interest becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guaranty or security interest is or becomes excluded in accordance with the first sentence of this definition.

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"**Executive Order No. 13224**" means Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.

"**Final Maturity Date**" or "**Final Maturity**" means April 1, 2023, or such earlier date on which the payment of the Note is accelerated.

"**Floating Rate**" means, for each day, the greater of (a) 5.00%, or (b) the sum of (i) the "Prime Rate" as published in The Wall Street Journal on such day (or, if not published on such day, the first prior day on which such rate was published), <u>plus</u> (ii) 1.75%.

"**Flood Insurance Regulations**" means (a) the National Flood Insurance Act of 1968, (b) the Flood Disaster Protection Act of 1973, (c) the National Flood Insurance Reform Act of 1994 (amending 42 USC 4001 et seq.), and (d) the Flood Insurance Reform Act of 2004, in each case as now or hereafter in effect or any successor statute thereto and including any regulations promulgated thereunder.

"**GAAP**" means generally accepted accounting principles as in effect from time to time in the United States.

"**Governmental Authority**" means any nation, country, commonwealth, territory, government, state, county, parish, municipality, or other political subdivision and any entity exercising executive, legislative, judicial, regulatory, or administrative functions of or pertaining to government.

"**Guarantee**" or "**Contingent Obligation**" by or of any Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing or in effect guaranteeing any Debt, leases, dividends or other obligations of any other Person (for purposes of this definition, a "primary obligation") and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) any primary obligation or any Property constituting direct or indirect security therefor (whether arising by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, to make reimbursement in connection with any letter of credit or to maintain financial statement conditions, by comfort letter or other similar undertaking of support or otherwise) or (ii) entered into for the purpose of assuring in any other manner the obligee of any primary obligation of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part) with the amount of any Guarantee or Contingent Obligation being deemed to be equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made or Contingent Obligation is incurred or, if not stated or determinable, the maximum primary obligation which could reasonably be anticipated to arise in respect thereof. The term Guarantee (or Contingent Obligation) includes the pledging or other encumbrance of assets by a Person to secure the obligations of another Person and restrictions or limitations on a Person or its assets agreed to in connection with the obligations of another Person, but does not include endorsements for collection or deposit in the ordinary course of business; and "Guaranteed" by a Person or "incurring a Contingent Obligation" or words of similar import mean the act or condition of providing a Guarantee by such Person or such Person becoming contingently obligated or permitting a Guarantee or Contingent Obligation of such Person to exist or come into existence.

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"**Guarantor**" means at any time any Person who has executed or does execute a Guaranty, which is in effect at such time.

"**Guaranty**" means the guaranty of a Person guarantying all or a portion of the Obligations, in form and substance satisfactory to the Lender and such Person.

"**Hazardous Substance**" means flammables, explosives, radioactive materials, hazardous wastes, asbestos, or any material containing asbestos, polychlorinated biphenyls (PCBs), toxic substances or related materials, petroleum, petroleum products, associated oil or natural gas exploration, production, and development wastes, or any substances defined as "hazardous substances," "hazardous materials," "hazardous wastes," or "toxic substances" under the Comprehensive Environmental Response, Compensation and Liability Act, as amended, the Superfund Amendments and Reauthorization Act, as amended, the Hazardous Materials Transportation Act, as amended, the Resource Conservation and Recovery Act, as amended, the Toxic Substances Control Act, as amended, or any other Environmental Laws.

"**Hedge Termination Value**" means, in respect of any one or more Hedging Transactions, after taking into account the effect of any legally enforceable netting agreement relating to such Hedging Transactions, (a) for any date on or after the date such Hedging Transactions have been closed out and termination value(s) determined in accordance therewith, such termination value(s) and (b) for any date prior to the date referenced in <u>clause (a)</u> preceding, the amount(s) determined as the mark-to-market value(s) for such Hedging Transactions, as determined by the counterparties to such Hedging Transactions.

"**Hedging Agreement**" means any International Swap Dealers Association, Inc. Master Agreement, International Swaps and Derivatives Association, Inc. Master Agreement or other agreement and all schedules and exhibits attached thereto and incorporated therein that set forth set forth one or more Hedging Transactions or the general terms upon which a Person may enter into one or more Hedging Transactions.

"**Hedging Transaction**" means a Commodity Hedging Transaction or any other transaction with respect to any swap, forward, future or derivative transaction or option or similar transaction, whether exchange traded, "over-the-counter" or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions.

"**Highest Lawful Rate**" means the maximum non-usurious interest rate, if any (or, if the context so requires, an amount calculated at such rate), that at any time or from time to time may be contracted for, taken, reserved, charged, or received by the Lender under applicable Laws of the State of Texas or the United States of America, whichever authorizes the greater rate, as such Laws are presently in effect or, to the extent allowed by applicable Law, as such Laws may hereafter be in effect and which allow a higher maximum non-usurious interest rate than such Laws now allow. To the extent the Laws of the State of Texas are applicable for the purpose of determining the Highest Lawful Rate, such term means the weekly ceiling from time to time in effect as referred to and defined in Chapter 303 of the Finance Code of Texas, as amended. The determination of the Highest Lawful Rate shall, to the extent required by applicable Law, take into account as interest paid, taken, received, charged, reserved or contracted for any and all relevant payments or charges under the Loan Documents.

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"**IFRS**" means the International Financial Reporting Standards adopted by the International Accounting Standards Board or appropriate boards or committees thereof.

"**Included Subsidiaries**" means consolidated subsidiaries of the Borrower, the Equity Interests of which have been pledged by the Borrower to the Lender as Collateral.

"**Indemnified Party**" means (i) the Lender and each of its shareholders, officers, directors, employees, agents, attorneys-in-fact, and Affiliates and (ii) each trustee for the benefit of the Lender under any Security Document.

"**Intercreditor Agreement**" means each Intercreditor Agreement among the Borrower, one or more other Loan Parties, one or more Approved Swap Counterparties and Bank7, as contractual collateral representative for itself and such Approved Swap Counterparties, as amended and in effect from time to time.

"**Interest Payment Date**" means the first day of each month commencing with October 1, 2022, and upon maturity of the Note (whether stated or upon acceleration).

"**Investment**" means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person, the contribution of capital to any other Person, or any agreement to make any such acquisition (including, without limitation, any "short sale" or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale) or capital contribution; (b) the making of any deposit with, or advance, loan or capital contribution to, assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding ninety (90) days representing the purchase price of inventory, goods or services sold or provided by such Person in the ordinary course of business); (c) the purchase or acquisition (in one or a series of transactions) of Property of another Person that constitutes a business unit or (d) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other liability of any other Person and (without duplication) any amount committed to be advanced, lent or extended to such Person.

"**Law**" mean at any time with respect to any Person or its Property, any statute, law, executive order, treaty, ordinance, order, writ, injunction, judgment, ruling, decree, regulation, or determination of an arbitrator, court or other Governmental Authority, existing at such time which are applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is subject.

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"**Lender**" means Bank7, an Oklahoma banking corporation, and its successors and assigns.

"**Lien**" means, as to any Property of any Person, (a) any mortgage, deed of trust, lien, pledge, hypothecation, or security interest in, on or of such Property, or any other charge or encumbrance on any such asset to secure Debt or liabilities, but excluding any right to netting or setoff, (b) the interest of a vendor under any conditional sale agreement or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such Property, (c) in the case of Equity Interests, any purchase option, call or similar right of a third party with respect to such Equity Interests and (d) the signing or filing of a financing statement which names the Person as debtor, or the signing of any security agreement authorizing any other Person as the secured party thereunder to file any financing statement which names such Person as debtor.

"**Loan**" or "**Advance**" means a loan or advance made or to be made by the Lender pursuant to this Agreement, or the aggregate outstanding amount of all such loans or advances, as the context may require.

"**Loan Documents**" means this Agreement, the Membership Interest Pledge Agreement, the Negative Pledge Agreement, the Security Agreement, the Note, the Security Documents, and all other documents and instruments now or hereafter delivered pursuant to the terms of or in connection with this Agreement, the Note, or the Security Documents, and all renewals and extensions of, amendments and supplements to, and restatements of, any or all of the foregoing from time to time in effect (exclusive of term sheets and commitment letters); provided, however, that the term shall exclude the Intercreditor Agreement.

"**Loan Party**" means each of the Borrower and the Guarantors.

"**Margin Regulations**" means Regulations T, U and X of the Board of Governors, as in effect from time to time.

"**Material Adverse Effect**" means (i) for any Loan Party, any material adverse effect on the business, operations, Properties, results of operations or condition (financial or otherwise) of such Loan Party, (ii) for any Loan Party, any adverse effect upon the business operations, Properties, results of operations or condition (financial or otherwise) of such Loan Party which increases the risk that any of the Debt of such Loan Party will not be repaid as and when due, (iii) any material adverse effect upon the Collateral or (iv) any adverse effect on the priority or enforceability of the Liens securing the Note; but, with respect to any of the circumstances described in <u>clauses (i), (ii) and (iii)</u> preceding, only if the adverse effect could reasonably be anticipated to involve damage, loss or Debt of $1,000,000 or more.

"**Material Agreement**" means, with respect to any Person, any written or oral agreement, contract, commitment, or understanding to which such Person is a party, by which such Person is directly or indirectly bound, or to which any Property of such Person may be subject, which is not cancelable by such Person upon notice of 90 days or less without (i) liability for further payment in excess of $1,000,000 or (ii) forfeiture of Property having an aggregate value in excess of $1,000,000.

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"**Material Debt**" means, as to any Person, Debt (other than, with respect to the Borrower, the Note, but including Hedging Transactions) of such Person in the principal amount aggregating in excess of $1,000,000. For purposes of determining Material Debt, the "principal amount" of the obligations of such Person in respect of any Hedging Transaction at any time shall be the Hedge Termination Value.

"**Membership Interest Pledge Agreement**" means that certain Membership Interest Pledge Agreement dated August 31, 2022 between Borrower and Lender.

"**Mortgages**" mean deeds of trust, mortgages, assignments of production, collateral mortgages, and acts of pledge (and security agreements included therein) in form and substance reasonably acceptable to the Lender covering Oil and Gas Properties and the personalty located thereon or primarily associated therewith, executed or to be executed by the appropriate Person as security for the Obligations and other indebtedness described therein.

"**Negative Pledge Agreement**" means that certain Negative Pledge Agreement dated August 31, 2022 between Borrower, Lender, Alpine Maverick V, LP, Alpine Maverick VI, LP, and Alpine Red Dawn I, LP.

"**Note**" means an amended and restated promissory note dated of even date herewith in the principal amount of $65,000,000 duly executed by the Borrower and payable to the order of Lender, including any amendment, increase, other modification, renewal or replacement of such promissory note or note taken in substitution therefor.

"**Obligated Parties**" mean the Borrower and any other Persons, including the Guarantors, from time to time obligated by Guaranty or otherwise to pay all or any portion of the Obligations.

"**Obligations**" means, without duplication, (i) all Debt evidenced by the Note, (ii) the obligation of the Borrower for the payment of the fees, late charges and prepayment charges, if any, payable hereunder or under the other Loan Documents, (iii) all other obligations and liabilities of the Borrower to the Lender, now existing or hereafter incurred, under, arising out of or in connection with any Loan Document or the Intercreditor Agreement, including the reimbursement of attorneys' fees incurred by the Lender from time to time in connection with waivers and amendments to or enforcement of the Loan Documents or the Intercreditor Agreement, (iv) all obligations, liabilities and indebtedness of the Borrower to the Lender in respect of Hedging Transactions, whether due or to become due, actual or contingent, now existing or hereafter arising or incurred under, arising out of or in connection with any Hedging Agreement, including all early termination or settlement amounts, other transaction payments, costs, expenses (including attorneys' fees) and interest thereon, and (v) all other obligations and liabilities of the Borrower to Lender, now existing or hereafter incurred; and to the extent that any of the foregoing includes or refers to the payment of amounts deemed or constituting interest, only so much thereof as shall have accrued, been earned and which remains unpaid at each relevant time of determination. Notwithstanding the foregoing, as to any Person, the term "Obligations" shall exclude all Excluded Swap Obligations of such Person.

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"**OFAC**" means the Office of Foreign Assets Control of the United States Department of the Treasury, or any successor Governmental Authority.

"**Off-Balance Sheet Debt**" means, with respect to a Person, (a) any repurchase indebtedness, liability or obligation of such Person with respect to accounts or notes receivable sold by such Person, (b) any indebtedness, liability or obligation of such Person under any sale and leaseback transaction which is not a Capitalized Lease Obligation, (c) any indebtedness, liability or obligation of such Person under any synthetic, off-balance sheet or tax retention lease, or (d) any indebtedness, liability or obligation of such Person arising with respect to any other transaction, or agreement for the use or possession of any Property, which is the functional equivalent, or takes the place, of borrowing but which does not constitute a liability on the balance sheet of such Person.

"**Oil and Gas Properties**" means fee, leasehold, or other interests in or under mineral estates or oil, gas, and other liquid or gaseous hydrocarbon leases with respect to Properties situated in the United States or offshore from any State of the United States, including, without limitation, overriding royalty and royalty interests, leasehold estate interests, net profits interests, production payment interests, and mineral fee interests, together with contracts executed in connection therewith and all tenements, hereditaments, appurtenances and Properties appertaining, belonging, affixed, or incidental thereto.

"**Operator**" means (i) with respect to the Oil and Gas Properties pledged as Collateral on the Closing Date, Ironroc Energy Partners, LLC, a Texas limited liability company, and (ii) with respect to any additional Oil and Gas Properties that may be pledged as Collateral thereafter, the entity described in <u>clause (i)</u> preceding and/or a wholly-owned Subsidiary of such entity which serves as operator of such Oil and Gas Properties, in each case together with their respective successors and permitted assigns.

"**Organizational Documents**" means, as to any Person, the articles of incorporation, articles of limited partnership, articles of formation or similar organizational documents, as applicable, of such Person.

"**Participant**" has the meaning given such term in <u>Section 11.2</u>.

"**Permitted Indebtedness**" means (i) the Obligations, (ii) unsecured accounts payable incurred in the ordinary course of business, which are not unpaid in excess of 120 days beyond the due date therefor or are being contested in good faith by a Loan Party and as to which a proper reserve has been made and on which interest charges are not paid or accrued, (iii) Debt arising under Acceptable Hedging Transactions and under the Hedging Agreement(s) governing such Acceptable Hedging Transactions (but only to the extent such Debt arises in connection with Acceptable Hedging Transactions), (iv) unsecured Debt not permitted by the foregoing in the aggregate principal amount not to exceed $500,000.00, plus reasonable and customary interest theeron; (v) non-financial guarantees of a Subsidiary's performance obligations by the Borrower in the ordinary course of business; and (vi) Development Partnership liabilities

"**Permitted Investments**" means Investments in (i) indebtedness, evidenced by notes maturing not more than 12 months after the date of issue, issued or Guaranteed by the government of the United States of America, (ii) certificates of deposit maturing not more than 12 months after the date of issue, issued by the Lender or by commercial banking institutions each of which is a member of the Federal Reserve System and which has combined capital and surplus and undivided profits of not less than $100,000,000, (iii) commercial paper, maturing not more than 270 days after the date of issue, issued by (a) the Lender (or any parent corporation of the Lender) or (b) a corporation (other than an Affiliate of the Borrower) with a rating of P1 (or its then equivalent) according to Moody's Investors Service, Inc., A-1 (or its then equivalent) according to Standard & Poor's Corporation or F-1 (or its then equivalent) according to Fitch's Investors Services, Inc., (iv) money market or other mutual funds substantially all of whose assets comprise securities of the types described in <u>clauses (i) through (iii)</u> above or (v) such other instruments, evidences of indebtedness or investment securities as the Lender may approve in writing.

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"**Permitted Liens**" means, with respect to any Property, each of the following:

&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) Liens securing the Obligations and other Liens in favor of the Lender;

&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 following, if the validity and amount thereof are being contested in good faith and by appropriate legal proceedings and so long as (a) levy and execution thereon have been stayed and continue to be stayed, (b) they do not in the aggregate materially detract from or threaten the value of such Property, or materially impair the use thereof in the operation of the business of the owner of such Property, and (c) a reserve therefor, if appropriate, has been established: claims and Liens for Taxes due and payable; claims and Liens of landlords, repairmen, mechanics, materialmen, warehousemen, or carriers, or similar Liens; and adverse judgments on appeal;

&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) Liens for Taxes not past due;

&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) landlords', carriers', warehousemen's, repairmen's, mechanics' and materialmen's Liens for services or materials (or other like Liens that do not secure Debt) for which payment is not past due;

&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) Liens in favor of operators that are not Affiliates of any Loan Party and that are incurred pursuant to oil and gas joint operating agreements entered into by the owner of such Property in the ordinary course of business which secure obligations not past due;

&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) Liens in favor of the lessor on the Property being leased under any Capitalized Lease permitted hereunder;

&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) minor defects in title to an Oil and Gas Property not in any case materially detracting from the value of such Property;

&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) Liens that are permitted by an Intercreditor Agreement that secure the payment of obligations relating to Acceptable Commodity Hedging Transactions; 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;(ix) Liens in favor of Goldman Sachs Lending Partners, LLC, for itself or as collateral agent for multiple creditors, on the Equity Interests held from time to time by the Borrower in HB2 MidCo, LLC;

*provided, that* Liens described in <u>clauses (ii) through (vi)</u> shall remain Permitted Liens only for so long as no action to enforce any of such Liens has been commenced and; *provided, further*, no intention to subordinate the first priority Liens granted to secure the Obligations is hereby implied or expressed or is to be inferred by the permitted existence of such Permitted Liens.

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"**Person**" means a natural person, a corporation, a partnership, a limited partnership, a limited liability company, an association, a joint venture, a trust or any other entity or organization including a government or political subdivision or any governmental agency or instrumentality thereof.

"**Plan**" means any employee benefit plan which is covered by Title IV of ERISA.

"**Projected Production**" means the projected production of oil, gas or other hydrocarbon category (measured by volume unit or BTU equivalent, not sales price), as applicable, for the term of the contracts or a particular month, as applicable, from properties and interests owned by the Borrower which are Collateral and which have attributable to them oil or gas proven reserves which are categorized as "proved developed producing" as reflected in the most recent Reserve Report delivered to the Lender hereunder in connection with the most recent determination of the Borrowing Base, after deducting projected production from any properties or interests sold or under contract for sale that had been included in such report.

"**Property**" means any interest in any kind of property or asset, whether real, personal or mixed, tangible or intangible.

"**PW Value**" means with respect to any Oil and Gas Property, the net present value of the oil, gas and natural gas liquids to be produced from those categories of reserves designated by the Lender of such Oil and Gas Property, calculated using a discount rate of ten percent (10.00%) per annum and estimates of reserves, prices, production rates and costs reasonably acceptable to the Lender as a senior secured lender.

"**Regulation U**" means Regulation U of the Board of Governors, as in effect from time to time.

"**Regulatory Documents**" means, as to any Person, the bylaws, limited partnership agreement, regulations, company agreement, operating agreement or similar regulatory documents, as applicable, governing the internal affairs of such Person.

"**Release of Hazardous Substances**" means any emission, spill, release, disposal, or discharge, except in accordance with a valid permit, license, certificate, or approval of the relevant Governmental Authority, of any Hazardous Substance into or upon (a) the air, (b) soils or any improvements located thereon, (c) surface water or groundwater, or (d) the sewer or septic system, or the waste treatment, storage, or disposal system servicing any Property of any Loan Party, with respect to which any Loan Party is legally obligated to respond under applicable Environmental Laws, by notifying the relevant Governmental Authority, investigating or undertaking corrective action.

"**Representative's Certificate**" means a certificate signed by a Responsible Representative.

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"**Requirement of Law**" means, as to any Person, its Organizational Documents, its Regulatory Documents, and all applicable Laws.

"**Reserve Report**" means a report in form and substance reasonably satisfactory to the Lender, addressed to the Lender with respect to the Oil and Gas Properties owned by the Loan Parties and their respective Subsidiaries (or to be acquired by the Loan Parties or any of their respective Subsidiaries, as applicable) that are or are to be included in the Borrowing Base, which report shall (a) specify the ownership, location, quantity, and type of the estimated proven reserves attributable to such Oil and Gas Properties, (b) contain a projection of the rate of production of such Oil and Gas Properties, (c) contain an estimate of the net operating revenues to be derived from the production and sale of hydrocarbons from such proven reserves based on product price and cost escalation assumptions specified by the Lender, (d) contain information with respect to the "take-or-pay," "prepayment," and gas-balancing liabilities of the Loan Parties and other Persons with respect to such Oil and Gas Properties, (e) contain the PW Value of each Oil and Gas Property and (f) contain such other information as is customarily obtained from and provided in such reports or is otherwise reasonably requested by the Lender.

 **"Reserve Report Value**" means the aggregate PW Value of all Oil and Gas Properties identified in a Reserve Report.

"**Responsible Representative**" means Craig Perry as Chief Executive Officer, Darren Moulds as Chief Financial Officer, Reagan Brown as Chief Administrative Officer of the Borrower and such individuals in their similar capacity as officers of a Guarantor.

"**Restricted Payment**" means the occurrence of any of the following:

&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) any withdrawal from any Loan Party of cash or other Property by any owner of an Equity Interest in such Loan Party or the declaration or payment of any dividend on, or the incurrence of any liability to make, or the making of, any other payment or distribution in respect of, any Equity Interests in any Loan Party without the prior written consent of the Lender;

&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) any payment or distribution on account of the purchase, redemption or other retirement of any Equity Interests in any Loan Party, or of any warrant, option or other right to acquire such Equity Interests, or any other payment or distribution made in respect thereof, either directly or indirectly;

&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 repayment by any Loan Party of any Debt owed to an Affiliate (other than repayments to the Borrower), except as specifically permitted by the Loan Documents; 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;(iv) any loan, capital contribution or Investment by any Loan Party in or to a Subsidiary of such Loan Party.

"**Revolving Credit Period**" means the period commencing on the Closing Date and ending on the Final Maturity Date.

"**Scheduled Determination**" has the meaning given such term in <u>Section 2.8.1</u>.

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"**Security Agreement**" means the Amended and Restated Security Agreement dated August 31, 2022 granted by Borrower to Lender.

"**Security Documents**" means the security instruments executed and delivered in satisfaction of the condition set forth in <u>Section 5.2.3</u>, and all other documents and instruments at any time executed as security for all or any portion of the Obligations, as such instruments may be amended, restated, or supplemented from time to time.

"**Subsidiary**" means for any Person, (i) any other entity of which at least a majority of all outstanding Equity Interests is at the time directly or indirectly owned and controlled by such Person, (ii) any other entity of which Equity Interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned, collectively, by such Person and (iii) any Subsidiaries of any entity described in <u>clause (i)</u> or <u>clause (ii)</u> preceding. The term Subsidiary shall include Subsidiaries of Subsidiaries (and so on). For the avoidance of doubt, the Development Partnerships shall be included as Subsidiaries of Borrower.

"**Subsidiary Investments**" means loans from the Borrower to, and capital contributions or other Investments by the Borrower in, one or more of its Subsidiaries.

"**Swap Obligation**" means, with respect to any Person, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act.

"**Taxes**" means all taxes, assessments, filing or other fees, levies, imposts, duties, deductions, withholdings, stamp taxes, interest equalization taxes, capital transaction taxes, foreign exchange taxes or charges, or other charges of any nature whatsoever from time to time or at any time imposed by any Law or Tribunal.

"**Transferee**" means any Person to which the Lender has sold, assigned, transferred, or granted a participation in any of the Obligations, as authorized hereunder and including any Participants, and any Person acquiring, by purchase, assignment, transfer (including transfers by operation of law), or participation, from any such purchaser, assignee, transferee, or participant, any part of such Obligations.

"**Tribunal**" means any court, tribunal, governmental body, agency, arbitration panel, or instrumentality.

"**UCC**" means the Uniform Commercial Code as from time to time in effect in the State of Texas.

"**USA Patriot Act**" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56, 115 Stat. 272 (2001), as the same has been, or shall hereafter be, renewed, extended, amended or replaced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. *Accounting Terms and Determinations; Changes in Accounting*.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.1. Unless otherwise specified herein, all accounting terms used herein and all references to accounting matters shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared in accordance with IFRS, applied on a basis consistent (except for changes concurred in by the independent public accountants or as may be required for Borrower to continue to qualify as a foreign private issuer, including GAAP, and with respect to which the Borrower shall have promptly notified the Lender on becoming aware thereof) with the most recent financial statements of the Borrower delivered to the Lender. Accounting principles are applied on a "consistent basis" when the accounting principles applied in a current period are comparable in all material respects to those accounting principles applied in a preceding period. Changes in the application of accounting principles which do not have a material impact on calculating the financial covenants herein shall be deemed comparable in all material respects to accounting principles applied in a preceding period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.2. The Borrower will not change its method of accounting, other than immaterial changes in methods and changes required by IFRS (or such method as may be required for Borrower to continue to qualify as a foreign private issuer, including GAAP), without the prior written consent of the Lender. To enable the ready and consistent determination of compliance by the Borrower with its obligations under this Agreement, neither the Borrower nor any of its Subsidiaries will change the manner in which either the last day of its fiscal year or the last day of the first three fiscal quarters of its fiscal years is calculated without the prior written consent of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.3. The fiscal year of the Borrower and each Guarantor shall end on December 31; excepting that the Borrower may elect such different date with the TSX Venture Exchange and upon doing, shall provide Lender notice of same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. *References*. References in this Agreement to Exhibits, Schedules, Annexes, Appendixes, Attachments, Articles, Sections, Recitals or clauses shall be to exhibits, schedules, annexes, appendixes, attachments, articles, sections, recitals or clauses of this Agreement, unless expressly stated to the contrary. References in this Agreement to "hereby," "herein," "hereinafter," "hereinabove," "hereinbelow," "hereof," "hereunder" and words of similar import shall be to this Agreement in its entirety and not only to the particular Exhibit, Schedule, Annex, Appendix, Attachment, Article, or Section in which such reference appears. Exhibits and Schedules to any Loan Document shall be deemed incorporated by reference in such Loan Document. References to any document, instrument, or agreement (a) shall include all exhibits, schedules, and other attachments thereto, and (b) shall include all documents, instruments, or agreements issued or executed in replacement thereof. This Agreement, for convenience only, has been divided into Articles and Sections; and it is understood that the rights and other legal relations of the parties hereto shall be determined from this instrument as an entirety and without regard to the aforesaid division into Articles and Sections and without regard to headings prefixed to such Articles or Sections. The phrases "this Section" and "this clause" and similar phrases refer only to the sections or clauses hereof in which such phrases occur. Whenever the context requires, reference herein made to the single number shall be understood to include the plural; and likewise, the plural shall be understood to include the singular. Definitions of terms defined in the singular or plural shall be equally applicable to the plural or singular, as the case may be, unless otherwise indicated. Words denoting sex shall be construed to include the masculine, feminine and neuter, when such construction is appropriate; and specific enumeration shall not exclude the general but shall be construed as cumulative; the word "or" is not exclusive; the word "including" (in its various forms) means "including, without limitation"; in the computation of periods of time, the word "from" means "from and including" and the words "to" and "until" mean "to but excluding"; and all references to money refer to the legal currency of the United States of America. The Exhibits, Schedules, Annexes, Appendixes and Attachments attached to this Agreement and items referenced as being attached to this Agreement are incorporated herein and shall be considered a part of this Agreement for all purposes. Except as otherwise indicated, references in this Agreement to statutes, sections, or regulations are to be construed as including all statutory or regulatory provisions consolidating, amending, replacing, succeeding, or supplementing the statute, section, or regulation referred to. References in this Agreement to "writing" include printing, typing, lithography, facsimile reproduction, and other means of reproducing words in a tangible visible form. References in this Agreement to agreements and other contractual instruments shall be deemed to include all exhibits and appendices attached thereto and all subsequent amendments and other modifications to such instruments, but only to the extent such amendments and other modifications are not prohibited by the terms of this Agreement. References in this Agreement to Persons include their respective successors and permitted assigns. References in this Agreement, the other Loan Documents and the Intercreditor Agreement to "reasonable", "reasonably" and words of similar import when applied to any request or demand which the Lender is permitted to make hereunder, under any other Loan Document or the Intercreditor Agreement or as applied to a determination of the reasonableness of the amount or the incurrence of any expense shall be interpreted and construed from the perspective of a lender in a senior credit facility where such lender is regulated by various governmental agencies, seeks a high level of assurance regarding the operations, collateral position, condition (financial or otherwise) and Properties of the Borrower and other Persons Guaranteeing or otherwise connected to such facility and seeks a high level of assurance and advice regarding its rights and duties under the Loan Documents and the Intercreditor Agreement, and the Borrower and any other Person Guaranteeing or otherwise connected to such facility shall comply with such request or demand or accept such determination unless the Borrower or such other Person proves that such request, demand or determination is or was unreasonable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4. *Amendment of Defined Instruments*. Unless the context otherwise requires or unless otherwise provided herein, the terms defined in this Agreement which refer to a particular agreement, instrument or document also refer to and include all renewals, extensions, modifications, amendments and restatements of such agreement, instrument or document, provided that nothing contained in this Section shall be construed to authorize any such renewal, extension, modification, amendment or restatement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5. *Joint Preparation; Construction of Indemnities and Releases*. This Agreement, the other Loan Documents and the Intercreditor Agreement have been reviewed and negotiated by sophisticated parties with access to legal counsel, and no rule of construction shall apply hereto or thereto which would require or allow any Loan Document or the Intercreditor Agreement to be construed against any party because of its role in drafting such Loan Document or the Intercreditor Agreement. All indemnification and release of liability provisions of this Agreement shall be construed broadly (and not narrowly) in favor of the Persons receiving indemnification or releases of liability.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6. *Time References*. Unless otherwise indicated, all references to a time of day refer to the time of day in the Central Time Zone for such day, as generally in effect in the state of Oklahoma.

ARTICLE II<br>TERMS OF FACILITIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. *Reducing Revolving Line of Credit*. During the Revolving Credit Period, and if no Default exists, the Lender agrees, subject to the other terms and conditions of this Agreement, to make Advances to the Borrower from time to time in amounts not to exceed, in the aggregate at any one time outstanding, the Borrowing Base in effect from time to time. The Lender shall not be obligated to lend to the Borrower, and the Borrower shall not be entitled to borrow hereunder, any amount which would cause the outstanding principal of the Note to exceed the Borrowing Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. *Method of Borrowing*. Not later than 3:00 p.m CT on the requested date of any Advance, Borrower shall provide Lender with notice (herein called a "<u>Request for Advance</u>") of each requested Advance. Upon fulfillment of all applicable conditions with respect to an Advance, Lender shall pay or deliver federal or other immediately available funds to the order of Borrower, at Borrower's operating account at Lender's principal Oklahoma City, Oklahoma office in the amount of the requested Advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. *Note.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. The Loans shall be evidenced by a Note issued by the Borrower, payable to the order of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. The outstanding principal of the Note reflected by the notations (whether handwritten, electronic or otherwise) by the Lender on its records shall be deemed rebuttably presumptive evidence of the principal amount owing on the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. The Lender will record each Advance and the particulars thereof (e.g., date and amount) and each payment of principal or interest made by the Borrower with respect thereto on its books, and may, if the Lender so elects in connection with any transfer or enforcement of its Note, endorse on the schedule (modified as the Lender shall deem advisable) forming a part thereof appropriate notations to evidence the foregoing information with respect to each such Loan then outstanding; *provided that* the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower hereunder or under the Note. The Lender is hereby irrevocably authorized by the Borrower so to endorse the Note and to attach to and make a part of the Note a continuation of any such schedule (modified as the Lender shall deem advisable) as and when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. *Certain Payments and Prepayments of Principal*. If at any time the outstanding principal of the Note outstanding exceeds the Borrowing Base then in effect, the Borrower shall on the day of such occurrence, repay the principal of the Note in an amount equal to such excess, *except that* if the circumstances described in this Section are the direct result of a decrease of the Borrowing Base under <u>Section 2.8.1</u> (other than one made in connection with an asset disposition pursuant to <u>Section 7.9.2</u> or a Hedging Transaction amendment, modification, termination or negation pursuant to <u>Section 7.9.4</u>), then the provisions of <u>Section 2.8.3</u> shall apply.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. *Interest Rates; Payment of Interest*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.1. The unpaid principal of the Note shall bear interest from the date hereof, at a rate per annum equal to the lesser of the (i) the Floating Rate or such higher rate as is specified in <u>Section 3.3</u> or (ii) the Highest Lawful Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.2. Accrued interest shall be payable in arrears on each Interest Payment Date and on the Final Maturity Date; *provided that,* interest accrued pursuant to <u>Section 3.3</u> shall be payable on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.3. Each determination hereunder of interest on the Note and fees hereunder based on per annum calculations shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day), subject to the limitations of the Highest Lawful Rate. All interest rates applicable hereunder shall be determined by the Lender, and such determinations shall be conclusive absent manifest error, and be binding upon the 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;2.5.4. Each change in the rate of interest charged hereunder shall become effective automatically and without notice to the Borrower upon the effective date of each change in the Floating Rate or the Highest Lawful Rate, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. *Fees; Authorized Payments by Lender.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.1. To compensate the Lender for the costs of the extension of credit hereunder and for the commitment to provide the credit facilities described herein, the Borrower shall pay to the Lender (i) on the Closing Date, an origination fee in the amount of $230,000; (ii) on the Closing Date, an agent fee in the amount of $115,000; and (iii) thereafter any time (a) a new Oil and Gas Property is added to the Borrowing Base, an Administration fee in the amount of 0.250% of the Collateral Value of such Oil and Gas Property or (b) the Collateral Value of any existing Oil and Gas Property forming part of the Borrowing Base is increased, an administrative fee equal to 0.250% of such Oil and Gas Property's increased Collateral 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;2.6.2. The Borrower shall pay to the Lender on the Closing Date an engineering fee in the amount of $6,903.50, and thereafter, shall pay the actual fees and expenses of any third-party engineers retained or approved by the Lender to prepare an engineering report, payable at the time of any Scheduled, Discretionary or Borrower Requested Determination of the Borrowing Base referred to in <u>Section 2.8.1</u> or at the time of a redetermination of the Borrowing Base required under <u>Section 7.9.2</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;2.6.3. The Lender is irrevocably authorized to make Loans under the Note for the payment of the fees and expenses of the Lender required to be paid by the Borrower hereunder. The Lender may pay over such Loan proceeds to itself or directly to such other Persons entitled to payment hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. *Termination of Commitment; Maturity of Note; Right of Borrower to Terminate Commitments.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.1. The Commitment shall terminate on the Final Maturity Date, unless terminated earlier in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.2. The Note shall finally mature no later than the Final Maturity Date, and any unpaid principal of the Note and accrued, unpaid interest thereon shall be due and payable on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.3. The Borrower shall have the right upon payment in full of the Obligations, the repayment of all other indebtedness owed or guaranteed by the Borrower to the Lender and the cancellation of all outstanding letters of credit issued for the account of the Borrower or which the Borrower guarantees, to cancel in full (but not in part) the Commitment, with no right of reinstatement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. *Determination of Borrowing Base; Automatic Reductions in Borrowing Base; Borrowing Base Deficiency; Notice of Redeterminations; Requests for Reductions in Borrowing Base.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.1. On the basis of the quarterly Reserve Report furnished to the Lender hereunder and such other reports, appraisals and information as the Lender may reasonably deem appropriate, the Lender shall have the right to determine a new Borrowing Base four times a year, such determinations to occur approximately three months apart or at any time it may elect if a Default has occurred which is continuing (each a "**Scheduled Determination**"), or at such other or additional times prior to the Final Maturity Date as the Lender in its sole discretion may elect (each a "**Discretionary Determination**"), and the Lender shall determine a new Borrowing Base at the Borrower's expense at such additional times, but no more often than one time in any 12-month period without the Lender's written consent, as the Borrower may request in connection with any material change in the value of the Oil and Gas Properties included in the most recent determination of the Borrowing Base (each a "**Borrower Requested Determination**"). Such determinations, if made, may be reduced to take into account indebtedness secured by the Collateral other than the Note, shall be made in the Lender's sole discretion and shall be conclusive as to the Borrower, and any increases in the Borrowing Base shall be subject to the Lender's complete credit approval process. In connection with future increases in the Borrowing Base, the Lender may require additional Mortgages or amendments or supplements to existing Mortgages of the Borrower encumbering additional Oil and Gas Properties evaluated for the purpose of such increase, together with waivers of operator's liens executed by the Operator with respect thereto (and, if other than the initial Operator, accompanied by diligence materials comparable to those required under <u>Section 5.2</u> for the initial Operator). There is no duty, implied or explicit, on the Lender to ever increase the Borrowing Base. In the event that any swap counterparty loses its status as an Approved Swap Counterparty for the purposes of future Hedging Transactions, the Lender shall be entitled in connection with any redetermination of the Borrowing Base to ignore or discount the effect and value of existing Hedging Transactions previously entered into with such swap counterparty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.2. [Reserved].

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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;2.8.3. Upon the occurrence of a Borrowing Base Deficiency, the Borrower shall, within 10 days following notice by the Lender of the existence of such Borrowing Base Deficiency, do any one or more of the following in an aggregate amount at least equal to such Borrowing Base Deficiency: (i) prepay the principal of the Note or (ii) cause to be created first and prior perfected Liens (subject only to Permitted Liens) in favor of the Lender, by instruments reasonably satisfactory to the Lender, on producing Oil and Gas Properties which in the opinion of the Lender would increase the Borrowing Base by an amount sufficient, in combination with <u>clause (i)</u> preceding, to eliminate such Borrowing Base Deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.4. Upon each redetermination of the Borrowing Base, the Lender will notify the Borrower of such determination (which notice may be orally communicated to the Borrower and confirmed promptly thereafter in writing if the Borrowing Base is being decreased), and the Borrowing Base and the amount by which the Borrowing Base shall be reduced so communicated to the Borrower shall become effective immediately upon such notification (or such other date as is stated in such notice and regardless of any Request for Advance the Lender might have received) and shall remain in effect until the next subsequent redetermination of the Borrowing Base. A written confirmation of a Borrowing Base may be, but is not required to be, in the form of a Borrowing Base Certificate or an amendment to this Agreement. The Lender may condition any increase in the Borrowing Base to the Borrower's execution and return of the notice given under this Section, which notice may contain and require confirmations by the Borrower and the Guarantors of the Loan Documents or the Intercreditor Agreement or of representations, warranties and covenants contained therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.5. The Borrower may at any time by written notice to the Lender request that the Borrowing Base be reduced (with no right of reinstatement) by an amount specified by the Borrower in such reduction notice, and the Borrowing Base shall be deemed so reduced upon receipt by the Lender of such reduction notice. Further, in the event the Borrower is advised of any increase in the Borrowing Base, the Borrower may decline to utilize the increased borrowing availability created thereby and by written notice to the Lender irrevocably refuse to accept all or a portion of such increase, but any such refusal notice received by the Lender more than five (5) Business Days following such increase in the Borrowing Base shall be treated as a Borrowing Base reduction notice under the immediately preceding sentence.

ARTICLE III<br>GENERAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. *General Provisions as to Payments and Loans*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1. All payments of principal and interest on the Note and of fees hereunder shall be made, without setoff, deduction or counterclaim, by 2:00 p.m. CT on the date such payments are due in federal or other funds immediately available at the office of the Lender referred to in <u>Article XII</u> and, if not made by such time or in immediately available funds, then such payment shall be deemed made when such funds are available to the Lender for its full and unrestricted use. Whenever any payment of principal of or interest on the Note or of fees hereunder shall be due on a day which is not a Business Day, the date for payment thereof shall be extended to the next succeeding Business Day. If the date for any payment is extended by operation of law or otherwise, interest thereon shall be payable for such extended time. The Lender is hereby authorized upon notice to the Borrower to charge the account of the Borrower maintained with the Lender, for each payment of principal, interest and fees as it becomes due hereunder.

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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;3.1.2. All payments made by the Borrower on the Note shall be made free and clear of, and without reduction by reason of, any Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3. All requests for Advances shall be made on a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.4. All Advances shall be made available to the Borrower on a Business Day at the Lender's address referred to in <u>Article XII</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;3.1.5. All payments and fundings shall be denominated in Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. *Telephonic Notices; Notification of Interest Rates*. The Borrower hereby authorizes the Lender to extend Advances and to transfer funds based on telephonic, e-mail or other electronic notices made by any Person the Lender in good faith believes to be acting on behalf of the Borrower. The Borrower agrees to deliver promptly to the Lender a written confirmation, if such confirmation is requested by the Lender, of each telephonic, e-mail or other electronic notices, signed by a Responsible Representative. If the written confirmation differs in any material respect from the action taken by the Lender, the records of the Lender shall be prima facie, but not conclusive, evidence of the matter notwithstanding anything to the contrary in such confirmation. The Lender will give the Borrower prompt notice of each change in the interest rate applicable to the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. *Default Interest*. Unless waived by the Lender, the principal of the Note shall bear interest at the Default Rate during any time an Event of Default exists and, to the extent not prohibited by Law, overdue interest on the Note shall bear interest at the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. *Prepayments Permitted*. The principal of the Note and accrued interest thereon may be prepaid by the Borrower in whole or in part at any time and shall be without premium or penalty. Prepayments of Advances shall be accompanied by accrued interest to the date of prepayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. LATE CHARGE. If a payment remains unpaid for a period of 10 days or more from the date such payment is due, the Lender may charge a delinquency charge equal to 5.00% of the amount of such payment, which charge shall be due upon demand.

ARTICLE IV<br>COLLATERAL

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. *Security*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1. To secure the Obligations, the Borrower will cause the appropriate Person to execute and deliver to the Lender each of the following documents and instruments:

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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;(i) the Mortgages granting a Lien on the Oil and Gas Properties utilized in determining the initial Borrowing Base, subject only to Permitted Liens.

&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 security agreement granting a Lien on all personal property of the Borrower, including, but not limited to all Equity Interests of the Borrower in Alpine Maverick V GP, LLC, a Delaware limited liability company, Alpine Maverick VI GP, LLC, a Delaware limited liability company, Red Dawn I GP, LLC, a Delaware limited liability company, HB2 MidCo V, LLC, a Delaware limited liability company, HB2 MidCo VI, LLC, a Delaware limited liability company, and HB2 Red Dawn MidCo I, LLC, a Delaware limited liability company, provided that, Lender acknowledges that it shall not have a security interest in the Equity Interests of Borrower in (a) HB2 MidCo, LLC, a Delaware limited liability company, (b) AIP Holdco, LP, a Dealware limited partnership, and its directly and indirectly held Subsidiaries, (c) ADP Holdco, LLC, a Delaware limited liability company, and its directly and indirectly held Subsidiaries, (d) AIP Holdco GP, LLC, a Delaware limited liability company, (e) Alpine Maverick I GP, LLC, a Delaware limited liability company, (f) Alpine Maverick II GP, LLC, a Delaware limited liability company, (g) Alpine Maverick III GP, LLC, a Delaware limited liability company, (h) Alpine Maverick IV, LLC, a Delaware limited liability company, (i) Ageron Energy II, LLC, a Delaware limited liability company, and (j) Alpine Summit Funding Holdings, LLC, a Delaware limited liability 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;(iii) a waiver of operator's lien from the Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2. All documents delivered or to be delivered hereunder shall be in form and substance reasonably satisfactory to the Lender and its counsel and shall be supported by such legal opinions as the Lender or its counsel may reasonably request.

ARTICLE V<br>CONDITIONS PRECEDENT TO ADVANCES

The obligation of the Lender to make an Advance shall be subject to the satisfaction of each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. *All Advances.* In the case of each Advance to be made hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1. timely receipt by the Lender of a Request for Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2. the fact that, immediately before such requested Advance, no Default shall have occurred and be continuing and that the making of any such Advance will not cause a Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3. the fact that each representation and warranty contained in any other Loan Document or in <u>Article VI</u> of this Agreement shall be true and correct on and as of the date of such Advance, except to the extent that any such representation specifically makes reference to an earlier date, then such representation is true and correct as of such earlier 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;5.1.4. each request for an Advance shall be deemed to be a representation and warranty by the Borrower on the date of such request, as to the facts specified in <u>Sections 5.1.2</u> and <u>5.1.3</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.5. the fact that each condition specified in <u>Section 5.2</u> was satisfied at the time of the initial Advance hereunder or has been satisfied subsequent thereto or has been waived in writing by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. *Initial Advance.* In the case of the initial Advance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1. receipt by the Lender of each of the following:

&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) copies of the Organizational Documents, and all amendments thereto, of the Borrower, the Operator and each Guarantor, accompanied by certificates that such copies are correct and complete, one issued by the Secretary of State of the state of incorporation or formation of the Borrower, the Operator or such Guarantor, as applicable, dated a current date, and one executed by an authorized representative acceptable to the Lender, dated the Closing 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;(ii) copies of the Regulatory Documents, and all amendments thereto, of the Borrower, the Operator and each Guarantor, accompanied by certificates of an authorized representative acceptable to the Lender, dated the Closing Date, that such copies are correct and complete.

&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) certificates of the appropriate Tribunals of each jurisdiction in which any Loan Party or the Operator has a place of business, any Loan Party or the Operator was formed or in which any Collateral is located (if any Loan Party is required to qualify to do business in such state), each dated a current date, to the effect that such Person is in good standing with respect to the payment of franchise and/or other Taxes and, if required by Law, is duly qualified to transact business in such jurisdictions. Any such certificate(s) due from the Texas Comptroller of Public Accounts may be satisfied with a printout of an electronic search of such office's records which shows that the applicable Person's status with respect to its right to transact business in Texas is "active."

&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) certificates of incumbencies and signatures of all representatives of the Borrower, the Operator and each Guarantor who will be authorized to execute or attest any of the Loan Documents or the Intercreditor Agreement on behalf of the Borrower, the Operator or such Guarantor, as applicable, executed by an authorized representative acceptable to the Lender, dated the Closing 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;(v) copies of resolutions approving the Loan Documents and the Intercreditor Agreement and authorizing the transactions contemplated herein and therein, duly adopted by an authorized body of the Borrower, the Operator and each Guarantor, as applicable, accompanied by certificates of an authorized representative acceptable to the Lender that such copies are true and correct copies of resolutions duly adopted at the meeting of, or by the unanimous written consent of, the ultimate governing authority of the Borrower, the Operator or such Guarantor, as applicable, and that such resolutions constitute all the resolutions adopted with respect to such transactions, have not been amended, modified or revoked in any respect, and are in full force and effect as of the Closing 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;5.2.2. receipt by the Lender of the duly executed Note, dated the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3. receipt by the Lender of the documents described in <u>Section 4.1.1</u>, each duly executed and delivered by the appropriate Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.4. receipt by the Lender of such title opinions or title data as the Lender may request, in form and substance and from attorneys or other Persons reasonably acceptable to the Lender, covering and confirming title in such portions of the Collateral as the Lender may specify and such other documentation and information required by the Lender to satisfy the Lender of the status of the title of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.5. receipt by the Lender of a certificate of ownership interests in form and substance satisfactory to the Lender, certifying as to the ownership interests of the Oil and Gas Properties included in the determination of the Borrowing Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.6. receipt by the Lender of satisfactory evidence that prior Liens, if any, on the Collateral (other than Permitted Liens) are being released or assigned to the Lender concurrently with the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.7. receipt by the Lender of the opinions of counsel to the Borrower and each Guarantor in form and substance satisfactory to the Lender and its counsel. The Borrower and each such Guarantor request such counsel to deliver its opinions to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.8. receipt by the Lender of the results of searches of the UCC records of the applicable jurisdictions from a source acceptable to the Lender reflecting no Liens against any of the intended Collateral other than Permitted Liens or Liens being released or assigned to the Lender concurrently with the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.9. receipt by the Lender of certificates of insurance from the insurance companies insuring the Borrower and each Guarantor, confirming insurance for the Borrower and each such Guarantor meeting the standards of <u>Section 7.4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.10. with respect to the Loan Parties' Oil and Gas Properties that will be pledged as the initial Collateral, receipt by the Lender of (a) a Reserve Report certified by an independent engineering firm retained by the Borrower and acceptable to the Lender, and (b) such lease operating statements and production reports as the Lender may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.11. receipt by the Lender of the audited financial statements of the Borrower and its consolidated subsidiaries for the fiscal year ended on 2018, 2019, and 2020, and containing at a minimum statements of the types required by <u>Section 7.2.1(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.12. receipt by the Lender of the Borrower's internally-prepared annual consolidated financial statements for the fiscal year 2021, and containing at a minimum statements of the types required by <u>Section 7.2.1(ii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.13. receipt by the Lender of an organizational chart of Alpine SEP which includes the direct and indirect ownership of the Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.14. receipt by the Lender of such additional information and documentation as the Lender may reasonably require relating to the Loan Documents (and amendments thereto) and the transactions contemplated hereby and thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.15. the Lender shall be satisfied with respect to the results of its diligence investigation of the Loan Parties and their respective assets and operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. *Conditions Precedent for the Benefit of the Lender.* All conditions precedent to the obligations of the Lender to make any Advance or Loan are imposed hereby solely for the benefit of the Lender, and no other Person may require satisfaction of any such condition precedent or be entitled to assume that the Lender will refuse to make any Advance or Loan in the absence of strict compliance with such conditions precedent.

ARTICLE VI<br>REPRESENTATIONS AND WARRANTIES

The Borrower and, to the extent applicable to any Guarantor, such Guarantor hereby represents and warrants to the Lender as follows with the intention that the Lender shall rely thereon without any investigation or verification by the Lender or its counsel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. *Existence and Power.* The Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1. is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2. has all company powers and all governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3. is duly qualified to transact business as a foreign entity in each jurisdiction where the nature of its business requires the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4. owns, both beneficially and of record, all of its assets reflected in its financial statements delivered to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. *Binding Effect.*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1. This Agreement constitutes a valid and binding agreement of the Borrower; the Note, when executed and delivered in accordance with this Agreement, will constitute the valid and binding obligation of the Borrower; the Security Documents, when executed and delivered in accordance with this Agreement, will constitute valid and binding obligations of each Person purporting to execute the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.2. Each Loan Document and the Intercreditor Agreement is enforceable against each Person (other than the Lender and Approved Swap Counterparties) executing same in accordance with its terms except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally and (ii) rights of acceleration and the availability of equitable remedies may be limited by equitable principles of general applicability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. *Subsidiaries; Ownership.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.1. The Borrower has no direct Subsidiaries as of the Closing Date other than as listed on <u>Schedule 6.4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.2. At least 27.5% of (i) every class voting Equity Interests of the Borrower, and (ii) all economic interests in the Borrower, is directly or indirectly owned legally and beneficially by Craig Perry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5. *Disclosure.* No document, certificate or statement delivered to the Lender by or on behalf of any Loan Party in connection with the transactions contemplated hereby contains any untrue statement of a material fact, or omits to state a material fact required to be stated in order to make the statements contained herein or therein, taken as a whole, not misleading in light of the circumstances under which such statements were made. All information heretofore furnished by the Loan Parties to the Lender for purposes of or in connection with this Agreement or any transaction contemplated hereby is true and accurate in every material respect or based on reasonable good faith estimates on the date as of which such information is stated or certified. The Borrower has disclosed to the Lender in writing any and all material facts known to the Borrower after inquiry (except facts of general public knowledge) which materially and adversely affect or may materially and adversely affect (to the extent the Borrower can now reasonably foresee) the business, operations, prospects or condition, financial or otherwise, of the Borrower or the ability of the Borrower to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6. *Financial Information.* The financial information of the Loan Parties delivered to the Lender in connection with the request for this credit facility fairly presents the financial position of each Loan Party at the respective dates thereof. Except as disclosed in a writing delivered by the Borrower to the Lender prior to the execution and delivery of this Agreement, since the dates referenced in the financial information referred to in the immediately preceding sentence, there has been no adverse change in the business, financial position, results of operations or prospects of any Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7. *Litigation.* Except as disclosed in <u>Schedule 6.7</u> there is no action, suit or proceeding pending against, or to the knowledge of the Borrower threatened against or affecting any Loan Party before any Tribunal or arbitrator.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8. *ERISA Plans.* No Loan Party currently sponsors, maintains or contributes to or has at any time sponsored, maintained or contributed to any Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9. *Taxes and Filing of Tax Returns.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.1. Each Loan Party has filed or properly extended all returns required to have been filed or extended with respect to Taxes and has paid all Taxes shown to be due and payable by it on such returns, including interest and penalties, and all other Taxes which are payable by it, to the extent the same have become due and payable (unless, with respect to such other Taxes, the criteria set forth in <u>Section 7.5</u> are being met). No Loan Party knows of any proposed assessment of Taxes against it in excess of $1,000,000 except as disclosed in writing delivered by a Loan Party to the Lender, and all liabilities for Taxes of each Loan Party are adequately provided for.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.2. The Borrower does not intend to treat the Loans as being a "reportable transaction" (within the meaning of Treasury Regulation Section 1.6011-4).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10. *Title to Properties; Liens; Environmental Liability.* Except to the extent that all such matters could not reasonably be anticipated to (i) involve liability, expenses, impairment to property value or other costs in excess of $1,000,000 individually or in the aggregate pertaining to Collateral, or (ii) otherwise cause or result in a Material Adverse Effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.1. each Loan Party has good and defensible record title to all Oil and Gas Properties purported to be owned by it and to all other Property purported to be owned by it, subject only to Permitted Liens. Upon the recordation of the Security Documents in the appropriate recordation offices, the Liens covering the Collateral will be valid, enforceable, first and prior, perfected Liens in favor of the Lender, subject only to Permitted Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.2. no Loan Party has (a) received notice or otherwise learned of any Environmental Liability arising in connection with (1) any non-compliance with or violation of the requirements of any Environmental Law or (2) the release or threatened release of any Hazardous Substance into the environment or (b) received notice or otherwise learned of any federal or state investigation evaluating whether any remedial action is needed to respond to a release or threatened release of any Hazardous Substance into the environment for which the Loan Party is or may be liable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.3. except in accordance with applicable Requirements of Law or the terms of a valid permit, license, certificate, or approval of the relevant Governmental Authority, no Release of Hazardous Substances by any Loan Party from, affecting, or related to any Property of any Loan Party has occurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10.4. no Environmental Complaint has been received by any Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11. *Business Compliance.* Each Loan Party has performed and abided by all material obligations required to be performed by it to the extent required under each material license, permit, order, authorization, grant, contract, agreement, or regulation to which it is a party or by which it or any of its Property is bound, except to the extent such compliance would not reasonably be expected to result in a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12. *Licenses, Permits, Etc.* Each Loan Party possesses such valid operating rights, licenses, permits, consents, authorizations, exemptions and orders of Tribunals as are material and necessary to carry on its business relating to the Collateral as now being conducted and to own the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13. *Compliance with Laws.* The business and operations of each Loan Party have been and are being conducted in accordance with all applicable Laws, except where the failure to so comply would not reasonably be expected to cause or result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14. *Governmental Consent.* No consent, approval or authorization of, or declaration or filing with, any Governmental Authority is required for the valid execution, delivery and the performance of this Agreement, any other Loan Documents or the Intercreditor Agreement by any Loan Party, other than filings required from time to time to perfect or continue Liens in favor of the Lender under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15. *Investment Company Act.* No Loan Party an "investment company," or a company "controlled" by an "investment company," within the meaning of the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16. *State Utility; No Governmental Limitations on Liens.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16.1. No Loan Party is defined as a "utility" under the laws of the State of Texas or any other jurisdiction wherein the Loan Party is required to qualify to do business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16.2. No Loan Party is subject to any state or federal Law that would limit its ability to have Liens placed on any of its Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17. *Refunds; Certain Contracts.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17.1. No orders of, proceedings pending before, or other requirements of, the Federal Energy Regulatory Commission, the Texas Railroad Commission, or any Governmental Authority exist which could result in any Loan Party being required to refund any portion of the proceeds received or to be received from the sale of hydrocarbons constituting part of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17.2. No Loan Party is obligated by virtue of any prepayment made under any contract containing a "take-or-pay" or "prepayment" provision or under any similar agreement to deliver hydrocarbons produced from or allocated to any of the Collateral at some future date without receiving full payment therefor within 90 days of delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17.3. No Loan Party has produced gas subject to, and neither any Loan Party nor any of the Collateral is subject to, balancing rights of third parties or subject to balancing duties under governmental requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.18. *No Default.* No Default has occurred which is continuing as of the Closing Date, and the receipt by the Borrower of the initial Advance will not cause a Default to exist.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.19. *Anti-Terrorism Laws*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.19.1. *Anti-Terrorism Laws*. None of the Obligated Parties nor any Affiliate of any Obligated Party is in violation of any Anti-Terrorism Law or knowingly engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.19.2. *OFAC*. None of the Obligated Parties nor any Affiliate of any Obligated Party is in violation of any rules or regulations promulgated by OFAC or of any economic or trade sanctions or engages in any transaction administered and enforced by OFAC or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any rules or regulations promulgated by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.20. *Flood Matters*. No "Building" (as defined in the applicable Flood Insurance Regulation) or "Manufactured (Mobile) Home" (as defined in the applicable Flood Insurance Regulation) is located on any Mortgaged Property within an area having special flood hazards and in which flood insurance is available under the Flood Insurance Regulations, and no "Building" or "Manufactured (Mobile) Home" is encumbered by the Mortgages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.21. *Solvency*. Immediately after the Closing and immediately following the making of each Loan made on the Closing Date and following the making of any Loan made after the Closing Date, after giving effect to the application of the proceeds of each such Loan, (a) the fair value of the assets of each Loan Party, at a fair valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise, at a fair valuation; (b) the present fair saleable value of the property of each Loan Party will be greater than the amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (c) each Loan Party will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) no Loan Party will have unreasonably small capital with which to conduct the business in which it is engaged as such businesses are now conducted and are proposed to be conducted following the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.22. *Eligible Contract Participant*. As of the date of this Agreement each Loan Party is, and as of the date of any Loan Party's entry into any Commodity Hedging Transaction such Loan Party will be, an "Eligible Contract Participant" as defined in 7 U.S.C. § 1a(18).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.23. *Hedging Transactions.* Attached hereto as <u>Schedule 6.23</u> is an accurate and complete description of all outstanding Hedging Agreements and Hedging Transactions to which any Loan Party is a party as of the Closing Date.

ARTICLE VII<br>COVENANTS

So long as the Lender is required to make Advances hereunder, any principal of or interest on the Note shall remain unpaid or any other portion of the Obligations remains outstanding, the Borrower will (or will cause the appropriate Person to) duly perform and observe each and all of the covenants and agreements hereinafter set forth:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. *Use of Proceeds*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1. The Borrower will use the proceeds of the Loans solely to (i) develop its Oil and Gas Properties and (ii) to fund any capital contributions or other Investments by the Borrower into any of its Subsidiaries to the extent, but only to the extent, such capital contributions or other Investments are permitted by <u>Section 7.8.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2. The Borrower will not, directly or indirectly, use any of the proceeds of the Loans for the purpose of purchasing or carrying any "margin stock" within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 C. F. R. 221, as amended), or any "security that is publicly-held" within the meaning of Regulation T of such Board of Governors (12 C.F.R. 220, as amended), or otherwise take or permit any action which would involve a violation of such Regulation U, Regulation T or Regulation X (12 C.F.R. 224, as amended) or any other regulation of such Board of Governors. The Loans are not secured, directly or indirectly, in whole or in part, by collateral that includes any "margin stock" within the meaning of Regulation U. The Borrower will not engage principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any "margin stock" within the meaning of such Regulation U.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. *Financial Statements; Reserve and Other Reports; Certain Required Notices from Borrower; Additional Information.* The Borrower will furnish to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.1. (i) as soon as available and in any event within 120 days after the end of each fiscal year of Alpine SEP (which shall end on December 31 each year), copies of the consolidated and consolidating Statements of Financial Position of Alpine SEP, and its consolidated subsidiaries (including at minimum, the Borrower) as of the end of such fiscal year, and copies of the related consolidated statements of Income/(Loss) and Comprehensive Income/(Loss), Consolidated Statement of Changes in Shareholders Equity and Consolidated Statements of Cash Flows, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail; such financial statements to be audited by a firm of independent certified public accountants selected by Alpine SEP and reasonably acceptable to the Lender and accompanied by the unqualified opinion of such accountants.

&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) on or before 60 days after the last day of each fiscal quarter of Alpine SEP (including the last fiscal quarter of its fiscal year), commencing with the quarter ending September 30, 2022, (a) a copy of the unaudited condensed interim consolidated and consolidating statements of financial position of Alpine SEP, and its consolidated subsidiaries (including at minimum, the Borrower) as at the close of such quarter and from the beginning of such fiscal year to the end of such quarter including a schedule consolidating the financial position of material subsidiaries, (b) a copy of the related condensed interim consolidated statements of Income/(Loss) and Comprehensive Income/(Loss), condensed interim Consolidated Statement of Changes in Shareholders Equity and condensed interim Consolidated Statements of Cash Flows for the quarter just ended and for that portion of the year ending on such last day, all in reasonable detail and prepared on a basis consistent with the financial statements previously delivered by the Borrower under this Section and (c) an identification of all Contingent Obligations and Guarantees of Alpine SEP and its consolidated subsidiaries.

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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;(iii) simultaneously with the delivery of each set of financial statements pursuant to the preceding clauses of this Section, and that the signers have reviewed the terms of this Agreement and the other Loan Documents, and have made, or caused to be made under their supervision, a review of the transactions and financial condition of Alpine SEP and the Borrower during the fiscal period covered by such financial statements, and that such review has not disclosed the existence during such period, and that the signers do not have knowledge of the existence as of the date of such certificate, of any condition or event which constitutes a Default, or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Borrower has taken or is taking or proposes to take with respect thereto.

&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) within 30 days after each filing thereof by any Loan Party with any Governmental Authority (if copies thereof have been requested by the Lender), complete copies of the federal and state income tax returns so filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.2. (i) as soon as available, and in any event on or before each February 1, May 1, August 1 and November 1 of each year during the term of this Agreement, commencing with November 1, 2022, Reserve Reports containing information for the Loan Parties' Oil and Gas Properties as of the immediately preceding January 1, April 1, July 1 and October 1, respectively, and otherwise in form and substance satisfactory to the Lender in its reasonable judgment. The reports shall be certified by an independent consulting petroleum engineer acceptable to the Lender. For purposes of this clause, the petroleum engineering firm of Pinnacle Energy Services, LLC shall be deemed to be acceptable to the Lender unless the Lender otherwise advises the Borrower in writing.

&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 60 days following the last day of each calendar quarter, production reports and lease operating statements in form and substance satisfactory to the Lender in its reasonable judgment, prepared by the Borrower and containing data concerning pricing, quantities of oil, gas and liquid hydrocarbons production from the Oil and Gas Properties utilized in determining the Borrowing Base, gross revenues, lease operating expenses and other expenses, production taxes, price differentials and such other information with respect thereto as the Lender may reasonably request.

&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) simultaneously with the delivery of such production and other reports under <u>clauses (i) through (iii)</u> above, a Representative's Certificate certifying that, to the best of such signatory's knowledge, such engineering and other reports are true, accurate and complete in all material respects for the periods covered in such reports; *provided that* to the extent such reports include projections of future volumes of production and future costs, it is understood that such estimates are necessarily based upon professional opinions, and the Borrower does not warrant that such opinions will ultimately prove to have been accurate.

&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) within 10 days after any material change in insurance coverage by any Loan Party from that previously disclosed to the Lender, a report describing such change, and, within 30 days after each request by the Lender, certificates of insurance from the insurance companies insuring the Loan Parties, describing the insurance coverage of the Loan 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;7.2.3. (i) immediately after any Responsible Representative becomes aware of the occurrence of any condition or event which constitutes a Default, a Representative's Certificate specifying the nature of such condition or event, the period of existence thereof, what action the Borrower has taken or is taking and proposes to take with respect thereto and the date, if any, on which it is estimated the same will be remedied.

&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 10 days after any Loan Party's learning of any claim, demand, action, event, condition, report or investigation indicating any potential or actual liability of any Loan Party arising in connection with (a) the non-compliance with or violation of the requirements of any Environmental Law, (b) the release or threatened release of any Hazardous Substance into the environment, or (c) the existence of any Environmental Lien on any Properties of any Loan Party, which matters, individually or in the aggregate, could reasonably be expected to involve liability, expenses, impairment to property value or other costs in excess of $1,000,000, notice 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;(iii) within 10 days of any Loan Party's learning of any litigation or other event or circumstance which could reasonably be expected to have a Material Adverse Effect, notice 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;(iv) within 10 days after the occurrence thereof, notice of the change in identity or address of any Person remitting to any Loan Party proceeds from the sale of hydrocarbon production from or attributable to any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.4. with reasonable promptness, such other information relating directly or indirectly to the financial condition, business, results of operations or Properties of any Loan Party as from time to time may reasonably be requested by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. *Inspection of Properties and Books.* Each Loan Party will permit any officer, employee or representative of the Lender to visit and inspect any of its Properties, to examine its books of account (and to make copies thereof and take extracts therefrom) and to discuss its affairs, finances and accounts (including transactions, agreements and other relations with any shareholders) with, and to be advised as to the same by, its officers and independent public accountants, all upon at least two Business Days' notice and at such reasonable times during normal business hours and intervals as the Lender may desire and, if a Default has occurred and is continuing, at the expense of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. *Maintenance of Security; Insurance; Authorization to File Financing Statements; Operating Accounts; Transfer Orders.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.1. (i) The Borrower shall execute and deliver, or cause the appropriate Person to execute and deliver, to the Lender all mortgages, deeds of trust, security agreements, financing statements, assignments and such other documents and instruments (including division and transfer orders), and supplements and amendments thereto, and take such other actions as the Lender deems necessary or desirable in order to (a) maintain as valid, enforceable, first-priority, perfected Liens (subject only to the Permitted Liens), all Liens granted to secure the Obligations or (b) monitor or control the proceeds from the Collateral.

&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 Borrower and each Guarantor which has granted a security interest to the Lender, as applicable, authorizes the Lender to complete and file, from time to time, financing statements naming the Borrower and each such Guarantor, as applicable, as debtor to perfect Liens granted to secure the Obligations.

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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;(iii) The Borrower shall take such action as may be requested from time to time by the Lender to maintain, or cause to be in effect at all times, first and prior Liens (subject to Permitted Liens) in favor of the Lender by instruments executed by the appropriate Person and properly recorded in the applicable jurisdictions on Oil and Gas Properties utilized in the most recent determination of the Borrowing Base representing no less than the Reserve Report Value. Without limiting the generality of the foregoing, if the Lender determines from time to time that the Oil and Gas Properties encumbered by the Mortgages do not represent at least the Reserve Report Value and the Lender requests additional Mortgages to cure such shortfall, then not later than 10 Business Days following each such request, the Borrower shall furnish such legal descriptions thereto and execute and deliver, or cause the appropriate Person to execute and deliver, such supplemental Mortgages as the Lender may request to cure such shortfall.

&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 Borrower shall, and shall cause each Guarantor that owns any Oil and Gas Properties to, maintain insurance with financially sound and reputable insurance companies in such amounts and covering such risks as is customarily carried in conformity with prudent industry practice by companies in the oil and gas industry owning similar properties in the same general areas in which Borrower and the other Loan Parties operate, *provided* that in any event the Borrower will maintain and cause the relevant Guarantors to maintain workmen's compensation insurance, property insurance and comprehensive general liability insurance reasonably satisfactory to the Lender. Each insurance policy covering Collateral shall name the Lender as loss payee and each insurance policy covering liabilities shall name the Lender as additional insured, and each such insurance policy shall provide that such policy will not be cancelled or reduced without 30 days prior written notice to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.2. The Borrower will maintain its primary operating accounts with Bank7, and will deposit all revenues and proceeds from Hedging Transactions of the Borrower in such accounts. Further, Borrower shall at all times maintain no less than $5,000,000 in such accounts. For the avoidance of doubt, for purposes of calculating the amount of cash the Borrower is maintaining with Lender, Borrower shall not receive credit for any restricted cash or cash in accounts subject to a deposit account control agreement. Notwithstanding same, in the event of a Borrowing Base Surplus then Borrower shall receive a dollar-for-dollar reduction of its deposit requirements under this Section 7.4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.3. Each Loan Party shall upon request of the Lender, execute such transfer orders, letters-in-lieu of transfer orders or division orders as the Lender may from time to time request in respect of the Collateral to effect a transfer and delivery to the Lender of the proceeds of production attributable to the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. *Payment of Taxes and Claims.* Each Loan Party will pay (i) all Taxes imposed upon it or any of its assets or with respect to any of its franchises, business, income or profits before any material penalty or interest accrues thereon and (ii) all material claims (including claims for labor, services, materials and supplies) for sums which have become due and payable and which have or might become a Lien (other than a Permitted Lien) on any of its assets; *provided, however*, that no payment of such Taxes or claims shall be required if (a) the amount, applicability or validity thereof is currently being contested in good faith by appropriate proceedings promptly initiated and diligently conducted, (b) the Loan Party shall have set aside on its books reserves (segregated to the extent required by applicable accounting principles) reasonably deemed by it to be adequate with respect thereto and (c) if material, the Loan Party has notified the Lender of such circumstances, in detail reasonably satisfactory to the Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6. *Payment of Debt; Additional Debt; Payment of Accounts.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.1. Each Loan Party will (a) pay, renew or extend or cause to be paid, renewed or extended the principal of, and the prepayment charge, if any, and interest on all Debt heretofore or hereafter incurred or assumed by it when and as the same shall become due and payable unless such payment is prohibited by the Loan Documents or would cause a Default hereunder; (b) faithfully perform, observe and discharge all unwaived covenants, conditions and obligations within any applicable periods of grace imposed on it by any instrument evidencing such Debt or by any indenture or other agreement securing such Debt or pursuant to which such Debt is issued unless such performance, observance or discharge would cause a Default hereunder; and (c) not permit the occurrence of any act or omission which would constitute a default under any such instrument, indenture or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.2. No Loan Party will create, incur or suffer to exist any Debt, except without duplication (a) Debt to the Lender and (b) other Permitted Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.3. Each Loan Party shall pay all of its trade and other accounts payable within 120 days after the due date therefor, unless such payables are being contested in good faith by appropriate proceedings or other written protest thereof and as to which a proper reserve has been made and on which interest charges are not paid or accrued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7. *Negative Pledge.* No Loan Party will create, suffer to exist or otherwise allow any Liens to be on or otherwise to affect any of its Property whether now owned or hereafter acquired, except Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8. *Loans and Advances to Others; Investments; Restricted Payments; Subsidiaries.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8.1. No Loan Party will make or suffer to exist any loan, advance or extension of credit to any Person except (a) trade and customer accounts receivable which are for goods furnished or services rendered in the ordinary course of business and which are payable in accordance with customary trade terms, (b) advances to employees of the Loan Party for payment of expenses in the ordinary course of business and (c) as permitted by <u>Section 7.8.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8.2. No Loan Party will make any capital contribution to, or make any Investment in, or purchase or make a commitment to purchase any interest in, any Person except (a) as permitted by <u>Section 7.8.1</u>, (b) as permitted by <u>Section 7.8.3</u>, and (c) Permitted Investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8.3. No Loan Party will, directly or indirectly, make any Restricted Payment without the prior written consent of the Lender except (a) as specifically permitted in the definition of such defined term, (b) that any Guarantor may make distributions, dividends and other payments to the Borrower, (c) if (i) no Default has occurred and is continuing (including any Borrowing Base Deficiency), and (ii) the Borrower has furnished prior written notice thereof to the Lender with reasonable detail, then the Borrower may re-convey Oil and Gas Properties that are not Collateral and were not included in the most recent determination of the Borrowing Base to the Development Partnership which had previously transferred such Oil and Gas Properties (whether in their then-existing or previously undeveloped state) and/or cash to the Borrower for purposes of facilitating and funding the Borrower's development thereof, and (d) if (i) no Default has occurred and is continuing (including any Borrowing Base Deficiency) or would result from a proposed distribution, loan, capital contribution or other Investment, then the Loan Parties may make cash dividends and distributions to the holders of their respective Equity Interests and loans and capital contributions to and Investments in their Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8.4. Other than Borrower, no other Loan Party will form or acquire any Subsidiaries, either directly or indirectly through other Subsidiaries, without the prior written consent of the Lender, which consent may not be unreasonably withheld and, if given, may be conditioned on such Subsidiary's execution of an unlimited guaranty of the Obligations and security instruments covering all of the Property of such Subsidiary, as well as pledge or security agreements executed by the appropriate Persons and pledging to the Lender all Equity Interests issued by such Subsidiary, all in form and substance satisfactory to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9. *Consolidation, Merger, Maintenance, Change of Control; Disposition of Property; Restrictive Agreements; Hedging Agreements; Modification of Organizational Documents; Issuance of Equity Interests.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9.1. No Loan Party will (a) consolidate or merge with or into any other Person or undergo a division without the prior written consent of the Lender, (b) sell, lease or otherwise transfer all or substantially all of its Property to any other Person, (c) terminate, or fail to maintain, its existence as the type of entity represented in <u>Section 6.1</u> and in its state of formation represented in <u>Section 6.1</u>, (d) terminate, or fail to maintain, its good standing and qualification to transact business in all jurisdictions where the nature of its business requires the same (except where the failure to maintain its good standing or qualification could not reasonably be expected to have a Material Adverse Effect) or (e) permit a Change of Control Event to occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9.2. (i) No Loan Party sell, encumber, or otherwise transfer all or any portion of the Collateral, any Property having PW Value, or any of its other Property without the prior written consent of the Lender, except for (a) sales of oil and gas after severance in the ordinary course of business, provided that no contract for the sale of hydrocarbons shall obligate the Loan Party to deliver hydrocarbons produced from any of the Collateral at some future date without receiving full payment therefor within 90 days of delivery, (b) the sale or other disposition of equipment destroyed, worn out, damaged, or having only salvage value or no longer used or useful in the business of the Loan Party and (c) dispositions of Oil and Gas Properties expressly permitted by <u>Section 7.8.3(c)</u>. Any consent by the Lender to the sale of any Property covered by this Section may include requirements (x) that the applicable Loan Party unwind any Commodity Hedging Transactions related to the Projected Production volumes attributable to the assets being sold, and (y) that a new Borrowing Base be determined under <u>Section 2.8.1</u> (to be treated as a Borrower Requested Determination) and that the proceeds of such sale plus such additional amounts as the Lender deems necessary to avoid the occurrence of a Borrowing Base Deficiency be applied to the Obligations on the date of such sale.

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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;(ii) Notwithstanding anything in this Agreement to the contrary, and in addition to any other conditions which may apply with respect to a requested Lien release, the Lender shall have no obligation to release any Lien on any Collateral until the Lender has satisfied itself that any consents therefor which may be required under any Intercreditor Agreement have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9.3. No Loan Party will be or become party to or bound by any agreement (including any undertaking in connection with the incurrence of Debt or issuance of securities) which imposes any limitation on the disposition of the Collateral more restrictive than those set forth above or which in any way would be contravened by the Borrower's performance of its obligations hereunder or under the other Loan Documents or which contains any negative pledge on all or any portion of the Loan Party's Property (except in favor of the Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9.4. (i) No Loan Party will enter into any Hedging Transaction unless (a) such Hedging Transaction is an Acceptable Hedging Transaction and (b) the Hedging Agreement governing such Hedging Transaction does not contain any anti-assignment provisions restricting the Loan Party or, if such agreement contains anti-assignment provisions which cannot be removed, such provisions shall be modified to read substantially as follows: "The interest and obligations arising from this agreement are non-transferable and non-assignable, *except that* [company name] may assign and grant a security interest in its rights and interests hereunder to Bank7 and its assigns, (the "Lender") as security for **[**company name]'s present and future obligations to the Lender. Until [hedge provider] is notified in writing by the Lender to pay to the Lender amounts due [company name] hereunder, [hedge provider] may continue to make such payments to [company name]."

&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) Not later than the Closing Date, and thereafter, as of the last day of each fiscal quarter of the Borrower, the Borrower shall have Acceptable Commodity Hedging Transactions in place that cover a minimum of 50% of the Projected Production of each of oil and natural gas from the Loan Parties' Oil and Gas Properties pledged as Collateral for each calendar month during the consecutive twelve-month period that begins with the first full calendar month immediately following the relevant test 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;(iii) No Loan Party will cause or permit any Hedging Transaction now existing or hereafter entered into by the Loan Party to be amended, modified, terminated, negated through the Loan Party's entry into one or more new Hedging Transactions with the opposing effect, or liquidated, except (a) as provided in <u>Section 7.9.2</u> and (b) otherwise with the prior written consent of the Lender. Any consent by the Lender may include a requirement (to be treated as a Borrower Requested Determination) that a new Borrowing Base be determined under <u>Section 2.8.1</u>, and that on or prior to the effective date of such amendment, modification, termination or negation, the Loan Party make any payment for application to the Obligations necessary to avoid the occurrence of a Borrowing Base Deficiency as a result of such redetermination.

&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) No Loan Party will cause or permit any Hedging Agreement now existing or hereafter entered into by the Borrower to be amended, modified or terminated without the prior written consent of the Lender except for entering into usual and customary confirmations under such Hedging Agreements setting forth volume, pricing, duration and other such standard terms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9.5. No Loan Party will amend its Organizational Documents or its Regulatory Documents in any material respect or in any respect which could be adverse to the interests of the Lender. For avoidance of doubt, the foregoing shall not apply to Alpine SEP unless and until such entity executes and delivers a Guaranty and thereby becomes a Guarantor (which is not contemplated as of the Closing Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9.6. No Loan Party will issue any Equity Interests or rights, options or warrants to purchase any of such Loan Party's Equity Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10. *Primary Business; Continuous Operations; Location of Borrower's Office; Ownership of Assets.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10.1. (i) The primary business of the Borrower shall at all times be and remain the oil and gas exploration, development and production business. The Borrower shall continuously remain in operation in a manner reasonably necessary to manage its Properties and business affairs.

&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 primary business of each Guarantor shall at all times be and remain the oil and gas exploration, development and production business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10.2. The location of the Borrower's principal place of business and executive office shall remain at the address for the Borrower set forth on the signature page hereof, unless at least 10 days prior to any change in such address the Borrower provides the Lender with written notice of such pending change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10.3. Each Loan Party will at all times own, both beneficially and of record, all assets reflected in its financial statements delivered to the Lender from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11. *Operation of Properties and Equipment; Compliance with and Maintenance of Contracts; Duties as Nonoperator.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11.1. (i) Each Loan Party shall at all times maintain, develop and operate its Oil and Gas Properties in a good and workmanlike manner and will observe and comply in all material respects with all of the terms and provisions, express or implied, of all oil and gas leases relating to such Oil and Gas Properties so long as such oil and gas leases are capable of producing hydrocarbons in commercial quantities, except to the extent that the failure to so observe and comply could not reasonably be expected to have a Material Adverse Effect.

&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) Each Loan Party and/or the Operator shall remain as the named operator for each oil or gas well in which it now or hereafter owns an interest *if* (a) it is the operator thereof on the date hereof or becomes the operator thereof subsequent hereto and (b) such well is now or hereafter becomes Collateral.

&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) Each Loan Party shall at all times, maintain, preserve and keep all operating equipment used or useful with respect to the Oil and Gas Properties of such Loan Party in proper repair, working order and condition, and make all necessary or appropriate repairs, renewals, replacements, additions and improvements thereto so that the efficiency of such operating equipment shall at all times be properly preserved and maintained, *provided that* no item of operating equipment need be so repaired, renewed, replaced, added to or improved, if Loan Party shall in good faith determine that such action is not necessary or desirable for the continued efficient and profitable operation of the business of the Loan Party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11.2. Each Loan Party shall comply with all agreements applicable to or relating to its Oil and Gas Properties or the production and sale of hydrocarbons therefrom and all applicable proration and conservation Laws of the jurisdictions in which such Properties are located, except to the extent that the failure to so comply with such Laws or agreements could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11.3. With respect to the Oil and Gas Properties referred to in this Section which are operated by operators other than a Loan Party or an Affiliate of a Loan Party, no Loan Party shall be obligated itself to perform any undertakings contemplated by the covenants and agreements contained in this Section which are performable only by such operators and are beyond the control of the Loan Party, but shall use commercially reasonable efforts to cause such operators to perform such undertakings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11.4. No Loan Party will amend, alter or change in any respect which could reasonably be expected to be adverse to the interests of the Loan Party or the Lender any agreements relating to the material operations or contractual arrangements of the Loan Party or the compression, gathering, sale or transportation of oil and gas from the Oil and Gas Properties included in the most recent determination of the Borrowing Base without the prior written consent of the Lender, which consent shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12. *Transactions with Affiliates.* No Loan Party will engage in any transaction with an Affiliate unless (i) such transaction is at least as favorable to the Loan Party as could be obtained in an arm's length transaction with an unaffiliated third party, and (ii) such transaction is not materially disadvantageous to the Lender as holder of the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13. *Plans.* No Loan Party will assume or otherwise become subject to an obligation to contribute to or maintain any Plan or acquire any Person which has at any time had an obligation to contribute to or maintain any Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.14. *Compliance with Laws and Documents.* No Loan Party will, directly or indirectly, violate the provisions of any Laws, its Organizational Documents or its Regulatory Documents or any Material Agreement, if such violation, alone or when combined with all other such violations, could reasonably be expected to have or does have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.15. *Intentionally Omitted.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.16. *Tax Shelter*. In the event the Borrower determines to take any action inconsistent with the representation in <u>Section 6.9.2</u>, it will promptly notify the Lender thereof. Accordingly, if the Borrower so notifies the Lender, the Borrower acknowledges that the Lender may treat the Loans as part of a transaction that is subject to Treasury Regulation Section 301.6112-1, and the Lender will maintain the lists and other records required by such Treasury Regulation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17. *Additional Documents; Quantity of Documents; Title Data; Additional Information.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17.1. Each Loan Party shall execute and deliver or cause to be executed and delivered such other and further instruments or documents as in the reasonable judgment of the Lender may be required to better effectuate the transactions contemplated herein and in the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17.2. Each Loan Party will deliver all certificates, opinions, reports and documents hereunder in such number of counterparts as the Lender may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17.3. Within 30 days following a written request therefor from the Lender, the Borrower shall cause to be delivered to the Lender title opinions, in form and substance and from attorneys reasonably acceptable to the Lender, or other confirmation of title acceptable to the Lender, covering Oil and Gas Properties that are covered by the Mortgages and that represent no less than the Reserve Report Value; and promptly, but in any event within 30 days following notice from the Lender of any defect, material in the opinion of the Lender, in the title of the mortgagor under any Mortgage to any Oil and Gas Property covered thereby, clear such title defect, and in the event any such title defects are not cured in a timely manner, pay all related costs and fees incurred by the Lender in attempting to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17.4. The Borrower shall furnish to the Lender, promptly upon the request of the Lender, such additional financial or other information concerning the assets, liabilities, operations, and transactions of the Borrower and each Guarantor as the Lender may from time to time reasonably request; and notify the Lender not less than 10 days prior to the occurrence of any condition or event that may change the proper location for the filing of any financing statement or other public notice or recording for the purpose of perfecting a Lien in any Collateral, including any change in its name or state of organization; and upon the request of the Lender, execute such additional Security Documents as may be necessary or appropriate in connection therewith.<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.18. *[Reserved]*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.19. *Exceptions to Covenants.* The Borrower shall not be permitted to take any action which is permitted by any of the covenants contained in this Agreement if such action is in breach of any other covenant contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.20. *Anti-Terrorism Laws*. Neither the Borrower nor any of the other Obligated Parties shall (a) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224; or (b) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, (i) any of the prohibitions set forth in Executive Order No. 13224 or the USA Patriot Act or (ii) any prohibitions set forth in the rules or regulations issued by OFAC or any sanctions against targeted foreign countries, terrorism sponsoring organizations, and international narcotics traffickers based on U.S. foreign policy. The Borrower shall deliver to the Lender any certification or other evidence requested from time to time by the Lender, in its reasonable discretion, confirming the Obligated Parties' compliance with this Section.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.21. *New Development Partnerships*. Borrower shall provide written notice to Lender within ten (10) Business Days after the formation of a new Development Partnership. Additionally, within fifteen (15) days of the formation of a new Development Partnership, (i) Borrower shall execute a pledge agreement granting to Lender a security interest in the Borrower's Equity Interests in the general partner of the Development Partnership and (ii) the Development Partnership shall execute a negative pledge agreement in favor of Lender in form similar to the Negative Pledge Agreement.

ARTICLE VIII<br>DEFAULTS; REMEDIES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. *Events of Default; Acceleration of Maturity.* If any one or more of the following events (each an "**Event of Default**") has occurred and has not been waived by the Lender (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body or otherwise):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1. (i) the Borrower shall fail to pay, when due, any principal of, or interest on, (a) the Note or (b) any other Debt of the Borrower to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Borrower shall fail to pay when due, any fees or other amounts payable hereunder and not covered by <u>clause (i)</u> above, if such failure shall continue unremedied for a period of 10 days after notice thereof is given to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2. (i) the Borrower shall fail to observe or perform any covenant or agreement contained in <u>Sections 7.1, 7.2.3, 7.6.2, 7.7, 7.8, 7.9 or 7.15</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Guarantor shall (a) fail to comply with the provisions of its Guaranty, (b) revoke or attempt to revoke such Guarantor's Guaranty in whole or in part or deny the validity or enforceability in whole or in part of such Guarantor's Guaranty or (c) fail to confirm in a writing reasonably satisfactory to the Lender that such Guarantor's Guaranty is enforceable in accordance with its terms within five (5) Business Days following a written request therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.3. the Borrower or any other Person (other than the Lender) shall fail to observe or perform any covenant or agreement contained in this Agreement, the other Loan Documents or the Intercreditor Agreement (other than those covered by <u>Sections 8.1.1</u> or <u>8.1.2</u>), for a period of 30 days after written notice specifying such default has been given to such Person by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.4. any Loan Party shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its Debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its Property, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or becomes in insolvent within the meaning of Section 101(32) of the Title 11 of the United States Code, or shall take any corporate or other action to authorize any of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.5. an involuntary case or other proceeding shall be commenced against any Loan Party seeking liquidation, reorganization or other relief with respect to it or its Debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its Property, and such involuntary case or other proceeding shall remain undismissed or unstayed for a period of 60 days; or an order for relief shall be entered against the Loan Party under the federal bankruptcy laws as now or hereafter in effect which remains undismissed or unstayed for a period of 60 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.6. any Loan Party (a) shall default in the payment of any of its Material Debts (other than the Note) and such default shall continue beyond any applicable cure period, (b) shall default in the performance or observance of any other provision contained in any agreements or instruments evidencing or governing such Material Debt and such default is not waived and continues beyond any applicable cure period or (c) any other event or condition occurs which results in the acceleration of such Material Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.7. any Loan Party shall default in the payment of any of its Debts to the Lender or shall default in the performance or observance of any provision contained in any agreements or instruments evidencing or governing any such Debt to the Lender and such default is not waived and continues beyond any applicable cure period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.8. one or more judgments or orders as determined by a final, non-appealable judgment by a court of competent jurisdiction for the payment of money aggregating in excess of $1,000,000 shall be rendered against any Loan Party which in the opinion of the Lender is not adequately covered by insurance, and such judgment or order (a) shall continue unsatisfied or unstayed (unless bonded with a supersedeas bond at least equal to such judgment or order) for a period of 30 days or (b) is not fully paid and satisfied at least 10 days prior to the date on which any of its Property may be lawfully sold to satisfy such judgment or order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.9. any representation, warranty, certification or statement made or deemed to have been made by or on behalf of any Loan Party in this Agreement or by any Loan Party or any other Person in any certificate, financial statement or other document delivered pursuant to this Agreement (including without limitation any such certificate, financial statement or other document delivered by Alpine SEP) shall prove to have been incorrect in any material respect when made. Without limiting the generality of the foregoing sentence, such incorrect representation, warranty, certification or statement shall be deemed to be incorrect in a material respect if such incorrect representation, warranty, certification or statement (i) could reasonably be expected to have any adverse effect whatsoever upon the validity, performance or enforceability of any Loan Document or the Intercreditor Agreement, (ii) is or might reasonably be expected to be material and adverse to the financial condition or business operations of any Person or to the prospects of any Person, (iii) could reasonably be expected to impair any Person's ability to fulfill its obligations under the terms and conditions of the Loan Documents or the Intercreditor Agreement or (iv) could reasonably be expected to impair the Lender's ability to receive full and timely payment of the Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.10. any license, franchise, permit, or authorization issued to any Loan Party by any Tribunal that is material to any Collateral or such Loan Party's ownership or operation of Collateral is forfeited, revoked, or not renewed; or any proceeding seeking forfeiture or revocation thereof is instituted and is not resolved or dismissed within one year of the date of the publication of the order instituting such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.11. a default shall occur under any Material Agreement, other than this Agreement, to which any Loan Party is a party or by which any of its Property is bound and such default continues beyond any applicable period of grace provided therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.12. a Change of Control Event shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.13. this Agreement, any other Loan Document or the Intercreditor Agreement shall cease to be in full force and effect or shall be declared null and void or the validity or enforceability thereof shall be contested or challenged by any Loan Party or any of their respective equity holders, or any Loan Party shall deny that it has any further liability or obligation under any of the Loan Documents or the Intercreditor Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.14. any Security Document shall not, or shall cease to, create valid and perfected first priority Liens (subject only to Permitted Liens) against any portion of Property having material value purportedly covered thereby, except to the extent, if any, expressly permitted by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.15. a Material Adverse Effect shall occur.

then, and in every such event, the Lender may, at its option, (i) declare the outstanding principal of and accrued interest on the Note to be, and the same shall thereupon forthwith become, due and payable without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the Borrower, (ii) proceed to foreclose the Liens securing the Note, (iii) terminate its commitments under <u>Article II</u> and (iv) take such other actions as are permitted by law; *provided that* in the case of any of the Events of Default specified in <u>Sections 8.1.4</u> and <u>8.1.5</u> with respect to the Borrower, without any notice to the Borrower or any other act by the Lender, (1) the commitment of the Lender to make Advances hereunder shall terminate, and (2) the Note (together with accrued interest thereon) shall become immediately due and payable without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby waived by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. *Suits for Enforcement.* In case any one or more of the Events of Default specified in <u>Section 8.1</u> shall have occurred and not been waived, the Lender may, at its option, proceed to protect and enforce its rights either by suit in equity or by action at law, or both, whether for the specific performance of any covenant or agreement contained in this Agreement or in aid of the exercise of any power granted in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. *Remedies Cumulative.* No remedy herein conferred upon the Lender is intended to be exclusive of any other remedy and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. *Remedies Not Waived.* No course of dealing and no delay in exercising any rights under this Agreement, under the other Loan Documents or the Intercreditor Agreement shall operate as a waiver of any rights hereunder or thereunder of the Lender.

ARTICLE IX

<br>MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. *Amendments, Waivers and Consents.* Any provision of this Agreement, the Note or the other Loan Documents may be amended or waived (either generally or in a particular instance and either retroactively or prospectively) by a written instrument signed by the Borrower and the Lender, and any consent required of the Lender herein must be in writing and, unless specifically stated otherwise herein, may be withheld for any reason or no reason. Delivery of an executed counterpart of such written instrument or of the signature page of such written instrument by telecopy, e-mail, facsimile transmission, electronic mail in "portable document format" (".pdf") form or other electronic means intended to preserve the original graphic and pictorial appearance of the item being sent shall be effective delivery of a manually executed counterpart of such written instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. *Highest Lawful Interest Rate.* The Lender, the Borrower and any other parties to the Loan Documents intend to contract in strict compliance with applicable usury law from time to time in effect. In furtherance thereof such Persons stipulate and agree that none of the terms and provisions contained in the Loan Documents shall ever be construed to create a contract to pay, for the use, forbearance or detention of money, interest in excess of the maximum amount of interest permitted to be charged by applicable Law from time to time in effect, and the provisions of this <u>Section 9.2</u> shall control over all other provisions of the Loan Documents which may be in conflict or apparent conflict herewith. Regardless of any provision contained in any of the Loan Documents, the Lender shall never be entitled to receive, collect, or apply as interest on all or any part of the Loans, any amount in excess of the Highest Lawful Rate in effect from day to day, and, in the event the Lender ever receives, collects, or applies as interest any such excess, such amount which would be deemed excessive interest shall be deemed a partial prepayment of the principal of the Loans and treated hereunder as such; and, if the entire principal amount of the Loans owed to the Lender is paid in full, any remaining excess shall be repaid to the Borrower. In determining whether the interest paid or payable, under any specific contingency, exceeds the Highest Lawful Rate in effect from day to day, the Borrower and the Lender shall, to the maximum extent permitted under applicable Law, (i) characterize any nonprincipal payment as an expense, fee, or premium rather than as interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and spread the total amount of interest throughout the entire contemplated term of the Loans so that the interest rate is uniform throughout the entire term of the Loans; *provided that*, if the interest received by the Lender for the actual period of existence thereof exceeds the Highest Lawful Rate in effect from day to day, the Lender shall apply or refund to the Borrower the amount of such excess as provided in this Section, and, in such event, the Lender shall not be subject to any penalties provided by any Laws for contracting for, charging, taking, reserving, or receiving interest in excess of the Highest Lawful Rate in effect from day to day.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. ***Indemnity.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.1. **Whether or not any credit is ever extended hereunder, and in addition to any other indemnifications herein or in any other Loan Documents or the Intercreditor Agreement, the Borrower agrees to indemnify and defend and hold harmless on a current basis each Indemnified Party, from and against any and all liabilities, losses, damages, costs, interest, charges, counsel fees and other expenses and penalties of any kind which any of the Indemnified Parties may sustain or incur in connection with any investigative, administrative or judicial proceeding (whether or not the Lender shall be designated a party thereto) or otherwise by reason of or arising out of the execution and delivery of this Agreement, any of the other Loan Documents, the Intercreditor Agreement and/or the consummation of the transactions contemplated hereby or thereby; including but not limited to any actual or alleged presence or release of Hazardous Substances on or from any Property owned or operated by any Loan Party, whether prior to or during the term hereof, or any Environmental Liability related in any way to any Loan Party or any Collateral. The indemnification provisions in this Section shall be enforceable regardless of whether the liability is based on past, present or future acts, claims or legal requirements (including any past, present or future bulk sales law, environmental law, fraudulent transfer act, occupational safety and health law, or products liability, securities or other legal requirement), AND REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION OR OF ANY OTHER INDEMNIFIED PARTY, OR THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED ON THE PERSON SEEKING INDEMNIFICATION OR ON ANY OTHER INDEMNIFIED PARTY,** but not any of the foregoing in this Section arising from the willful misconduct or the gross negligence on the part of the Indemnified Party seeking indemnification under this Section; with the foregoing indemnity surviving satisfaction of all obligations and the termination of 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;9.3.2. Any amount to be paid under <u>Section 9.3</u> to the Lender shall be a demand obligation owing by the Borrower and shall bear interest from the date of expenditure by the Lender until paid at a per annum rate equal to the Default Rate. The obligations of the Borrower under <u>Section 9.3</u> shall survive payment of the Note and the assignment of any right hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. *Expenses*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.1. Whether or not any credit is extended hereunder, the Borrower shall pay (i) all out-of-pocket expenses of the Lender, including fees and disbursements of counsel for the Lender, incurred in connection with the preparation of this Agreement, the other Loan Documents and the Intercreditor Agreement (including the furnishing of any written or oral opinions or advice incident to this transaction), due diligence and title review expenses associated with the Loan Parties' Oil and Gas Properties, engineering costs, the recordation of the Loan Documents, any waiver or consent hereunder or any amendment hereof or thereof or any Default or alleged Default hereunder or thereunder, and (ii) if an Event of Default occurs, all out-of-pocket expenses incurred by the Lender, including fees and disbursements of counsel in connection with such Event of Default and collection and other enforcement proceedings resulting therefrom, fees of auditors, consultants, engineers and other Persons incurred in connection therewith (including the supervision, maintenance or disposition of the Collateral) and investigative expenses incurred by the Lender in connection therewith, which amounts shall be deemed compensatory in nature and liquidated as to amount upon notice to the Borrower by the Lender.

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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;9.4.2. THE BORROWER SHALL INDEMNIFY THE LENDER AGAINST ANY TRANSFER TAXES, DOCUMENTARY TAXES, ASSESSMENTS OR CHARGES MADE BY ANY GOVERNMENTAL AUTHORITY BY REASON OF THE EXECUTION AND DELIVERY OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE INTERCREDITOR 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;9.4.3. Any amount to be paid under <u>Section 9.4</u> shall be a demand obligation owing by the Borrower and shall bear interest from the date of expenditure until paid at a per annum rate equal to the Default Rate. The obligations of the Borrower under <u>Section 9.4</u> shall survive payment of the Note and the assignment of any right hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5. *Taxes*. The Borrower will, to the extent it may lawfully do so, pay all Taxes (including interest and penalties but expressly excluding federal or state income taxes) which may be payable in respect of the execution and delivery of this Agreement or the other Loan Documents, or in respect of any amendment of or waiver under or with respect to the foregoing, and will save the Lender harmless on a current basis against any loss or liability resulting from nonpayment or delay in payment of any such Taxes (as limited above). The obligations of the Borrower under this Section shall survive the payment of the Note and the assignment of any right hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6. *Survival.* All representations and warranties made by or on behalf of the Borrower in this Agreement, the other Loan Documents, the Intercreditor Agreement or in any certificate or other instrument delivered by it or in its behalf under any of the foregoing shall be considered to have been relied upon by the Lender and shall survive the delivery to the Lender of such Loan Documents or the extension of the Loans (or any part thereof), regardless of any investigation made by or on behalf of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7. ***Applicable Law; Venue.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7.1. This Agreement has been negotiated, is being executed and delivered, and will be performed in whole or in part, in the State of Texas. This Agreement, the other Loan Documents, the entire relationship of the parties hereto, and any litigation between the parties (whether grounded in contract, tort, statute, law or equity) shall be governed by, construed in accordance with, and interpreted and enforced pursuant to the Laws of the State of Texas (and the applicable federal Laws of the United States of America) without giving effect to its choice of law principles, except to the extent the Laws of any jurisdiction where Collateral is located require application of such Laws with respect to such Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7.2. The Borrower hereby irrevocably submits to the non-exclusive jurisdiction of any United States federal or Texas or Oklahoma state court sitting in Houston, Harris County, Texas or in Oklahoma City, Oklahoma in any action or proceeding arising out of or relating to any Loan Documents and the Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in any such court, and the Borrower hereby specifically consents to the jurisdiction of the State District Courts of Harris County, Texas and of Oklahoma County, Oklahoma and the United States District Courts for the Southern District of Texas, Houston Division and the Western District of Oklahoma Nothing herein shall limit the right of the Lender to bring proceedings against the Borrower in the courts of any other jurisdiction. Any judicial proceeding by the Borrower against the Lender or any Affiliate of the Lender involving, directly or indirectly, any matter in any way arising out of, related to, or connected with any Loan Document shall be brought only in the State District Courts of Harris County, Texas or Oklahoma County, Oklahoma, the United States District Court for the Southern District of Texas, Houston Division, or the United States District Court for the Western District of Oklahoma.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8. ***WAIVER OF JURY TRIAL AND EXEMPLARY DAMAGES.*** **THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY, IRREVOCABLY, AND UNCONDITIONALLY WAIVES (A) ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, COUNTERCLAIM, OR OTHER LITIGATION THAT RELATES TO OR ARISES OUT OF ANY OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE ACTS OR OMISSIONS OF THE LENDER IN THE ENFORCEMENT OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHERWISE WITH RESPECT THERETO AND (B) TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL DAMAGES (AS DEFINED BELOW). THE PROVISIONS OF THIS SECTION ARE A MATERIAL INDUCEMENT FOR THE LENDER ENTERING INTO THIS AGREEMENT. AS USED IN THIS SECTION, "SPECIAL DAMAGES" INCLUDES ALL SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES (REGARDLESS OF HOW NAMED).**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9. *Waiver of Deficiency Statute; Other Waivers.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9.1. The Borrower waives any rights the Borrower has under, or any requirements imposed by, Sections 51.003, 51.004 and 51.005 of the Texas Property Code, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9.2. Each Guarantor waives any rights such Guarantor has under, or any requirements imposed by, (i) Section 17.001 of the Texas Civil Practice and Remedies Code, as amended, (ii) Rule 31 of the Texas Rules of Civil Procedure, as amended, and (iii) Sections 51.003, 51.004 and 51.005 of the Texas Property Code, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10. *Headings.* The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof and words such as "hereunder" or " herein" shall refer to the entirety of this Agreement unless specifically indicated otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11. *Counterparts.* This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument. This Agreement shall become effective at such time as the counterparts hereof which, when taken together, bear the signature of the Borrower and the Lender, shall be delivered to or be in the possession of the Lender. Delivery of an executed counterpart of a signature page of this Agreement by telecopy, e-mail, facsimile transmission, electronic mail in "portable document format" (".pdf") form or other electronic means intended to preserve the original graphic and pictorial appearance of the item being sent shall be effective as a delivery of a manually executed counterpart of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12. *Invalid Provisions, Severability.* If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid, or unenforceable under present or future laws effective during the term hereof or thereof, such provision shall be fully severable, this Agreement and the other Loan Documents shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part thereof, and the remaining provisions hereof and thereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance therefrom. Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as a part of this Agreement or the other Loan Documents a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13. *Communications Via Internet.* The Borrower and each Guarantor (by its or his/her execution of a Guaranty) hereby authorizes the Lender and its counsel and agents to communicate and transfer documents and other information (including confidential information) concerning this transaction or the Borrower and such Guarantor and the business affairs of the Borrower and such Guarantor via the Internet or other electronic communication without regard to the lack of security of such communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14. *USA Patriot Act Notice*. The Lender hereby notifies the Borrower and the other Obligated Parties that pursuant to the requirements of the USA Patriot Act, they are required to obtain, verify and record information that identifies the Borrower and the other Obligated Parties, which information includes the name and address of the Borrower and the other Obligated Parties and other information that will allow them to identify the Borrower and the other Obligated Parties in accordance with such Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15. *EXCULPATION PROVISIONS.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15.1. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE INTERCREDITOR AGREEMENT, AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE INTERCREDITOR AGREEMENT; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE INTERCREDITOR AGREEMENT; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE INTERCREDITOR AGREEMENT; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE INTERCREDITOR AGREEMENT RESULT IN ONE PARTY ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY EXCULPATORY PROVISION OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE INTERCREDITOR AGREEMENT ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT "CONSPICUOUS."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15.2. In the event of a dispute over the meaning or application of this Agreement and the indemnities contained herein, the Lender and the Borrower agree that this Agreement and indemnities contained herein shall be construed fairly and reasonably and neither more strongly for nor against either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.16. *Advice to Seek Legal and Accounting Advice*. The Lender has advised the Borrower to seek the advice of an attorney and an accountant in connection with the Loans, and the Borrower represents that it has had an opportunity to seek the advice of an attorney and accountant of the Borrower's choice in connection with the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17. *Increased Cost and Reduced Return*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17.1. If on or after the date hereof, in the case of any Loan or any obligation to make Loans, the adoption of any applicable law, rule or regulation, or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Lender with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency shall impose, modify or deem applicable any reserve (including, without limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System), special deposit, insurance assessment or similar requirement against assets of, deposits with or for the account of, or credit extended by, the Lender and the result of any of the foregoing is to reduce the amount of any sum received or receivable by the Lender under this Agreement or under the Note with respect thereto, by an amount reasonably deemed by the Lender to be material, then, within 15 days after demand by the Lender, the Borrower shall pay to the Lender such additional amount or amounts as will compensate the Lender for such increased cost or reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17.2. If the Lender shall have reasonably determined that, after the date hereof, the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change in any such rule or regulation, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on capital of the Lender as a consequence of the Lender's obligations hereunder to a level below that which the Lender could have achieved but for such adoption, change, request or directive (taking into consideration its policies with respect to capital adequacy) by an amount deemed by the Lender to be material, then from time to time, within 15 days after demand by the Lender, the Borrower shall pay to the Lender such additional amount or amounts as will compensate the Lender for such reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17.3. The Lender will promptly notify the Borrower of any event of which it has knowledge, occurring after the date hereof, which will entitle the Lender to compensation pursuant to this Section. A certificate of the Lender claiming compensation under this Section and setting forth the additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error. In determining such amount, the Lender may use any reasonable averaging and attribution methods.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18. *Taxes*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18.1. For the purpose of this <u>Section 9.18</u>, the following terms have the following meanings:

"**Other Taxes**" means any present or future stamp or documentary taxes and any other excise or property taxes, or similar charges or levies and all penalties and interest with respect thereto, which arise from the making of any payment pursuant to this Agreement or under the Note or from the execution or delivery of this Agreement or the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18.2. Any and all payments by the Borrower to or for the account of the Lender hereunder or under the Note shall be made without deduction for any Taxes or Other Taxes; *provided that*, if the Borrower shall be required by law to deduct any Taxes or Other Taxes from any such payments, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under <u>Section 9.13</u>) the Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions, (iii) the Borrower shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law and (iv) the Borrower shall furnish to the Lender, at its address referred to in <u>Article XIII</u>, the original or a certified copy of a receipt evidencing payment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18.3. The Borrower agrees to indemnify the Lender for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes on amounts payable under this Section) paid by the Lender. This indemnification shall be paid within 15 days after the Lender makes appropriate demand therefor.

ARTICLE X<br>SETOFF; TREATMENT OF PARTIAL PAYMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. *Setoff.* In addition to, and without limitation of, any rights of the Lender under applicable law, if any Event of Default occurs, any and all deposits (including all account balances, whether provisional or final and whether or not collected or available) and any other indebtedness at any time held or owing by the Lender or any Affiliate thereof to or for the credit or account of the Borrower may be offset and applied toward the payment of the Obligations, whether or not the Obligations, or any part hereof, shall then be due. The Lender or Affiliate thereof making such an offset and application shall give the Borrower written notice of such offset and application promptly after effecting it. The Borrower represents, covenants and agrees that all funds from time to time on deposit in accounts maintained by any Loan Party with the Lender shall be the sole property of such Loan Party and shall not be used to hold funds for any third party, nor shall the amounts in any such accounts otherwise be commingled with the funds of any third party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. *Adjustments*. In the event that any payments made hereunder on the Obligations at any particular time are insufficient to satisfy in full the Obligations due and payable at such time, such payments shall be applied (i) first, to that portion of the Obligations consisting of fees and expenses then due and payable, (ii) second, to that portion of the Obligations consisting of accrued, unpaid interest then due and payable, (iii) third, to that portion of the Obligations consisting of principal then due and payable, and (iv) last, to any other Obligations or, to the extent not prohibited by Law, to the Obligations in such other order as the Lender might elect.

ARTICLE XI<br>BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. *Successors and Assigns*. The terms and provisions of the Loan Documents and the Intercreditor Agreement shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors and assigns. The Lender is permitted to assign its rights and obligations hereunder and under the other Loan Documents without any prior consent. The Borrower shall not have any right to assign its rights or obligations hereunder or under the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. *Participations; Voting Rights; Setoffs by 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;11.2.1. The Lender may, in the ordinary course of its business and in accordance with applicable law, at any time sell to one or more banks or other entities (each a "**Participant**") participating interests in any Loan owing to the Lender, the Note, the Commitment or any other interest of the Lender under the Loan Documents. In the event of any such sale by the Lender of participating interests to a Participant, the Lender's obligations under the Loan Documents shall remain unchanged, the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, the Lender shall remain the holder of the Note for all purposes under the Loan Documents, all amounts payable by the Borrower under this Agreement shall be determined as if the Lender had not sold such participating interests, and the Borrower shall continue to deal solely and directly with the Lender in connection with the Lender's rights and obligations under the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2.2. The Borrower agrees that each Participant shall be deemed to have the right of setoff provided in <u>Section 10.1</u> in respect of its participating interest in amounts owing under the Loan Documents to the same extent as if the amount of its participating interest were owing directly to it as the Lender under the Loan Documents, and the Lender shall retain the right of setoff provided in <u>Section 10.1</u> with respect to the amount of participating interests sold to each Participant. The Lender agrees to share with each Participant, and each Participant, by exercising the right of setoff provided in <u>Section 10.1</u>, agrees to share with the Lender, any amount received pursuant to the exercise of its right of setoff, such amounts to be shared pro rata in accordance with the amount of the Obligations held by the Lender and each Participant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. *Dissemination of Information.* The Borrower and each Guarantor authorizes the Lender to disclose to any Transferee and any prospective Transferee any and all information in the Lender's possession concerning the Borrower, the Guarantors and their respective Affiliates.

ARTICLE XII<br>NOTICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. *Notices*. Except as otherwise specifically permitted herein, all notices, requests and other communications to any party hereunder shall be in writing (including electronic transmission or similar writing) and shall be given to such party: (x) in the case of the Borrower, at its address set forth on <u>Schedule 12.1</u> attached hereto, (y) in the case of the Lender, at its address set forth on <u>Schedule 12.1</u> attached hereto or (z) in the case of any party, at such other address as such party may hereafter specify for the purpose by notice to the Lender and the Borrower in accordance with the provisions of this Section. Each such notice, request or other communication shall be effective (i) if given by electronic transmission, when transmitted to the e-mail address specified in this Section and confirmation of receipt is received (the receipt thereof shall be deemed to have been acknowledged upon the sending Person's receipt of an automated "read receipt" or affirmative reply from the intended recipient; provided that if the day on which such e-mail is received is not a Business Day or is after 4:00 p.m. CT on a Business Day, then the receipt of such e-mail shall be deemed to have been acknowledged on the next following Business Day), (ii) if given by mail, three (3) Business Days after such communication is deposited in the mail with first class postage prepaid, addressed as aforesaid, (iii) if given by nationally recognized courier service (e.g., Federal Express or UPS), when delivered according to the tracking information furnished by such service (or, if no such tracking information is available, then three Business Days after deposited with such courier service, addressed as aforesaid), or (iv) if given by any other means, when delivered (or, in the case of electronic transmission, received) at the address specified in this Section; *except that* notices to the Lender under <u>Article II</u> shall not be effective until received by the Lender, and *except that* oral notices to the Borrower of decreases in the Borrowing Base shall be effective when so communicated to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. *Change of Address*. The Borrower and the Lender may each change the address for service of notice upon it by a notice in writing to the other party hereto.

*[Signature Page follows]*

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ARTICLE XIII<br>ENTIRE AGREEMENT

THIS AGREEMENT CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE PARTIES HERETO WITH RESPECT TO THE SUBJECT HEREOF AND SHALL SUPERSEDE ANY PRIOR AGREEMENT BETWEEN THE PARTIES HERETO, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT HEREOF. FURTHERMORE, IN THIS REGARD, THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF SUCH PARTIES.

**THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH PARTIES.**

In witness whereof, the undersigned have executed this Agreement as of the day and year first above written.

**BORROWER:**<br>HB2 ORIGINATION, LLC

By: <u>/s/ Craig Perry_________</u><br>Print: Craig Perry<br>Title: Chief Executive Officer

**LENDER:**<br>BANK7

By: <u>/s/ Cory Jenkins________</u><br>Print: Cory Jenkins<br>Title: Vice President

*Signature Page –Credit Agreement*

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*Signature Page -Credit Agreement*

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## Exhibit 10.10

------

<u>**AMENDED AND RESTATED OMNIBUS WAIVER AGREEMENT**</u>

THIS AMENDED AND RESTATED OMNIBUS WAIVER AGREEMENT (this "<u>Agreement</u>") is executed as of the 21<sup>st</sup> day of March, 2023, between **HB2 Origination, LLC**, a Delaware limited liability company ("<u>Borrower</u>"), and **Bank7**, an Oklahoma banking corporation ("<u>Lender</u>").

<u>RECITALS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are currently parties to that certain Omnibus Waiver Agreement dated March 10, 2023 ("<u>Existing Waiver Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Borrower and Lender have agreed to enter into this Agreement in order to amend and restate the Existing Waiver Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower and Lender are currently parties to that certain First Amended and Restated Credit Agreement dated September 30, 2022 ("<u>Loan Agreement</u>"). Capitalized terms used in this Agreement and not otherwise defined have the meanings assigned to them in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Borrower has requested that Lender waive certain provisions of the Loan Agreement to the extent set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Lender has agreed to waive such provisions on the terms, and subject to the conditions, set forth in this Agreement.

<u>AGREEMENT</u>

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Waiver</u>. Lender hereby grants to Borrower a waiver of <u>**all**</u> covenants contained in Article VII of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Expiration</u>. For the avoidance of doubt, this Agreement shall terminate on July 1, 2023, and at that time, all Obligations shall be due and payable to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Future Advances</u>. In consideration of Lender entering into this Agreement, Borrower acknowledges that it is not entitled to any additional Advances under the Loan Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Representations and Warranties</u>. Borrower represents and warrants to Lender as follows:

&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. This Agreement is not being made or entered into with the actual intent to hinder, delay or defraud any entity or 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;b. No action or proceeding, including, without limitation, a voluntary or involuntary petition for bankruptcy, has been instituted by or against Borrower.

&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. Borrower has full power and authority to enter into, execute, deliver, and perform this Agreement, and the foregoing does not violate any contractual or other obligation by which either of them is bound. The execution, delivery and performance of this Agreement have been authorized by all requisite organizational action of Borrower.

&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. This Agreement constitutes the valid and legally binding obligation of Borrower, enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance and other laws affecting creditors' rights generally and to general equitable principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Miscellaneous.</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;a. <u>Loan Agreement; Obligations</u>. This Agreement shall not be construed to amend or waive the Loan Agreement or any provision thereof or to extinguish the Obligations, except as specifically stated above. Nothing herein contained shall be construed as a substitution, novation, or repayment of the Obligations or any other obligation outstanding with respect to the Loan 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;b. <u>Governing Law</u>. 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.

&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. <u>Headings</u>. All headings in this Agreement are for convenience only and shall not be used to interpret any term or provision of 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;d. <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which taken together shall constitute one agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Entire Agreement</u>. The following notice is given pursuant to Section 26.02(e) of the Texas Business and Commerce Code:

 **THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPERANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.**

*[Signature Page Follows]*

------

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

---

| | |
|:---|:---|
| **BORROWER:**<br>HB2 ORIGINATION, LLC | **BORROWER:**<br>HB2 ORIGINATION, LLC |
| By: | /s/ Craig Perry |
| Name: | Craig Perry |
| Title: | Chief Executive Officer |
| **LENDER:** |  |
| BANK7 |  |
| By:/ | s/ Cory Jenkins |
| **Name:** | Cory Jenkins |
| Title: | Vice President |

---

*[Signature Page to Amended and Restated Omnibus Waiver Agreement]*

------

## Exhibit 10.11

------

<u>**AMENDED AND RESTATED OMNIBUS WAIVER AGREEMENT**</u>

THIS AMENDED AND RESTATED OMNIBUS WAIVER AGREEMENT (this "<u>Agreement</u>") is executed as of the 21<sup>st</sup> day of March, 2023, between **HB2 Origination, LLC**, a Delaware limited liability company ("<u>Borrower</u>"), and **Bank7**, an Oklahoma banking corporation ("<u>Lender</u>").

<u>RECITALS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are currently parties to that certain Omnibus Waiver Agreement dated March 10, 2023 ("<u>Existing Waiver Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Borrower and Lender have agreed to enter into this Agreement in order to amend and restate the Existing Waiver Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Borrower and Lender are currently parties to that certain First Amended and Restated Credit Agreement dated September 30, 2022 ("<u>Loan Agreement</u>"). Capitalized terms used in this Agreement and not otherwise defined have the meanings assigned to them in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Borrower has requested that Lender waive certain provisions of the Loan Agreement to the extent set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Lender has agreed to waive such provisions on the terms, and subject to the conditions, set forth in this Agreement.

<u>AGREEMENT</u>

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Waiver</u>. Lender hereby grants to Borrower a waiver of <u>**all**</u> covenants contained in Article VII of the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Expiration</u>. For the avoidance of doubt, this Agreement shall terminate on July 1, 2023, and at that time, all Obligations shall be due and payable to Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Future Advances</u>. In consideration of Lender entering into this Agreement, Borrower acknowledges that it is not entitled to any additional Advances under the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Representations and Warranties</u>. Borrower represents and warrants to Lender as follows:

------

&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. This Agreement is not being made or entered into with the actual intent to hinder, delay or defraud any entity or 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;b. No action or proceeding, including, without limitation, a voluntary or involuntary petition for bankruptcy, has been instituted by or against Borrower.

&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. Borrower has full power and authority to enter into, execute, deliver, and perform this Agreement, and the foregoing does not violate any contractual or other obligation by which either of them is bound. The execution, delivery and performance of this Agreement have been authorized by all requisite organizational action of Borrower.

&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. This Agreement constitutes the valid and legally binding obligation of Borrower, enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance and other laws affecting creditors' rights generally and to general equitable principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Miscellaneous.</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;a. <u>Loan Agreement; Obligations</u>. This Agreement shall not be construed to amend or waive the Loan Agreement or any provision thereof or to extinguish the Obligations, except as specifically stated above. Nothing herein contained shall be construed as a substitution, novation, or repayment of the Obligations or any other obligation outstanding with respect to the Loan 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;b. <u>Governing Law</u>. 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.

&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. <u>Headings</u>. All headings in this Agreement are for convenience only and shall not be used to interpret any term or provision of 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;d. <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which taken together shall constitute one agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Entire Agreement</u>. The following notice is given pursuant to Section 26.02(e) of the Texas Business and Commerce Code:

 **THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPERANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.**

*[Signature Page Follows]*

------

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

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| HB2 ORIGINATION, LLC | HB2 ORIGINATION, LLC |
| By: | /s/ Craig Perry |
| Name: Craig Perry | Name: Craig Perry |
| Title: Chief Executive Officer | Title: Chief Executive Officer |
| **LENDER:** | **LENDER:** |
| BANK7 | BANK7 |
| By: | /s/ Cory Jenkins |
| Name: Cory Jenkins | Name: Cory Jenkins |
| Title: Vice President****  | Title: Vice President****  |

---

*[Signature Page to Amended and Restated Omnibus Waiver Agreement]*

------

## Exhibit 10.12

------

<u>**EXTENSION AGREEMENT**</u>

THIS EXTENSION AGREEMENT (the "Agreement") is made effective the<u> </u> 21<sup>st</sup> day of March, 2023, by and between **HB2 Origination, LLC**, a Delaware limited liability company (the "Borrower"), and **Bank7**, an Oklahoma banking corporation (the "Lender"), and is in reference to that certain promissory note described below.

<u>RECITALS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Borrower and Lender are currently parties to that certain Amended and Restated Credit Agreement dated September 30, 2022 (the "<u>Loan Agreement</u>"). Capitalized terms used in this Agreement and not otherwise defined have the meanings assigned to them in the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Lender is the owner and holder of that certain Promissory Note from Borrower to Lender dated effective September 30, 2022, in the principal amount of $65,000,000.00 (as amended, extended, modified and/or renewed, the "<u>Note</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. At the request of Borrower, Lender has agreed to extend the time for payment of the Note to July 1, 2023, subject to the terms and conditions set forth below.

<u>AGREEMENT</u>

NOW THEREFORE, in consideration of the foregoing recitals, and for other valuable consideration, the receipt of which is acknowledged, it is agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Extension of Maturity Date.</u> The Maturity Date of the Note is hereby extended to July 1, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment Terms.</u> On April 1, 2023, and on the first (1<sup>st</sup>) day of each month thereafter, Borrower shall pay to Lender a payment of accrued interest only. On the Maturity Date, as hereby extended, Borrower agrees to pay Lender all outstanding Obligations under the Note, including without limitation, all unpaid principal and accrued, unpaid interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Amendment to Loan Agreement</u>. The definition of the term "Final Maturity Date" or "Final Maturity" shall be amended and restated as follows:

*"**Final Maturity Date**" or "**Final Maturity**" means July 1, 2023, or such earlier date on which the payment of the Note is accelerated.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Interest Rate</u>. Interest shall accrue on the unpaid principal balance of the Note in accordance with terms of the Loan 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;5. <u>Exit Fee</u>. Upon the earlier of (i) the Maturity Date, as hereby extended, or (ii) the full repayment of the Note, Borrower shall pay to Lender an exit fee in the amount of $135,000.00.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Miscellaneous Fees</u>. Borrower shall pay to Lender (i) engineering fees in the amount of $11,056.50 and (ii) recording fees in the amount of $100.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Additional Leasehold Interests</u>. Borrower shall cause Ageron Energy II, LLC, a Delaware limited liability company, to grant to Lender a security interest in the leasehold interests identified on Exhibit "A" attached 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;8. <u>Acknowledgment of Debt.</u> Borrower acknowledges, stipulates, and agrees that as of March 21, 2023, there is due and owing to Lender under the Note the principal sum of $54,038,461.52 and (ii) accrued interest in the amount of $156,861.64 and that Borrower is indebted to Lender without any defense thereto for the full amount thereof, whether by way of affirmative defense or offset, and whether at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Terms Incorporated.</u> This Agreement is only an extension of the Note and Loan Agreement not a novation. Except as provided in this Agreement, all terms and conditions of the Note and Loan Agreement shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Effectiveness of Loan Documents.</u> Except as specifically modified by the terms and provisions hereof, each and every term and provision of the Loan Documents are and shall remain in full force and effect and are hereby assumed, ratified, and confirmed; and the execution, delivery, and effectiveness of this Agreement shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of Lender under any of the Loan Documents nor constitute a waiver of any provision of any of the Loan Documents. The parties hereto agree that the modifications herein contained to the Loan Documents shall not affect or impair the Loan Documents or any lien(s) securing the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Execution Counterparts.</u> This Agreement may be executed in any number of counterparts, each of which so executed and delivered shall be deemed to be an original and all of which taken together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Governing Law.</u> The terms and provisions hereof shall be governed by, construed, and enforced in accordance with the laws of the State of Texas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Final Agreement.</u> The following notice is given pursuant to Section 26.02(e) of the Texas Business and Commerce Code:

**THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.**

*[Signature Page Follows]*

------

IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement to be made effective as of, but not necessarily on, the day and year first above written.

---

| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| <br>HB2 ORIGINATION, LLC | <br>HB2 ORIGINATION, LLC |
| By: | /s/ Craig Perry |
| Name: | Craig Perry |
| Title: | Chief Executive Officer |
| **LENDER:** | **LENDER:** |
| BANK7 | BANK7 |
| By: | /s/ Cory Jenkins |
| Name: | Cory Jenkins |
| Title: | Vice President |

---

------

## Exhibit 10.13

------

**ALPINE SUMMIT ENERGY PARTNERS, INC.**<br>**2021 STOCK AND INCENTIVE PLAN**

ADOPTED BY THE BOARD OF DIRECTORS: SEPTEMBER 3, 2021<br>APPROVED BY THE COMPANY'S SHAREHOLDERS: MAY 25, 2021

EFFECTIVE AS OF: SEPTEMBER 7, 2021

**Section 1. Purpose**

The purpose of the Plan is to promote the interests of the Company and its shareholders by aiding the Company in attracting and retaining employees, officers, consultants, advisors, independent contractors and Non-Employee Directors capable of assuring the future success of the Company, to offer such persons incentives to put forth maximum efforts for the success of the Company's business and to compensate such persons through various stock and cash-based arrangements and provide them with opportunities for stock ownership in the Company, thereby aligning the interests of such persons with the Company's shareholders.

**Section 2. Definitions**

As used in the Plan, the following terms shall have the meanings set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Affiliate**" shall mean any entity that, directly or indirectly through one or more intermediaries, is controlled by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Award**" shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Award or Dividend Equivalent granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Award Agreement**" shall mean any written agreement, contract or other instrument or document evidencing an Award granted under the Plan (including a document in an electronic medium) executed in accordance with the requirements of Section 10(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Board**" shall mean the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Code**" shall mean the U.S. Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Committee**" shall mean the Compensation Committee of the Board or such other committee designated by the Board to administer the Plan. At any time that the Company is an SEC registrant and is not a "foreign private issuer" for purposes of the Securities Act and the Exchange Act, the Committee shall be comprised of not less than such number of Directors as shall be required to permit Awards granted under the Plan to qualify under Rule 16b-3, and each member of the Committee shall be a "non-employee director" within the meaning of Rule 16b-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Company**" shall mean Alpine Summit Energy Partners, Inc., a British Columbia corporation, and any successor corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Director**" shall mean a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Dividend Equivalent**" shall mean any right granted under Section 6(e) of the Plan.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Effective Date**" shall mean the date the Plan is adopted by the Board, as set forth in Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Eligible Person**" shall mean any employee, officer, Non-Employee Director, consultant, independent contractor or advisor providing services to the Company or any Affiliate, or any such person to whom an offer of employment or engagement with the Company or any Affiliate is extended. Any consultants or advisors must be natural persons and may not be engaged by the Company in connection with the offer or sale of securities in a capital-raising transaction, or to directly or indirectly promote or maintain a market for the Company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Exchange**" shall mean the TSX Venture Exchange and any other exchange on which the Subordinate Voting Shares are or may be listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Exchange Act**" shall mean the U.S. Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Fair Market Value**" with respect to one Share as of any date shall mean (i) if the Shares are listed on the TSX Venture Exchange or any established stock exchange, the price of one Share at the close of the regular trading session of such market or exchange on the last trading day prior to such date, and if no sale of Shares shall have occurred on such date, on the next preceding date on which there was a sale of Shares; (ii) if the Shares are not so listed on the TSX Venture Exchange or any established stock exchange, the average of the closing "bid" and "asked" prices quoted by the OTC Markets, the National Quotation Bureau, or any comparable reporting service on such date or, if there are no quoted "bid" and "asked" prices on such date, on the next preceding date for which there are such quotes for a Share; or (iii) if the Shares are not publicly traded as of such date, the per share value of one Share, as determined by the Board, or any duly authorized Committee of the Board, in its sole discretion, by applying principles of valuation with respect thereto in accordance with Section 409A. The Fair Market Value of a Multiple Voting Share is equal to one hundred (100) times the Fair Market Value of a Subordinate Voting Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Incentive Stock Option**" shall mean an option granted under Section 6(a) of the Plan that is intended to meet the requirements of Section 422 of the Code or any successor provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Listed Security**" means any security of the Company that is listed or approved for listing on a U.S. national securities exchange or designated or approved for designation as a national market system security on an interdealer quotation system by the U.S. Financial Industry Regulatory Authority (or any successor thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Multiple Voting Share**" shall mean the multiple voting shares of the Company, each of which carries 100 votes and is convertible, in certain limited circumstances, into 100 Subordinate Voting Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Non-Employee Director**" shall mean a Director who is not also an employee of the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Non-Qualified Stock Option**" shall mean an option granted under Section 6(a) of the Plan that is not intended to be an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Option**" shall mean an Incentive Stock Option or a Non-Qualified Stock Option to purchase Shares or Multiple Voting Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Participant**" shall mean an Eligible Person designated to be granted an Award under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Performance Award**" shall mean any right granted under Section 6(d) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Person**" shall mean any individual or entity, including a corporation, partnership, limited liability company, association, joint venture or trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Plan**" shall mean the Company's 2021 Stock and Incentive Plan, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Proportionate Voting Shares**" shall mean the proportionate voting shares of the Company, each of which carries 1,000 votes and is convertible into Subordinate Voting Shares on a 1 for 1 basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Restricted Stock**" shall mean any Share, or Multiple Voting Share, as applicable, granted under Section 6(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Restricted Stock Unit**" shall mean any unit granted under Section 6(c) of the Plan evidencing the right to receive a Share, or a Multiple Voting Share, as applicable (or a cash payment equal to the Fair Market Value of a Share or a Multiple Voting Share, as applicable) at some future date, provided that in the case of Participants who are liable to taxation under the Tax Act in respect of amounts payable under this Plan, that such date shall not be later than December 31 of the third calendar year following the year services were performed in respect of the corresponding Restricted Stock Unit awarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Rule 16b-3**" shall mean Rule 16b-3 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, or any successor rule or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) *"***Section 409A**" shall mean Section 409A of the Code, or any successor provision, and applicable Treasury Regulations and other applicable guidance thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Securities Act**" shall mean the U.S. Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Share**" or "**Shares**" shall mean Subordinate Voting Shares of the Company (or such other securities or property as may become subject to Awards pursuant to an adjustment made under Section 4(c) of the Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**Shareholders**" shall mean shareholders of the Company, including holders of Subordinate Voting Shares (or common shares prior to the re-designation of such shares as Subordinate) Voting Shares, Multiple Voting Shares and Proportionate Voting Shares, as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) *"***Specified Employee***"* shall mean a specified employee as defined in Section 409A(a)(2)(B) of the Code or applicable proposed or final regulations under Section 409A, determined in accordance with procedures established by the Company and applied uniformly with respect to all plans maintained by the Company that are subject to Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**Stock Appreciation Right**" shall mean any right granted under Section 6(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Tax Act**" means the *Income Tax Act* (Canada).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**U.S. Award Holder**" shall mean any holder of an Award who is a "U.S. person" (as defined in Rule 902(k) of Regulation S under the Securities Act) or who is holding or exercising Awards in the United States.

**Section 3. Administration**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Power and Authority of the Committee</u>. The Plan shall be administered by the Committee. Subject to the express provisions of the Plan and to applicable law and the policies of the Exchange, the Committee shall have full power and authority 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;(i) designate 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;(ii) determine the type or types of Awards to be granted to each Participant under the Plan;

&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 to be covered by (or the method by which payments or other rights are to be calculated in connection with) each 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;(iv) determine the terms and conditions of any Award or Award Agreement, including any terms relating to vesting, the forfeiture of any Award and the forfeiture, recapture or disgorgement of any cash, Shares or other amounts payable with respect to any 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;(v) amend the terms and conditions of any Award or Award Agreement, subject to the limitations under Section 7;

&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) accelerate the exercisability of any Award or the lapse of any restrictions relating to any Award, subject to the limitations in Section 7;

&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) determine whether, to what extent and under what circumstances Awards may be exercised in cash, Shares, other securities, other Awards or other property (excluding promissory notes), or canceled, forfeited or suspended, subject to the limitations in Section 7;

&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) determine whether, to what extent and under what circumstances amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or the Committee, subject to the requirements of Section 409A;

&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) interpret and administer the Plan and any instrument or agreement, including an Award Agreement, relating to the Plan;

&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) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan; 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;(xii) adopt such modifications, rules, procedures and subplans as may be necessary or desirable to comply with provisions of the laws of the jurisdictions in which the Company or an Affiliate may operate, including, without limitation, establishing any special rules for Affiliates, Eligible Persons or Participants located in any particular country, in order to meet the objectives of the Plan and to ensure the viability of the intended benefits of Awards granted to Participants located in such non-United States jurisdictions.

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Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations and other decisions under or with respect to the Plan or any Award or Award Agreement shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon any Participant, any holder or beneficiary of any Award or Award Agreement, and any employee of the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Delegation</u>. The Committee may delegate to one or more officers or Directors of the Company, subject to such terms, conditions and limitations as the Committee may establish in its sole discretion, the authority to grant Awards; *provided*, *however*, that the Committee shall not delegate such authority in such a manner as would cause the Plan not to comply with applicable policies of the Exchange or applicable corporate law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Power and Authority of the Board</u>. Notwithstanding anything to the contrary contained herein, (i) the Board may, at any time and from time to time, without any further action of the Committee, exercise the powers and duties of the Committee under the Plan, unless the exercise of such powers and duties by the Board would cause the Plan not to comply with the requirements of all applicable securities rules and (ii) only the Committee (or another committee of the Board comprised of directors who qualify as independent directors within the meaning of the independence rules of any applicable securities exchange where the Shares are then listed) may grant Awards to Directors who are not also employees of the Company or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification</u>. To the full extent permitted by law, (i) no member of the Board, the Committee or any person to whom the Committee delegates authority under the Plan shall be liable for any action or determination taken or made in good faith with respect to the Plan or any Award made under the Plan, and (ii) the members of the Board, the Committee and each person to whom the Committee delegates authority under the Plan shall be entitled to indemnification by the Company with regard to such actions and determinations. The provisions of this paragraph shall be in addition to such other rights of indemnification as a member of the Board, the Committee or any other person may have by virtue of such person's position with the Company.

**Section 4. Shares Available for Awards**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Shares Available</u>. Subject to adjustment as provided in Section 4(c) of the Plan, an aggregate of 6,213,263 Shares may be issued under all Awards under the Plan, provided that the maximum number of Shares available for issuance from treasury under this Plan in respect of Awards that are Options shall be not more than 3,358,521 Shares. References to the number of outstanding Shares hereunder includes the number of Shares issuable on conversion of all outstanding Multiple Voting Shares and Proportionate Voting Shares. The aggregate number of Shares that may be issued under all Awards under the Plan shall be reduced by Shares subject to Awards issued under the Plan in accordance with the Share counting rules described in Section 4(b) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Counting Shares</u>. For purposes of this Section 4, if an Award entitles the holder thereof to receive or purchase Shares (directly or upon the conversion of Multiple Voting Shares), the number of Shares covered by such Award or to which such Award relates shall be counted on the date of grant of such Award against the aggregate number of Shares available for granting Awards under the Plan.

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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;(i) <u>Shares Added Back to Reserve</u>. If any Shares covered by an Award or to which an Award relates are not purchased or are forfeited or are reacquired by the Company (including, to the extent applicable, any Shares withheld by the Company or Shares tendered to satisfy any tax withholding obligation on Awards or Shares covered by an Award that are settled in cash), or if an Award otherwise terminates or is cancelled without delivery of any Shares, then the number of Shares counted against the aggregate number of Shares available under the Plan with respect to such Award, to the extent of any such forfeiture, reacquisition by the Company, termination or cancellation, shall again be available for granting Awards under the Plan.

&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>Cash-Only Awards</u>. Awards that do not entitle the holder thereof to receive or purchase Shares shall not be counted against the aggregate number of Shares available for Awards under the Plan.

&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>Substitute Awards Relating to Acquired Entities</u>. Shares issued under Awards granted in substitution for awards previously granted by an entity that is acquired by or merged with the Company or an Affiliate shall be counted against the aggregate number of Shares available for Awards under the Plan and the terms of any such Awards shall be deemed to have been amended to the extent necessary to comply with the policies of the Exchange governing such Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Adjustments</u>. In the event that any dividend (other than a regular cash dividend) or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company or other similar corporate transaction or event affects the Shares such that an adjustment is necessary in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, without the receipt of consideration by the Company, adjust any or all of (i) the number and type of Shares (or other securities or other property) that thereafter may be made the subject of Awards, (ii) the number and type of Shares (or other securities or other property) subject to outstanding Awards, and (iii) the purchase price or exercise price with respect to any Award; *provided*, *however*, that the number of Shares covered by any Award or to which such Award relates shall always be a whole number. Such adjustment shall be made by the Committee or the Board, whose determination in that respect shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Additional Award Limitations</u>. If, and so long as, the Company is listed on the TSX Venture Exchange:

&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 aggregate Award or Awards granted to any one person in any one-year period shall not exceed 5% of the total number of Shares outstanding at the date of grant;

&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 aggregate Award or Awards granted to any consultant (as defined in the policies of the TSX Venture Exchange) in any one-year period shall not exceed 2% of the total number of Shares outstanding at the date of grant;

&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) Options are the only Awards that may be granted to persons retained to provide investor relations activities (as defined in the policies of the TSX Venture Exchange) and the aggregate number of Options granted shall not exceed 2% of the total number of Shares in any one-year period, calculated at the date of such grant, and any Options must vest in stages of a period of not less than 12 months with no more than ¼ of the Options vesting in any three 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for Options granted to employees, consultants or management company employees (as defined in the policies of the TSX Venture Exchange), the Company and the optionee are responsible for ensuring and confirming that the optionee is a bona fide employee, consultant or management company employee, as the case may be; 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;(v) the Award limitations in this Section 4(d) shall apply to the aggregate Award or Awards granted to Participants, even if such Awards do not entitle the holder thereof to receive or purchase Shares and such Awards are not counted against the aggregate number of Shares available for Awards under the Plan.

**Section 5. Eligibility**

Any Eligible Person shall be eligible to be designated as a Participant. In determining which Eligible Persons shall receive an Award and the terms of any Award, the Committee may take into account the nature of the services rendered by the respective Eligible Persons, their present and potential contributions to the success of the Company and/or such other factors as the Committee, in its discretion, shall deem relevant. Notwithstanding the foregoing, an Incentive Stock Option may only be granted to full-time or part-time employees (which term, as used herein, includes, without limitation, officers and Directors who are also employees), and an Incentive Stock Option shall not be granted to an employee of an Affiliate unless such Affiliate is also a "subsidiary corporation" of the Company within the meaning of Section 424(f) of the Code or any successor provision.

**Section 6. Awards**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Options</u>. The Committee is hereby authorized to grant Options to acquire Shares or Options to acquire Multiple Voting Shares to Eligible Persons with the following terms and conditions and with such additional terms and conditions not inconsistent with the provisions of the Plan, 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Exercise Price</u>. The purchase price per Share, or per Multiple Voting Share, as applicable, purchasable under an Option shall be determined by the Committee and shall not be less than 100% of the Fair Market Value of a Share, or Multiple Voting Share, as applicable, on the date of grant of such Option; provided, however, that for Eligible Persons who are not residents of Canada for purposes of the Tax Act and not subject to taxation under the Tax Act with respect to such Option, the Committee may designate a purchase price below Fair Market Value on the date of grant if the Option is granted in substitution for a stock option previously granted by an entity that is acquired by or merged with the Company or an Affiliate, and further provided, however, that any adjustments to the number of shares and the purchase price must be made in accordance with Code Section 409A and any adjustments with respect to Incentive Stock Options must be made in accordance with Code Section 424.

&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>Option Term</u>. The term of each Option shall be fixed by the Committee at the date of grant and shall not be longer than 10 years from the date of grant; *provided, however*, that any Options held by an Eligible Person who ceases to be an Eligible Person must only be exercisable to the extent that the Options are entitled to be exercised and only for a reasonable period following the date that the Eligible Person ceases to be in such role as determined by the Committee and which shall not exceed 12 months. Notwithstanding the foregoing, in the event that the expiry date of an Option held by an Eligible Person falls within a trading blackout period imposed by the Company (a "**Blackout Period**"), and neither the Company nor the individual in possession of the Options is subject to a cease trade order in respect of the Company's securities, then, except with respect to Incentive Stock Options the expiry date of such Option shall be automatically extended to the 10th business day following the end of the Blackout 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Time and Method of Exercise</u>. The Committee shall determine the time or times at which an Option may be exercised in whole or in part and the method or methods by which, and the form or forms, including, but not limited to, cash, Shares (actually or by attestation), other securities, other Awards or other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the applicable exercise price, in which payment of the exercise price with respect thereto may be made or deemed to have been made; *provided, however*, that if, and so long as, cashless exercises are not permitted by the policies of the Exchange, the only method and form of payment of the exercise price shall be cash, bank draft or certified cheque.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Promissory Notes</u>. Notwithstanding the foregoing, in no circumstances shall the Committee permit payment of the exercise price, either in whole or in part, with a promissory note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Net Exercises</u>. Provided the policies of the Exchange permit an Option to be exercised on a cashless basis, the Committee may, in its discretion, permit an Option to be exercised by delivering to the Participant a number of Shares, or Multiple Voting Shares, as applicable, having an aggregate Fair Market Value (determined as of the date of exercise) equal to the excess, if positive, of the Fair Market Value of the Shares, or Multiple Voting Shares, as applicable, underlying the Option being exercised on the date of exercise, over the exercise price of the Option for such Shares, or Multiple Voting Shares, as 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;(iv) <u>Incentive Stock Options</u>. Notwithstanding anything in the Plan to the contrary, the following additional provisions shall apply to the grant of stock options which are intended to qualify as Incentive Stock Options:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) To the extent that the aggregate Fair Market Value as of the Date of Grant of the Shares, or Multiple Voting Shares, as applicable, for which Incentive Stock Options are exercisable for the first time in any calendar year (under all plans of the Company) exceeds US$100,000, such excess Incentive Stock Options shall be treated as Non-Qualified Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Subject to adjustment pursuant to Section 4(c), the maximum number of Shares that may be issued pursuant to Incentive Stock Options during the term of the Plan shall not exceed 3,358,521 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) All Incentive Stock Options must be granted within ten years from the earlier of the date on which this Plan was adopted by the Board or the date this Plan was approved by the Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Unless sooner exercised, all Incentive Stock Options shall expire and no longer be exercisable no later than ten years after the date of grant, provided that in the case of the grant of an Incentive Stock Option to a Participant who, at the time such Option is granted, owns (within the meaning of Section 422 of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of its Affiliates, such Incentive Stock Option shall expire and no longer be exercisable no later than five (5) years after the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 purchase price per Share for an Incentive Stock Option shall be not less than 100% of the Fair Market Value of a Share, or a Multiple Voting Share, as applicable, on the date of grant of the Incentive Stock Option; provided, however, that, in the case of the grant of an Incentive Stock Option to a Participant who, at the time such Option is granted, owns (within the meaning of Section 422 of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of its Affiliates, the purchase price per Share, or per Multiple Voting Share, as applicable, purchasable under an Incentive Stock Option shall be not less than 110% of the Fair Market Value of a Share, or a Multiple Voting Share, as applicable, on the date of grant of the Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding any other provision in the Plan, an Incentive Stock Option shall not be transferred, assigned, pledged, or hypothecated or otherwise disposed of by the Participant except by will or the laws of descent and distribution. An Incentive Stock Option may be exercised during the Participant's lifetime only by the Participant. Any Incentive Stock Option authorized under the Plan shall contain such other provisions as the Committee shall deem advisable, but shall in all events be consistent with and contain all provisions required in order to qualify the Option as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stock Appreciation Rights</u>. The Committee is hereby authorized to grant Stock Appreciation Rights to Eligible Persons subject to the terms of the Plan and any applicable Award Agreement. A Stock Appreciation Right granted under the Plan shall confer on the holder thereof a right to receive upon exercise thereof the excess of (i) the Fair Market Value of one Share, or the Fair Market Value of one Multiple Voting Share, as applicable, on the date of exercise over (ii) the grant price of the Stock Appreciation Right as specified by the Committee, which price shall not be less than 100% of the Fair Market Value of one Share, or the Fair Market Value of one Multiple Voting Share, as applicable, on the date of grant of the Stock Appreciation Right; *provided, however,* that, subject to applicable law and stock exchange rules, the Committee may designate a grant price below Fair Market Value on the date of grant if the Stock Appreciation Right is granted in substitution for a stock appreciation right previously granted by an entity that is acquired by or merged with the Company or an Affiliate; *and further provided, however,* that any adjustments to the number of shares and the purchase price must be made in accordance with Code Section 409A. Subject to the terms of the Plan and any applicable Award Agreement, the grant price, term, methods of exercise, dates of exercise, methods of settlement and any other terms and conditions of any Stock Appreciation Right shall be as determined by the Committee (except that the term of each Stock Appreciation Right shall be subject to the same limitations in Section 6(a)(iii) applicable to Options); *provided; however,* that if, and so long as, the Company is listed on the TSX Venture Exchange all Stock Appreciation Rights shall be settled in cash. The Committee may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem appropriate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restricted Stock and Restricted Stock Units</u>. The Committee is hereby authorized to grant an Award of Restricted Stock and Restricted Stock Units to Eligible Persons with the following terms and conditions and with such additional terms and conditions not inconsistent with the provisions of the Plan and the policies of the Exchange 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Restrictions</u>. Shares of Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Committee may impose (including, without limitation, any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend or other right or property with respect thereto), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise as the Committee may deem appropriate. Notwithstanding the foregoing, rights to dividend or Dividend Equivalent payments shall be subject to the limitations described in Section 6(e).

&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>Issuance and Delivery of Shares</u>. Any Restricted Stock granted under the Plan shall be issued at the time such Awards are granted and may be evidenced in such manner as the Committee may deem appropriate, including book-entry registration or issuance of a stock certificate or certificates, which certificate or certificates shall be held by the Company or held in nominee name by the stock transfer agent or brokerage service selected by the Company to provide such services for the Plan. Such certificate or certificates shall be registered in the name of the Participant and shall bear an appropriate legend referring to the restrictions applicable to such Restricted Stock. Shares representing Restricted Stock that are no longer subject to restrictions shall be delivered (including by updating the book-entry registration) to the Participant promptly after the applicable restrictions lapse or are waived. Unless otherwise provided for in an Award Agreement, in the case of Restricted Stock Units, no Shares shall be issued at the time such Awards are granted. Unless otherwise provided in any Award Agreement, upon the lapse or waiver of restrictions and the restricted period relating to Restricted Stock Units evidencing the right to receive Shares, such Shares shall be issued and delivered to the holder of the Restricted Stock Units.

&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>Forfeiture</u>. Except as otherwise determined by the Committee or as provided in an Award Agreement, upon a Participant's termination of employment or service or resignation or removal as a Director (in either case, as determined under criteria established by the Committee) during the applicable restriction period, all Shares of Restricted Stock and all Restricted Stock Units held by such Participant at such time shall be forfeited and reacquired by the Company for cancellation at no cost to the Company; provided, however, that the Committee may waive in whole or in part any or all remaining restrictions with respect to Shares of Restricted Stock or Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Performance Awards</u>. The Committee is hereby authorized to grant Performance Awards to Eligible Persons. A Performance Award granted under the Plan (i) may be denominated or payable in cash, Shares or Multiple Voting Shares (including, without limitation, Restricted Stock and Restricted Stock Units), other securities, other Awards or other property and (ii) shall confer on the holder thereof the right to receive payments, in whole or in part, upon the achievement of one or more objective performance goals during such performance periods as the Committee shall establish. Subject to the terms of the Plan, the performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Award granted, the amount of any payment or transfer to be made pursuant to any Performance Award and any other terms and conditions of any Performance Award shall be determined by the Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Dividend Equivalents</u>. The Committee is hereby authorized to grant Dividend Equivalents to Eligible Persons under which the Participant shall be entitled to receive payments (in cash, Shares, other securities, other Awards or other property as determined in the discretion of the Committee) equivalent to the amount of cash dividends paid by the Company to holders of Shares, or Multiple Voting Shares or Proportionate Voting Shares, as applicable, with respect to a number of Shares determined by the Committee. Subject to the terms of the Plan and any applicable Award Agreement, such Dividend Equivalents may have such terms and conditions as the Committee shall determine. Notwithstanding the foregoing, (i) the Committee may not grant Dividend Equivalents to Eligible Persons in connection with grants of Options, Stock Appreciation Rights or other Awards the value of which is based solely on an increase in the value of the Shares after the date of grant of such Award, and (ii) dividend and Dividend Equivalent amounts may be accrued but shall not be paid unless and until the date on which all conditions or restrictions relating to such Award have been satisfied, waived or lapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>General</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;(i) <u>Consideration for Awards</u>. Awards may be granted for no cash consideration or for any cash or other consideration as may be determined by the Committee or required by applicable law.

&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>Limits on Transfer of Awards</u>. Except as otherwise provided by the Committee in its discretion and subject to such additional terms and conditions as it determines, no Award (other than fully vested and unrestricted Shares issued pursuant to any Award) and no right under any such Award shall be transferable by a Participant other than by will or by the laws of descent and distribution, and no Award (other than fully vested and unrestricted Shares issued pursuant to any Award) or right under any such Award may be pledged, alienated, attached or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company or any Affiliate. Where the Committee does permit the transfer of an Award other than a fully vested and unrestricted Share, such permitted transfer shall be for no value and in accordance with all applicable securities rules. The Committee may also establish procedures as it deems appropriate for a Participant to designate a person or persons, as beneficiary or beneficiaries, to exercise the rights of the Participant and receive any property distributable with respect to any Award in the event of the Participant's death, provided that the period during which they can do so must not exceed one year from such Participant's death.

&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>Restrictions; Securities Exchange Listing</u>. All Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such restrictions as the Committee may deem advisable under the Plan, applicable federal or state securities laws and regulatory requirements, and the Committee may cause appropriate entries to be made with respect to, or legends to be placed on the certificates for, such Shares or other securities to reflect such restrictions. The Company shall not be required to deliver any Shares or other securities covered by an Award unless and until the requirements of any federal or state securities or other laws, rules or regulations (including the rules of any securities exchange) as may be determined by the Company to be applicable are satisfied.

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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;(iv) <u>Prohibition on Option and Stock Appreciation Right Repricing</u>. Except as provided in Section 4(c) hereof, the Committee may not, without prior approval of the Shareholders (and disinterested Shareholders, as applicable) and applicable stock exchange approval, seek to effect any repricing of any previously granted, "underwater" Option or Stock Appreciation Right by: (i) amending or modifying the terms of the Option or Stock Appreciation Right to lower the exercise price; (ii) canceling the underwater Option or Stock Appreciation Right and granting either (A) replacement Options or Stock Appreciation Rights having a lower exercise price; or (B) Restricted Stock, Restricted Stock Units or Performance Award in exchange; or (iii) cancelling or repurchasing the underwater Option or Stock Appreciation Right for cash or other securities. An Option or Stock Appreciation Right will be deemed to be "underwater" at any time when the Fair Market Value of the Shares, or Multiple Voting Shares, as applicable, covered by such Award is less than the exercise price of the 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;(v) <u>Section 409A Provisions</u>. Notwithstanding anything in the Plan or any Award Agreement to the contrary, to the extent that any amount or benefit that constitutes "deferred compensation" to a Participant under Section 409A and applicable guidance thereunder is otherwise payable or distributable to a Participant under the Plan or any Award Agreement solely by reason of the occurrence of a change in control or due to the Participant's disability or "separation from service" (as such term is defined under Section 409A), such amount or benefit will not be payable or distributable to the Participant by reason of such circumstance unless the Committee determines in good faith that (i) the circumstances giving rise to such change in control event, disability or separation from service meet the definition of a change in control event, disability, or separation from service, as the case may be, in Section 409A(a)(2)(A) of the Code and applicable proposed or final regulations, or (ii) the payment or distribution of such amount or benefit would be exempt from the application of Section 409A by reason of the short-term deferral exemption or otherwise. Further, to the extent that any Award constitutes "deferred compensation" under Section 409A and applicable guidance thereunder, any payment or distribution that otherwise would be made to a Participant who is a Specified Employee (as determined by the Committee in good faith) on account of separation from service may not be made before the date which is six months after the date of the Specified Employee's separation from service (or if earlier, upon the Specified Employee's death) unless the payment or distribution is exempt from the application of Section 409A by reason of the short-term deferral exemption or otherwise. To the extent that any Award is subject to Section 409A, any ambiguity in the terms of such Award will be construed and administered in accordance with Section 409A.

&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) <u>Acceleration of Vesting or Exercisability</u>. No Award Agreement shall accelerate the exercisability of any Award or the lapse of restrictions relating to any Award in connection with a change-in-control event, unless such acceleration occurs upon the consummation of (or effective immediately prior to the consummation of, provided that the consummation subsequently occurs) such change-in-control event.

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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;(vii) <u>Termination</u>. Notwithstanding the authority of the Committee to determine the terms relating to the forfeiture of any Award, all Awards (whether vested or unvested, as applicable) shall terminate and expire within a maximum of 12 months after the Participant ceases to be Eligible Person.

**Section 7. Amendment and Termination; Corrections**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendments to the Plan and Awards</u>. The Board may from time to time amend, suspend or terminate this Plan, and the Committee may amend the terms of any previously granted Award, provided that no amendment to the terms of any previously granted Award may (except as expressly provided in the Plan) materially and adversely alter or impair the terms or conditions of the Award previously granted to a Participant under this Plan without the written consent of the Participant or holder thereof. Any amendment to this Plan, or to the terms of any Award previously granted, is subject to compliance with all applicable laws, rules, regulations and policies of any applicable governmental entity or securities commission, including receipt of any required approval from the governmental entity or stock exchange, and any such amendment, alteration, suspension, discontinuation or termination of an Award will be in compliance with policies of the Exchange. For greater certainty and without limiting the foregoing, the Board may amend, suspend, terminate or discontinue the Plan, and the Committee may amend or alter any previously granted Award, as applicable, without obtaining the approval of Shareholders in order 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;(i) amend the Plan to fix typographical errors; 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;(ii) amend the Plan to clarify existing provisions provided such amendments do not have the effect of altering the scope, nature an intent of such provisions, which includes amendments<u> </u>that are necessary or desirable to comply with applicable laws, rules, regulations and policies of any applicable governmental entity or stock exchange (including amendments to Awards necessary or desirable to avoid any adverse tax results under Section 409A or the Tax Act), and no action taken to comply shall be deemed to impair or otherwise adversely alter or impair the rights of any holder of an Award or beneficiary thereof.

Notwithstanding the foregoing and for greater certainty, prior approval of the Shareholders (and disinterested Shareholders, as applicable) shall be required for any amendment to the Plan or an Award that would:

&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) require shareholder approval under the rules or regulations of the Exchange;

&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) increase the number of Shares authorized under the Plan as specified in Section 4 of the Plan;

&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) increase the maximum number of Shares that may be issued pursuant to Incentive Stock Options;

&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) permit repricing of Options or Stock Appreciation Rights, which is currently prohibited by Section 6(f)(iv) of the Plan, *provided* that disinterested Shareholder approval shall be required to reprice Options held by insiders (as defined in the policies of the Exchange) and such exercise price shall not be lower than the discounted market price (as defined in the policies of the Exchange);

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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;(v) permit the award of Options or Stock Appreciation Rights at a price less than 100% of the Fair Market Value of a Share on the date of grant of such Option or Stock Appreciation Right, contrary to the provisions of Section 6(a)(i) and Section 6(b) of the Plan;

&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) permit Options to be transferable other than as provided in Section 6(f)(ii);

&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) amend this Section 7(a); 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;(viii) increase the maximum term permitted for Options and Stock Appreciation Rights as specified in Section 6(a) and Section 6(b) or extend the terms of any Options beyond their original expiry date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporate Transactions</u>. In the event of any reorganization, merger, consolidation, split-up, spin-off, combination, plan of arrangement, take-over bid or tender offer, repurchase or exchange of Shares or other securities of the Company or any other similar corporate transaction or event involving the Company (or the Company shall enter into a written agreement to undergo such a transaction or event), the Committee or the Board may, in its sole discretion, provide for any of the following to be effective upon the consummation of the event (or effective immediately prior to the consummation of the event, provided that the consummation of the event subsequently occurs), and no action taken under this Section 7(b) shall be deemed to impair or otherwise adversely alter the rights of any holder of an Award or beneficiary 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;(i) either (A) termination of the Award, whether or not vested, in exchange for an amount of cash and/or other property, if any, equal to the amount that would have been attained upon the exercise of the vested portion of the Award or realization of the Participant's vested rights (and, for the avoidance of doubt, if, as of the date of the occurrence of the transaction or event described in this Section 7(b)(i)(A), the Committee or the Board determines in good faith that no amount would have been attained upon the exercise of the Award or realization of the Participant's rights, then the Award may be terminated by the Company without any payment) or (B) the replacement of the Award with other rights or property selected by the Committee or the Board, 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;(ii) that the Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;

&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) that, subject to Section 6(f)(vi), the Award shall be exercisable or payable or fully vested with respect to all Shares covered thereby, notwithstanding anything to the contrary in the applicable Award Agreement; 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;(iv) that the Award cannot vest, be exercised or become payable after a date certain in the future, which may be the effective date of the event.

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**Section 8. Income Tax Withholding**

In order to comply with all applicable federal, state, local or foreign income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal, state, local or foreign payroll, withholding, income or other taxes, which are the sole and absolute responsibility of a Participant, are withheld or collected from such Participant arising from the grant, vesting, exercise or payment of any Award and payment is to be made in a manner satisfactory to the Company. Without limiting the foregoing, in order to assist a Participant in paying all or a portion of the applicable taxes to be withheld or collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the Committee, in its discretion and subject to such additional terms and conditions as it may adopt, <u>and provided that such arrangements comply with the policies of the Exchange,</u> may permit the Participant to satisfy such tax obligation by (a) electing to have the Company withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes (subject to any applicable limitations under ASC Topic 718 to avoid adverse accounting treatment) or (b) delivering to the Company Shares other than Shares issuable upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the amount of such taxes. The election, if any, must be made on or before the date that the amount of tax to be withheld is determined.

**Section 9. U.S. Securities Laws**

Neither the Awards nor the securities which may be acquired pursuant to the exercise of the Awards have been registered under the Securities Act or under any securities law of any state of the United States of America and the Awards and the securities which may be acquired pursuant to the exercise of the Awards issued to a U.S. Award Holder will be considered "restricted securities" (as such term is defined in Rule 144(a)(3) under the Securities Act and any Shares shall be affixed with an applicable restrictive legend as set forth in the Award Agreement. The Awards may not be offered or sold, directly or indirectly, in the United States except pursuant to registration under the Securities Act and the securities laws of all applicable states or available exemptions therefrom, and the Company has no obligation or present intention of filing a registration statement under the Securities Act in respect of any of the Awards or the securities underlying the Awards, which could result in such U.S. Award Holder not being able to dispose of any Shares issued on exercise of Awards for a considerable length of time. Each U.S. Award Holder or anyone who becomes a U.S. Award Holder, who is granted an Award in the United States, who is a resident of the United States or who is otherwise subject to the Securities Act or the securities laws of any state of the United States will be required to complete an Award Agreement which sets out the applicable United States restrictions.

**Section 10. General Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Rights to Awards</u>. No Eligible Person, Participant or other Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Eligible Persons, Participants or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to any Participant or with respect to different Participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Award Agreements</u>. No Participant shall have rights under an Award granted to such Participant unless and until an Award Agreement shall have been signed by the Participant (if requested by the Company), or until such Award Agreement is delivered and accepted through an electronic medium in accordance with procedures established by the Company. An Award Agreement need not be signed by a representative of the Company unless required by the Committee. Each Award Agreement shall be subject to the applicable terms and conditions of the Plan and any other terms and conditions (not inconsistent with the Plan) determined by the Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Income Tax</u>. With respect to any Award granted to a Participant who is subject to taxation under the provisions of the Tax Act in respect of such Award, the Committee shall have the right, but not the obligation, to take account of Canadian income tax considerations in determining the terms and conditions of the Award or any other amendment thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Provision of Information</u>. At least annually, copies of the Company's balance sheet and income statement for the just completed fiscal year shall be made available to each Participant and purchaser of shares upon the exercise of an Award; provided, however, that this requirement shall not apply if all offers and sales of securities pursuant to the Plan comply with all applicable conditions of Rule 701 under the Securities Act. The Company shall not be required to provide such information to key persons whose duties in connection with the Company assure them access to equivalent information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Plan Provisions Control</u>. In the event that any provision of an Award Agreement conflicts with or is inconsistent in any respect with the terms of the Plan as set forth herein or subsequently amended, the terms of the Plan shall control, unless the Award Agreement expressly overrides the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Rights of Shareholders</u>. Except with respect to Shares issued under Awards (and subject to such conditions as the Committee may impose on such Awards pursuant to Section 6(c)(i) or Section 6(e), neither a Participant nor the Participant's legal representative shall be, or have any of the rights and privileges of, a Shareholder with respect to any Shares issuable upon the exercise or payment of any Award, in whole or in part, unless and until such Shares have been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Limit on Other Compensation Arrangements</u>. Nothing contained in the Plan shall prevent the Company or any Affiliate from adopting or continuing in effect other or additional compensation plans or arrangements, and such plans or arrangements may be either generally applicable or applicable only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Right to Employment</u>. The grant of an Award shall not be construed as giving a Participant the right to be retained as an employee of the Company or any Affiliate, nor will it affect in any way the right of the Company or an Affiliate to terminate a Participant's employment at any time, with or without cause, in accordance with applicable law. In addition, the Company or an Affiliate may at any time dismiss a Participant from employment free from any liability or any claim under the Plan or any Award, unless otherwise expressly provided in the Plan or in any Award Agreement. Nothing in this Plan shall confer on any person any legal or equitable right against the Company or any Affiliate, directly or indirectly, or give rise to any cause of action at law or in equity against the Company or an Affiliate. Under no circumstances shall any person ceasing to be an employee of the Company or any Affiliate be entitled to any compensation for any loss of any right or benefit under the Plan which such employee might otherwise have enjoyed but for termination of employment, whether such compensation is claimed by way of damages for wrongful or unfair dismissal, breach of contract or otherwise. By participating in the Plan, each Participant shall be deemed to have accepted all the conditions of the Plan and the terms and conditions of any rules and regulations adopted by the Committee and shall be fully bound thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Governing Law</u>. The internal law, and not the law of conflicts, of the Province of British Columbia and the federal law of Canada applicable therein shall govern all questions concerning the validity, construction and effect of the Plan or any Award, and any rules and regulations relating to the Plan or any Award.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Severability</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 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 applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the purpose or intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction or Award, and the remainder of the Plan or any such Award shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Trust or Fund Created</u>. 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 unsecured general creditor of the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Other Benefits</u>. No compensation or benefit awarded to or realized by any Participant under the Plan shall be included for the purpose of computing such Participant's compensation or benefits under any pension, retirement, savings, profit sharing, group insurance, disability, severance, termination pay, welfare or other benefit plan of the Company, unless required by law or otherwise provided by such other plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>No Fractional Shares</u>. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash shall be paid in lieu of any fractional Share or whether such fractional Share or any rights thereto shall be canceled, terminated or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Headings</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.

**Section 11. Clawback or Recoupment**

All Awards under this Plan shall be subject to recovery or other penalties pursuant to (i) any Company clawback policy, as may be adopted or amended from time to time, or (ii) any applicable law, rule or regulation or applicable stock exchange rule.

**Section 12. Effective Date of the Plan**

The Plan was adopted by the Board on September 3, 2021 and approved by the Shareholders on May 25, 2021, as is effective as of September 7, 2021.

**Section 13. Term of the Plan**

No Award shall be granted under the Plan, and the Plan shall terminate, on the earlier of (i) September 7, 2031 or the tenth anniversary of the effective date of the Plan, or any earlier date of discontinuation or termination established pursuant to Section 7(a) of the Plan. Unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such dates, and the authority of the Committee provided for hereunder with respect to the Plan and any Awards, and the authority of the Board to amend the Plan, shall extend beyond the termination of the Plan.

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<u>**ADDENDUM A**</u>

**Alpine Summit Energy Partners, Inc. 2021 Stock and Incentive Plan**<br>*(California Participants)*

Prior to the date, if ever, on which the Shares becomes a Listed Security and/or the Company is subject to the reporting requirements of the Exchange Act, the terms set forth herein shall apply to Awards issued to California Participants. "**California Participant**" means a Participant whose Award is issued in reliance on Section 25102(o) of the California Corporations Code. All capitalized terms used herein but not otherwise defined shall have the respective meanings set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The following rules shall apply to any Option in the event of termination of the Participant's service to the Company or an 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;(a) If such termination was for reasons other than death, "Permanent Disability" (as defined below), or cause, the Participant shall have at least 30 days after the date of such termination to exercise his or her Option to the extent the Participant is entitled to exercise on his or her termination date, provided that in no event shall the Option be exercisable after the expiration of the term as set forth in the Option 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;(b) If such termination was due to death or Permanent Disability, the Participant shall have at least 6 months after the date of such termination to exercise his or her Option to the extent the Participant is entitled to exercise on his or her termination date, provided that in no event shall the Option be exercisable after the expiration of the term as set forth in the Option Agreement.

"**Permanent Disability**" for purposes of this Addendum shall mean the inability of the Participant, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of the Participant's position with the Company or any Affiliate because of the sickness or injury of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding anything to the contrary in Section 4(c) of the Plan, the Committee shall in any event make such adjustments as may be required by Section 25102(o) of the California Corporations Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Notwithstanding anything stated herein to the contrary, no Option shall be exercisable on or after the 10th anniversary of the date of grant and any Award Agreement shall terminate on or before the 10th anniversary of the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Company shall furnish summary financial information (audited or unaudited) of the Company's financial condition and results of operations, consistent with the requirements of applicable law, at least annually to each California Participant during the period such Participant has one or more Awards outstanding, and in the case of an individual who acquired Shares pursuant to the Plan, during the period such Participant owns such Shares; provided, however, the Company shall not be required to provide such information if (i) the issuance is limited to key persons whose duties in connection with the Company assure their access to equivalent information or (ii) the Plan or any agreement complies with all conditions of Rule 701 of the Securities Act; provided that for purposes of determining such compliance, any registered domestic partner shall be considered a "family member" as that term is defined in Rule 701.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Plan or any increase in the maximum aggregate number of Shares issuable thereunder as provided in Section 4(a) (the "**Authorized Shares**") shall be approved by a majority of the outstanding securities of the Company entitled to vote by the later of (a) a period beginning twelve (12) months before and ending twelve (12) months after the date of adoption thereof by the Board or (b) the first issuance of any security pursuant to the Plan in the State of California (within the meaning of Section 25008 of the California Corporations Code). Awards granted prior to security holder approval of the Plan or in excess of the Authorized Shares previously approved by the security holders shall become exercisable no earlier than the date of shareholder approval of the Plan or such increase in the Authorized Shares, as the case may be, and such Awards shall be rescinded if such security holder approval is not received in the manner described in the preceding sentence. Notwithstanding the foregoing, a foreign private issuer, as defined by Rule 3b-4 of the Exchange Act of 1934 shall not be required to comply with this paragraph provided that the aggregate number of persons in California granted options under all option plans and agreements and issued securities under all purchase and bonus plans and agreements does not exceed 35.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Notwithstanding anything stated herein to the contrary, all Awards must be granted within ten years from the earlier of the date on which this Plan was adopted by the Board or the date this Plan was approved by the Shareholders.

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## Exhibit 10.14

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**ALPINE SUMMIT ENERGY PARTNERS, INC.**<br>**DEFERRED SHARE UNIT PLAN**

ADOPTED BY THE BOARD OF DIRECTORS: SEPTEMBER 3, 2021<br>APPROVED BY THE COMPANY'S SHAREHOLDERS: MAY 25, 2021

EFFECTIVE AS OF: SEPTEMBER 7, 2021

**Section 1. Purpose**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this Plan is to strengthen the alignment of interests between the Eligible Directors and the shareholders of the Company by linking a portion of annual compensation, as determined by the Committee from time to time, to the future value of the Shares. In addition, the Plan has been adopted for the purpose of advancing the interests of the Company through the motivation, attraction and retention of directors of the Company and its Affiliates, it being generally recognized that the Plan aids in attracting, retaining and encouraging director commitment and performance due to the opportunity offered to them to receive compensation in line with the value of the Shares.

**Section 2. Definitions and Interpretation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Definitions</u>: As used in this Plan, the following terms shall have the meanings set forth 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;(i) "**Affiliate**" shall mean any entity that, directly or indirectly through one or more intermediaries, is controlled 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;(ii) "**Associate**" has the meaning ascribed to such term in the policies of the Exchange, as may be amended from time to time.

&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) "**Blackout Period**" means any period imposed by the Company pursuant to its disclosure, confidentiality and trading policy or otherwise, during which its officers, directors, employees and Insiders may be restricted from trading in securities 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;(iv) "**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;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Code**" means the United States Internal Revenue Code of 1986, as amended.

&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) "**Change of Control**" means the occurrence of any one or more of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 consolidation, merger, amalgamation, arrangement or other reorganization or acquisition involving the Company or any of its Affiliates and another company or other entity, as a result of which the holders of Shares (on an as-converted basis) prior to the completion of the transaction hold less than 50% of the outstanding shares of the successor company after completion of the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) the sale, lease, exchange or other disposition, in a single transaction or a series of related transactions, of assets, rights or properties of the Company and/or any of its Affiliates which have an aggregate book value greater than 50% of the book value of the assets, rights and properties of the Company and its Affiliates on a consolidated basis to any other person or entity, other than a disposition to a wholly-owned Affiliate in the course of a reorganization of the assets of the Company and its Affiliates;

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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) a resolution is adopted to wind-up, dissolve or liquidate 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;(D) any person, entity or group of persons or entities acting jointly or in concert (an "**Acquirer**") acquires or acquires control (including, without limitation, the right to vote or direct the voting) of Voting Securities which, when added to the Voting Securities owned of record or beneficially by the Acquirer or which the Acquirer has the right to vote or in respect of which the Acquirer has the right to direct the voting, would entitle the Acquirer and/or Associates and/or Affiliates of the Acquirer to cast or to direct the casting of 50% or more of the votes attached to all of the Company's outstanding Shares (on an as-converted basis) which may be cast to elect directors of the Company or the successor Company (regardless of whether a meeting has been called to elect directors); 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;(E) the Board adopts a resolution to the effect that a Change of Control as defined herein has occurred or is imminent.

For the purposes of the foregoing, "**Voting Securities**" means Shares and any other shares entitled to vote for the election of directors and shall include any security, whether or not issued by the Company, which are not shares entitled to vote for the election of directors but are convertible into or exchangeable for shares which are entitled to vote for the election of directors including any options or rights to purchase such shares or securities.

&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) "**Committee**" means the Compensation Committee of the Board or such other committee designated by the Board to administer the Plan.

&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) "**Company**" means Alpine Summit Energy Partners, Inc., a British Columbia corporation, and any successor corporation.

&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) "**Deferred Share Unit**" or "**DSU**" means the agreement by the Company to pay, and the right of the Eligible Director to receive, a DSU Payment for each Deferred Share Unit held, evidenced by way of book-keeping entry in the books of the Company and administered pursuant to this Plan.

&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) "**Director**" means a member of the Board from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) "**Director Remuneration**" means all amounts payable to an Eligible Director by the Company in respect of the services to be provided to the Company by the Eligible Director as a member of the Board or a member of the board of an Affiliate in a year, including the annual base retainer fee for serving as a director, the annual retainer fee for chairing the Board or a committee of the Board, the fees paid to directors for attendance at meetings of the Board or committees of the Board; and travel allowance fees paid to attend meetings and/or site visits, provided that it does not include amounts received by an Eligible Director as reimbursement for expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) "**DSU Grant Date**" means the date that Deferred Share Units are credited to the Eligible Director's notional account in the register maintained by the Company for DSU awards as contemplated in Section 3(c) of the Plan. Unless otherwise determined by the Committee, DSUs will be granted on at least an annual basis, such DSUs representing compensation for services to be performed in such fiscal year.

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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;(xiii) "**DSU Grant Letter**" has the meaning ascribed thereto in Section 4(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) "**DSU Payment**" means, subject to any adjustment in accordance with Section 6(f), the issuance to an Eligible Director of one previously unissued Share or cash equivalent for each whole vested Deferred Share Unit credited to such Eligible Director as determined by the Committee 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;(xv) "**Eligible Director**" means a person who is a *bona fide* Director, or a member of the board of directors of any Affiliate of the Company, and who, at the relevant time, is not otherwise an employee or a consultant of the Company or of any Affiliate, and such person shall continue to be an Eligible Director for so long as such person continues to be a member of such board(s) of directors and is not otherwise an employee or a consultant of the Company or of 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;(xvi) "**Exchange**" means the TSX Venture Exchange and any other Exchange on which the Shares are or may be listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) "**Insider**" means: (A) an insider as defined in the policies of the Exchange, as may be amended from time to time, other than a person who is an Insider solely by virtue of being a director or senior officer of an Affiliate; and (B) an Associate of any person who is an insider by virtue of (C).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) "**Market Value**" means the last closing price of the Shares on the Exchange immediately prior to the date as at which Market Value is determined. If the Shares are not trading on the Exchange, then the Market Value shall be determined based on the last closing price of the Shares on such stock exchange or over-the-counter market on which the Shares are listed and posted for trading as may be selected for such purpose by the Committee on the date as of which Market Value is determined. In the event that the Shares are not listed and posted for trading on any stock exchange or over-the-counter market, the Market Value shall be the fair market value of such Shares as determined by the Committee 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;(xix) "**Multiple Voting Share**" shall mean the multiple voting shares of the Company, each of which carries 100 votes and is convertible, in certain limited circumstances, into 100 Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "**Plan**" means this Deferred Share Unit plan, as the same may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) "**Proportionate Voting Shares**" shall mean the proportionate voting shares of the Company, each of which carries 1,000 votes and is convertible into Shares on a 1 for 1 basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) "**Section 409A**" means section 409A of the Code and applicable regulations and guidance thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) "**Separation from Service**" means a separation from service as defined under Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) "**Shareholders**" means shareholders of the Company, including holders of Shares (or common shares prior to the re-designation of such shares as Subordinate Voting Shares), Multiple Voting Shares and Proportionate Voting Shares, as 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;(xxv) "**Shares**" means the Subordinate Voting Shares of 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;(xxvi) "**Termination Date**" means the earlier of (i) the actual date of termination of the directorship of the Eligible Director, as applicable, and does not include any period during which the Eligible Director is in receipt of or is eligible to receive any statutory, contractual or common law notice or compensation in lieu thereof or severance payments following the actual date of termination or resignation, (ii) the date of the death of the Eligible Director, or (iii) the date on which the Eligible Director is determined to be totally disabled and is removed from the Board, provided that with respect to U.S. Taxpayers, Termination Date means the date of the Director's Separation from Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxvii) "**United States**" means the United States of America, its territories and possessions, any state of the United States and the District of Columbia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxviii) "**U.S. DSU Holder**" shall mean any holder of Deferred Share Units who is a "U.S. person" (as defined in Rule 902(k) of Regulation S under the U.S. Securities Act) or who is holding or redeeming Deferred Share Units in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxx) "**U.S. Taxpayer**" means an Eligible Director whose DSUs are subject to income tax under the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxi) "**year**" means a calendar year unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Headings</u>: The headings of all articles, sections, and paragraphs in the Plan are inserted for convenience of reference only and shall not affect the construction or interpretation of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Context, Construction</u>: Whenever the singular or masculine are used in the Plan, the same shall be construed as being the plural or feminine or neuter or *vice versa* where the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>References to this Plan</u>: The words "hereto", "herein", "hereby", "hereunder", "hereof" and similar expressions mean or refer to this Plan as a whole and not to any particular article, section, paragraph or other part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Canadian Funds</u>: Unless otherwise specifically provided, all references to dollar amounts in the Plan are references to Canadian dollars.

**Section 3. Administration** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Power and Authority of the Committee</u>: Subject to regulatory requirements, the Plan shall be administered by the Committee and the Committee shall have full discretionary authority to administer the Plan including the authority to interpret and construe any provision of the Plan and to adopt, amend and rescind such rules and regulations for administering the Plan as the Committee may deem necessary in order to comply with the requirements of the Plan. All actions taken, and all interpretations and determinations made by the Committee in good faith shall be final and conclusive and shall be binding on the Eligible Director and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification</u>: No member of the Committee shall be personally liable for any action taken or determination or interpretation made in good faith in connection with the Plan and all members of the Committee shall, in addition to their rights as Directors, be fully protected, indemnified and held harmless by the Company with respect to any such action taken or determination or interpretation made in good faith. The Committee is hereby authorized and empowered to do all things and execute and deliver all instruments, undertakings and applications and writings as they, in their absolute discretion, consider necessary for the implementation of the Plan and of the rules and regulations established for administering the Plan. All costs incurred in connection with the Plan shall be for the account of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Record Keeping</u>: The Company shall maintain a register in which the following shall be recorded for each Eligible 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;(i) the name and address of each Eligible Director in the Plan;

&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 number of Deferred Share Units granted to each Eligible Director under the Plan;

&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 number of Deferred Share Units credited to an Eligible Director pursuant to Section 4(e) of the Plan;

&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 date on which Deferred Share Units were granted or credited to an Eligible 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;(v) the date of DSU Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Determination of Eligible Directors and Participation</u>: The Committee shall from time to time determine the Eligible Directors to whom Deferred Share Units shall be granted and the provisions and restrictions with respect to such grant, all such determinations to be made in accordance with the terms and conditions of the Plan, and the Committee may take into consideration the present and potential contributions of and the services rendered by the particular Eligible Director to the success of the Company and any other factors which the Committee deems appropriate and relevant..

**Section 4. Deferred Share Unit Plan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Deferred Share Unit Plan</u>: A Deferred Share Unit Plan is established for Eligible Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Shares Available for Issuance</u>: Subject to adjustment as provided in Section 5(f) of the Plan, an aggregate of 503,778 Shares may be issued under all Deferred Share Units granted under this Plan. References in the Plan to the number of outstanding Shares includes the number of Shares issuable on conversion of all outstanding Multiple Voting Shares and Proportionate Voting Shares. The aggregate number of Shares that may be issued under DSUs granted under the Plan shall be reduced by Shares subject to DSUs already granted under the Plan, and if any Shares covered by Deferred Share Units are settled in cash or otherwise terminated or cancelled without delivery of any Shares, then the number of Shares counted against the aggregate number of Shares available under the Plan with respect to such Award, to the extent of any such forfeiture, reacquisition by the Company, termination or cancellation, shall again be available for granting Deferred Share Units under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Grant of Deferred Share Units</u>: Unless otherwise determined by the Committee and subject to the terms of the Plan, each Eligible Director shall be issued on each DSU Grant Date, that number of Deferred Share Units having a value equal to the portion (which may be expressed as a percentage or may equal 100%) of the Director's Remuneration payable to such Eligible Director for the current fiscal year (the "**Entitlement**"), as determined by the Committee from time to time. More specifically, the number of Deferred Share Units to be granted to an Eligible Director will be determined by dividing the Entitlement by the Market Value on the DSU Grant Date. Notwithstanding any of the foregoing, the Committee shall have the authority, subject to applicable securities laws and Exchange policies, to make any special grants of Deferred Share Units to Eligible Directors in such numbers, and at any time as the Committee may deem appropriate, including special DSU grants to new Eligible Directors appointed from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Deferred Share Unit Letter</u>: Each grant of Deferred Share Units under the Plan shall be evidenced by a letter of the Company, in the form attached as Schedule "A", signed in acknowledgement by the Eligible Director (a "**DSU Grant Letter**"). Such Deferred Share Units shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a DSU Grant Letter. The provisions of the various DSU Grant Letters entered into under the Plan need not be identical, and may vary for each Eligible Director. To the extent that there is any inconsistency between the Plan and the DSU Grant Letter or any other communications, the Plan shall prevail unless the terms of the Plan are expressly overridden in the DSU Grant Letter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Dividends</u>: Subject to the absolute discretion of the Committee, in the event that a dividend (other than stock dividend) is declared and paid by the Company on Shares, the Committee may elect to credit each Eligible Director with additional Deferred Share Units. The number of such additional Deferred Share Units will be calculated by dividing (i) the total amount of the dividends that would have been paid to the Eligible Director if the Deferred Share Units outstanding in the Eligible Director's account on the dividend record date had been outstanding Shares (and the Eligible Director held no other Shares), by (ii) the Market Value of a Share on the date on which such dividends were paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Payment Obligations with Respect to Deferred Share Units</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;(i) As soon as practicable following the Termination Date for each Eligible Director, and subject to Section 5 of the Plan, the Company shall (A) issue to such Eligible Director one previously unissued Share for each vested outstanding Deferred Share Unit held by such Eligible Director on the Termination Date, or (ii) subject to the discretion of the Committee, an amount in cash equivalent to the number of outstanding Deferred Share Units held by such Eligible Director multiplied by the Market Value on the Termination Date, for such Eligible Director. Notwithstanding the foregoing, in the unlikely event that an Eligible Director who is a U.S. Taxpayer is determined to be a "specified employee" as defined under Section 409A on the director's Termination Date (i.e. the date of Separation from Service) then settlement of such U.S. Taxpayer's DSUs will be delayed until the date that is six months and one day following the date of Separation from Service, or upon such U.S. Taxpayer's death, if earlier.

&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) Fractional Deferred Share Units shall be cancelled.

&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) Since it is expected that Deferred Share Units will be granted to each Eligible Director with reference to his or her remuneration for a year, in the event such Eligible Director resigns or is otherwise no longer an Eligible Director, during such year, such Deferred Share Units will only partially vest and the Eligible Director will only be entitled to a pro-rated DSU Payment in respect of such Deferred Share Units based on the number of days in such year that the Eligible Director was an Eligible Director in such year.

&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) Notwithstanding this Section 4(f) or any other provision of the Plan, if a U.S. Taxpayer is also subject to Canadian income tax with respect to his or her Deferred Share Units, and if a payment in settlement of the Deferred Share Units of such U.S. Taxpayer is required as a result of his or her Separation from Service, but such payment would not comply with paragraph 6801(d) of the Regulations under the *Income Tax Act* (Canada), and the Board determines that it is not practical to make such payment in some other manner or at some other time that complies with both Section 409A and paragraph 6801(d) of the Regulations, then such payment will be made to a trustee to be held in trust for the benefit of the U.S. Taxpayer in a manner that causes the payment to be included in the U.S. Taxpayer's income under the Code and does not violate paragraph 6801(d) of the Regulations, and the amount shall thereafter be paid out of the trust at such time and in such manner as complies with the requirements of the Regulations and the *Income Tax Act* (Canada). Further, if a payment in settlement of DSUs of an Eligible Director who is U.S. Taxpayer would be required to be made to comply with paragraph 6801(d) of the Regulations but would violate Section 409A, and if the Board determines that it is not practical to make such payment in some other manner or at some other time that complies with both Section 409A and paragraph 6801(d) of the Regulations, then the U.S. Taxpayer shall forfeit the DSUs without compensation therefore.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Settlement of DSUs following a Change of Control</u>: If there is a Change of Control that results in the termination of an Eligible Director's directorship, all Deferred Share Units credited to such Eligible Director shall immediately vest on the date of such Change of Control notwithstanding any stated vesting period, and shall be settled at the time and in the manner designated in Section 4(f) of the Plan. In any event, upon a Change of Control, Eligible Directors shall not be treated any more favorably than Shareholders with respect to the consideration that the Eligible Directors would be entitled to receive for their Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Blackout Period</u>: If the date on which the Company shall issue Shares to the Eligible Director in accordance with Section 4(f) of the Plan occurs during a Blackout Period applicable to the Eligible Director, the Company shall issue or deliver such Shares to the Eligible Director on or as soon as practicable after the 10th trading day following the end of the Blackout Period, provided that for U.S. Taxpayers such issuance will not be delayed beyond a date that would be permitted under Section 409A without imposition of additional taxes resulting from failure to comply with Section 409A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Compliance with U.S. Securities Laws</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;(i) The Deferred Share Units may not be granted and the Shares may not be issued except pursuant to registration under the U.S. Securities Act and the securities laws of all applicable states or pursuant to available exemptions therefrom.

&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) Notwithstanding any provisions contained in the Plan to the contrary, the following terms shall apply to all such Deferred Share Units granted to residents of the State of California:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Unless determined otherwise by the Committee, the Deferred Share Units may not be sold, pledged, assigned, hypothecated, or otherwise transferred in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the Eligible Director, only by the Eligible Director. If the Committee makes the Deferred Share Units transferable, such Deferred Share Units may only be transferred (1) by will, (2) by the laws of descent and distribution, or (3) as permitted by Rule 701 of the U.S. Securities 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) No Deferred Share Units shall be granted to a resident of California more than ten years after the earlier of the date of adoption of the Plan or the date the Plan is approved by the Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 that any dividend or other distribution (whether in the form of cash, Shares, other securities, including but not limited to dividend equivalents, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spinoff, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Committee, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding Deferred Share Unit; provided, however, that the Committee will make such adjustments to Deferred Share Units required by Section 25102(o) of the California Corporations Code to the extent the Company is relying upon the exemption afforded thereby with respect to the Deferred Share Units.

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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;(D) The Company shall furnish summary financial information (audited or unaudited) of the Company's financial condition and results of operations, consistent with the requirements of applicable law, at least annually to each Eligible Director in California during the period such Eligible Director has one or more Deferred Share Unit outstanding, and in the case of an individual who acquired Shares pursuant to the Plan, during the period such Eligible Director owns such Shares; provided, however, the Company shall not be required to provide such information if (1) the issuance is limited to key persons whose duties in connection with the Company assure their access to equivalent information or (2) the Plan or any agreement complies with all conditions of Rule 701 of the U.S. Securities Act; provided that for purposes of determining such compliance, any registered domestic partner shall be considered a "family member" as that term is defined in Rule 701 of the U.S. Securities 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) If the aggregate number of Persons in the State of California granted options under all option plans and agreements and issued securities under all purchase and bonus plans and agreements of the Company, including but not limited to this Plan, exceeds thirty-five (35), then this Plan must be approved by a majority of the Shareholders by the later of (1) within 12 months before or after the Plan is adopted or (2) prior to or within 12 months of the issuance of any Shares under the Plan or DSU Grant Letter in the State of California. Any issuance of the Shares pursuant to this Plan before Shareholder approval is obtained must be rescinded if Shareholder approval is not obtained in the manner described in the preceding sentence. Such issued Shares shall not be counted in determining whether such approval is obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Additional Limitations</u>. If, and so long as the Company is listed on the TSX Venture Exchange:

&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 maximum number of Deferred Share Units that may be granted to any one Eligible Director under this Plan, together with awards granted under any other share compensation arrangements, within any one year period shall be 5% of the total number of Shares outstanding at the date of grant;

&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 maximum number of Deferred Share Units that may be granted to insiders under this Plan, together with awards granted under any other share compensation arrangements, within any one year period shall be 10% of the total number of Shares outstanding at the date of grant; 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Deferred Share Units shall not be granted to person retained to provide investor relations activities or to consultants (as such terms are defined in the policies of the TSX Venture Exchange).

**Section 5. Withholding Taxes**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Withholding Taxes</u>: The Company or any of its Affiliates may take such steps as are considered necessary or appropriate for the withholding of any taxes which the Company or any of its Affiliates are required to withhold by any law or regulation of any governmental authority whatsoever, and, without limiting the generality of the foregoing, may effect such withholding through (i) the withholding of all or any portion of any payment due to the applicable Eligible Director; (ii) the withholding and sale, for and on behalf of the applicable Eligible Director, of the minimum number of Shares to be issued under the Plan sufficient to satisfy such withholding obligation of the Company's or the Affiliate; or (iii) withholding of all or any portion of any issuance of Shares to be made to the Eligible Director, until such time as the Eligible Director has paid the Company or its Affiliates any amount which the Company and its Affiliates are required to withhold with respect to such taxes.

**Section 6. General**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Effective Time of Deferred Share Unit Plan</u>: The Plan shall remain in effect until it is terminated by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment of the Deferred Share Unit Plan</u>: The Committee may, at any time, and from time to time, and without shareholder approval, amend any provision of the Plan, subject to any regulatory or stock exchange requirement at the time of such amendment, and undertaken in a manner that will not result in adverse tax consequences for U.S. Taxpayers under Section 409A, including without limitation:

&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) amendments to fix typographical errors; 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;(ii) amendments to clarify existing provisions provided such amendments do not have the effect of altering the scope, nature an intent of such provisions, which includes amendments necessary or advisable because of any change in applicable securities laws,

provided that,

&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) any amendment shall not alter the terms or conditions of any Deferred Share Unit or impair any right of any holder of Deferred Share Units pursuant to any Deferred Share Unit grant prior to such amendment; 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;(iv) no amendment shall be made which prevents the Plan from continuously meeting the requirements of paragraph 6801(d) of the regulations under the *Income Tax Act* (Canada) or any successor provision thereto.

Notwithstanding the foregoing and for greater certainty, prior approval of the Shareholders (and disinterested Shareholders, as applicable) shall be required for any amendment to the Plan that would require shareholder approval under the rules or regulations of the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Plan Termination</u>. The Committee may decide to discontinue granting awards under the Plan at any time in which case no further Deferred Share Units shall be awarded or credited under Section 4(d) of the Plan. Any Deferred Share Units which remain outstanding in an Eligible Director's account at that time shall continue to be dealt with according to the terms of the Plan. For greater certainty, dividend equivalents may continue to be awarded, as appropriate, in respect of such outstanding Deferred Share Units pursuant to Section 4(e) of the Plan. The Plan shall terminate when all payments owing pursuant to Section 4(f) of the Plan have been made and all Deferred Share Units have been cancelled in all Eligible Directors' accounts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>General Restrictions and Assignment</u>: Except as required by law, the rights of an Eligible Director under the Plan are not capable of being anticipated, assigned, transferred, alienated, sold, encumbered, pledged, mortgaged or charged and are not capable of being subject to attachment or legal process for the payment of any debts or obligations of the Eligible Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Rights as a Director</u>: No holder of any Deferred Share Units shall have any rights as a Shareholder at any time. Nothing in the Plan shall confer on any Eligible Director the right to continue as a Director of the Company or as a Director of any Affiliate of the Company or interfere with the right to remove such Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Adjustment in Number of Shares Underlying the Deferred Share Units</u>: In the event there is any change in the Shares, whether by reason of a stock dividend, stock split, consolidation, subdivision, reclassification or otherwise, an appropriate adjustment shall be made by the Committee in the number of Shares subject to or underlying any Deferred Share Units. If the foregoing adjustment shall result in a fractional Share, the fraction shall be disregarded. All such adjustments shall be conclusive, final and binding for all purposes of the Plan. However, if there is an increase in the number of Shares outstanding for any reason other than by reason of a stock dividend, stock split, consolidation, subdivision or reclassification as described above (for example, as a result of a private placement of Shares or the issuance of Shares in connection with the acquisition of an asset) there will be no adjustment to the number of Shares that an Eligible Director may receive under his or her DSU Grant Letter and no adjustment to the number of Shares available under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Unfunded Plan</u>: The Plan shall be unfunded and unsecured. The Company's obligations hereunder shall constitute a general, unsecured obligation, payable solely out of its general assets, and no holder of any Deferred Share Units or other person shall have any right to any specific assets that may at any time be represented by the amounts credited with respect to Deferred Share Units hereunder. Neither the Company nor the Committee shall be deemed to be a trustee of any amounts to be distributed or paid pursuant to the Plan. No liability or obligation of the Company pursuant to the Plan shall be deemed to be secured by any pledge of, or encumbrance on, any property of the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Representation or Warranty</u>: The Company makes no representation or warranty as to the future market value of any Deferred Share Units issued in accordance with the provisions of the Plan. No amount will be paid to, or in respect of, an Eligible Director under this Plan or pursuant to any other arrangement, and no additional Deferred Share Units will be granted to such Eligible Director to compensate for a downward fluctuation in the price of the Shares, nor will any other form of benefit be conferred upon, or in respect of, an Eligible Director for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Compliance with Applicable Law</u>: If any provision of the Plan or any Deferred Share Unit contravenes any law or any order, policy, by-law or regulation of any regulatory body having jurisdiction, then such provision shall be deemed to be amended to the extent necessary to bring such provision into compliance therewith. Notwithstanding anything to the contrary in the Plan, all grants hereunder are subject to applicable securities laws, and no securities may be issued hereunder unless permitted by all applicable securities laws. As a condition to any grant hereunder or the receipt of securities pursuant thereto, an Eligible Director may be required to deliver evidence reasonably requested by the Company in order to confirm to the Company's satisfaction that such Eligible Director is eligible to receive securities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>DSU Payments</u>: Notwithstanding anything to the contrary in this Plan, all DSU Payments to be made to an Eligible Director pursuant to Section 4(f) shall be made following the Eligible Director's Termination Date before December 31st of the calendar year following the year in which the Eligible Director's Termination Date occurs, provided that all payments made with respect to DSUs of U.S. Taxpayers must be made by December 31st of the year in which the Eligible Director's Separation from Service occurs, or if later, the date that is two and one-half (2 ½) months after the date of such Separation from Service, subject to the requirement to delay payment for "specified employees" as provided in Section 4(f)(i) of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Governing Law</u>: This Plan shall be governed by and construed in accordance with the laws in force in the Province of British Columbia and the federal laws of Canada applicable therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Effective Date of the Plan</u>. The Plan was adopted by the Board on September 3, 2021 and approved by the Shareholders on May 25, 2021, and is effective as of September 7, 2021.

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**SCHEDULE "A"**<br>**ALPINE SUMMIT ENERGY PARTNERS, INC.**<br>**DEFERRED SHARE UNIT GRANT LETTER**

This Deferred Share Unit grant letter is entered into between Alpine Summit Energy Partners, Inc. (the "**Company**") and the Eligible Director named below pursuant to the Company's deferred share unit plan (the "**Plan**"), a copy of which is incorporated by reference herein, and confirms the following Deferred Share Unit grant on the terms set out below and as further set out in the Plan:

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| |
|:---|
| &nbsp;&nbsp; Eligible Director: |
| &nbsp;&nbsp; Address of Eligible Director: |
| &nbsp;&nbsp; Deferred Share Unit Grant: |
| &nbsp;&nbsp; Grant Date: |
| &nbsp;&nbsp; Vesting: |
| &nbsp;&nbsp; Conditions, Restrictions, Performance, Objectives and/or Limitations, if any: |

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By receiving and accepting the Deferred Share Unit award, the Eligible Director acknowledges that:

1. I have received a copy of the Plan, I have read and understand the it, and I agree to the terms and conditions of the Plan and this Deferred Share Unit grant letter;

2. The value of a Deferred Share Unit is based on the trading price of a Share and is thus not guaranteed. The eventual value of a Deferred Share Unit on the applicable settlement date may be higher or lower than the value of the Deferred Share Unit at the time it was allocated to my account under the Plan.

3. I may be liable for income tax when Deferred Share Units are redeemed in accordance with the Plan. Any cash payments made pursuant to the Plan shall be net of applicable withholding taxes (including, without limitation, applicable source deductions). I understand that the Company is making no representation to me regarding taxes applicable to me under the Plan and I will confirm the tax treatment with my own tax advisor.

4. No funds will be set aside to guarantee the redemption of Deferred Share Units or the payment of any other sums due to me under the Plan. Future payments pursuant to the Plan are an unfunded liability recorded on the books of the Company. Any rights under the Plan by virtue of a grant of Deferred Share Units shall have no greater priority than the rights of an unsecured creditor.

5. I acknowledge and agree (and shall be conclusively deemed to have so acknowledged and agreed by participating in the Plan) that I shall, at all times, act in strict compliance with the Plan and all applicable laws, including, without limitation, those governing "insiders" of "reporting issuers" as those terms are construed for the purposes of applicable securities laws, regulations and rules.

6. I agree to provide the Company with all information and undertakings that the Company requires in order to administer the Plan and comply with applicable laws.

7. I understand that all capitalized terms not defined herein shall have the meanings attributed to them under the Plan.

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8. I understand that the DSUs awarded hereunder are subject to applicable securities laws, and no securities may be issued hereunder unless permitted by all applicable securities laws. Further, as a condition to any grant hereunder or the receipt of securities pursuant thereto, I may be required to deliver evidence reasonably requested by the Company in order to confirm to the Company's satisfaction that I am eligible to receive securities awarded hereunder.

9. I acknowledge and agree that the DSUs and any Shares that may be issued by the Company pursuant to the redemption of the DSUs may not be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") or the securities laws of any state of the United States. The DSUs and the Shares that may be issued by the Company pursuant to the settlement of the DSUs may not be granted or issued except pursuant to registration under the U.S. Securities Act and the securities laws of all applicable states or available exemptions therefrom.

10. I acknowledge and covenant that if I am a U.S. person, or was present in the United States at the time I was offered the DSUs or at the time I executed and delivered this agreement, and the Shares issuable on redemption of the DSUs are not registered under the U.S. Securities Act, the U.S. DSU Holder Supplement annexed hereto as Appendix "A" will be deemed to be incorporated by reference into and form a part of this grant letter. "**U.S. person**" and "**United States**" are as defined in Regulation S under the U.S. Securities Act.

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| | |
|:---|:---|
| &nbsp;&nbsp; **ALPINE SUMMIT ENERGY PARTNERS, INC.** | &nbsp;&nbsp; **ALPINE SUMMIT ENERGY PARTNERS, INC.** |
| &nbsp;&nbsp; By: |  |
|  | &nbsp;&nbsp; Authorized Signing Officer |

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    <br> Witness Name of Individual Eligible Director:

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**APPENDIX "A"**<br>**ALPINE SUMMIT ENERGY PARTNERS, INC.**<br>**U.S. DSU HOLDER SUPPLEMENT**<br>

If the Eligible Director is a U.S. person, or was present in the United States at the time the Eligible Director was offered the DSUs or at the time the Eligible Director executed and delivered the grant letter agreement attached to the Certificate (the "**U.S. DSU Holder**"), the U.S. DSU Holder acknowledges and agrees that:

1. The U.S. DSU Holder, upon redemption of the DSU, is acquiring the Shares as principal and for the account of the U.S. DSU Holder.

2. In issuing the Shares to the U.S. DSU Holder upon the redemption of the DSUs, the Company is relying on the representations and warranties of the U.S. DSU Holder contained herein to support the conclusion of the Company that the issuance of Shares upon the redemption of the DSUs does not require registration under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") or to be qualified under the securities laws of any state of the United States of America.

3. The U.S. DSU Holder qualifies as an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act.

4. The DSUs and any Shares that may be issued by the Company in respect of redeemed DSUs pursuant to the Plan have not been and will not be registered under the U.S. Securities Act, and the issuance hereby is being made pursuant to an exemption from the registration requirements of the U.S. Securities Act and similar exemptions under applicable state securities laws. Accordingly, the DSU is, and, upon issuance, the Shares will be, "restricted securities" as such term is defined in Rule 144 under the U.S. Securities Act, and, therefore may not be offered or sold by the U.S. DSU Holder, directly or indirectly, without registration under the U.S. Securities Act and applicable state securities laws or in compliance with an available exemption therefrom. The U.S. DSU Holder understands that the certificate(s) representing the DSUs and any Shares issued in respect of redeemed DSUs pursuant to the Plan will contain a legend in respect of such restrictions as set out in Section 3 below.

5. The U.S. DSU Holder understands that if the U.S. DSU Holder decides to offer, sell or otherwise transfer any of the DSUs or the Shares, the U.S. DSU Holder may not offer, sell or otherwise transfer any of such securities directly or indirectly, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the sale is to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the U.S. Securities Act and in compliance with applicable local laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the sale is made in compliance with the exemption from the registration requirements under the U.S. Securities Act provided by Rule 144 thereunder, if available, and in accordance with applicable state securities laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the securities are sold in a transaction that does not require registration under the U.S. Securities Act or any applicable state laws and regulations governing the offer and sale of securities, and the U.S. DSU Holder has prior to such sale furnished to the Company an opinion of counsel or other evidence of exemption, in either case reasonably satisfactory to the Company.

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6. The certificate(s) representing the Shares, if any, that are directly issued by the Company and all certificate(s) issued in exchange therefor or in substitution thereof, will be endorsed with the following or a similar legend until such time as it is no longer required under the applicable requirements of the U.S. Securities Act or applicable state securities laws:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR UNDER ANY STATE SECURITIES LAWS, AND MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO ALPINE SUMMIT ENERGY PARTNERS, INC. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (i) RULE 144 OR (ii) 144A UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, OR (D) IN COMPLIANCE WITH ANOTHER EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(i) OR (D) ABOVE, A LEGAL OPINION REASONABLY SATISFACTORY TO THE CORPORATION MUST FIRST BE PROVIDED TO THE CORPORATION OR THE CORPORATION'S TRANSFER AGENT, AS APPLICABLE, TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

provided, that if the Shares are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation S under the U.S. Securities Act ("**Regulation S**"), the legend set forth above may be removed by providing an executed declaration to the registrar and transfer agent of the Company in such form as the Company or its transfer agent may prescribe from time to time and, if requested by the Company or the transfer agent, an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the transfer agent to the effect that such sale is being made in compliance with Rule 904 of Regulation S; and provided, further, that, if any Shares are being sold otherwise than in accordance with Regulation S and other than to the Company, the legend may be removed by delivery to the Company and its registrar and transfer agent of an opinion of counsel, of recognized standing reasonably satisfactory to the Company, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The U.S. DSU Holder did not acquire the DSUs and will not be acquiring any Shares that may be issued by the Company as a result of general solicitation or general advertising as those terms are used in Regulation D under the U.S. Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. If the U.S. DSU Holder is resident in the State of California on the effective date of the grant of the DSUs, then, in addition to the terms and conditions contained in the Plan and in this U.S. DSU Holder Supplement, the undersigned acknowledges that the Company, as a reporting issuer under the securities legislation in certain Provinces of Canada, is required to publicly file with the securities regulators in those jurisdictions continuous disclosure documents, including audited annual financial statements and unaudited quarterly financial statements (collectively, the "**Financial Statements**"). Such filings are available on the System for Electronic Document Analysis and Retrieval (SEDAR), and documents filed on SEDAR may be viewed under the Company's profile at the following website address: www.sedar.com. Copies of Financial Statements will be made available to the undersigned by the Company upon such U.S. DSU Holder's request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The U.S. DSU Holder acknowledges that the Company may have federal, state, provincial or local tax withholding and reporting obligations and consents to such actions by the Company as may reasonably be required to comply with such obligations in connection with the redemption of the DSUs. The acceptance and redemption of the DSUs and the sale of Shares issued pursuant to the redemption of the DSUs may have consequences under federal, provincial and other tax and securities laws which may vary depending on the individual circumstances of the U.S. DSU Holder. Accordingly, the U.S. DSU Holder acknowledges that the U.S. DSU Holder has consulted, as the U.S. DSU Holder considers necessary, personal legal and tax advisors in connection with the DSUs and the U.S. DSU Holder dealings with respect to the DSUs or the Shares to be issued upon redemption of the DSUs.

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## Exhibit 10.15

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**ALPINE SUMMIT ENERGY PARTNERS, INC.**<br>**2021 STOCK AND INCENTIVE PLAN**

<br>**STOCK OPTION AWARD AGREEMENT** 

Pursuant to the Alpine Summit Energy Partners, Inc. 2021 Stock and Incentive Plan (the "**Plan**"), the Optionee listed below has been granted an option (the "**Option**") to purchase all of part of the number of shares of Subordinate Voting Shares or Multiple Voting Shares (the "**Shares**") of Alpine Summit Energy Partners, Inc. (the "**Company**") specified below at the Exercise Price specified below, subject to the terms and conditions set forth herein and in the Plan.

**Section 1 STOCK OPTION GRANT**:

**Name of Optionee**: ________________________________________________

**Type of Share (Select one)**: ☒ Subordinate Voting Share<br> ☐ Multiple Voting Share

**Total Number of Options Granted**:

**Type of Option (Select one)**: ☐ Incentive Stock Option (only Optionees can receive ISOs)<br> ☒ Non-Qualified Stock Option

**Exercise Price Per Share**: $______USD

**Date of Grant**:

**Vesting Conditions and Vesting Date**: Provided the Optionee remains in continuous service with the Company or an Affiliate from the Date of Grant though the applicable Vesting Date below, the Options awarded hereunder shall become vested on the dates set forth below:

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| | |
|:---|:---|
| &nbsp;&nbsp;**Vesting Date** | &nbsp;&nbsp;**Number of Options that Vest on<br>Designated Vesting Date** |

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**Expiration Date**: 10 years from the Date of Grant (5 years from Date of Grant for ISOs awarded to 10% owners as described in the Plan).

**US$100,000 Limitation**. Even if this Option is designated above as an Incentive Stock Options ("**ISO**"), it shall be deemed to be a non-qualified stock option to the extent (and only to the extent) required by the US$100,000 annual limitation under Section 422(d) of the Code.

**The Plan and Defined Terms**. This Option is granted pursuant to the Plan, a copy of which the Optionee acknowledges having received. The provisions of the Plan are hereby incorporated by reference into this agreement (this "**Agreement**"). Capitalized terms not otherwise defined herein have the meaning ascribed to them in the Plan.

**SECTION 2 RIGHT TO EXERCISE.**

Except as set forth below and subject to any other conditions of the Plan and this Agreement, the vested portion of this Option (or a part of the vested portion of this Option) may be exercised prior its Expiration Date as set forth in Section 1.

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**SECTION 3 NO TRANSFER OR ASSIGNMENT OF OPTION.**

Except as otherwise provided in this Agreement, this Option and the rights and privileges conferred hereby shall not be sold, pledged or otherwise transferred (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment, levy or similar process. An ISO may be exercised during the Optionee's lifetime only by the Optionee, and may not be transferred, assigned or pledged except by will or by the laws of descent and distribution.

**SECTION 4 EXERCISE PROCEDURES.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notice of Exercise**. The Optionee or the Optionee's representative may exercise this Option by delivering an Exercise Notice to the Company, such Exercise Notice to be in a form acceptable to the Company. The Exercise Notice shall specify the election to exercise this Option, the number of Shares for which it is being exercised and the form of payment of the Exercise Price. The Exercise Notice shall be signed by the person exercising this Option. In the event that this Option is being exercised by the representative of the Optionee, the Exercise Notice shall be accompanied by proof (satisfactory to the Company) of the representative's right to exercise this Option. The Optionee or the Optionee's representative shall deliver to the Company, at the time of giving the Exercise Notice, payment in a form permitted under Sections 5 and 4(c) of this Agreement of the full amount of the Exercise Price and the amount of any required Withholding Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Issuance of Shares**. After receiving a proper Exercise Notice, together with payment of the Exercise Price and the amount of the Withholding Obligations, the Company shall cause to be issued Shares (either in certificate or book entry form, as determined by the Company) as to which this Option has been exercised, registered in the name of the person exercising this Option (or in the names of such person and his or her spouse as community property or as joint tenants with right of survivorship).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Withholding Taxes**. In the event that the Company (or a subsidiary of the Company, if applicable) determines that it is required to withhold any tax as a result of the exercise of this Option, the Optionee, as a condition to the exercise of this Option, shall make arrangements satisfactory to the Company to enable the Company, or a subsidiary, if applicable, to satisfy all federal, state, local or foreign payroll, income, or other taxes required to be withheld in connection with this Agreement (the "**Withholding Obligations**"). In such circumstances, the Committee may require that the Optionee pay to the Company, or the subsidiary, the amount of the Withholding Obligations. Alternatively, and subject to any requirements or limitations under applicable law, the Company or any subsidiary may (a) withhold such amount from any remuneration or other amount payable by the Company or any subsidiary to the Optionee, (b) to the extent permitted by applicable Exchange rules, require the sale, on behalf of the Optionee, of a number of Shares issued upon exercise, of the Option and the remittance to the Company of the net proceeds from such sale sufficient to satisfy the Withholding Obligations, or (c) enter into any other suitable arrangements for the receipt of such amount. The Optionee hereby authorizes the Company, at its sole discretion and subject to any limitations under applicable law, to satisfy any such Withholding Obligations by withholding from the wages and other cash compensation payable to the Optionee.

**SECTION 5 PAYMENT FOR SHARES.**

The Exercise Price must be fully paid by certified cheque, wire transfer, bank draft or money order payable to the Company or by such other means as might be specified from time to time by the Committee, which may include, at the sole discretion of the Company and to the extent permitted by applicable Exchange rules, (i) through an arrangement with a broker approved by the Company (or through an arrangement directly with the Company) whereby payment of the Exercise Price is accomplished with the proceeds of the sale of Shares deliverable upon the exercise of the Option, (ii) except with respect to ISOs, through the cashless exercise process set out in Section 6(a)(iii)(B) of the Plan, or (iii) such other consideration and method of payment for the issuance of Shares to the extent permitted by Securities Laws, or any combination of the foregoing methods of payment. No Shares will be issued or transferred until full payment therefor has been received by the Company, or arrangements for such payment have been made to the satisfaction of the Committee.

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**SECTION 6 TERM AND EXPIRATION.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Basic Term**. This Option shall in any event expire on the Expiration Date set forth in Section 1 of this Agreement, which date shall not exceed ten years after the Date of Grant (five years after the Date of Grant if this option is designated as an ISO in Section 1 hereof and the Optionee is a 10% owner as defined in Section 422(b)(6) of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Termination of Employment**. Upon the Optionee's Termination of Employment (as defined below), any remaining unvested portion of the Option shall cease vesting immediately, and shall be irrevocably forfeited on the 30th day following the Optionee's Termination of Employment, unless vesting is accelerated as provided below. At any time within a period of 90 days after a Termination of Employment other than for death or "**Disability**" (as defined in Section 22(e) of the Code), the Optionee may exercise the vested portion of the Option (unless terminated earlier by expiration of the Option term under Section 1). If the Option is an ISO, it must be exercised within three months following Termination of Employment in order to retain its status as an ISO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Retirement or Involuntary Termination Without Cause.** In the event the Optionee incurs an involuntary Termination of Employment by the Company without Cause, or a voluntary Termination of Employment by reason of the Optionee's Retirement, the Committee reserves the right, exercisable by the Committee prior to or within 30 days following the date of the Optionee's Termination of Employment, to cause vesting of the remaining unvested Option to be accelerated, in whole or in part, as of the date of such Termination of Employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Disability or Death***.* In the event the Optionee incurs a Termination of Employment by reason of the Optionee's Disability or death, any remaining unvested portion of the Option shall vest as of the date of such Disability or death. At any time within a period of one year after the Optionee's date of termination for Disability or death, as applicable, the Optionee or the personal representatives or administrators of the Optionee's estate, as applicable, may exercise the Option (unless terminated earlier by expiration of the Option term under Section 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Effect of Failure to Exercise**. If any portion of a vested Option remains unexercised within the time permitted as described above, the Option shall be immediately forfeited and cancelled for no consideration upon the termination of such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Definition of Termination of Employment**. For purposes of this Agreement, "**Termination of Employment**" shall mean the Optionee's termination of employment or service with the Company and all Affiliates. For avoidance of doubt, if the Optionee is employed by an Affiliate that is sold or otherwise ceases to be an Affiliate of the Company, the Optionee shall incur a Termination of Employment. For any purpose under this Agreement, employment or service shall be deemed to continue while the Optionee is on a *bona fide* leave of absence, if such leave was approved by the Company in writing and if continued crediting of service for such purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Definition of Cause**. "***Cause***" for the purposes of determining whether the Participant incurs a Termination of Employment with Cause shall be determined by reference to the Participant's employment agreement or any other agreement that governs the terms pursuant to which the Participant provides services to the Company and the context of the Participant's Termination of Employment. For avoidance of doubt, if the Participant's services to the Company are terminated for cause under the terms of any governing agreement or at common law, the Participant shall incur a Termination of Employment with Cause for the purpose of this Agreement.

**SECTION 7 ADJUSTMENT OF SHARES.**

In the event of any event described in Section 4(c) of the Plan, the terms of this Option (including, without limitation, the number and kind of Shares subject to this Option and the Exercise Price) shall be adjusted as set forth in Section 4(c) of the Plan. In the event that the Company is a party to any corporate transaction, this Option shall be subject to amendment as provided in Section 7(b) of the Plan.

**SECTION 8 U.S. SECURITIES RESTRICTIONS.**

The Options and the Shares may not be granted or issued except pursuant to registration under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") and the securities laws of all applicable states or available exemptions therefrom. If the Options and Shares have not been registered under the U.S. Securities Act and if the Optionee is a U.S. person, or was present in the United States at the time the Optionee was offered the Options or at the time the Optionee signed this Option Agreement, the U.S. Option Holder Supplement annexed to this Option Agreement as Schedule "A" will be deemed to be incorporated by reference into and form a part of any applicable notice of exercise of the vested Options and the Optionee acknowledges and agrees that the certificate representing the Shares will bear, in accordance with the terms of the U.S. Option Holder Supplement, a legend restricting transfer without registration under the U.S. Securities Act and applicable state securities laws unless an exemption from such registration is available. "U.S. person" and "United States" are as defined in Regulation S under the U.S. Securities Act.

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**SECTION 9 MISCELLANEOUS PROVISIONS.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Rights as a Shareholder**. Neither the Optionee nor the Optionee's representative shall have any rights as a shareholder with respect to any Shares subject to this Option until the Optionee or the Optionee's representative becomes entitled to receive such Shares by filing a Notice of Exercise and paying the Exercise Price pursuant to Sections 4 and 5 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Compliance Matters**. The Company may require from the Optionee such investment representation, undertaking or agreement, if any, as the Company may consider necessary in order to comply with applicable laws and policies of any applicable Exchange. The Optionee understands and acknowledges that Shares to be issued upon exercise of this Option may be issued subject to any restrictive legend or other transfer restrictions as may be required by applicable securities laws and stock exchange requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) No Retention Rights**. Nothing in this Option or in the Plan shall confer upon the Optionee any right to continue in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any subsidiary employing or retaining the Optionee) or of the Optionee, which rights are hereby expressly reserved by each, to terminate his or her service at any time and for any reason, with or without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Incorporation of Policies**. This Option and all compensation awarded under this Agreement shall be subject to the terms of any clawback, noncompetition, confidentiality or nondisclosure policies or agreements as may be in place between the Optionee and the Company or any subsidiary from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Notice**. Any notice required by the terms of this Agreement shall be given in writing and notice to the Company shall be deemed effective upon receipt by the Company (i) upon personal delivery, (ii) through registered or certified mail with postage and fees prepaid; or (iii) through electronic notification using a form and process approved by the Company. If mailed or delivered, notice to the Company shall be addressed to the Company at its principal executive office and notice to the Optionee shall be addressed to the address that he or she most recently provided to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Entire Agreement**. This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Governing Law; Venue**. The laws of the Province of British Columbia shall govern all matters arising out of or relating to this Agreement including, without limitation, its validity, interpretation, construction and performance but without giving effect to the conflict of laws principles that may require the application of the laws of another jurisdiction. Any party bringing a legal action or proceeding against any other party arising out of or relating to this Agreement may bring the legal action or proceeding in any court of the Province of British Columbia. Each party waives, to the fullest extent permitted by law (i) any objection it may now or later have to the laying of venue of any legal action or proceeding arising out of or relating to this Agreement brought in a court described in the preceding sentence and (ii) any claim that any legal action or proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) Acknowledgment**. The Option shall not be effective until the Optionee dates and signs the form of acknowledgment below and returns a signed copy or otherwise signs pursuant to any method of electronic acceptance approved by the Company or made available to the Optionee through the platform of any third-party administrator or record-keeper retained by the Company to administer Awards granted under the Plan. By your signature and the signature of the Company's representative, you and the Company agree that this Option is granted under and governed by the terms and conditions of the Alpine Summit Energy Partners, Inc. 2021 Stock and Incentive Plan and this Agreement.

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| | |
|:---|:---|
| OPTIONEE: | ALPINE SUMMIT ENERGY PARTNERS, INC. |
| __________________________________________________ | By: ______________________________________________ |
| __________________________________________________ | Title: _____________________________________________ |
| Print Name |  |

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**SCHEDULE "A"**

**U.S. OPTION HOLDER SUPPLEMENT**

If the Optionee is a U.S. person, or was present in the United States at the time the Optionee was offered the Options or at the time the Optionee executed and delivered the Option Agreement (the "**U.S. Option Holder**"), the U.S. Option Holder acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Options and any Shares that may be issued by the Company in respect of vested Options pursuant to the Plan have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), and the issuance hereby is being made pursuant to an exemption from the registration requirements of the U.S. Securities Act and similar exemptions under applicable state securities laws. Accordingly, the Options are, and, upon issuance, the Shares will be, "restricted securities" as such term is defined in Rule 144 under the U.S. Securities Act, and, therefore may not be offered, sold, pledged or otherwise transferred by the U.S. Option Holder without registration under the U.S. Securities Act and applicable state securities laws or in compliance with an available exemption therefrom. The U.S. Option Holder understands that the certificate(s) representing the Options and any Shares issued in respect of vested Options pursuant to the Plan will contain a legend in respect of such restrictions as set out in Section 5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The U.S. Option Holder qualifies as an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The U.S. Option Holder acknowledges that he/she did not acquire the Options and is not acquiring the Shares as a result of "general solicitation" or "general advertising" (as such terms are used in Regulation D under the U.S. Securities Act), including without limitation, advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or on the internet, or broadcast over radio or television or on the internet, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The U.S. Option Holder is purchasing the Shares for his/her own account and not with a view to resale or distribution and, in particular, the U.S. Option Holder has no intention to distribute either directly or indirectly the securities in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The certificate(s) representing the Shares, if any, that are issued by the Company and all certificate(s) issued in exchange therefor or in substitution thereof, will be endorsed with the following or a similar legend until such time as it is no longer required under the applicable requirements of the U.S. Securities Act or applicable state securities laws:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS, AND THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO ALPINE SUMMIT ENERGY PARTNERS, INC. (THE "COMPANY") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN COMPLIANCE WITH AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT, INCLUDING RULE 144 OR RULE 144A THEREUNDER, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER FURTHER UNDERSTANDS AND AGREES THAT IN THE EVENT OF A TRANSFER PURSUANT TO THE FOREGOING CLAUSE (D), THE COMPANY WILL REQUIRE A LEGAL OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

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provided, that if the Shares are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation S under the U.S. Securities Act ("**Regulation S**"), the legend set forth above may be removed by providing an executed declaration to the registrar and transfer agent of the Company, substantially in the form attached as Exhibit I hereto (or in such other form as the Company or its transfer agent may prescribe from time to time) and, if requested by the Company or the transfer agent, an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the transfer agent to the effect that such sale is being made in compliance with Rule 904 of Regulation S; and provided, further, that, if any Shares are being sold otherwise than in accordance with Regulation S and other than to the Company, the legend may be removed by delivery to the Company and its registrar and transfer agent of an opinion of counsel, of recognized standing reasonably satisfactory to the Company, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The U.S. Option Holder consents to the Company making a notation on its records or giving instructions to any transfer agent for the Shares in order to implement the restrictions on transfer set out herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The U.S. Option Holder acknowledges that the acceptance and exercise of the Options granted pursuant to the Plan and the issuance and sale of the Shares in respect of vested Options pursuant to the Plan may have consequences to the U.S. Option Holder under federal, state and provincial tax and securities laws which may vary depending on the U.S. Option Holder's circumstances. Accordingly, the U.S. Option Holder further acknowledges that he/she has been advised to consult its personal legal and tax advisors in connection with the Plan and any dealings with respect to the Options or the Shares.

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**EXHIBIT I TO SCHEDULE "A"**

**FORM OF DECLARATION FOR REMOVAL OF U.S. LEGEND**

TO: Alpine Summit Energy Partners, Inc. (the "**Company**")

AND TO: Transfer Agent of the Company

The undersigned acknowledges that the undersigned's sale of the Shares of the Company represented by certificate or account number _____________ to which this declaration relates is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") and certifies that (a) the undersigned is either not an affiliate of the Company as that term is defined in Rule 405 of the U.S. Securities Act or is an affiliate as so defined solely by virtue of holding his position as an officer or director, (b) the offer of such Shares was not made to a person in the United States and either (i) at the time the buy order was originated, the buyer was outside the United States or the undersigned and any person acting on the undersigned's behalf reasonably believed that the buyer was outside the United States or (ii) the transaction was executed in, on or through the facilities of a "designated offshore securities market" (as such term is defined in Regulation S under the U.S. Securities Act) and neither the undersigned nor any person acting on the undersigned's behalf knows that the transaction has been prearranged with a buyer in the United States, (c) neither the undersigned nor any affiliate of the undersigned nor any person acting on any of their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such common shares, (d) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the Shares are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act), (e) the undersigned does not intend to replace the Shares sold in reliance on Rule 904 of the U.S. Securities Act with fungible unrestricted securities and (f) the sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act. Terms used herein have the meanings given to them by Regulation S.

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| | |
|:---|:---|
| Dated: |  |
|  | Name of Seller (Print) |
|  | Signature of Seller |

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**Affirmation By Seller's Broker-Dealer (required for sales in accordance with Section (b)(ii) above)**

We have read the foregoing representations of our customer, _________________________ (the "**Seller**") dated _______________________, with regard to our sale, for such Seller's account, of the securities of the Company described therein, and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, (B) the transaction was executed on or through the facilities of a "designated offshore securities market", (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities, and (D) no selling concession, fee or other remuneration is being paid to us in connection with this offer and sale other than the usual and customary broker's commission that would be received by a person executing such transaction as agent. Terms used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

_____________________<br>Name of Firm

By: ___________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized officer

Date: _______________________________

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**SCHEDULE "B"**

<br>**OPTION EXERCISE FORM**

TO: Alpine Summit Energy Partners, Inc. (the "**Company**")

Attention: Chief Financial Officer

The undersigned hereby exercises the right to purchase and subscribe for the Option at the purchase price of (U.S.) $[●] per Share, payment for which is submitted with this Option Exercise Form.

TOTAL EXERCISE PRICE:

The undersigned hereby directs that the Shares hereby acquired by this Option Exercise Form be issued and delivered as follows:

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| |
|:---|
| NAME IN FULL: |
| ADDRESS IN FULL: |
| NUMBER OF SHARES: |
| DATED: |
| (Signature of Participant) |

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In connection with such exercise, if the Shares are not registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") and under the securities laws of all applicable states of the United States, and the undersigned is notified of such fact, the undersigned shall be required to represent, warrant and covenant to the Company (and acknowledge that the Company is relying thereon) that (check one):

____ 1. The undersigned is not a U.S. person (the definition of which includes, but is not limited to, a person resident in the United States, a partnership or corporation organized or incorporated under the laws of the United States, and a trust or estate of which any trustee, executor or administrator is a U.S. person), the undersigned was not offered the Shares in the United States and the options are not being exercised within the United States or for the account or benefit of a U.S. person. The terms "United States" and "U.S. person" are as defined by Rule 902 of Regulation S under the U.S. Securities Act; or

____ 2. The undersigned has either (i) delivered to the Company an opinion of counsel (which will not be sufficient unless it is from counsel of recognized standing and in form and substance reasonably satisfactory to the Company) to the effect that the issuance of the Shares is exempt from the registration and qualification requirements of the U.S. Securities Act and applicable state securities laws or (ii) completed, executed and delivered the U.S. Person Certification in the form attached as Exhibit I hereto.

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**EXHBIT I TO SCHEDULE "B"**

**FORM OF U.S. PERSON CERTIFICATION**

TO: Alpine Summit Energy Partners, Inc. (the "**Company**")

Attention: Chief Financial Officer

The undersigned U.S. Option Holder is delivering this letter in connection with the exercise of his/her option to purchase and subscribe for the Shares pursuant to the Option Exercise Form attached as Schedule "B" to Alpine Summit Energy Partners, Inc. 2021 Stock and Incentive Plan (the "**Plan**"). Capitalized terms used herein and not defined herein have the meanings ascribed thereto in the Plan.

The undersigned U.S. Option Holder represents, warrants and covenants on his or her own behalf to and with the Company, and acknowledges that the Company and its counsel are relying thereon that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The U.S. Option Holder understands and acknowledges that the Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**"), or the securities laws of any state of the United States, and that the issuance of the Shares as a result of the exercise of the Options to the U.S. Option Holder is being made pursuant to an available exemption from the registration requirements of the U.S. Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The U.S. Option Holder qualifies as an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The U.S. Option Holder acknowledges that he/she did not acquire the Options and is not acquiring the Shares as a result of "general solicitation" or "general advertising" (as such terms are used in Regulation D under the U.S. Securities Act), including without limitation, advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or on the internet, or broadcast over radio or television or on the internet, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The U.S. Option Holder is purchasing the Shares for his/her own account and not with a view to resale or distribution and, in particular, the U.S. Option Holder has no intention to distribute either directly or indirectly the securities in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The U.S. Option Holder understands and acknowledges that the Shares issued upon exercise of the Options are "restricted securities" within the meaning of Rule 144 under the U.S. Securities Act and that, if in the future it decides to offer, resell, pledge or otherwise transfer any such securities they may not be offered, sold, pledged or otherwise transferred unless pursuant to a registration under the U.S. Securities Act and the securities laws of all applicable states or available exemptions therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Upon exercise of the Options, the certificate(s) representing the Shares acquired pursuant to such exercise, and all certificates issued in exchange therefor or in substitution thereof, shall bear the following legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS, AND THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO ALPINE SUMMIT ENERGY PARTNERS, INC. (THE "COMPANY") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN COMPLIANCE WITH AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT, INCLUDING RULE 144 OR RULE 144A THEREUNDER, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER FURTHER UNDERSTANDS AND AGREES THAT IN THE EVENT OF A TRANSFER PURSUANT TO THE FOREGOING CLAUSE (D), THE COMPANY WILL REQUIRE A LEGAL OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The U.S. Option Holder consents to the Company making a notation on its records or giving instructions to any transfer agent for the Shares in order to implement the restrictions on transfer set out herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The U.S. Option Holder acknowledges that the acceptance and exercise of the Options granted pursuant to the Plan and the issuance and sale of the Shares issued pursuant to the exercise of the Options may have consequences to the U.S. Option Holder under federal, state and provincial tax and securities laws which may vary depending on the U.S. Option Holder's circumstances. Accordingly, the U.S. Option Holder further acknowledges that he/she has been advised to consult its personal legal and tax advisors in connection with the Plan and any dealings with respect to the Options or the Shares.

The undersigned U.S. Option Holder acknowledges that you will rely upon our confirmations, acknowledgements and agreements set forth herein.

---

| |
|:---|
| DATED: _____________________________________________ |
| (Signature of U.S. Option Holder) |

---

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## Exhibit 10.16

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**ALPINE SUMMIT ENERGY PARTNERS, INC.**<br>**2021 STOCK AND INCENTIVE PLAN**

**RESTRICTED STOCK UNIT AWARD AGREEMENT** 

Pursuant to the Alpine Summit Energy partners, Inc. 2021 Stock and Incentive Plan (the "**Plan**"), the Participant listed below has been granted Restricted Share Units ("**RSUs**") as designated below, in accordance with, and subject to the terms of the Plan and this restricted stock unit award agreement ("**RSU Award Agreement**"). Capitalized terms not defined herein have the meaning ascribed to them in the Plan. Each Restricted Stock Unit represents the right to receive a Subordinate Voting Share or Multiple Voting Share (a "**Share**") of the Company specified below, or the Fair Market Value of a Share, upon satisfaction of all conditions set forth in, and subject to the terms of, the Plan and this RSU Award Agreement.

**SECTION 1 RESTRICTED SHARE UNIT GRANT**:

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| | |
|:---|:---|
| **Name of Participant**: |  |
| **Type of Share (Select one)**: | ☒ Subordinate Voting Share |
|  | ☐ Multiple Voting Share |
| **Total Number of RSUs Granted**: |  |
| **Date of Grant**: |  |

---

**Vesting Conditions and Vesting Date**: Provided the Participant remains in continuous service with the Company or an Affiliate from the Date of Grant though the applicable scheduled Vesting Date (as defined below) below (each a "**Scheduled Vesting Date**"), the RSUs awarded hereunder shall become vested on the Scheduled Vesting Dates set forth below:

---

| | |
|:---|:---|
| &nbsp;&nbsp; **Scheduled Vesting Date** | &nbsp;&nbsp; **Percentage of RSUs that Vest on <br>Scheduled Vesting Date** |

---

**SECTION 2 VESTING AND SETTLEMENT OF RSUs**

**(a) General rule.** Provided the Participant remains in service through the applicable Scheduled Vesting Date or any accelerated vesting date applicable under Section 2(b) hereof (each a "**Vesting Date**"), vested RSUs will be settled as soon as practicable after such Vesting Date, and in all cases by December 31<sup>st</sup> of the year in which such Vesting Date occurs, or, if later, by the date that is two and one-half (2 ½) months following such Vesting Date provided that the Participant shall have no ability to influence, directly or indirectly, the calendar year in which settlement will occur. Notwithstanding the foregoing, all RSUs will be settled no later than the final business day of the third calendar year following the year in which the Date of Grant occurred.

**(b) Effect of Termination of 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;(i) <u>Termination of Employment or Services</u>. Upon the Participant's Termination of Employment (as defined below), any remaining unvested RSUs shall cease vesting immediately, and shall be irrevocably forfeited on the 30th day following the Participant's Termination of Employment, unless vesting is accelerated as provided below. "**Termination of Employment**" shall mean the Participant's termination of employment or service with the Company and all Affiliates. For avoidance of doubt, if the Participant is employed by an Affiliate that is sold or otherwise ceases to be an Affiliate of the Company, the Participant shall incur a Termination of Employment. Employment or service shall be deemed to continue while the Participant is on a *bona fide* leave of absence, if such leave was approved by the Company in writing and if continued crediting of service for such purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) <u>Retirement or Involuntary Termination Without Cause</u>. In the event the Participant incurs an involuntary Termination of Employment by the Company without Cause, or a voluntary Termination of Employment by reason of the Participant's Retirement, the Committee reserves the right, exercisable by the Committee prior to or within 30 days following the date of the Participant's Termination of Employment, to cause vesting of all or a portion of the remaining unvested Restricted Stock Units to be accelerated, in whole or in part, as of the date of such Termination of Employment.

(iii) <u>Disability or Death</u>. In the event the Participant's incurs a Termination of Employment by reason of the Participant's disability or death, any remaining unvested Restricted Stock Units shall vest as of the date of such Disability or death.

(iv) <u>Definition of Cause</u>. "***Cause***" for the purposes of determining whether the Participant incurs a Termination of Employment with Cause shall be determined by reference to the Participant's employment agreement or any other agreement that governs the terms pursuant to which the Participant provides services to the Company and the context of the Participant's Termination of Employment. For avoidance of doubt, if the Participant's services to the Company are terminated for cause under the terms of any governing agreement or at common law, the Participant shall incur a Termination of Employment with Cause for the purpose this RSU Award Agreement.

(v) <u>Code Section 409A</u>. The RSUs are intended to be exempt from Section 409A of the Code pursuant to the short term deferral exclusion as described in Treasury Regulation Section 1.409A-1(b)(4). However, if the RSUs are subject to Section 409A of the Code and will be settled as a result of the Participant's Termination of Employment and the Participant is a "specified employee" within the meaning of Section 409A of the Code on the date of such Termination of Employment, then settlement of such RSUs will occur on the earliest of (i) the date that is six (6) months and one day following the date of the Participant's separation from service; (ii) the applicable Scheduled Vesting Date, and (iii) the date of death if the Participant dies after otherwise experiencing a separation from service and before the earliest of the dates designated in (i) and (ii) of this paragraph. Further, to the extent applicable, Section 6(f)(v) of the Plan will apply.

**SECTION 3 ADJUSTMENT OF SHARES**

In the event of any event described in Section 4(c) of the Plan, the terms of this RSU award (including, without limitation, the number and kind of Shares subject to this RSU award) shall be adjusted as set forth in Section 4(c) of the Plan. In the event that the Company is a party to any corporate transaction, the RSUs granted hereunder shall be subject to amendment as provided in Section 7(b) of the Plan.

**SECTION 4 U.S. SECURITIES RESTRICTIONS**

The RSUs and the Shares may not be offered, sold, granted or issued except pursuant to registration under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") and the securities laws of all applicable states or available exemptions therefrom. If the RSUs and the Shares are not registered under the U.S. Securities Act and, if the Participant is a U.S. person, or was present in the United States at the time the Participant was offered the RSUs or at the time the Participant signed this RSU Award Agreement, the U.S. RSU Holder Supplement annexed to this RSU Award Agreement as Schedule "A" will be deemed to be incorporated by reference into and form a part of this RSU Award Agreement, and the Participant acknowledges and agrees that the certificate representing the Shares will bear, in accordance with the terms of the U.S. RSU Holder Supplement, a legend restricting transfer without registration under the U.S. Securities Act and applicable state securities laws unless an exemption from such registration is available. "U.S. person" and "United States" are as defined in Regulation S under the U.S. Securities Act.

------

**SECTION 5 MISCELLANEOUS PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Rights as a Shareholder**. Neither the Participant nor the Participant's representative shall have any rights as a shareholder with respect to any Shares subject to this RSU Award Agreement until Shares are delivered upon settlement of the RSUs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Compliance Matters**. The Company may require from the Participant such investment representation, undertaking or agreement, if any, as the Company may consider necessary in order to comply with applicable laws and policies of any applicable Exchange. The Participant understands and acknowledges that Shares to be issued settlement of the RSUs may be issued subject to any restrictive legend or other transfer restrictions as may be required by applicable securities laws and stock exchange requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) No Retention Rights**. Nothing in this RSU Award Agreement or in the Plan shall confer upon the Participant any right to continue in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Affiliate employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her service at any time and for any reason, with or without Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Incorporation of Policies**. This RSU Award Agreement and all compensation awarded under this RSU Award Agreement shall be subject to the terms of any clawback, noncompetition, confidentiality or nondisclosure policies or agreements as may be in place between the Participant and the Company or any Affiliate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Notice**. Any notice required by the terms of this RSU Award Agreement shall be given in writing and notice to the Company shall be deemed effective upon receipt by the Company (i) upon personal delivery, (ii) through registered or certified mail with postage and fees prepaid; or (iii) through electronic notification using a form and process approved by the Company. If mailed or delivered, notice to the Company shall be addressed to the Company at its principal executive office and notice to the Participant shall be addressed to the address that he or she most recently provided to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Entire Agreement**. This RSU Award Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) Governing Law; Venue**. The laws of the Province of British Columbia shall govern all matters arising out of or relating to this RSU Award Agreement including, without limitation, its validity, interpretation, construction and performance but without giving effect to the conflict of laws principles that may require the application of the laws of another jurisdiction. Any party bringing a legal action or proceeding against any other party arising out of or relating to this RSU Award Agreement may bring the legal action or proceeding in any court in the Province of British Columbia. Each party waives, to the fullest extent permitted by law (i) any objection it may now or later have to the laying of venue of any legal action or proceeding arising out of or relating to this RSU Award Agreement brought in a court described in the preceding sentence and (ii) any claim that any legal action or proceeding brought in any such court has been brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) Income Taxes**. In the event that the Company or an Affiliate of the Company determines that it is required to withhold any tax as a result of the grant, vesting or settlement of RSUs, the Participant shall make arrangements satisfactory to the Company to enable the Company, or an Affiliate, as applicable, to satisfy all federal, state, local or foreign payroll, income, or other taxes required to be withheld in connection with this Agreement (the "**Withholding Obligations**"). In such circumstances, the Plan Administrator may require that the Participant pay to the Company, or the Affiliate, the amount of the Withholding Obligations. Alternatively, and subject to any requirements or limitations under applicable law, the Company or any Affiliate may (a) withhold such amount from any remuneration or other amount payable by the Company or any Affiliate to the Participant, (b) to the extent permitted by applicable Exchange rules, require the sale, on behalf of the Participant, of a number of Shares issued upon settlement of the RSUs and the remittance to the Company of the net proceeds from such sale sufficient to satisfy the Withholding Obligations, or (c) enter into any other suitable arrangements for the receipt of such amount. The Participant hereby authorizes the Company, at its sole discretion and subject to any limitations under applicable law, to satisfy any such Withholding Obligations by withholding from the wages and other cash compensation payable to the Participant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Dividend Equivalents**. Dividend equivalents on unvested RSUs will be credited to the notional RSU account of the Participant and will be subject to the same terms and conditions, including vesting and time of settlement, as the underlying RSUs to which they relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j) Acknowledgment**. The grant of RSUs hereunder shall not be effective until the Participant dates and signs the form of acknowledgment below and returns a signed copy or otherwise signs pursuant to any method of electronic acceptance approved by the Company or made available to the Participant through the platform of any third-party administrator or record-keeper retained by the Company to administer Awards granted under the Plan. By Participant's signature and the signature of the Company's representative, the Participant and the Company agree that this RSU Award is granted under and governed by the terms and conditions of the Alpine Summit Energy Partners, Inc. 2021 Stock and Incentive Plan and this RSU Award Agreement.

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| | |
|:---|:---|
| PARTICIPANT: | ALPINE SUMMIT ENERGY PARTNERS, INC. |
|  | By: |
|  | Title: |
| Print Name |  |

---

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**SCHEDULE "A"**

**U.S. RSU HOLDER SUPPLEMENT**

If the Participant is a U.S. person, or was present in the United States at the time the Participant was offered the RSUs or at the time the Participant executed and delivered the RSU Award Agreement (the "**U.S. RSU Holder**"), the U.S. RSU Holder acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The U.S. RSU Holder is acquiring the Shares issued by the Company in respect of vested RSUs pursuant to the Plan as principal and for the account of the U.S. RSU Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In issuing the Shares to the U.S. RSU Holder in respect of vested RSUs pursuant to the Plan, the Company is relying on the representations and warranties of the U.S. RSU Holder contained herein to support the conclusion of the Company that the issuance of Shares in respect of vested RSUs pursuant to the Plan does not require registration under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") or to be qualified under the securities laws of any state of the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The U.S. RSU Holder qualifies as an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The RSUs and any Shares that may be issued by the Company in respect of vested RSUs pursuant to the Plan have not been and will not be registered under the U.S. Securities Act, and the issuance hereby is being made pursuant to an exemption from the registration requirements of the U.S. Securities Act and similar exemptions under applicable state securities laws. Accordingly, the RSUs are, and, upon issuance, the Shares will be, "restricted securities" as such term is defined in Rule 144 under the U.S. Securities Act, and, therefore may not be offered, sold, pledged or otherwise transferred by the U.S. RSU Holder without registration under the U.S. Securities Act and applicable state securities laws or in compliance with an available exemption therefrom. The U.S. RSU Holder understands that the certificate(s) representing the RSUs and any Shares issued in respect of vested RSUs pursuant to the Plan will contain a legend in respect of such restrictions as set out in Section 5 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The certificate(s) representing the Shares, if any, that are issued by the Company and all certificate(s) issued in exchange therefor or in substitution thereof, will be endorsed with the following or a similar legend until such time as it is no longer required under the applicable requirements of the U.S. Securities Act or applicable state securities laws:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS, AND THE SECURITIES REPRESENTED HEREBY MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO ALPINE SUMMIT ENERGY PARTNERS, INC. (THE "COMPANY") (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT AND IS AVAILABLE FOR RESALE OF THE SECURITIES, OR (D) IN COMPLIANCE WITH AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT, INCLUDING RULE 144 OR RULE 144A THEREUNDER, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER FURTHER UNDERSTANDS AND AGREES THAT IN THE EVENT OF A TRANSFER PURSUANT TO THE FOREGOING CLAUSE (D), THE COMPANY WILL REQUIRE A LEGAL OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

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provided, that if the Shares are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation S under the U.S. Securities Act ("**Regulation S**"), the legend set forth above may be removed by providing an executed declaration to the registrar and transfer agent of the Company, substantially in the form attached as Exhibit I hereto (or in such other form as the Company or its transfer agent may prescribe from time to time) and, if requested by the Company or the transfer agent, an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company and the transfer agent to the effect that such sale is being made in compliance with Rule 904 of Regulation S; and provided, further, that, if any Shares are being sold otherwise than in accordance with Regulation S and other than to the Company, the legend may be removed by delivery to the Company and its registrar and transfer agent of an opinion of counsel, of recognized standing reasonably satisfactory to the Company, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The U.S. RSU Holder acknowledges that the Company may have federal, state, provincial or local tax withholding and reporting obligations and consents to such actions by the Company as may reasonably be required to comply with such obligations in connection with the issuance of the Shares in respect of vested RSUs pursuant to the Plan. The acceptance of the RSUs and any Shares that may be issued by the Company in respect of vested RSUs pursuant to the Plan may have consequences under federal, provincial and other tax and securities laws which may vary depending on the individual circumstances of the U.S. RSU Holder. Accordingly, the U.S. RSU Holder acknowledges that the U.S. RSU Holder has consulted, as the U.S. RSU Holder considers necessary, personal legal and tax advisors in connection with the RSUs and the U.S. RSU Holder dealings with respect to the RSUs or the Shares to be issued in respect of vested RSUs pursuant to the Plan.

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**EXHIBIT I TO Schedule "A"**

**FORM OF DECLARATION FOR REMOVAL OF U.S. LEGEND**

TO: Alpine Summit Energy Partners, Inc. (the "**Company**")

AND TO: Transfer Agent of the Company

The undersigned acknowledges that the undersigned's sale of the Shares of the Company represented by certificate or account number _____________ to which this declaration relates is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") and certifies that (a) the undersigned is either not an affiliate of the Company as that term is defined in Rule 405 of the U.S. Securities Act or is an affiliate as so defined solely by virtue of holding his position as an officer or director, (b) the offer of such Shares was not made to a person in the United States and either (i) at the time the buy order was originated, the buyer was outside the United States or the undersigned and any person acting on the undersigned's behalf reasonably believed that the buyer was outside the United States or (ii) the transaction was executed in, on or through the facilities of a "designated offshore securities market" (as such term is defined in Regulation S under the U.S. Securities Act) and neither the undersigned nor any person acting on the undersigned's behalf knows that the transaction has been prearranged with a buyer in the United States, (c) neither the undersigned nor any affiliate of the undersigned nor any person acting on any of their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such common shares, (d) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the Shares are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act), (e) the undersigned does not intend to replace the Shares sold in reliance on Rule 904 of the U.S. Securities Act with fungible unrestricted securities and (f) the sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act. Terms used herein have the meanings given to them by Regulation S.

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| | |
|:---|:---|
| Dated: |  |
|  | Name of Seller (Print) |
|  | Signature of Seller |

---

**Affirmation By Seller's Broker-Dealer (required for sales in accordance with Section (b)(ii) above)**

We have read the foregoing representations of our customer, _________________________ (the "**Seller**") dated _______________________, with regard to our sale, for such Seller's account, of the securities of the Company described therein, and on behalf of ourselves we certify and affirm that (A) we have no knowledge that the transaction had been prearranged with a buyer in the United States, (B) the transaction was executed on or through the facilities of a "designated offshore securities market", (C) neither we, nor any person acting on our behalf, engaged in any directed selling efforts in connection with the offer and sale of such securities, and (D) no selling concession, fee or other remuneration is being paid to us in connection with this offer and sale other than the usual and customary broker's commission that would be received by a person executing such transaction as agent. Terms used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

_________________________<br>Name of Firm

By: ______________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized officer

Date: <u>_______________________</u>

------

## Exhibit 10.17

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**SCHEDULE "A"**<br>**ALPINE SUMMIT ENERGY PARTNERS, INC.**<br>**DEFERRED SHARE UNIT GRANT LETTER**

This Deferred Share Unit grant letter is entered into between Alpine Summit Energy Partners, Inc. (the "**Company**") and the Eligible Director named below pursuant to the Company's deferred share unit plan (the "**Plan**"), a copy of which is incorporated by reference herein, and confirms the following Deferred Share Unit grant on the terms set out below and as further set out in the Plan:

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| |
|:---|
| &nbsp;&nbsp;Eligible Director: |
| &nbsp;&nbsp;Address of Eligible Director: |
| &nbsp;&nbsp;Deferred Share Unit Grant: |
| &nbsp;&nbsp;Grant Date: |
| &nbsp;&nbsp;Vesting: |
| &nbsp;&nbsp;Conditions, Restrictions, Performance, Objectives and/or Limitations, if any: |

---

By receiving and accepting the Deferred Share Unit award, the Eligible Director acknowledges that:

1. I have received a copy of the Plan, I have read and understand the it, and I agree to the terms and conditions of the Plan and this Deferred Share Unit grant letter;

2. The value of a Deferred Share Unit is based on the trading price of a Share and is thus not guaranteed. The eventual value of a Deferred Share Unit on the applicable settlement date may be higher or lower than the value of the Deferred Share Unit at the time it was allocated to my account under the Plan.

3. I may be liable for income tax when Deferred Share Units are redeemed in accordance with the Plan. Any cash payments made pursuant to the Plan shall be net of applicable withholding taxes (including, without limitation, applicable source deductions). I understand that the Company is making no representation to me regarding taxes applicable to me under the Plan and I will confirm the tax treatment with my own tax advisor.

4. No funds will be set aside to guarantee the redemption of Deferred Share Units or the payment of any other sums due to me under the Plan. Future payments pursuant to the Plan are an unfunded liability recorded on the books of the Company. Any rights under the Plan by virtue of a grant of Deferred Share Units shall have no greater priority than the rights of an unsecured creditor.

5. I acknowledge and agree (and shall be conclusively deemed to have so acknowledged and agreed by participating in the Plan) that I shall, at all times, act in strict compliance with the Plan and all applicable laws, including, without limitation, those governing "insiders" of "reporting issuers" as those terms are construed for the purposes of applicable securities laws, regulations and rules.

6. I agree to provide the Company with all information and undertakings that the Company requires in order to administer the Plan and comply with applicable laws.

7. I understand that all capitalized terms not defined herein shall have the meanings attributed to them under the Plan.

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8. I understand that the DSUs awarded hereunder are subject to applicable securities laws, and no securities may be issued hereunder unless permitted by all applicable securities laws. Further, as a condition to any grant hereunder or the receipt of securities pursuant thereto, I may be required to deliver evidence reasonably requested by the Company in order to confirm to the Company's satisfaction that I am eligible to receive securities awarded hereunder.

9. I acknowledge and agree that the DSUs and any Shares that may be issued by the Company pursuant to the redemption of the DSUs may not be registered under the United States Securities Act of 1933, as amended (the "**U.S. Securities Act**") or the securities laws of any state of the United States. The DSUs and the Shares that may be issued by the Company pursuant to the settlement of the DSUs may not be granted or issued except pursuant to registration under the U.S. Securities Act and the securities laws of all applicable states or available exemptions therefrom.

10. I acknowledge and covenant that if I am a U.S. person, or was present in the United States at the time I was offered the DSUs or at the time I executed and delivered this agreement, and the Shares issuable on redemption of the DSUs are not registered under the U.S. Securities Act, the U.S. DSU Holder Supplement annexed hereto as Appendix "A" will be deemed to be incorporated by reference into and form a part of this grant letter. "**U.S. person**" and "**United States**" are as defined in Regulation S under the U.S. Securities Act.

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| | |
|:---|:---|
| &nbsp;&nbsp;**ALPINE SUMMIT ENERGY PARTNERS, INC.** | &nbsp;&nbsp;**ALPINE SUMMIT ENERGY PARTNERS, INC.** |
| &nbsp;&nbsp;By: |  |
|  | &nbsp;&nbsp;Authorized Signing Officer |

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    <br> Witness Name of Individual Eligible Director:

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## Exhibit 10.18

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**ALPINE SUMMIT ENERGY PARTNERS, INC.**

**As of ___________________, 202___**

**_________________**

Dear _________,

<u>**[Form of] Indemnity Agreement**</u>

In consideration of your service or continued service in any of the following capacities:

* as a director of Alpine Summit Energy Partners, Inc. (the "**Corporation**") or any other entity to the extent that you are serving in such capacity at the request of the Corporation; or

* as an officer of the Corporation or any other entity to the extent that you are serving in such capacity at the request of the Corporation,

such capacities referred to herein as the "**Indemnified Capacities**", the Corporation with full power and authority to grant an indemnity valid and binding upon and enforceable against it in the terms hereinafter contained, hereby agrees to indemnify you to the full extent contemplated by this Agreement.

**1.** <u>**Scope of Indemnity**</u>

Subject to the limitation contained in Section 6 hereof, the Corporation shall indemnify and hold you harmless for the full amount of any Cost (as defined below) reasonably incurred by you in connection with any Proceeding (as defined below) that may be made or asserted against or affect you or in which you are required by law to participate or in which you participate at the request of the Corporation or in which you choose to participate (based on your reasonable belief that you may be subsequently named in that Proceeding or any Proceeding related to it) if it relates to, arises from or is based on your service in an Indemnified Capacity on or after the date of this Agreement, in any case whether or not you have been named therein (an "**Indemnified Claim**"). The Corporation shall also indemnify and hold you harmless for the full amount of any other Cost reasonably incurred by you or to which you are subject (including, without restriction, where you are made a witness or participant in any other respect in any action, proceeding or investigation) if it relates to your service in an Indemnified Capacity or any other matters claimed against you solely by reason of you having acted in an Indemnified Capacity (an "**Other Indemnified Matter**"). Any amount which the Corporation is obliged to pay pursuant hereto is referred to as an "**Indemnified Amount**".

For the purposes of this Agreement:

"**Cost**" means all injury, liability, loss, damage, charge, cost, expense, taxes (other than taxes on any fees or salary or other form of compensation), fine or settlement amount whatsoever which you may reasonably incur, suffer or be required to pay (including, without limitation, all legal and other professional fees as well as all out-of-pocket expenses for attending discoveries, trials, hearings and meetings); and

"**Proceeding**" means any civil, criminal, administrative, investigative or other claim, action, suit, application, litigation, charge, complaint, prosecution, assessment, reassessment, investigation, inquiry, hearing or proceeding of any nature or kind whatsoever, and, without limiting the generality of the foregoing, shall include any and every claim for any liability and/or any legal, regulatory or investigative action or proceeding by any governmental or regulatory authority or any person, firm, corporation or other entity whatsoever, whether such action, proceeding or investigation be pending, anticipated or threatened and including without limitation any and every claim by or on behalf of the Corporation, or by or on behalf of Canada or any other country, or any political subdivision thereof.

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**2.** <u>**Procedure for Making a Claim**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If you become aware of any Indemnified Claim or Other Indemnified Matter or reasonably expect that an Indemnified Claim will be made or an Other Indemnified Matter will arise, you shall give notice in writing as soon as reasonably practicable to the Corporation of such Indemnified Claim or Other Indemnified Matter or potential Indemnified Claim or Other Indemnified Matter, including copies of any documents served on you in connection with a Proceeding or any other relevant documents in your possession, provided, however, that failure to give notice in a timely fashion shall not disentitle you to the right to indemnity under this Agreement except to the extent the Corporation suffers prejudice by reason of a delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If you wish to make any claim for payment of an Indemnified Amount to you by the Corporation hereunder, you shall give written notice of such claim to the Corporation (such written notice referred to herein as an "**Indemnification Notice**"). Such Indemnification Notice shall contain reasonable details and supporting documentation with respect to the claim referred to therein. Subject to the provisions of Section 6 hereof, the Corporation shall pay all Indemnified Amounts arising in connection with the matters described in the Indemnification Notice to you (or as you may direct) no later than thirty (30) days after the date on which you deliver any invoice or account in respect of any such Indemnified Amount to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Corporation becomes aware of any Indemnified Claim or Other Indemnified Matter or reasonably expects that an Indemnified Claim will be made or an Other Indemnified Matter will arise, the Corporation will give you notice in writing promptly of such Indemnified Claim or Other Indemnified Matter or potential Indemnified Claim or potential Other Indemnified Matter.

**3.** <u>**Defence of Action**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By the Corporation</u>. The Corporation (or its insurer(s)) shall at its expense and in a timely manner contest and defend you against any Indemnified Claim and take all such steps as may be necessary or proper therein to prevent the resolution thereof in a manner adverse to you, including the taking of such appeals as counsel to the Corporation (or its insurer(s)) may advise are likely to succeed in the circumstances. In this regard, the Corporation will keep you fully informed on a timely basis of all steps and developments relating to the foregoing. The Corporation shall not agree to any settlement on your behalf without your written consent unless the terms of such settlement require only the payment of money (by persons or entities other than you) and do not require you to admit any wrongdoing or take or refrain from taking any action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By You</u>. Notwithstanding Section 3(a) hereof, you will be entitled to assume carriage of your own defence relating to any Indemnified Claim (and for greater certainty, the full amount of any reasonable expense you incur in connection with such defence shall be an Indemnified Amount subject to the provisions of Section 6 hereof) if:

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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) the Corporation (or its insurer(s)) does not in a timely manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) undertake appropriate action in respect to an Indemnification Notice delivered pursuant to Section 2; 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;&nbsp;&nbsp;&nbsp;&nbsp;(B) take such legal steps as may be from time to time required to properly defend against any such Indemnified Claim;

&nbsp;&nbsp;&nbsp;&nbsp;&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 reasonable opinion of your counsel (which opinion shall be in writing and a copy thereof provided to the Corporation), your interests in respect of the relevant matter conflict with the interests of the Corporation in respect of such matter or with the interests of any other director or officer of the Corporation in respect of whose defence the Corporation has carriage; 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 Proceeding is initiated by the Corporation or any of its subsidiaries.

**4.** <u>**Presumptions and Settlement**</u>

For the purposes of this Agreement, the termination of any Proceeding by judgment, order, settlement (whether with or without court approval) or conviction shall not, of itself, create a presumption that you 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. No settlement shall be undertaken by you in respect of any Proceeding without the consent of the Corporation unless the Corporation and its insurer(s) have indicated that they would not indemnify you according to this Agreement or any applicable directors' and officers' liability insurance policy.

**5.** <u>**Continued Indemnification**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You shall continue to be entitled to indemnification hereunder, even though you may no longer be acting in an Indemnified Capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) You and your advisors shall at all times be entitled to review during regular business hours all documents, records and other information with respect to the Corporation or any entity in which you acted in an Indemnified Capacity which are under the Corporation's control and which may be reasonably necessary in order to defend yourself against any Proceeding that relates to, arises from or is based on your discharge of your duties in an Indemnified Capacity, provided that you shall maintain all such information in strictest confidence except to the extent necessary for your defence. This Section 5(b) shall not apply where the Proceeding is initiated by the Corporation or any of its subsidiaries nor shall it apply where the review by you and/or your advisors of any such documents, records or other information would, in the opinion of legal counsel to the Corporation, cause the Corporation (or any entity in which you acted in an Indemnified Capacity) to lose its entitlement to claim privilege with respect to the disclosure of same in any proceeding in any jurisdiction.

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**6.** <u>**Limitation on Obligation of Indemnification**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall not indemnify you pursuant to this Agreement unless:

&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) you acted honestly and in good faith with a view to the best interests of the Corporation or, as the case may be, to the best interests of the other entity for which you acted as a director or officer at the Corporation's request; 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;(ii) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, you had reasonable grounds for believing that your conduct was lawful;

provided however, that for the purposes of any determination hereunder, in the absence of compelling evidence to the contrary, you shall be deemed to have acted in good faith and in the best interests of the Corporation. The burden shall be on the Corporation to establish an absence of good faith. The knowledge and/or actions or failure to act of any other director, officer, agent or employee of the Corporation or any other entity shall not be imputed to you for the purposes of determining the right to indemnification under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Corporation pays an Indemnified Amount which it is not permitted to pay by law or pursuant to this Agreement, then such amount shall be deemed to have been a loan by the Corporation to you and upon written request by the Corporation, you shall repay such amounts to the Corporation within thirty (30) days of such written request for reimbursement. No interest shall be payable by you with respect to such loan unless such loan is not repaid within such period of thirty (30) days, in which event interest shall be payable thereon at the rate of five percent (5%) per annum, computed from the date which is thirty (30) days following the written request of the Corporation for repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If you subsequently receive indemnification or reimbursement in respect of all or any part of an Indemnified Amount from a source other then the Corporation, the amounts so advanced and paid by the Corporation shall be repaid by you to the Corporation within thirty (30) days of a written request for repayment to the extent that you have received indemnification or reimbursement from such other source and the provisions of Section 6(b) above with respect to interest on such amount shall apply herein, *mutatis mutandi*s*.*

**7.** <u>**Advances**</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall periodically reimburse or advance the funds necessary for the payment of Costs reasonably incurred in connection with the investigation, monitoring, defence and appeal of any Proceeding in advance of the final disposition of such Proceeding, within thirty (30) days of any request in writing by you to the Corporation for such reimbursement or advance, accompanied by reasonable details and supporting documentation with respect to the Indemnified Amounts in respect of which such reimbursement or advance is requested, including, without limitation, in circumstances in which the Corporation shall commence any action against you or where you are required to pay or deposit any money as security for costs or in respect of any Cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If and to the extent that the Corporation determines, acting reasonably, that you would not be permitted to be indemnified pursuant to this Agreement, the Corporation shall have no obligation to reimburse or advance any funds to you pursuant to this Agreement unless you commence legal proceedings in a court of competent jurisdiction to secure a determination that you should be indemnified pursuant to this Agreement. In the event that you institute such legal proceedings, then the Corporation shall continue to reimburse or advance funds to you pursuant to Section 7(a) until such time as the Corporation has secured a final judicial determination establishing that you are not entitled to be indemnified pursuant to this Agreement.

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**8.** <u>**Indemnification for Expenses Incurred in Enforcing Rights**</u>

The Corporation shall indemnify you against all Costs that are incurred by you in connection with any action brought by you, the Corporation or a third party to determine whether you are entitled to be indemnified by the Corporation under this Agreement, under any other agreement or under applicable law now or hereafter in effect relating to indemnification, but only in the event that you are ultimately determined to be entitled to such indemnification. Furthermore, if so requested by you, the Corporation shall periodically reimburse or advance the funds necessary for the payment of Costs that are reasonably incurred by you in connection with the investigation, monitoring, defence and appeal of the foregoing action in advance of the final disposition, within thirty (30) days of any such request in writing by you.

**9.** <u>**Tax Adjustment**</u>

If any amount payable under this Agreement constitutes a taxable benefit to you or otherwise subjects you to any tax or levy of any kind, or any taxing authority so alleges, the Corporation will keep you harmless from any such tax or levy and, without limiting the foregoing, shall timely pay to you or on your behalf the amount of any and all such taxes and levies, together with any interest and penalties thereon not arising exclusively from your gross negligence or wilful misconduct, including any such amounts relating to any payment under this Section 9, so that no such amount will be an unreimbursed expense to you. The Corporation also will reimburse you, on a similar after tax basis, for any reasonable costs (including the costs of professional advisors) incurred by you in connection with any payment to which this Section 9 relates or the enforcement by you of your rights hereunder. The amount of any payment hereunder shall be determined without regard to any deductions, credits offsets or similar amounts or adjustments available to you in computing income, taxable income, tax payable or other relevant amounts (except to the extent arising from payments under this Section 9). For clarity, you shall not be obliged to contest any claim that tax, other levy, penalty or interest to which this Section 9 applies is owing, and your rights under this Section 9 are not dependent on the validity of any such claim.

**10.** <u>**Approvals**</u>

Where any indemnification sought pursuant to this Agreement is, pursuant to applicable law, subject to or conditional upon the approval or consent of any court or of any governmental body or regulatory authority, the Corporation agrees to make or cause to be made all necessary applications and to use its reasonable best efforts to obtain or assist in obtaining or facilitating the obtaining of such approval or consent, at its expense.

**11.** <u>**Partial Indemnification**</u>

If you are entitled under any provision of this Agreement to indemnification by the Corporation for some or a portion of the Costs in respect of a Proceeding, but not for the total amount of such Costs, the Corporation shall nevertheless indemnify you for the portion of such Costs to which you are entitled.

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**12.** <u>**Further Assurances**</u>

Each of you and the Corporation shall diligently attend to, and assist in the conduct of, the defence of any Proceeding, shall assist in enforcing any right of contribution or indemnity against any person or organization and shall (or in the case of the Corporation, shall cause its appropriate officers, directors, advisors or personnel to) attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses.

**13.** <u>**Non-Exclusivity**</u>

Your rights under this Agreement shall be in addition to any other rights that you may have under the Corporation's by-laws or articles, applicable law 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 this Agreement or under the Corporation's by-laws or articles, it is the intent of the parties hereto that you may enjoy by this Agreement the greater benefits so afforded by that change. Your rights under this Agreement shall not be diminished by any present or future provision of the Corporation's by-laws or articles and shall not diminish any other rights that you now or in the future have against the Corporation.

**14.** <u>**Severability**</u>

If any part of this Agreement or the application of such part to any circumstance shall, to any extent, be invalid or unenforceable, such part or the application of such part shall be interpreted and applied to such extent so as to be valid and enforceable in the circumstances, and the remainder of this Agreement, or the application of such part to any other circumstance, shall not be affected thereby and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

**15.** <u>**Enurement**</u>

This Agreement and the benefit of the obligations of the undersigned hereunder shall enure to the benefit of and be binding upon you, your heirs, estate, executors and administrators and shall be binding upon the Corporation's successors and assigns.

**16.** <u>**Previous Indemnities and Retroactivity**</u>

This Agreement supersedes and replaces all prior indemnities entered into between the Corporation and you with respect to the subject matter of this Agreement, provided however, that nothing in this provision shall operate to restrict in any way any indemnity to which you are entitled under the Corporation's by-laws or otherwise at law. No payment shall be made under this Agreement to the extent to which you are indemnified by any insurer or by the Corporation other than pursuant to this Agreement. This Agreement shall be deemed to have been in effect during all periods that you were acting in an Indemnified Capacity, regardless of the date of this Agreement.

**17.** <u>**Subrogation**</u>

In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of your rights of recovery. All of your actions to assist the Corporation in securing and enforcing its subrogation rights shall themselves be subject to the terms of this Agreement.

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**18.** <u>**Governing Law and Jurisdiction**</u>

This Agreement shall be governed by the laws of the Province of British Columbia and the laws of Canada applicable therein. Any dispute arising out of or relating to this Agreement shall, at the choice of either party hereto, be decided before a court in the Province of British Columbia without prejudice to the rights of either party to bring action in any court of any other jurisdiction.

**19.** <u>**Notices**</u>

Any notices to be given pursuant hereto shall be given to the Corporation at its address set forth above, Attention: General Counsel, and to you at your address on the books and records of the Corporation.

**20.** <u>**Language**</u>

The parties have requested that this Agreement and all notices and proceedings pursuant hereto be drawn up in the English language. *Les parties ont demandé que ce contrat ainsi que tout document, avis, et procédure légale découlant soient rédigés en anglais.*

**21.** <u>**Counterpart Execution**</u>

This Agreement may be executed in two counterparts, each of which so executed shall be deemed to be an original, and such counterparts together shall constitute one and the same instrument.

*[Remainder of page intentionally left blank. Signature page follows]*

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DATED as of the date first written above.

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| | |
|:---|:---|
| **ALPINE SUMMIT ENERGY PARTNERS, INC.** | **ALPINE SUMMIT ENERGY PARTNERS, INC.** |
| By: |  |
|  | Authorized Signatory |

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The undersigned accepts the foregoing indemnity and agrees to comply with the terms and conditions set out above. <br>

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## Exhibit 10.19

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*Execution Version*

<u>MEMBER SERVICES AGREEMENT</u>

THIS MEMBER SERVICES AGREEMENT (this ***"Agreement"**)* is entered into and effective as of May 7, 2022 (the ***"Effective Date"**),* by and between HB2 Origination. LLC, a Delaware limited liability company (the ***"Company"),*** and Craig Perry *(**"Member"**).*

WHEREAS, the Company is a majority owned subsidiary of Alpine Summit Energy Investors, Inc. ("**ASEI**"), and ASEI is a wholly owned subsidiary of Alpine Summit Energy Partners, Inc. ("**ASEP**"). References to the Company's affiliates in this Agreement shall include, without limitation, ASEI and ASEP;

WHEREAS, Member is a self-employed individual;

WHEREAS, concurrently herewith, Member is entering into a Restrictive Covenant Agreement with the Company (the ***"Restrictive Covenant Agreement"**);* and

WHEREAS, effective as of May 7, 2022, the Company desires to engage Member to provide services to the Company and to enter into this Agreement embodying the terms of such engagement, and Member desires to enter into this Agreement and to accept such engagement, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Service Term.</u> The Company hereby agrees to engage Member in the capacities set forth in this Agreement and Member hereby agrees to accept such engagement with the Company, upon terms and conditions contained in this Agreement for the period beginning on the Effective Date and continuing until the third anniversary of the Effective Date (the ***"Initial Term"**),* subject to <u>Section 8; provided,</u> that the term of this Agreement shall automatically be extended for one (1) additional year commencing on the third anniversary of the Effective Date and on each anniversary thereafter (each, a ***"Renewal Term"**)* unless, not less than ninety (90) days prior to the commencement of any such Renewal Term, either the Company or Member shall have given written notice to the other that it does not wish to extend this Agreement (a **"*****Non-Renewal Notice"**),* in which case, Member's engagement under this Agreement shall terminate upon the close of business on the last day of the Initial Term or the then-current Renewal Term as applicable. The period during which Member is engaged by the Company pursuant to this Agreement is hereinafter referred to as the ***"Term".*** Member understands and acknowledges that as an equity holder in the Company he is a member thereof and therefore is not an employee of the Company and that Member is, and shall perform services under this Agreement as, a self-employed individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Service Duties.</u> During the Term, Member shall be engaged and serve as the Chief Executive Officer of the Company and shall have such duties, authorities and responsibilities as are customarily performed, undertaken and exercised by persons serving in a similar capacity. To the extent the Company is a party to any services agreements ***("Services Agreement"**),* Member shall be responsible for performing such duties within Member's scope of responsibility to facilitate the Company's performance under such agreements. During Member's engagement with the Company hereunder, Member shall report to the board of directors (or similar governing body) of ASEP (the ***"Board"**)*. If requested, Member shall also serve as (i) an executive officer of the Company or any of its affiliates and/or (ii) a board member or advisor of the Board and/or the board of directors (or similar governing body) of any of the Company's affiliates, in each case, without additional compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Performance;</u> <u>Principal Place of Service</u>. Member shall devote Member's full working time and attention and Member's best efforts to Member's service with the Company and shall perform Member's services in a capacity and in a manner consistent with Member's position for the Company, and shall not engage in any other business or occupation during the Term; <u>provided,</u> that the foregoing shall not be interpreted as prohibiting Member from (i) managing Member's personal investments (so long as such investment activities are of a passive nature), (ii) engaging in charitable or civic activities or (iii) holding passive investments (including co-investments in entities unrelated to the Company); in the case of clauses (i), (ii) and (iii), so long as such activities do not, individually or in the aggregate, (x) conflict with or materially interfere with the performance of Member's duties and responsibilities hereunder, (y) create a fiduciary conflict, or (z) result in a violation of the Restrictive Covenant Agreement. In performance of the services hereunder, Member generally shall provide no less than forty (40) hours of work per week. The Company shall provide Member an office located at the Company's principal office in Nashville, TN for so long as Member resides in such locality during the Term. Member understands and agrees that Member may be required to travel from time to time for business reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Base</u> <u>Compensation.</u> During the Term, the Company shall pay Member base compensation at an annual rate of Five Hundred Thousand and NO/100 Dollars ($500,000.00), payable in accordance with the Company's normal payment practices as in effect from time to time, but in no event less than bi-weekly. Member's annual base compensation, as in effect from time to time, is hereinafter referred to as the **"Base Compensation"**. The Base Compensation shall be reviewed annually by the Board, and, in the sole discretion of the Board, may be increased (but not decreased) effective as of the date determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Annual Bonus.</u> With respect to each calendar year during the Term, Member shall be eligible to earn an annual bonus award (the ***"Annual Bonus")*** payable in cash, vested property or a combination thereof, as determined by the Company, subject to the achievement of individual and company performance goals determined by the Board and communicated to the Member in writing. The Annual Bonus, if any, for each calendar year during the Term shall be paid to Member as soon as reasonably practicable after the certification of the financial statements for the performance period to which such Annual Bonus relates and at the same time that other senior executives of the Company receive annual bonus payments, but in all events no earlier than January 1 and no later than June 30 of the calendar year following the calendar year to which the Annual Bonus relates. Except as otherwise provided for in this Agreement, Member shall not be paid any Annual Bonus with respect to a calendar year unless Member is engaged hereunder with the Company on December 31 of the calendar year to which such Annual Bonus relates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Benefits.</u> During the Term, Member shall be entitled to participate in any benefit plans or programs (but excluding any severance plan unless specifically referenced in this Agreement) offered by the Company to individuals who provide services to the Company (including employees and member service providers) as in effect from time to time (collectively, ***"Benefit Plans"**),* to the extent consistent with applicable law and the terms of the applicable Benefit Plan, including as regards participation by self-employed individuals. The Company does not promise the adoption or continuance of any particular Benefit Plan or that Member, as a self employed individual, will be eligible to participate therein or to participate on the same terms thereunder as employees of the Company and reserves the right to amend or cancel any Benefit Plan at any time in its sole discretion (subject to the terms of such Benefit Plan and applicable law). Member shall be entitled to twenty-nine (29) days of paid time off per year, and up to ten (10) days of such accrued, unused paid time off may be carried over into subsequent years (with any accrued, unused paid time off exceeding ten (10) days forfeited at the end of the year). During the Term, the Company shall also provide Member with substantially the same perquisite benefits made available to other similarly situated individuals who provide services to the Company (including employees and member service providers), to the extent consistent with applicable law, including as regards provision of such benefits to self-employed individuals. Member agrees to pay all tax liabilities associated with any and all benefits provided pursuant to this Section 6 and shall hold the Company harmless with respect thereto as well as with respect to his benefit plan participation as a self-employed individual providing services to the Company and any of its predecessors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Expense Reimbursement</u>. Member shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by Member in connection with the performance of Member's duties hereunder in accordance with the Company's expense reimbursement policies and procedures for service providers as may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination of Service</u> <u>Engagement.</u> The Term of Member's engagement hereunder may be terminated as follows:

&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) Automatically in the event of the death of 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;(b) At the option of the Company, by written notice to Member or Member's personal representative in the event of the Disability of Member. As used herein, the term ***"Disability"*** shall mean a physical or mental incapacity or disability which, despite any reasonable accommodation required by applicable law, has rendered Member unable to perform Member's material duties for a period of not less than one hundred and eighty (180) consecutive days, as certified in writing by a competent medical physician selected 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;(c) At the option of the Company, by written notice to Member, at any time following the occurrence of an event that constitutes Cause (as defined in and subject to <u>Section</u> <u>10(a)</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;(d) At the option of the Company, without Cause (provided that the assignment of this Agreement to, and assumption of this Agreement by, the purchaser of all or substantially all of the assets of the Company shall not be treated as a termination without Cause under this <u>Section 8(d))</u>, upon sixty (60) days prior written notice to Member of its determination to terminate

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;&nbsp;&nbsp;&nbsp;&nbsp;(e) At the option of Member, for Good Reason (as defined in and subject to <u>Section 10(b));</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;(f) At the option of Member, without Good Reason, upon sixty (60) days prior written notice 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;(g) Upon the close of business on the last day of the Initial Term or the then current Renewal Term, as applicable, as a result of a Non-Renewal Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Payments by Virtue of Termination of Service Engagement</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;(a) <u>Termination</u> <u>by the Company Without Cause, by Member For Good</u> <u>Reason, or on account of a Non-Renewal Notice by the Company.</u> If (i) the Company terminates Member's engagement at any time during the Term without Cause at a time that Member is otherwise willing and able to continue providing services hereunder, (ii) Member terminates Member's engagement during the Term for Good Reason, or (iii) Member's engagement terminates at the expiration of the Term pursuant to a Non-Renewal Notice by the Company, and, in each such case, no event constituting Cause has occurred as of such time, then, subject to <u>Section</u> <u>9(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Member shall be entitled to, within thirty (30) days following such termination, or as otherwise provided by law, the terms of the applicable Benefit Plan or herein, (A) payment of Member's accrued and unpaid Base Compensation accrued through the date of termination of Member's engagement, (B) payment of any accrued and unpaid Annual Bonus for the calendar year ending immediately prior to calendar year of termination of Member's engagement, payable at such time as set forth in Section 5, above, (C) reimbursement of expenses under <u>Section 7,</u> (D) any accrued but unused paid time off, (E) all other accrued amounts or accrued benefits due to Member in accordance with the Company's Benefit Plans (other than any severance plan or program), and (F) any benefits to which Member is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (collectively, the ***"Accrued Obligations"**);* 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;(ii) provided Member (or Member's family or legal representatives) is eligible for and timely elects to continue coverage for Member and Member's eligible dependents under the Company's group health plans under Section 4980B of the Internal Revenue Code of 1986, as amended (the ***"Code"**)* and Section 601 et. Seq. of the Employee Retirement Income Security Act of 1974, as amended (collectively, ***"COBRA"**),* the Company shall pay to Member on the first regularly scheduled payroll date of each calendar month following Member's termination of service an amount that is equal to the full premium amount for coverage under the Company's group health plans at the coverage levels in effect for Member and any dependents immediately prior to the Member's termination of service for the Severance Period or such shorter period as Member remains eligible to continue such coverage pursuant to COBRA. Amounts paid by the Company on behalf of Member pursuant to this <u>Section 9(a)(ii),</u> to the extent not otherwise taxable, shall be imputed to Member as additional taxable income to the minimum extent as may be required to avoid adverse consequences to Member or the Company under either Section 105(h) of the Internal Revenue Code of 1986, as amended (the ***"Code"**)* or the Patient Protection and Affordable Care Act of 2010, as amended; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the parties agree, consistent with the requirements for compliance with or exemption from Section 409A (as defined below), to restructure such payments in a manner that avoids such adverse consequences; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solely if and to the extent that (A) the date of termination of Member's engagement occurs on or following the first day of October during such calendar year and (B) similar annual bonus awards are made to similarly situated individuals who provide services to the Company (including employees and member service providers) as Member with respect to such calendar year, then Member shall be entitled to receive a bonus for the calendar year in which the date of termination occurs in an amount equal to the Annual Bonus for such year as determined by the Board in good faith in accordance with the criteria established under and at such time as set forth in <u>Section *5*</u> and taking into account the annual bonus award so made to such similarly situated individuals, which amount shall be prorated through and including the date of termination; 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;(iv) Member shall be entitled to receive an amount equal to one (1) times Member's Base Compensation as in effect immediately prior to the date of termination of Member's engagement (excluding any reduction in Base Compensation that constituted Good Reason leading to such termination), payable in substantially equal installments for a period of twelve (12) months following the date of termination of Member's engagement (the ***"Severance Period"**),* payable in accordance with the Company's payment practices as in effect from time to time, but in no event less than bi-weekly; <u>provided,</u> that the first payment pursuant to this <u>Section 9(a)(iv)</u> shall be made on the next regularly scheduled payment date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto.

&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) <u>Termination</u> <u>Due to Death.</u> If Member's engagement terminates at any time during the Term due to Member's death, Member's estate shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in <u>Section 9(a)(i)</u>, and (ii) one (1) times Member's Base Compensation as in effect immediately prior to the date of Member's death payable in substantially equal installments for the Severance Period; <u>provided,</u> that the first payment pursuant to clause (ii) of this <u>Section 9(b)</u> shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto.

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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;(c) <u>Termination by the Company For Cause, by Member Without Good</u> <u>Reason, or on account of a Non-Renewal by Member.</u> If (i) the Company terminates Member's engagement during the Term and following the occurrence of an event that constitutes Cause, (ii) Member terminates Member's engagement during the Term without Good Reason or otherwise following the occurrence of an event that constitutes Cause, or (iii) Member's engagement terminates at the expiration of the Term pursuant to a Non-Renewal Notice by Member, Member shall be entitled to receive only the Accrued Obligations at such time as set forth in <u>Section 9(a)(i).</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;(d) <u>Termination by the Company upon Disability.</u> If the Company terminates Member's engagement during the Term due to Disability of Member, Member shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in <u>Section 9(a)(i),</u> and (ii) one (1) times Member's Base Compensation as in effect immediately prior to the date of termination of Member's engagement payable in substantially equal installments for the Severance Period, payable in accordance with the Company's regular payment practices as in effect from time to time, but in no event less than bi-weekly; <u>provided,</u> that the first payment pursuant to clause (ii) of this sentence shall be made on the next regularly scheduled payment date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto. For the avoidance of doubt, whenever compensation is payable to Member under the terms of this Agreement during a time when Member is partially or totally disabled and such disability would entitle Member to disability income or to salary continuation payments from the Company according to the terms of any plan or policy now or hereafter provided by the Company or according to any Company or insurance policy in effect at the time of such disability, the compensation payable to Member hereunder following termination of Member's engagement in accordance with this <u>Section 9(d)</u> shall be in addition to any such disability income or salary continuation. This provision shall not be construed to limit Member's rights, or ability to take any leave to which Member may be entitled, under applicable law.

&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) <u>Conditions to Payment.</u> All payments and benefits due to Member (or, in the case of Member's death, Member's estate) <u>under Section 9(a)(ii)-(iv)</u>, clause (ii) of <u>Section 9(b)</u> and clause (ii) of the first sentence of <u>Section 9(d)</u>, which are not otherwise required by applicable law, shall be payable only if Member (or, to the extent applicable, Member's legal representatives or estate) executes and delivers to the Company a general release of claims substantially in the form attached as <u>Exhibit A</u> hereto (the ***"Release"**)* and such Release is no longer subject to revocation (to the extent applicable), in each case, within sixty (60) days following termination of Member's engagement. Failure to timely execute and return such Release or the revocation of such Release shall be a waiver by Member (or, to the extent applicable, Member's legal representatives or estate) of Member's (or, to the extent applicable, Member's legal representatives' or estate's) right to severance payments (which, for the avoidance of doubt, shall not include the Accrued Obligations). In addition, all payments and benefits due to Member <u>under Section 9(a)(ii)-(iv)</u> and clause (ii) of the first sentence of <u>Section</u> <u>9(d)</u> shall be conditioned on Member's continued compliance with Member's obligations under Sections 2(c) and 2(f) of the Restrictive Covenant 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;(f) <u>No Other Severance.</u> Member hereby acknowledges and agrees that, other than the severance payments and benefits described in this <u>Section 9</u>, upon the effective date of the termination of Member's engagement, Member shall not be entitled to any other severance payments or benefits of any kind under any Company benefit plan, severance policy generally available to the Company's employees or otherwise and all other rights of Member to compensation under this Agreement shall end as of such date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <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;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***"Cause"*** shall mean, (i) the conviction of Member for (or pleading guilty or *nolo contendere* to) a felony or a crime involving moral turpitude, (ii) Member's willful and continued failure to perform substantially Member's material duties and responsibilities with respect to the Company and its affiliates or to follow the lawful directions or instructions of the Board (and, if Member reports to the Chief Executive Officer of the Company, of the Chief Executive Officer), (iii) Member's breach of fiduciary duty owed to the Company or any of its affiliates, (iv) Member's theft, fraud, embezzlement, or dishonesty (including material misrepresentations or concealments in written reports submitted to the Company or the Board) with regard to the Company or any of its affiliates, or in connection with Member's duties or responsibilities with respect thereto, (v) Member's material violation of the Company's code of conduct, code of ethics or similar written material policies, including but not limited to those relating to sexual harassment, (vi) Member's willful misconduct unrelated to the Company or any of its affiliates having, or likely to have, a material negative impact on the Company or any of its affiliates (economically or to its reputation), (vii) any material breach or violation by Member of any provisions of this Agreement or the Restrictive Covenant Agreement. To the extent any of the foregoing items (ii), (v) (excluding a material violation of any sexual misconduct policy), or (vii) (excluding any material violation of the Restrictive Covenant Agreement) are capable of being cured, Cause shall not be deemed to have occurred with respect thereto until the Company has given Member written notice, setting forth the issue(s) that is alleged to constitute Cause, and the Company has provided Member at least thirty (30) days following the date on which such notice is provided to cure such conduct and Member has failed to do so. Such event, conduct or condition described in this definition will not give rise to a termination for Cause if the action or omission is done at the request of the Board. In the event a determination is to be made as to whether Cause exists, such determination shall be a reasonable, good-faith determination made 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;(b) ***"Good Reason"*** shall mean that any one or more of the following has occurred without Member's specific written consent, (i) any material diminution in Member's responsibilities, authorities or duties or in Member's title, (ii) any reduction in Member's Base Compensation or target bonus opportunity, (iii) a transfer of Member's principal place of service by more than thirty-five (35) miles from its then current location, or (iv) any breach or violation by the Company of any material provisions of this Agreement; provided, that no event described in clause (i), (ii), (iii) or (iv) shall constitute Good Reason unless (A) Member has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within sixty (60) days following the occurrence of such event, (B) Member has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so, and (C) a termination of service by Member for Good Reason is effective on the day following the expiration of such cure period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Resignation</u> <u>as Officer or Director.</u> Upon the effective date of Member's termination of service, Member shall be deemed to have resigned, to the extent applicable, as an officer of the Company or any other applicable affiliate of the Company, as an officer of Alpine Energy Capital, LLC and any of its subsidiaries, as a member or advisor of the Board and/or the board of managers or similar governing body of any of the Company's affiliates, and as a fiduciary of any of the Company's Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Cooperation.</u> From and after Member's termination of service, Member shall provide Member's reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Member's engagement hereunder, <u>provided,</u> that the Company shall reimburse Member for Member's reasonable costs and expenses (including legal counsel selected by Member and reasonably acceptable to the Company) and such cooperation shall not unreasonably burden Member or unreasonably interfere with any subsequent employment or service engagement that Member may undertake. In the event Company requires Member to devote significant time to post-separation cooperation and at the time of such post-separation cooperation Member is no longer receiving severance benefits hereunder, the Company and Member shall establish in good faith and Company shall pay to Member an hourly or daily rate based on Member's Base Compensation (as in effect on the date of termination of Member's engagement) to compensate Member for Member's time expended at the Company's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Indemnification/Exculpation</u>; <u>D&O</u> <u>Liability</u> <u>Insurance.</u> The Company shall indemnify and hold Member harmless to the fullest extent permitted by the Company's limited liability company agreement and by the law in the State of Tennessee in effect on the date hereof, or as such agreement or laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all losses, payments, expenses, fines, costs, claims, proceedings, damages, suits, actions and liabilities (***"Losses"***) incurred by Member by reason of or arising in whole or in part, directly or indirectly, out of (a) Member being a service provider, employee, manager or officer of the Company or any affiliate thereof or (b) any matter associated with or related to the Company or any affiliate thereof (each, an ***"Indemnifiable Event"**).* Losses shall include any fees and expenses incurred by Member in connection with any proceeding, suit, action or other matter (a ***"Proceeding"**)* (including defense costs and attorney's fees) that relates to or arise in connection with an Indemnifiable Event. The Company shall advance all expenses of Member incurred thereby in connection with any Proceeding prior to the final disposition of any Proceeding by final adjudication arising out of an Indemnifiable Event. Without limiting the generality or effect of the foregoing, within ten (10) days after any request by Member, the Company shall, in accordance with such request, (a) pay such expenses on behalf of Member, (b) advance to Member funds in an amount sufficient to pay such expenses, or (c) reimburse Member for such expenses. Member shall not be indemnified for Losses to the extent such Losses are determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Member. Member shall be completely exculpated from any liability owing to the Company or any of its affiliates and shall not have any liability to the Company or any of its affiliates except to the extent such liability is determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Member. The Company shall cover Member as an insured under any contract of directors' and officers' liability insurance both during and, while potential liability exists, after the term of this Agreement, and in the same amount and to the same extent as the Company covers other senior executives of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Services Agreement Duty to Maintain Confidential Information.</u> To the extent Member has access to confidential information provided to the Company or its affiliates in connection with a Services Agreement, Member will use Member's best efforts and diligence to protect such confidential information and will not use, copy, remove, disclose or disseminate to any person or entity, directly or indirectly, such confidential information, except as required in the course of performing Member's duties pursuant to this Agreement or as required in a legal proceeding or by a governmental or regulatory authority. Member acknowledges and agrees to be bound by the confidentiality provisions set forth in any such Services Agreements, provided that the Company has provided Member with a written copy of such provisions. <u>Exhibit B</u> hereto sets forth a copy of such provisions applicable to Member pursuant to Services Agreements in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</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;(a) All notices under this Agreement shall be in writing and shall be deemed given: (i) when delivered personally by hand (with written confirmation of receipt); or (ii) one business day following the day sent by overnight courier (with written confirmation of receipt), in each case at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision, except that notices of change of address shall be effective only upon receipt). All notices and communications by Member to the Company shall be mailed or delivered to the Company at its principal office identified in Section 3 herein, and all notices and communications by the Company to Member may be given to Member at Member's home address as then shown in the Company's personnel 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;(b) Member shall not have the right to assign or otherwise transfer Member's rights or obligations under this Agreement (except by will or the laws of descent and distribution), and any purported assignment or transfer by Member in violation of this Agreement shall be null and void from the initial date of the purported assignment or transfer. Any payments under this Agreement will inure to the benefit of and be enforceable by the Member's legal personal representative. The Company and Member agree that the Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and its successors and assigns, and the Company shall require such successors and assigns expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such succession had taken 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;(c) If any of the payments or benefits received or to be received by Member pursuant to this Agreement or otherwise constitute "parachute payments" within the meaning of Section 280G of the Code (each, a ***"Section 280G Payment"**)* and would, but for this <u>Section 14(c)</u>, be subject to the excise tax imposed under Section 4999 of the Code (the ***"Golden Parachute Tax"**)**,*** then, if the shareholder approval described in Q/A-7 of Treas. Reg. section 1.280G-1 is inapplicable, prior to making such Section 280G Payment, a calculation shall be made comparing (i) the Net Benefit (as defined below) to Member of the Section 280G Payment paid in full to (ii) the Net Benefit to Member if the Section 280G Payment is limited to the extent necessary to avoid being subject to the Golden Parachute Tax. Only if the amount calculated under clause (i) of the immediately preceding sentence is less than the amount under clause (ii) of such sentence will the Section 280G Payment be reduced, and then, only to the minimum extent necessary to ensure that no portion of the Section 280G Payment is subject to the Golden Parachute Tax. For purposes of this <u>Section 14(c)</u> only, ***"Net Benefit"*** shall mean the present value of the payment, net of all federal, state, local, foreign income, employment, and excise taxes, including the Golden Parachute Tax. Any reduction made pursuant to this <u>Section 14(c)</u> shall be made in a manner consistent with the requirements of Section 409A of the Code, provided that Member shall not have any discretion as to which 280G Payments shall be reduced or how any such 280G Payment shall be reduced. All calculations and determinations under this <u>Section 14(c)</u> shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the ***"Tax** **Counsel"**)**,*** whose determinations shall be conclusive and binding on the Company and Member for all purposes. The Company and Member shall furnish the Tax Counsel with such information and documents as requested by the Tax Counsel to make its determinations under this <u>Section 14(c)</u>, and the Company shall bear all costs incurred by the Tax Counsel under this <u>Section</u> <u>14(c)</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;(d) This Agreement and the Restrictive Covenant Agreement contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements, term sheets, offer letters, and drafts thereof, oral or written, between the parties hereto with respect to the subject matter hereof Member acknowledges and agrees that Member is not entitled to terminate for Good Reason pursuant to that certain employment agreement with Alpine Energy Capital, LLC (f/k/a Colony HB2 Energy, LLC), dated effective as of October 26, 2018, and terminated effective June 21, 2021, whether as a result of the transactions contemplated in the Red Pine Petroleum Ltd. Notice of Annual General and Special Meeting of Shareholders held on May 25, 2021 and Management Information Circular dated April 23, 2021, or otherwise. No promises, statements, understandings, representations or warranties of any kind, whether oral or in writing, express or implied, have been made to Member by any person or entity to induce Member to enter into this Agreement other than the express terms set forth herein, and Member is not relying upon any promises, statements, understandings, representations, or warranties other than those expressly set forth 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;(e) No change or modification of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party charged with waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, unless so provided in the waiver.

&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) If any provisions of this Agreement (or portions thereof) shall, for any reason, be held invalid or unenforceable, such provisions (or portions thereof) shall be ineffective only to the extent of such invalidity or unenforceability, and the remaining provisions of this Agreement (or portions thereof) shall nevertheless be valid, enforceable and of full force and effect.

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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;(g) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original 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;(h) The section or paragraph headings or titles herein are for convenience of reference only and shall not be deemed a part of this Agreement. The parties have jointly participated in the drafting of this Agreement, and the rule of construction that a contract shall be construed against the drafter shall not be applied. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which they are found.

&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) Notwithstanding anything to the contrary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Code and the regulations and authoritative guidance promulgated thereunder to the extent applicable (collectively, ***"Section 409A"**),* and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. In no event whatsoever will the Company or any of its affiliates, or any of their respective directors, officers, agents, attorneys, employees, executives, shareholders, investors, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors or assigns be liable for any additional tax, interest or penalties that may be imposed on Member under Section 409A or any damages for failing to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 termination of service shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits considered "nonqualified deferred compensation" under Section 409A upon or following a termination of service unless such termination is also a "separation from service" within the meaning of Section 409A, and for purposes of any such provision of this Agreement, references to a "resignation," "termination," "terminate," "termination of service" or like terms shall mean separation from service. If any payment, compensation or other benefit provided to Member in connection with the termination of Member's engagement is determined, in whole or in part, to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Member is a specified employee as defined in Section 409A(2)(B)(i) of the Code, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the date of termination or, if earlier, ten (10) business days following Member's death (the ***"New Payment Date"**).* The aggregate of any payments that otherwise would have been paid to Member, during the period between the date of termination and the New Payment Date shall be paid to Member in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. If the period during which Member may consider and sign the release spans two (2) calendar years, notwithstanding anything in this Agreement to the contrary, the payment of severance will not be made or begin until the later calendar year.

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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;(iii) All reimbursements for costs and expenses under this Agreement shall be paid in no event later than the end of the calendar year following the calendar year in which Member incurs such expense. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (x) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (y) the amount of expenses eligible for reimbursements 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If under this Agreement, an amount is paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment. Whenever a payment under this Agreement specifies a payment period with reference to a number of days *(e.g.,* "payment shall be made within thirty (30) days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion 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;(i) This Agreement, for all purposes, shall be construed in accordance with and governed by the laws of the State of Tennessee (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction). None of the parties hereto has agreed with or represented to any other party that the provisions of this <u>Section 14(i)</u> will not be fully enforced in all instances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispute Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 and Member agree that, other than the Company's right to seek injunctive relief or specific performance as provided in the Restrictive Covenant Agreement, any dispute, controversy, or claim between Member, on the one hand, and the Company, on the other hand, arising out of, under, pursuant to, or in any way relating to this Agreement (a ***"Dispute"**),* shall first be submitted for confidential, non-binding mediation *(**"Mediation"**)* in a good-faith attempt to resolve the Dispute. Mediation refers to a forum in which an impartial person or persons (the ***"Mediator"**)* facilitates communication between parties to promote reconciliation, settlement, or understanding among them. The Mediator may not impose his or her own judgment on the issues for that of the parties. The parties shall jointly select a Mediator, and the Mediation shall be administered by the American Arbitration Association *(**"AAA"**) .* The Mediation shall take place in the State of Tennessee. The cost of Mediation shall be shared equally by the parties to the Mediation; provided that each party shall pay for and bear the cost of Member's or the Company's own experts, evidence, and attorney's fees.

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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;ii. In the event a Dispute is not resolved by mediation, such Dispute shall be submitted to and resolved by confidential and binding arbitration *(**"Arbitration"**),* administered by the AAA and conducted pursuant to the rules then in effect of the AAA governing commercial disputes. The Arbitration hearing shall take place in the State of Tennessee. Such Arbitration shall be before three neutral arbitrators (the ***"Panel"**)* licensed to practice law and familiar with employment disputes. Any award rendered in any Arbitration shall be final and conclusive upon the parties to the Arbitration and not subject to judicial review, and the judgment thereon may be entered in the highest court of the forum (state or federal) having jurisdiction over the issues addressed in the Arbitration, but entry of such judgment will not be required to make such award effective. The Panel may enter a default decision against any party who fails to participate in the Arbitration. The administration fees and expenses of the Arbitration shall be borne equally by the parties to the Arbitration; provided that each party shall pay for and bear the cost of Member's or its own experts, evidence, and attorney's fees, except that, in the discretion of the Panel, any award may include the costs of a party's counsel and/or its share of the expense of Arbitration if the Panel expressly determines that an award of such costs is appropriate to the party whose position substantially prevails in such Arbitration. Notwithstanding any other provision of this Agreement, no party shall be entitled to an award of special, punitive, or consequential damages. To submit a matter to Arbitration, the party seeking redress shall notify in writing, in accordance with Section 14(a), the party against whom such redress is sought, describe the nature of such claim, the provision of this Agreement that has been allegedly violated and the material facts surrounding such claim. The Panel shall render a single written, reasoned decision. The decision of the Panel shall be binding upon the parties to the Arbitration, and after the completion of such Arbitration, the parties to the Arbitration may only institute litigation regarding this Agreement for the sole purpose of enforcing the determination of the Arbitration hearing or, with respect to the Company, to seek injunctive or equitable relief. The Panel shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this agreement to arbitrate, including any claim that all or part of this Agreement is void or voidable and any claim that an issue is not subject to arbitration. All proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or award of the arbitrator, shall be kept confidential by all parties except to the extent such disclosure is required by law, or in a proceeding to enforce any rights under this Agreement.

MEMBER ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, MEMBER IS WAVING ANY RIGHT THAT MEMBER MAY HAVE TO A JURY TRIAL OR A COURT TRIAL RELATED TO 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;(k) Member hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Member does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Member is a party or by which Member is bound, (ii) except as previously disclosed to the Company, Member is not a party to or bound by any employment agreement, service agreement, noncompete agreement or confidentiality agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by both Member and the Company, this Agreement shall be the valid and binding obligation of Member and the Company on and after the Effective Date, enforceable in accordance with its terms. In addition, Member represents and warrants to the Company that (A) Member has provided to the Company, or Company is already in possession of, copies of any and all agreements or other covenants between Member and Member's current or former employers relating to Member's conduct in connection with or following Member's employment with such employer, (B) Member's commencement of service with the Company will not be a violation of any such pre-existing agreement or covenant or such pre-existing agreement or covenant will terminate on the Effective Date according to the terms of this Agreement, and (C) Member will abide by the terms of such pre-existing agreements or covenants at all times while providing services to the Company, *provided,* they are not terminated according to the terms of this Agreement. Member hereby acknowledges and represents that Member has had the opportunity to consult with independent legal counsel or other advisor of Member's choice and has done so regarding Member's rights and obligations under this Agreement, that Member is entering into this Agreement knowingly, voluntarily, and of Member's own free will, that Member is relying on Member's own judgment in doing so, and that Member fully understands the terms and conditions contained herein.

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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;(1) The Company and Member acknowledge and agree that the payments made to Member under <u>Sections 4,</u> <u>5</u>, and, to the extent applicable, <u>6</u>, <u>7</u> and <u>9</u> constitute "guaranteed payments" within the meaning of Section 707(c) of the Code, and shall be treated as such for income tax purposes by the Company and Member. Member agrees that the Company shall not make any deductions, withholding or other contributions on account of Social Security, unemployment compensation, income tax or otherwise, under any federal and, to the extent applicable, state or local law with respect to payments made to him under this Agreement. Member agrees and understands that he shall be solely responsible for the payment of all income, self employment, and other applicable taxes that are due with respect to such payments under this Agreement and as a result of his self-employment with the Company and any of its predecessors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The covenants and obligations of the Company under <u>Sections 9, 12, 13</u> and <u>14</u>, and the covenants and obligations of Member under <u>Sections 9, 12</u>, and <u>14</u>, shall continue and survive any expiration of the Term, termination of Member's engagement or any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Termination of Existing Employment Agreement</u>. Member and the Company, by agreement, do hereby terminate that certain Employment Agreement by and between Member and Company dated September 7, 2021, which is replaced and superseded in its entirety by this Member Services Agreement, effective May 7, 2022.

*[signature page follows]*

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

**HB2 ORIGINATION, LLC**

By:**<u> </u><u>/s/</u>** <u>Reagan Brown</u> **<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;</u>** 

<br> Printed Name: **<u> </u>**<u>Reagan Brown</u> **<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

Title: **<u> </u>**<u>Chief Administrative Officer **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**</u>

**MEMBER:**

**<u> </u><u>/</u>**<u>s/ Craig Perry</u> **<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>** 

Printed Name: <u>Craig Perry</u> **<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;</u>**

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## Exhibit 10.20

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*Execution Version*

<u>MEMBER SERVICES AGREEMENT</u>

THIS MEMBER SERVICES AGREEMENT (this ***"Agreement"**)* is entered into and effective as of May 7, 2022 (the ***"Effective Date"**),* by and between HB2 Origination. LLC, a Delaware limited liability company (the ***"Company"),*** and William Wicker *(**"Member"**).*

WHEREAS, the Company is a majority owned subsidiary of Alpine Summit Energy Investors, Inc. ("**ASEI**"), and ASEI is a wholly owned subsidiary of Alpine Summit Energy Partners, Inc. ("**ASEP**"). References to the Company's affiliates in this Agreement shall include, without limitation, ASEI and ASEP;

WHEREAS, Member is a self-employed individual;

WHEREAS, concurrently herewith, Member is entering into a Restrictive Covenant

Agreement with the Company (the ***"Restrictive Covenant Agreement"**);* and

WHEREAS, effective as of May 7, 2022, the Company desires to engage Member to provide services to the Company and to enter into this Agreement embodying the terms of such engagement, and Member desires to enter into this Agreement and to accept such engagement, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Service Term.</u> The Company hereby agrees to engage Member in the capacities set forth in this Agreement and Member hereby agrees to accept such engagement with the Company, upon terms and conditions contained in this Agreement for the period beginning on the Effective Date and continuing until the third anniversary of the Effective Date (the ***"Initial Term"**),* subject to <u>Section 8; provided,</u> that the term of this Agreement shall automatically be extended for one (1) additional year commencing on the third anniversary of the Effective Date and on each anniversary thereafter (each, a ***"Renewal Term"**)* unless, not less than ninety (90) days prior to the commencement of any such Renewal Term, either the Company or Member shall have given written notice to the other that it does not wish to extend this Agreement (a **"*****Non-Renewal Notice"**),* in which case, Member's engagement under this Agreement shall terminate upon the close of business on the last day of the Initial Term or the then-current Renewal Term as applicable. The period during which Member is engaged by the Company pursuant to this Agreement is hereinafter referred to as the ***"Term".*** Member understands and acknowledges that as an equity holder in the Company he is a member thereof and therefore is not an employee of the Company and that Member is, and shall perform services under this Agreement as, a self-employed individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Service Duties.</u> During the Term, Member shall be engaged and serve as the Chief Investment Officer of the Company and shall have such duties, authorities and responsibilities as are customarily performed, undertaken and exercised by persons serving in a similar capacity. To the extent the Company is a party to any services agreements ***("Services Agreement"**),* Member shall be responsible for performing such duties within Member's scope of responsibility to facilitate the Company's performance under such agreements. During Member's engagement with the Company hereunder, Member shall report to the board of directors (or similar governing body) of ASEP (the ***"Board"**)* and the Chief Executive Officer of the Company. If requested, Member shall also serve as (i) an executive officer of the Company or any of its affiliates and/or (ii) a board member or advisor of the Board and/or the board of directors (or similar governing body) of any of the Company's affiliates, in each case, without additional compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Performance;</u> <u>Principal Place of Service</u>. Member shall devote Member's full working time and attention and Member's best efforts to Member's service with the Company and shall perform Member's services in a capacity and in a manner consistent with Member's position for the Company, and shall not engage in any other business or occupation during the Term; <u>provided,</u> that the foregoing shall not be interpreted as prohibiting Member from (i) managing Member's personal investments (so long as such investment activities are of a passive nature), (ii) engaging in charitable or civic activities or (iii) holding passive investments (including co-investments in entities unrelated to the Company); in the case of clauses (i), (ii) and (iii), so long as such activities do not, individually or in the aggregate, (x) conflict with or materially interfere with the performance of Member's duties and responsibilities hereunder, (y) create a fiduciary conflict, or (z) result in a violation of the Restrictive Covenant Agreement. In performance of the services hereunder, Member generally shall provide no less than forty (40) hours of work per week. The Company shall provide Member an office located at the Company's principal office in The Woodlands, TX for so long as Member resides in such locality or the Houston, TX area during the Term. Member understands and agrees that Member may be required to travel from time to time for business reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Base</u> <u>Compensation.</u> During the Term, the Company shall pay Member base compensation at an annual rate of Three Hundred Fifty Thousand and NO/100 Dollars ($350,000.00), payable in accordance with the Company's normal payment practices as in effect from time to time, but in no event less than bi-weekly. Member's annual base compensation, as in effect from time to time, is hereinafter referred to as the **"Base Compensation"**. The Base Compensation shall be reviewed annually by the Board, and, in the sole discretion of the Board, may be increased (but not decreased) effective as of the date determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Annual Bonus.</u> With respect to each calendar year during the Term, Member shall be eligible to earn an annual bonus award (the ***"Annual Bonus")*** payable in cash, vested property or a combination thereof, as determined by the Company, subject to the achievement of individual and company performance goals determined by the Board and communicated to the Member in writing. The Annual Bonus, if any, for each calendar year during the Term shall be paid to Member as soon as reasonably practicable after the certification of the financial statements for the performance period to which such Annual Bonus relates and at the same time that other senior executives of the Company receive annual bonus payments, but in all events no earlier than January 1 and no later than June 30 of the calendar year following the calendar year to which the Annual Bonus relates. Except as otherwise provided for in this Agreement, Member shall not be paid any Annual Bonus with respect to a calendar year unless Member is engaged hereunder with the Company on December 31 of the calendar year to which such Annual Bonus relates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Benefits.</u> During the Term, Member shall be entitled to participate in any benefit plans or programs (but excluding any severance plan unless specifically referenced in this Agreement) offered by the Company to individuals who provide services to the Company (including employees and member service providers) as in effect from time to time (collectively, ***"Benefit Plans"**),* to the extent consistent with applicable law and the terms of the applicable Benefit Plan, including as regards participation by self-employed individuals. The Company does not promise the adoption or continuance of any particular Benefit Plan or that Member, as a self employed individual, will be eligible to participate therein or to participate on the same terms thereunder as employees of the Company and reserves the right to amend or cancel any Benefit Plan at any time in its sole discretion (subject to the terms of such Benefit Plan and applicable law). Member shall be entitled to twenty-nine (29) days of paid time off per year, and up to ten (10) days of such accrued, unused paid time off may be carried over into subsequent years (with any accrued, unused paid time off exceeding ten (10) days forfeited at the end of the year). During the Term, the Company shall also provide Member with substantially the same perquisite benefits made available to other similarly situated individuals who provide services to the Company (including employees and member service providers), to the extent consistent with applicable law, including as regards provision of such benefits to self-employed individuals. Member agrees to pay all tax liabilities associated with any and all benefits provided pursuant to this Section 6 and shall hold the Company harmless with respect thereto as well as with respect to his benefit plan participation as a self-employed individual providing services to the Company and any of its predecessors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Expense Reimbursement</u>. Member shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by Member in connection with the performance of Member's duties hereunder in accordance with the Company's expense reimbursement policies and procedures for service providers as may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination of Service</u> <u>Engagement.</u> The Term of Member's engagement hereunder may be terminated as follows:

&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) Automatically in the event of the death of 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;(b) At the option of the Company, by written notice to Member or Member's personal representative in the event of the Disability of Member. As used herein, the term ***"Disability"*** shall mean a physical or mental incapacity or disability which, despite any reasonable accommodation required by applicable law, has rendered Member unable to perform Member's material duties for a period of not less than one hundred and eighty (180) consecutive days, as certified in writing by a competent medical physician selected 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;(c) At the option of the Company, by written notice to Member, at any time following the occurrence of an event that constitutes Cause (as defined in and subject to <u>Section</u> <u>10(a)</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;(d) At the option of the Company, without Cause (provided that the assignment of this Agreement to, and assumption of this Agreement by, the purchaser of all or substantially all of the assets of the Company shall not be treated as a termination without Cause under this <u>Section 8(d))</u>, upon sixty (60) days prior written notice to Member of its determination to terminate

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;&nbsp;&nbsp;&nbsp;&nbsp;(e) At the option of Member, for Good Reason (as defined in and subject to <u>Section 10(b));</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;(f) At the option of Member, without Good Reason, upon sixty (60) days prior written notice 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;(g) Upon the close of business on the last day of the Initial Term or the then current Renewal Term, as applicable, as a result of a Non-Renewal Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Payments by Virtue of Termination of Service Engagement</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;(a) <u>Termination</u> <u>by the Company Without Cause, by Member For Good</u> <u>Reason, or on account of a Non-Renewal Notice by the Company.</u> If (i) the Company terminates Member's engagement at any time during the Term without Cause at a time that Member is otherwise willing and able to continue providing services hereunder, (ii) Member terminates Member's engagement during the Term for Good Reason, or (iii) Member's engagement terminates at the expiration of the Term pursuant to a Non-Renewal Notice by the Company, and, in each such case, no event constituting Cause has occurred as of such time, then, subject to <u>Section</u> <u>9(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Member shall be entitled to, within thirty (30) days following such termination, or as otherwise provided by law, the terms of the applicable Benefit Plan or herein, (A) payment of Member's accrued and unpaid Base Compensation accrued through the date of termination of Member's engagement, (B) payment of any accrued and unpaid Annual Bonus for the calendar year ending immediately prior to calendar year of termination of Member's engagement, payable at such time as set forth in Section 5, above, (C) reimbursement of expenses under <u>Section 7,</u> (D) any accrued but unused paid time off, (E) all other accrued amounts or accrued benefits due to Member in accordance with the Company's Benefit Plans (other than any severance plan or program), and (F) any benefits to which Member is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (collectively, the ***"Accrued Obligations"**);* 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;(ii) provided Member (or Member's family or legal representatives) is eligible for and timely elects to continue coverage for Member and Member's eligible dependents under the Company's group health plans under Section 4980B of the Internal Revenue Code of 1986, as amended (the ***"Code"**)* and Section 601 et. Seq. of the Employee Retirement Income Security Act of 1974, as amended (collectively, ***"COBRA"**),* the Company shall pay to Member on the first regularly scheduled payroll date of each calendar month following Member's termination of service an amount that is equal to the full premium amount for coverage under the Company's group health plans at the coverage levels in effect for Member and any dependents immediately prior to the Member's termination of service for the Severance Period or such shorter period as Member remains eligible to continue such coverage pursuant to COBRA. Amounts paid by the Company on behalf of Member pursuant to this <u>Section 9(a)(ii),</u> to the extent not otherwise taxable, shall be imputed to Member as additional taxable income to the minimum extent as may be required to avoid adverse consequences to Member or the Company under either Section 105(h) of the Internal Revenue Code of 1986, as amended (the ***"Code"**)* or the Patient Protection and Affordable Care Act of 2010, as amended; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the parties agree, consistent with the requirements for compliance with or exemption from Section 409A (as defined below), to restructure such payments in a manner that avoids such adverse consequences; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solely if and to the extent that (A) the date of termination of Member's engagement occurs on or following the first day of October during such calendar year and (B) similar annual bonus awards are made to similarly situated individuals who provide services to the Company (including employees and member service providers) as Member with respect to such calendar year, then Member shall be entitled to receive a bonus for the calendar year in which the date of termination occurs in an amount equal to the Annual Bonus for such year as determined by the Board in good faith in accordance with the criteria established under and at such time as set forth in <u>Section *5*</u> and taking into account the annual bonus award so made to such similarly situated individuals, which amount shall be prorated through and including the date of termination; 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;(iv) Member shall be entitled to receive an amount equal to one (1) times Member's Base Compensation as in effect immediately prior to the date of termination of Member's engagement (excluding any reduction in Base Compensation that constituted Good Reason leading to such termination), payable in substantially equal installments for a period of twelve (12) months following the date of termination of Member's engagement (the ***"Severance Period"**),* payable in accordance with the Company's payment practices as in effect from time to time, but in no event less than bi-weekly; <u>provided,</u> that the first payment pursuant to this <u>Section 9(a)(iv)</u> shall be made on the next regularly scheduled payment date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto.

&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) <u>Termination</u> <u>Due to Death.</u> If Member's engagement terminates at any time during the Term due to Member's death, Member's estate shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in <u>Section 9(a)(i)</u>, and (ii) one (1) times Member's Base Compensation as in effect immediately prior to the date of Member's death payable in substantially equal installments for the Severance Period; <u>provided,</u> that the first payment pursuant to clause (ii) of this <u>Section 9(b)</u> shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto.

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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;(c) <u>Termination by the Company For Cause, by Member Without Good</u> <u>Reason, or on account of a Non-Renewal by Member.</u> If (i) the Company terminates Member's engagement during the Term and following the occurrence of an event that constitutes Cause, (ii) Member terminates Member's engagement during the Term without Good Reason or otherwise following the occurrence of an event that constitutes Cause, or (iii) Member's engagement terminates at the expiration of the Term pursuant to a Non-Renewal Notice by Member, Member shall be entitled to receive only the Accrued Obligations at such time as set forth in <u>Section 9(a)(i).</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;(d) <u>Termination by the Company upon Disability.</u> If the Company terminates Member's engagement during the Term due to Disability of Member, Member shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in <u>Section 9(a)(i),</u> and (ii) one (1) times Member's Base Compensation as in effect immediately prior to the date of termination of Member's engagement payable in substantially equal installments for the Severance Period, payable in accordance with the Company's regular payment practices as in effect from time to time, but in no event less than bi-weekly; <u>provided,</u> that the first payment pursuant to clause (ii) of this sentence shall be made on the next regularly scheduled payment date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto. For the avoidance of doubt, whenever compensation is payable to Member under the terms of this Agreement during a time when Member is partially or totally disabled and such disability would entitle Member to disability income or to salary continuation payments from the Company according to the terms of any plan or policy now or hereafter provided by the Company or according to any Company or insurance policy in effect at the time of such disability, the compensation payable to Member hereunder following termination of Member's engagement in accordance with this <u>Section 9(d)</u> shall be in addition to any such disability income or salary continuation. This provision shall not be construed to limit Member's rights, or ability to take any leave to which Member may be entitled, under applicable law.

&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) <u>Conditions to Payment.</u> All payments and benefits due to Member (or, in the case of Member's death, Member's estate) <u>under Section 9(a)(ii)-(iv)</u>, clause (ii) of <u>Section 9(b)</u> and clause (ii) of the first sentence of <u>Section 9(d)</u>, which are not otherwise required by applicable law, shall be payable only if Member (or, to the extent applicable, Member's legal representatives or estate) executes and delivers to the Company a general release of claims substantially in the form attached as <u>Exhibit A</u> hereto (the ***"Release"**)* and such Release is no longer subject to revocation (to the extent applicable), in each case, within sixty (60) days following termination of Member's engagement. Failure to timely execute and return such Release or the revocation of such Release shall be a waiver by Member (or, to the extent applicable, Member's legal representatives or estate) of Member's (or, to the extent applicable, Member's legal representatives' or estate's) right to severance payments (which, for the avoidance of doubt, shall not include the Accrued Obligations). In addition, all payments and benefits due to Member <u>under Section 9(a)(ii)-(iv)</u> and clause (ii) of the first sentence of <u>Section</u> <u>9(d)</u> shall be conditioned on Member's continued compliance with Member's obligations under Sections 2(c) and 2(f) of the Restrictive Covenant 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;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Other Severance.</u> Member hereby acknowledges and agrees that, other than the severance payments and benefits described in this <u>Section 9</u>, upon the effective date of the termination of Member's engagement, Member shall not be entitled to any other severance payments or benefits of any kind under any Company benefit plan, severance policy generally available to the Company's employees or otherwise and all other rights of Member to compensation under this Agreement shall end as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <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;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***"Cause"*** shall mean, (i) the conviction of Member for (or pleading guilty or *nolo contendere* to) a felony or a crime involving moral turpitude, (ii) Member's willful and continued failure to perform substantially Member's material duties and responsibilities with respect to the Company and its affiliates or to follow the lawful directions or instructions of the Board (and, if Member reports to the Chief Executive Officer of the Company, of the Chief Executive Officer), (iii) Member's breach of fiduciary duty owed to the Company or any of its affiliates, (iv) Member's theft, fraud, embezzlement, or dishonesty (including material misrepresentations or concealments in written reports submitted to the Company or the Board) with regard to the Company or any of its affiliates, or in connection with Member's duties or responsibilities with respect thereto, (v) Member's material violation of the Company's code of conduct, code of ethics or similar written material policies, including but not limited to those relating to sexual harassment, (vi) Member's willful misconduct unrelated to the Company or any of its affiliates having, or likely to have, a material negative impact on the Company or any of its affiliates (economically or to its reputation), (vii) any material breach or violation by Member of any provisions of this Agreement or the Restrictive Covenant Agreement. To the extent any of the foregoing items (ii), (v) (excluding a material violation of any sexual misconduct policy), or (vii) (excluding any material violation of the Restrictive Covenant Agreement) are capable of being cured, Cause shall not be deemed to have occurred with respect thereto until the Company has given Member written notice, setting forth the issue(s) that is alleged to constitute Cause, and the Company has provided Member at least thirty (30) days following the date on which such notice is provided to cure such conduct and Member has failed to do so. Such event, conduct or condition described in this definition will not give rise to a termination for Cause if the action or omission is done at the request of the Board. In the event a determination is to be made as to whether Cause exists, such determination shall be a reasonable, good-faith determination made 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;(b) ***"Good Reason"*** shall mean that any one or more of the following has occurred without Member's specific written consent, (i) any material diminution in Member's responsibilities, authorities or duties or in Member's title, (ii) any reduction in Member's Base Compensation or target bonus opportunity, (iii) a transfer of Member's principal place of service by more than thirty-five (35) miles from its then current location, or (iv) any breach or violation by the Company of any material provisions of this Agreement; provided, that no event described in clause (i), (ii), (iii) or (iv) shall constitute Good Reason unless (A) Member has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within sixty (60) days following the occurrence of such event, (B) Member has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so, and (C) a termination of service by Member for Good Reason is effective on the day following the expiration of such cure period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Resignation</u> <u>as Officer or Director.</u> Upon the effective date of Member's termination of service, Member shall be deemed to have resigned, to the extent applicable, as an officer of the Company or any other applicable affiliate of the Company, as an officer of Alpine Energy Capital, LLC and any of its subsidiaries, as a member or advisor of the Board and/or the board of managers or similar governing body of any of the Company's affiliates, and as a fiduciary of any of the Company's Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Cooperation.</u> From and after Member's termination of service, Member shall provide Member's reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Member's engagement hereunder, <u>provided,</u> that the Company shall reimburse Member for Member's reasonable costs and expenses (including legal counsel selected by Member and reasonably acceptable to the Company) and such cooperation shall not unreasonably burden Member or unreasonably interfere with any subsequent employment or service engagement that Member may undertake. In the event Company requires Member to devote significant time to post-separation cooperation and at the time of such post-separation cooperation Member is no longer receiving severance benefits hereunder, the Company and Member shall establish in good faith and Company shall pay to Member an hourly or daily rate based on Member's Base Compensation (as in effect on the date of termination of Member's engagement) to compensate Member for Member's time expended at the Company's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Indemnification/Exculpation</u>; <u>D&O</u> <u>Liability</u> <u>Insurance.</u> The Company shall indemnify and hold Member harmless to the fullest extent permitted by the Company's limited liability company agreement and by the law in the State of Texas in effect on the date hereof, or as such agreement or laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all losses, payments, expenses, fines, costs, claims, proceedings, damages, suits, actions and liabilities (***"Losses"***) incurred by Member by reason of or arising in whole or in part, directly or indirectly, out of (a) Member being a service provider, employee, manager or officer of the Company or any affiliate thereof or (b) any matter associated with or related to the Company or any affiliate thereof (each, an ***"Indemnifiable Event"**).* Losses shall include any fees and expenses incurred by Member in connection with any proceeding, suit, action or other matter (a ***"Proceeding"**)* (including defense costs and attorney's fees) that relates to or arise in connection with an Indemnifiable Event. The Company shall advance all expenses of Member incurred thereby in connection with any Proceeding prior to the final disposition of any Proceeding by final adjudication arising out of an Indemnifiable Event. Without limiting the generality or effect of the foregoing, within ten (10) days after any request by Member, the Company shall, in accordance with such request, (a) pay such expenses on behalf of Member, (b) advance to Member funds in an amount sufficient to pay such expenses, or (c) reimburse Member for such expenses. Member shall not be indemnified for Losses to the extent such Losses are determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Member. Member shall be completely exculpated from any liability owing to the Company or any of its affiliates and shall not have any liability to the Company or any of its affiliates except to the extent such liability is determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Member. The Company shall cover Member as an insured under any contract of directors' and officers' liability insurance both during and, while potential liability exists, after the term of this Agreement, and in the same amount and to the same extent as the Company covers other senior executives of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Services Agreement Duty to Maintain Confidential Information.</u> To the extent Member has access to confidential information provided to the Company or its affiliates in connection with a Services Agreement, Member will use Member's best efforts and diligence to protect such confidential information and will not use, copy, remove, disclose or disseminate to any person or entity, directly or indirectly, such confidential information, except as required in the course of performing Member's duties pursuant to this Agreement or as required in a legal proceeding or by a governmental or regulatory authority. Member acknowledges and agrees to be bound by the confidentiality provisions set forth in any such Services Agreements, provided that the Company has provided Member with a written copy of such provisions. <u>Exhibit B</u> hereto sets forth a copy of such provisions applicable to Member pursuant to Services Agreements in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</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;(a) All notices under this Agreement shall be in writing and shall be deemed given: (i) when delivered personally by hand (with written confirmation of receipt); or (ii) one business day following the day sent by overnight courier (with written confirmation of receipt), in each case at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision, except that notices of change of address shall be effective only upon receipt). All notices and communications by Member to the Company shall be mailed or delivered to the Company at its principal office identified in Section 3 herein, and all notices and communications by the Company to Member may be given to Member at Member's home address as then shown in the Company's personnel 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;(b) Member shall not have the right to assign or otherwise transfer Member's rights or obligations under this Agreement (except by will or the laws of descent and distribution), and any purported assignment or transfer by Member in violation of this Agreement shall be null and void from the initial date of the purported assignment or transfer. Any payments under this Agreement will inure to the benefit of and be enforceable by the Member's legal personal representative. The Company and Member agree that the Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and its successors and assigns, and the Company shall require such successors and assigns expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such succession had taken 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;(c) If any of the payments or benefits received or to be received by Member pursuant to this Agreement or otherwise constitute "parachute payments" within the meaning of Section 280G of the Code (each, a ***"Section 280G Payment"**)* and would, but for this <u>Section 14(c)</u>, be subject to the excise tax imposed under Section 4999 of the Code (the ***"Golden Parachute Tax"**)**,*** then, if the shareholder approval described in Q/A-7 of Treas. Reg. section 1.280G-1 is inapplicable, prior to making such Section 280G Payment, a calculation shall be made comparing (i) the Net Benefit (as defined below) to Member of the Section 280G Payment paid in full to (ii) the Net Benefit to Member if the Section 280G Payment is limited to the extent necessary to avoid being subject to the Golden Parachute Tax. Only if the amount calculated under clause (i) of the immediately preceding sentence is less than the amount under clause (ii) of such sentence will the Section 280G Payment be reduced, and then, only to the minimum extent necessary to ensure that no portion of the Section 280G Payment is subject to the Golden Parachute Tax. For purposes of this <u>Section 14(c)</u> only, ***"Net Benefit"*** shall mean the present value of the payment, net of all federal, state, local, foreign income, employment, and excise taxes, including the Golden Parachute Tax. Any reduction made pursuant to this <u>Section 14(c)</u> shall be made in a manner consistent with the requirements of Section 409A of the Code, provided that Member shall not have any discretion as to which 280G Payments shall be reduced or how any such 280G Payment shall be reduced. All calculations and determinations under this <u>Section 14(c)</u> shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the ***"Tax** **Counsel"**)**,*** whose determinations shall be conclusive and binding on the Company and Member for all purposes. The Company and Member shall furnish the Tax Counsel with such information and documents as requested by the Tax Counsel to make its determinations under this <u>Section 14(c)</u>, and the Company shall bear all costs incurred by the Tax Counsel under this <u>Section</u> <u>14(c)</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;(d) This Agreement and the Restrictive Covenant Agreement contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements, term sheets, offer letters, and drafts thereof, oral or written, between the parties hereto with respect to the subject matter hereof Member acknowledges and agrees that Member is not entitled to terminate for Good Reason pursuant to that certain employment agreement with Alpine Energy Capital, LLC (f/k/a Colony HB2 Energy, LLC), dated effective as of October 26, 2018, and terminated effective June 21, 2021, whether as a result of the transactions contemplated in the Red Pine Petroleum Ltd. Notice of Annual General and Special Meeting of Shareholders held on May 25, 2021 and Management Information Circular dated April 23, 2021, or otherwise. No promises, statements, understandings, representations or warranties of any kind, whether oral or in writing, express or implied, have been made to Member by any person or entity to induce Member to enter into this Agreement other than the express terms set forth herein, and Member is not relying upon any promises, statements, understandings, representations, or warranties other than those expressly set forth 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;(e) No change or modification of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party charged with waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, unless so provided in the waiver.

&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) If any provisions of this Agreement (or portions thereof) shall, for any reason, be held invalid or unenforceable, such provisions (or portions thereof) shall be ineffective only to the extent of such invalidity or unenforceability, and the remaining provisions of this Agreement (or portions thereof) shall nevertheless be valid, enforceable and of full force and effect.

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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;(g) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original 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;(h) The section or paragraph headings or titles herein are for convenience of reference only and shall not be deemed a part of this Agreement. The parties have jointly participated in the drafting of this Agreement, and the rule of construction that a contract shall be construed against the drafter shall not be applied. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which they are found.

&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) Notwithstanding anything to the contrary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Code and the regulations and authoritative guidance promulgated thereunder to the extent applicable (collectively, ***"Section 409A"**),* and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. In no event whatsoever will the Company or any of its affiliates, or any of their respective directors, officers, agents, attorneys, employees, executives, shareholders, investors, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors or assigns be liable for any additional tax, interest or penalties that may be imposed on Member under Section 409A or any damages for failing to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 termination of service shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits considered "nonqualified deferred compensation" under Section 409A upon or following a termination of service unless such termination is also a "separation from service" within the meaning of Section 409A, and for purposes of any such provision of this Agreement, references to a "resignation," "termination," "terminate," "termination of service" or like terms shall mean separation from service. If any payment, compensation or other benefit provided to Member in connection with the termination of Member's engagement is determined, in whole or in part, to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Member is a specified employee as defined in Section 409A(2)(B)(i) of the Code, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the date of termination or, if earlier, ten (10) business days following Member's death (the ***"New Payment Date"**).* The aggregate of any payments that otherwise would have been paid to Member, during the period between the date of termination and the New Payment Date shall be paid to Member in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. If the period during which Member may consider and sign the release spans two (2) calendar years, notwithstanding anything in this Agreement to the contrary, the payment of severance will not be made or begin until the later calendar year.

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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;(iii) All reimbursements for costs and expenses under this Agreement shall be paid in no event later than the end of the calendar year following the calendar year in which Member incurs such expense. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (x) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (y) the amount of expenses eligible for reimbursements 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If under this Agreement, an amount is paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment. Whenever a payment under this Agreement specifies a payment period with reference to a number of days *(e.g.,* "payment shall be made within thirty (30) days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Agreement, for all purposes, shall be construed in accordance with and governed by the laws of the State of Texas (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction). None of the parties hereto has agreed with or represented to any other party that the provisions of this <u>Section 14(i)</u> will not be fully enforced in all instances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispute Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 and Member agree that, other than the Company's right to seek injunctive relief or specific performance as provided in the Restrictive Covenant Agreement, any dispute, controversy, or claim between Member, on the one hand, and the Company, on the other hand, arising out of, under, pursuant to, or in any way relating to this Agreement (a ***"Dispute"**),* shall first be submitted for confidential, non-binding mediation *(**"Mediation"**)* in a good-faith attempt to resolve the Dispute. Mediation refers to a forum in which an impartial person or persons (the ***"Mediator"**)* facilitates communication between parties to promote reconciliation, settlement, or understanding among them. The Mediator may not impose his or her own judgment on the issues for that of the parties. The parties shall jointly select a Mediator, and the Mediation shall be administered by the American Arbitration Association *(**"AAA"**) .* The Mediation shall take place in the State of Texas. The cost of Mediation shall be shared equally by the parties to the Mediation; provided that each party shall pay for and bear the cost of Member's or the Company's own experts, evidence, and attorney's fees.

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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;ii. In the event a Dispute is not resolved by mediation, such Dispute shall be submitted to and resolved by confidential and binding arbitration *(**"Arbitration"**),* administered by the AAA and conducted pursuant to the rules then in effect of the AAA governing commercial disputes. The Arbitration hearing shall take place in the State of Texas. Such Arbitration shall be before three neutral arbitrators (the ***"Panel"**)* licensed to practice law and familiar with employment disputes. Any award rendered in any Arbitration shall be final and conclusive upon the parties to the Arbitration and not subject to judicial review, and the judgment thereon may be entered in the highest court of the forum (state or federal) having jurisdiction over the issues addressed in the Arbitration, but entry of such judgment will not be required to make such award effective. The Panel may enter a default decision against any party who fails to participate in the Arbitration. The administration fees and expenses of the Arbitration shall be borne equally by the parties to the Arbitration; provided that each party shall pay for and bear the cost of Member's or its own experts, evidence, and attorney's fees, except that, in the discretion of the Panel, any award may include the costs of a party's counsel and/or its share of the expense of Arbitration if the Panel expressly determines that an award of such costs is appropriate to the party whose position substantially prevails in such Arbitration. Notwithstanding any other provision of this Agreement, no party shall be entitled to an award of special, punitive, or consequential damages. To submit a matter to Arbitration, the party seeking redress shall notify in writing, in accordance with Section 14(a), the party against whom such redress is sought, describe the nature of such claim, the provision of this Agreement that has been allegedly violated and the material facts surrounding such claim. The Panel shall render a single written, reasoned decision. The decision of the Panel shall be binding upon the parties to the Arbitration, and after the completion of such Arbitration, the parties to the Arbitration may only institute litigation regarding this Agreement for the sole purpose of enforcing the determination of the Arbitration hearing or, with respect to the Company, to seek injunctive or equitable relief. The Panel shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this agreement to arbitrate, including any claim that all or part of this Agreement is void or voidable and any claim that an issue is not subject to arbitration. All proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or award of the arbitrator, shall be kept confidential by all parties except to the extent such disclosure is required by law, or in a proceeding to enforce any rights under this Agreement.

MEMBER ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, MEMBER IS WAVING ANY RIGHT THAT MEMBER MAY HAVE TO A JURY TRIAL OR A COURT TRIAL RELATED TO 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;(k) Member hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Member does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Member is a party or by which Member is bound, (ii) except as previously disclosed to the Company, Member is not a party to or bound by any employment agreement, service agreement, noncompete agreement or confidentiality agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by both Member and the Company, this Agreement shall be the valid and binding obligation of Member and the Company on and after the Effective Date, enforceable in accordance with its terms. In addition, Member represents and warrants to the Company that (A) Member has provided to the Company, or Company is already in possession of, copies of any and all agreements or other covenants between Member and Member's current or former employers relating to Member's conduct in connection with or following Member's employment with such employer, (B) Member's commencement of service with the Company will not be a violation of any such pre-existing agreement or covenant or such pre-existing agreement or covenant will terminate on the Effective Date according to the terms of this Agreement, and (C) Member will abide by the terms of such pre-existing agreements or covenants at all times while providing services to the Company, *provided,* they are not terminated according to the terms of this Agreement. Member hereby acknowledges and represents that Member has had the opportunity to consult with independent legal counsel or other advisor of Member's choice and has done so regarding Member's rights and obligations under this Agreement, that Member is entering into this Agreement knowingly, voluntarily, and of Member's own free will, that Member is relying on Member's own judgment in doing so, and that Member fully understands the terms and conditions contained herein.

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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;(1) The Company and Member acknowledge and agree that the payments made to Member under <u>Sections 4,</u> <u>5</u>, and, to the extent applicable, <u>6</u>, <u>7</u> and <u>9</u> constitute "guaranteed payments" within the meaning of Section 707(c) of the Code, and shall be treated as such for income tax purposes by the Company and Member. Member agrees that the Company shall not make any deductions, withholding or other contributions on account of Social Security, unemployment compensation, income tax or otherwise, under any federal and, to the extent applicable, state or local law with respect to payments made to him under this Agreement. Member agrees and understands that he shall be solely responsible for the payment of all income, self employment, and other applicable taxes that are due with respect to such payments under this Agreement and as a result of his self-employment with the Company and any of its predecessors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The covenants and obligations of the Company under <u>Sections 9, 12, 13</u> and <u>14</u>, and the covenants and obligations of Member under <u>Sections 9, 12</u>, and <u>14</u>, shall continue and survive any expiration of the Term, termination of Member's engagement or any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Termination of Existing Employment Agreement</u>. Member and the Company, by agreement, do hereby terminate the Employment Agreement by and between Member and Company dated September 7, 2021, which is replaced and superseded in its entirety by this Member Services Agreement, effective May 7, 2022.

*[signature page follows]*

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

**HB2 ORIGINATION, LLC**

By:**<u> </u><u>/</u>**<u>s/ Craig Perry</u> **<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;</u>** 

<br> Printed Name: **<u> </u>**<u>Craig Perry</u> **<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

Title: **<u> </u>**<u>Chief Executive Officer **&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**</u>

<br> **MEMBER:**

**<u> </u>**<u>/s/ William Wicker&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

<br> Printed Name: <u>William Wicker&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> 

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## Exhibit 10.22

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*Execution Version*

<u>MEMBER SERVICES AGREEMENT</u>

THIS MEMBER SERVICES AGREEMENT (this ***"Agreement"**)* is entered into and effective as of May 7, 2022 (the ***"Effective Date"**),* by and between HB2 Origination. LLC, a Delaware limited liability company (the ***"Company"),*** and Christopher Nilan *(**"Member"**).*

WHEREAS, the Company is a majority owned subsidiary of Alpine Summit Energy Investors, Inc. ("**ASEI**"), and ASEI is a wholly owned subsidiary of Alpine Summit Energy Partners, Inc. ("**ASEP**"). References to the Company's affiliates in this Agreement shall include, without limitation, ASEI and ASEP;

WHEREAS, Member is a self-employed individual;

WHEREAS, concurrently herewith, Member is entering into a Restrictive Covenant

Agreement with the Company (the ***"Restrictive Covenant Agreement"**);* and

WHEREAS, effective as of May 7, 2022, the Company desires to engage Member to provide services to the Company and to enter into this Agreement embodying the terms of such engagement, and Member desires to enter into this Agreement and to accept such engagement, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Service Term.</u> The Company hereby agrees to engage Member in the capacities set forth in this Agreement and Member hereby agrees to accept such engagement with the Company, upon terms and conditions contained in this Agreement for the period beginning on the Effective Date and continuing until the third anniversary of the Effective Date (the ***"Initial Term"**),* subject to <u>Section 8; provided,</u> that the term of this Agreement shall automatically be extended for one (1) additional year commencing on the third anniversary of the Effective Date and on each anniversary thereafter (each, a ***"Renewal Term"**)* unless, not less than ninety (90) days prior to the commencement of any such Renewal Term, either the Company or Member shall have given written notice to the other that it does not wish to extend this Agreement (a **"*****Non-Renewal Notice"**),* in which case, Member's engagement under this Agreement shall terminate upon the close of business on the last day of the Initial Term or the then-current Renewal Term as applicable. The period during which Member is engaged by the Company pursuant to this Agreement is hereinafter referred to as the ***"Term".*** Member understands and acknowledges that as an equity holder in the Company he is a member thereof and therefore is not an employee of the Company and that Member is, and shall perform services under this Agreement as, a self-employed individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Service Duties.</u> During the Term, Member shall be engaged and serve as the Senior Managing Director of Capital Markets of the Company and shall have such duties, authorities and responsibilities as are customarily performed, undertaken and exercised by persons serving in a similar capacity. To the extent the Company is a party to any services agreements ***("Services Agreement"**),* Member shall be responsible for performing such duties within Member's scope of responsibility to facilitate the Company's performance under such agreements. During Member's engagement with the Company hereunder, Member shall report to the board of directors (or similar governing body) of ASEP (the ***"Board"**)* and the Chief Executive Officer of the Company. If requested, Member shall also serve as (i) an executive officer of the Company or any of its affiliates and/or (ii) a board member or advisor of the Board and/or the board of directors (or similar governing body) of any of the Company's affiliates, in each case, without additional compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Performance;</u> <u>Principal Place of Service</u>. Member shall devote Member's full working time and attention and Member's best efforts to Member's service with the Company and shall perform Member's services in a capacity and in a manner consistent with Member's position for the Company, and shall not engage in any other business or occupation during the Term; <u>provided,</u> that the foregoing shall not be interpreted as prohibiting Member from (i) managing Member's personal investments (so long as such investment activities are of a passive nature), (ii) engaging in charitable or civic activities or (iii) holding passive investments (including co-investments in entities unrelated to the Company); in the case of clauses (i), (ii) and (iii), so long as such activities do not, individually or in the aggregate, (x) conflict with or materially interfere with the performance of Member's duties and responsibilities hereunder, (y) create a fiduciary conflict, or (z) result in a violation of the Restrictive Covenant Agreement. In performance of the services hereunder, Member generally shall provide no less than forty (40) hours of work per week. The Company understands that Member has chosen Chicago, Illinois as his principal place of service and the Company shall provide an office in that area for as long as he resides in that locality during the Term. Member understands and agrees that Member may be required to travel from time to time for business reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Base</u> <u>Compensation.</u> During the Term, the Company shall pay Member base compensation at an annual rate of Three Hundred Fifty Thousand and NO/100 Dollars ($350,000.00), payable in accordance with the Company's normal payment practices as in effect from time to time, but in no event less than bi-weekly. Member's annual base compensation, as in effect from time to time, is hereinafter referred to as the **"Base Compensation"**. The Base Compensation shall be reviewed annually by the Board, and, in the sole discretion of the Board, may be increased (but not decreased) effective as of the date determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Annual Bonus.</u> With respect to each calendar year during the Term, Member shall be eligible to earn an annual bonus award (the ***"Annual Bonus")*** payable in cash, vested property or a combination thereof, as determined by the Company, subject to the achievement of individual and company performance goals determined by the Board and communicated to the Member in writing. The Annual Bonus, if any, for each calendar year during the Term shall be paid to Member as soon as reasonably practicable after the certification of the financial statements for the performance period to which such Annual Bonus relates and at the same time that other senior executives of the Company receive annual bonus payments, but in all events no earlier than January 1 and no later than June 30 of the calendar year following the calendar year to which the Annual Bonus relates. Except as otherwise provided for in this Agreement, Member shall not be paid any Annual Bonus with respect to a calendar year unless Member is engaged hereunder with the Company on December 31 of the calendar year to which such Annual Bonus relates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Benefits.</u> During the Term, Member shall be entitled to participate in any benefit plans or programs (but excluding any severance plan unless specifically referenced in this Agreement) offered by the Company to individuals who provide services to the Company (including employees and member service providers) as in effect from time to time (collectively, ***"Benefit Plans"**),* to the extent consistent with applicable law and the terms of the applicable Benefit Plan, including as regards participation by self-employed individuals. The Company does not promise the adoption or continuance of any particular Benefit Plan or that Member, as a self employed individual, will be eligible to participate therein or to participate on the same terms thereunder as employees of the Company and reserves the right to amend or cancel any Benefit Plan at any time in its sole discretion (subject to the terms of such Benefit Plan and applicable law). Member shall be entitled to twenty-nine (29) days of paid time off per year, and up to ten (10) days of such accrued, unused paid time off may be carried over into subsequent years (with any accrued, unused paid time off exceeding ten (10) days forfeited at the end of the year). During the Term, the Company shall also provide Member with substantially the same perquisite benefits made available to other similarly situated individuals who provide services to the Company (including employees and member service providers), to the extent consistent with applicable law, including as regards provision of such benefits to self-employed individuals. Member agrees to pay all tax liabilities associated with any and all benefits provided pursuant to this Section 6 and shall hold the Company harmless with respect thereto as well as with respect to his benefit plan participation as a self-employed individual providing services to the Company and any of its predecessors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Expense Reimbursement</u>. Member shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by Member in connection with the performance of Member's duties hereunder in accordance with the Company's expense reimbursement policies and procedures for service providers as may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination of Service</u> <u>Engagement.</u> The Term of Member's engagement hereunder may be terminated as follows:

&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) Automatically in the event of the death of 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;(b) At the option of the Company, by written notice to Member or Member's personal representative in the event of the Disability of Member. As used herein, the term ***"Disability"*** shall mean a physical or mental incapacity or disability which, despite any reasonable accommodation required by applicable law, has rendered Member unable to perform Member's material duties for a period of not less than one hundred and eighty (180) consecutive days, as certified in writing by a competent medical physician selected 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;(c) At the option of the Company, by written notice to Member, at any time following the occurrence of an event that constitutes Cause (as defined in and subject to <u>Section</u> <u>10(a)</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;(d) At the option of the Company, without Cause (provided that the assignment of this Agreement to, and assumption of this Agreement by, the purchaser of all or substantially all of the assets of the Company shall not be treated as a termination without Cause under this <u>Section 8(d))</u>, upon sixty (60) days prior written notice to Member of its determination to terminate

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;&nbsp;&nbsp;&nbsp;&nbsp;(e) At the option of Member, for Good Reason (as defined in and subject to <u>Section 10(b));</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;(f) At the option of Member, without Good Reason, upon sixty (60) days prior written notice 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;(g) Upon the close of business on the last day of the Initial Term or the then current Renewal Term, as applicable, as a result of a Non-Renewal Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Payments by Virtue of Termination of Service Engagement</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;(a) <u>Termination</u> <u>by the Company Without Cause, by Member For Good</u> <u>Reason, or on account of a Non-Renewal Notice by the Company.</u> If (i) the Company terminates Member's engagement at any time during the Term without Cause at a time that Member is otherwise willing and able to continue providing services hereunder, (ii) Member terminates Member's engagement during the Term for Good Reason, or (iii) Member's engagement terminates at the expiration of the Term pursuant to a Non-Renewal Notice by the Company, and, in each such case, no event constituting Cause has occurred as of such time, then, subject to <u>Section</u> <u>9(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Member shall be entitled to, within thirty (30) days following such termination, or as otherwise provided by law, the terms of the applicable Benefit Plan or herein, (A) payment of Member's accrued and unpaid Base Compensation accrued through the date of termination of Member's engagement, (B) payment of any accrued and unpaid Annual Bonus for the calendar year ending immediately prior to calendar year of termination of Member's engagement, payable at such time as set forth in Section 5, above, (C) reimbursement of expenses under <u>Section 7,</u> (D) any accrued but unused paid time off, (E) all other accrued amounts or accrued benefits due to Member in accordance with the Company's Benefit Plans (other than any severance plan or program), and (F) any benefits to which Member is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (collectively, the ***"Accrued Obligations"**);* 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;(ii) provided Member (or Member's family or legal representatives) is eligible for and timely elects to continue coverage for Member and Member's eligible dependents under the Company's group health plans under Section 4980B of the Internal Revenue Code of 1986, as amended (the ***"Code"**)* and Section 601 et. Seq. of the Employee Retirement Income Security Act of 1974, as amended (collectively, ***"COBRA"**),* the Company shall pay to Member on the first regularly scheduled payroll date of each calendar month following Member's termination of service an amount that is equal to the full premium amount for coverage under the Company's group health plans at the coverage levels in effect for Member and any dependents immediately prior to the Member's termination of service for the Severance Period or such shorter period as Member remains eligible to continue such coverage pursuant to COBRA. Amounts paid by the Company on behalf of Member pursuant to this <u>Section 9(a)(ii),</u> to the extent not otherwise taxable, shall be imputed to Member as additional taxable income to the minimum extent as may be required to avoid adverse consequences to Member or the Company under either Section 105(h) of the Internal Revenue Code of 1986, as amended (the ***"Code"**)* or the Patient Protection and Affordable Care Act of 2010, as amended; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the parties agree, consistent with the requirements for compliance with or exemption from Section 409A (as defined below), to restructure such payments in a manner that avoids such adverse consequences; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solely if and to the extent that (A) the date of termination of Member's engagement occurs on or following the first day of October during such calendar year and (B) similar annual bonus awards are made to similarly situated individuals who provide services to the Company (including employees and member service providers) as Member with respect to such calendar year, then Member shall be entitled to receive a bonus for the calendar year in which the date of termination occurs in an amount equal to the Annual Bonus for such year as determined by the Board in good faith in accordance with the criteria established under and at such time as set forth in <u>Section *5*</u> and taking into account the annual bonus award so made to such similarly situated individuals, which amount shall be prorated through and including the date of termination; 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;(iv) Member shall be entitled to receive an amount equal to one (1) times Member's Base Compensation as in effect immediately prior to the date of termination of Member's engagement (excluding any reduction in Base Compensation that constituted Good Reason leading to such termination), payable in substantially equal installments for a period of twelve (12) months following the date of termination of Member's engagement (the ***"Severance Period"**),* payable in accordance with the Company's payment practices as in effect from time to time, but in no event less than bi-weekly; <u>provided,</u> that the first payment pursuant to this <u>Section 9(a)(iv)</u> shall be made on the next regularly scheduled payment date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto.

&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) <u>Termination</u> <u>Due to Death.</u> If Member's engagement terminates at any time during the Term due to Member's death, Member's estate shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in <u>Section 9(a)(i)</u>, and (ii) one (1) times Member's Base Compensation as in effect immediately prior to the date of Member's death payable in substantially equal installments for the Severance Period; <u>provided,</u> that the first payment pursuant to clause (ii) of this <u>Section 9(b)</u> shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto.

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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;(c) <u>Termination by the Company For Cause, by Member Without Good</u> <u>Reason, or on account of a Non-Renewal by Member.</u> If (i) the Company terminates Member's engagement during the Term and following the occurrence of an event that constitutes Cause, (ii) Member terminates Member's engagement during the Term without Good Reason or otherwise following the occurrence of an event that constitutes Cause, or (iii) Member's engagement terminates at the expiration of the Term pursuant to a Non-Renewal Notice by Member, Member shall be entitled to receive only the Accrued Obligations at such time as set forth in <u>Section 9(a)(i).</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;(d) <u>Termination by the Company upon Disability.</u> If the Company terminates Member's engagement during the Term due to Disability of Member, Member shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in <u>Section 9(a)(i),</u> and (ii) one (1) times Member's Base Compensation as in effect immediately prior to the date of termination of Member's engagement payable in substantially equal installments for the Severance Period, payable in accordance with the Company's regular payment practices as in effect from time to time, but in no event less than bi-weekly; <u>provided,</u> that the first payment pursuant to clause (ii) of this sentence shall be made on the next regularly scheduled payment date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto. For the avoidance of doubt, whenever compensation is payable to Member under the terms of this Agreement during a time when Member is partially or totally disabled and such disability would entitle Member to disability income or to salary continuation payments from the Company according to the terms of any plan or policy now or hereafter provided by the Company or according to any Company or insurance policy in effect at the time of such disability, the compensation payable to Member hereunder following termination of Member's engagement in accordance with this <u>Section 9(d)</u> shall be in addition to any such disability income or salary continuation. This provision shall not be construed to limit Member's rights, or ability to take any leave to which Member may be entitled, under applicable law.

&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) <u>Conditions to Payment.</u> All payments and benefits due to Member (or, in the case of Member's death, Member's estate) <u>under Section 9(a)(ii)-(iv)</u>, clause (ii) of <u>Section 9(b)</u> and clause (ii) of the first sentence of <u>Section 9(d)</u>, which are not otherwise required by applicable law, shall be payable only if Member (or, to the extent applicable, Member's legal representatives or estate) executes and delivers to the Company a general release of claims substantially in the form attached as <u>Exhibit A</u> hereto (the ***"Release"**)* and such Release is no longer subject to revocation (to the extent applicable), in each case, within sixty (60) days following termination of Member's engagement. Failure to timely execute and return such Release or the revocation of such Release shall be a waiver by Member (or, to the extent applicable, Member's legal representatives or estate) of Member's (or, to the extent applicable, Member's legal representatives' or estate's) right to severance payments (which, for the avoidance of doubt, shall not include the Accrued Obligations). In addition, all payments and benefits due to Member <u>under Section 9(a)(ii)-(iv)</u> and clause (ii) of the first sentence of <u>Section</u> <u>9(d)</u> shall be conditioned on Member's continued compliance with Member's obligations under Sections 2(c) and 2(f) of the Restrictive Covenant 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;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Other Severance.</u> Member hereby acknowledges and agrees that, other than the severance payments and benefits described in this <u>Section 9</u>, upon the effective date of the termination of Member's engagement, Member shall not be entitled to any other severance payments or benefits of any kind under any Company benefit plan, severance policy generally available to the Company's employees or otherwise and all other rights of Member to compensation under this Agreement shall end as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <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;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***"Cause"*** shall mean, (i) the conviction of Member for (or pleading guilty or *nolo contendere* to) a felony or a crime involving moral turpitude, (ii) Member's willful and continued failure to perform substantially Member's material duties and responsibilities with respect to the Company and its affiliates or to follow the lawful directions or instructions of the Board (and, if Member reports to the Chief Executive Officer of the Company, of the Chief Executive Officer), (iii) Member's breach of fiduciary duty owed to the Company or any of its affiliates, (iv) Member's theft, fraud, embezzlement, or dishonesty (including material misrepresentations or concealments in written reports submitted to the Company or the Board) with regard to the Company or any of its affiliates, or in connection with Member's duties or responsibilities with respect thereto, (v) Member's material violation of the Company's code of conduct, code of ethics or similar written material policies, including but not limited to those relating to sexual harassment, (vi) Member's willful misconduct unrelated to the Company or any of its affiliates having, or likely to have, a material negative impact on the Company or any of its affiliates (economically or to its reputation), (vii) any material breach or violation by Member of any provisions of this Agreement or the Restrictive Covenant Agreement. To the extent any of the foregoing items (ii), (v) (excluding a material violation of any sexual misconduct policy), or (vii) (excluding any material violation of the Restrictive Covenant Agreement) are capable of being cured, Cause shall not be deemed to have occurred with respect thereto until the Company has given Member written notice, setting forth the issue(s) that is alleged to constitute Cause, and the Company has provided Member at least thirty (30) days following the date on which such notice is provided to cure such conduct and Member has failed to do so. Such event, conduct or condition described in this definition will not give rise to a termination for Cause if the action or omission is done at the request of the Board. In the event a determination is to be made as to whether Cause exists, such determination shall be a reasonable, good-faith determination made 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;(b) ***"Good Reason"*** shall mean that any one or more of the following has occurred without Member's specific written consent, (i) any material diminution in Member's responsibilities, authorities or duties or in Member's title, (ii) any reduction in Member's Base Compensation or target bonus opportunity, (iii) a transfer of Member's principal place of service by more than thirty-five (35) miles from its then current location, or (iv) any breach or violation by the Company of any material provisions of this Agreement; provided, that no event described in clause (i), (ii), (iii) or (iv) shall constitute Good Reason unless (A) Member has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within sixty (60) days following the occurrence of such event, (B) Member has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so, and (C) a termination of service by Member for Good Reason is effective on the day following the expiration of such cure period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Resignation</u> <u>as Officer or Director.</u> Upon the effective date of Member's termination of service, Member shall be deemed to have resigned, to the extent applicable, as an officer of the Company or any other applicable affiliate of the Company, as an officer of Alpine Energy Capital, LLC and any of its subsidiaries, as a member or advisor of the Board and/or the board of managers or similar governing body of any of the Company's affiliates, and as a fiduciary of any of the Company's Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Cooperation.</u> From and after Member's termination of service, Member shall provide Member's reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Member's engagement hereunder, <u>provided,</u> that the Company shall reimburse Member for Member's reasonable costs and expenses (including legal counsel selected by Member and reasonably acceptable to the Company) and such cooperation shall not unreasonably burden Member or unreasonably interfere with any subsequent employment or service engagement that Member may undertake. In the event Company requires Member to devote significant time to post-separation cooperation and at the time of such post-separation cooperation Member is no longer receiving severance benefits hereunder, the Company and Member shall establish in good faith and Company shall pay to Member an hourly or daily rate based on Member's Base Compensation (as in effect on the date of termination of Member's engagement) to compensate Member for Member's time expended at the Company's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Indemnification/Exculpation</u>; <u>D&O</u> <u>Liability</u> <u>Insurance.</u> The Company shall indemnify and hold Member harmless to the fullest extent permitted by the Company's limited liability company agreement and by the law in the State of Tennessee in effect on the date hereof, or as such agreement or laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all losses, payments, expenses, fines, costs, claims, proceedings, damages, suits, actions and liabilities (***"Losses"***) incurred by Member by reason of or arising in whole or in part, directly or indirectly, out of (a) Member being a service provider, employee, manager or officer of the Company or any affiliate thereof or (b) any matter associated with or related to the Company or any affiliate thereof (each, an ***"Indemnifiable Event"**).* Losses shall include any fees and expenses incurred by Member in connection with any proceeding, suit, action or other matter (a ***"Proceeding"**)* (including defense costs and attorney's fees) that relates to or arise in connection with an Indemnifiable Event. The Company shall advance all expenses of Member incurred thereby in connection with any Proceeding prior to the final disposition of any Proceeding by final adjudication arising out of an Indemnifiable Event. Without limiting the generality or effect of the foregoing, within ten (10) days after any request by Member, the Company shall, in accordance with such request, (a) pay such expenses on behalf of Member, (b) advance to Member funds in an amount sufficient to pay such expenses, or (c) reimburse Member for such expenses. Member shall not be indemnified for Losses to the extent such Losses are determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Member. Member shall be completely exculpated from any liability owing to the Company or any of its affiliates and shall not have any liability to the Company or any of its affiliates except to the extent such liability is determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Member. The Company shall cover Member as an insured under any contract of directors' and officers' liability insurance both during and, while potential liability exists, after the term of this Agreement, and in the same amount and to the same extent as the Company covers other senior executives of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Services Agreement Duty to Maintain Confidential Information.</u> To the extent Member has access to confidential information provided to the Company or its affiliates in connection with a Services Agreement, Member will use Member's best efforts and diligence to protect such confidential information and will not use, copy, remove, disclose or disseminate to any person or entity, directly or indirectly, such confidential information, except as required in the course of performing Member's duties pursuant to this Agreement or as required in a legal proceeding or by a governmental or regulatory authority. Member acknowledges and agrees to be bound by the confidentiality provisions set forth in any such Services Agreements, provided that the Company has provided Member with a written copy of such provisions. <u>Exhibit B</u> hereto sets forth a copy of such provisions applicable to Member pursuant to Services Agreements in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</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;(a) All notices under this Agreement shall be in writing and shall be deemed given: (i) when delivered personally by hand (with written confirmation of receipt); or (ii) one business day following the day sent by overnight courier (with written confirmation of receipt), in each case at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision, except that notices of change of address shall be effective only upon receipt). All notices and communications by Member to the Company shall be mailed or delivered to the Company at its principal office identified in Section 3 herein, and all notices and communications by the Company to Member may be given to Member at Member's home address as then shown in the Company's personnel 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;(b) Member shall not have the right to assign or otherwise transfer Member's rights or obligations under this Agreement (except by will or the laws of descent and distribution), and any purported assignment or transfer by Member in violation of this Agreement shall be null and void from the initial date of the purported assignment or transfer. Any payments under this Agreement will inure to the benefit of and be enforceable by the Member's legal personal representative. The Company and Member agree that the Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and its successors and assigns, and the Company shall require such successors and assigns expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such succession had taken 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;(c) If any of the payments or benefits received or to be received by Member pursuant to this Agreement or otherwise constitute "parachute payments" within the meaning of Section 280G of the Code (each, a ***"Section 280G Payment"**)* and would, but for this <u>Section 14(c)</u>, be subject to the excise tax imposed under Section 4999 of the Code (the ***"Golden Parachute Tax"**)**,*** then, if the shareholder approval described in Q/A-7 of Treas. Reg. section 1.280G-1 is inapplicable, prior to making such Section 280G Payment, a calculation shall be made comparing (i) the Net Benefit (as defined below) to Member of the Section 280G Payment paid in full to (ii) the Net Benefit to Member if the Section 280G Payment is limited to the extent necessary to avoid being subject to the Golden Parachute Tax. Only if the amount calculated under clause (i) of the immediately preceding sentence is less than the amount under clause (ii) of such sentence will the Section 280G Payment be reduced, and then, only to the minimum extent necessary to ensure that no portion of the Section 280G Payment is subject to the Golden Parachute Tax. For purposes of this <u>Section 14(c)</u> only, ***"Net Benefit"*** shall mean the present value of the payment, net of all federal, state, local, foreign income, employment, and excise taxes, including the Golden Parachute Tax. Any reduction made pursuant to this <u>Section 14(c)</u> shall be made in a manner consistent with the requirements of Section 409A of the Code, provided that Member shall not have any discretion as to which 280G Payments shall be reduced or how any such 280G Payment shall be reduced. All calculations and determinations under this <u>Section 14(c)</u> shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the ***"Tax** **Counsel"**)**,*** whose determinations shall be conclusive and binding on the Company and Member for all purposes. The Company and Member shall furnish the Tax Counsel with such information and documents as requested by the Tax Counsel to make its determinations under this <u>Section 14(c)</u>, and the Company shall bear all costs incurred by the Tax Counsel under this <u>Section</u> <u>14(c)</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;(d) This Agreement and the Restrictive Covenant Agreement contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements, term sheets, offer letters, and drafts thereof, oral or written, between the parties hereto with respect to the subject matter hereof Member acknowledges and agrees that Member is not entitled to terminate for Good Reason pursuant to that certain employment agreement with Alpine Energy Capital, LLC (f/k/a Colony HB2 Energy, LLC), dated effective as of October 26, 2018, and terminated effective June 21, 2021, whether as a result of the transactions contemplated in the Red Pine Petroleum Ltd. Notice of Annual General and Special Meeting of Shareholders held on May 25, 2021 and Management Information Circular dated April 23, 2021, or otherwise. No promises, statements, understandings, representations or warranties of any kind, whether oral or in writing, express or implied, have been made to Member by any person or entity to induce Member to enter into this Agreement other than the express terms set forth herein, and Member is not relying upon any promises, statements, understandings, representations, or warranties other than those expressly set forth 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;(e) No change or modification of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party charged with waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, unless so provided in the waiver.

&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) If any provisions of this Agreement (or portions thereof) shall, for any reason, be held invalid or unenforceable, such provisions (or portions thereof) shall be ineffective only to the extent of such invalidity or unenforceability, and the remaining provisions of this Agreement (or portions thereof) shall nevertheless be valid, enforceable and of full force and effect.

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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;(g) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original 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;(h) The section or paragraph headings or titles herein are for convenience of reference only and shall not be deemed a part of this Agreement. The parties have jointly participated in the drafting of this Agreement, and the rule of construction that a contract shall be construed against the drafter shall not be applied. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which they are found.

&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) Notwithstanding anything to the contrary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Code and the regulations and authoritative guidance promulgated thereunder to the extent applicable (collectively, ***"Section 409A"**),* and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. In no event whatsoever will the Company or any of its affiliates, or any of their respective directors, officers, agents, attorneys, employees, executives, shareholders, investors, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors or assigns be liable for any additional tax, interest or penalties that may be imposed on Member under Section 409A or any damages for failing to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 termination of service shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits considered "nonqualified deferred compensation" under Section 409A upon or following a termination of service unless such termination is also a "separation from service" within the meaning of Section 409A, and for purposes of any such provision of this Agreement, references to a "resignation," "termination," "terminate," "termination of service" or like terms shall mean separation from service. If any payment, compensation or other benefit provided to Member in connection with the termination of Member's engagement is determined, in whole or in part, to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Member is a specified employee as defined in Section 409A(2)(B)(i) of the Code, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the date of termination or, if earlier, ten (10) business days following Member's death (the ***"New Payment Date"**).* The aggregate of any payments that otherwise would have been paid to Member, during the period between the date of termination and the New Payment Date shall be paid to Member in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. If the period during which Member may consider and sign the release spans two (2) calendar years, notwithstanding anything in this Agreement to the contrary, the payment of severance will not be made or begin until the later calendar year.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All reimbursements for costs and expenses under this Agreement shall be paid in no event later than the end of the calendar year following the calendar year in which Member incurs such expense. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (x) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (y) the amount of expenses eligible for reimbursements 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If under this Agreement, an amount is paid in two or more

installments, for purposes of Section 409A, each installment shall be treated as a separate payment. Whenever a payment under this Agreement specifies a payment period with reference to a number of days *(e.g.,* "payment shall be made within thirty (30) days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Agreement, for all purposes, shall be construed in accordance with and governed by the laws of the State of Tennessee (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction). None of the parties hereto has agreed with or represented to any other party that the provisions of this <u>Section 14(i)</u> will not be fully enforced in all instances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispute Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 and Member agree that, other than the Company's right to seek injunctive relief or specific performance as provided in the Restrictive Covenant Agreement, any dispute, controversy, or claim between Member, on the one hand, and the Company, on the other hand, arising out of, under, pursuant to, or in any way relating to this Agreement (a ***"Dispute"**),* shall first be submitted for confidential, non-binding mediation *(**"Mediation"**)* in a good-faith attempt to resolve the Dispute. Mediation refers to a forum in which an impartial person or persons (the ***"Mediator"**)* facilitates communication between parties to promote reconciliation, settlement, or understanding among them. The Mediator may not impose his or her own judgment on the issues for that of the parties. The parties shall jointly select a Mediator, and the Mediation shall be administered by the American Arbitration Association *(**"AAA"**) .* The Mediation shall take place in the State of Tennessee. The cost of Mediation shall be shared equally by the parties to the Mediation; provided that each party shall pay for and bear the cost of Member's or the Company's own experts, evidence, and attorney's fees.

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. In the event a Dispute is not resolved by mediation, such Dispute shall be submitted to and resolved by confidential and binding arbitration *(**"Arbitration"**),* administered by the AAA and conducted pursuant to the rules then in effect of the AAA governing commercial disputes. The Arbitration hearing shall take place in the State of Tennessee. Such Arbitration shall be before three neutral arbitrators (the ***"Panel"**)* licensed to practice law and familiar with employment disputes. Any award rendered in any Arbitration shall be final and conclusive upon the parties to the Arbitration and not subject to judicial review, and the judgment thereon may be entered in the highest court of the forum (state or federal) having jurisdiction over the issues addressed in the Arbitration, but entry of such judgment will not be required to make such award effective. The Panel may enter a default decision against any party who fails to participate in the Arbitration. The administration fees and expenses of the Arbitration shall be borne equally by the parties to the Arbitration; provided that each party shall pay for and bear the cost of Member's or its own experts, evidence, and attorney's fees, except that, in the discretion of the Panel, any award may include the costs of a party's counsel and/or its share of the expense of Arbitration if the Panel expressly determines that an award of such costs is appropriate to the party whose position substantially prevails in such Arbitration. Notwithstanding any other provision of this Agreement, no party shall be entitled to an award of special, punitive, or consequential damages. To submit a matter to Arbitration, the party seeking redress shall notify in writing, in accordance with Section 14(a), the party against whom such redress is sought, describe the nature of such claim, the provision of this Agreement that has been allegedly violated and the material facts surrounding such claim. The Panel shall render a single written, reasoned decision. The decision of the Panel shall be binding upon the parties to the Arbitration, and after the completion of such Arbitration, the parties to the Arbitration may only institute litigation regarding this Agreement for the sole purpose of enforcing the determination of the Arbitration hearing or, with respect to the Company, to seek injunctive or equitable relief. The Panel shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this agreement to arbitrate, including any claim that all or part of this Agreement is void or voidable and any claim that an issue is not subject to arbitration. All proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or award of the arbitrator, shall be kept confidential by all parties except to the extent such disclosure is required by law, or in a proceeding to enforce any rights under this Agreement.

MEMBER ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, MEMBER IS WAVING ANY RIGHT THAT MEMBER MAY HAVE TO A JURY TRIAL OR A COURT TRIAL RELATED TO 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Member hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Member does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Member is a party or by which Member is bound, (ii) except as previously disclosed to the Company, Member is not a party to or bound by any employment agreement, service agreement, noncompete agreement or confidentiality agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by both Member and the Company, this Agreement shall be the valid and binding obligation of Member and the Company on and after the Effective Date, enforceable in accordance with its terms. In addition, Member represents and warrants to the Company that (A) Member has provided to the Company, or Company is already in possession of, copies of any and all agreements or other covenants between Member and Member's current or former employers relating to Member's conduct in connection with or following Member's employment with such employer, (B) Member's commencement of service with the Company will not be a violation of any such pre-existing agreement or covenant or such pre-existing agreement or covenant will terminate on the Effective Date according to the terms of this Agreement, and (C) Member will abide by the terms of such pre-existing agreements or covenants at all times while providing services to the Company, *provided,* they are not terminated according to the terms of this Agreement. Member hereby acknowledges and represents that Member has had the opportunity to consult with independent legal counsel or other advisor of Member's choice and has done so regarding Member's rights and obligations under this Agreement, that Member is entering into this Agreement knowingly, voluntarily, and of Member's own free will, that Member is relying on Member's own judgment in doing so, and that Member fully understands the terms and conditions contained herein.

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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;(1) The Company and Member acknowledge and agree that the payments made to Member under <u>Sections 4,</u> <u>5</u>, and, to the extent applicable, <u>6</u>, <u>7</u> and <u>9</u> constitute "guaranteed payments" within the meaning of Section 707(c) of the Code, and shall be treated as such for income tax purposes by the Company and Member. Member agrees that the Company shall not make any deductions, withholding or other contributions on account of Social Security, unemployment compensation, income tax or otherwise, under any federal and, to the extent applicable, state or local law with respect to payments made to him under this Agreement. Member agrees and understands that he shall be solely responsible for the payment of all income, self employment, and other applicable taxes that are due with respect to such payments under this Agreement and as a result of his self-employment with the Company and any of its predecessors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The covenants and obligations of the Company under <u>Sections 9, 12, 13</u> and <u>14</u>, and the covenants and obligations of Member under <u>Sections 9, 12</u>, and <u>14</u>, shall continue and survive any expiration of the Term, termination of Member's engagement or any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Termination of Existing Employment Agreement</u>. Member and the Company, by agreement, do hereby terminate that certain Employment Agreement by and between Member and Company dated September 7, 2021, which is replaced and superseded in its entirety by this Member Services Agreement, effective May 7, 2022.

*[signature page follows]*

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

**HB2 ORIGINATION, LLC**

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| | |
|:---|:---|
| By: | /s/ Craig Perry |
| Printed Name: | &nbsp;&nbsp;&nbsp;&nbsp; Craig Perry |
| Title: | &nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer |

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**MEMBER:**

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| | |
|:---|:---|
| **/**s/ Christopher Nilan | **/**s/ Christopher Nilan |
| Printed Name: | &nbsp;&nbsp;&nbsp;&nbsp; <u>Christopher Nilan</u> |

---

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## Exhibit 10.23

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*Execution Version*

<u>MEMBER SERVICES AGREEMENT</u>

THIS MEMBER SERVICES AGREEMENT (this ***"Agreement"**)* is entered into and effective as of May 7, 2022 (the ***"Effective Date"**),* by and between HB2 Origination. LLC, a Delaware limited liability company (the ***"Company"),*** and Travis Reagan Brown *(**"Member"**).*

WHEREAS, the Company is a majority owned subsidiary of Alpine Summit Energy Investors, Inc. ("**ASEI**"), and ASEI is a wholly owned subsidiary of Alpine Summit Energy Partners, Inc. ("**ASEP**"). References to the Company's affiliates in this Agreement shall include, without limitation, ASEI and ASEP;

WHEREAS, Member is a self-employed individual;

WHEREAS, concurrently herewith, Member is entering into a Restrictive Covenant

Agreement with the Company (the ***"Restrictive Covenant Agreement"**);* and

WHEREAS, effective as of May 7, 2022, the Company desires to engage Member to provide services to the Company and to enter into this Agreement embodying the terms of such engagement, and Member desires to enter into this Agreement and to accept such engagement, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Service Term.</u> The Company hereby agrees to engage Member in the capacities set forth in this Agreement and Member hereby agrees to accept such engagement with the Company, upon terms and conditions contained in this Agreement for the period beginning on the Effective Date and continuing until the third anniversary of the Effective Date (the ***"Initial Term"**),* subject to <u>Section 8; provided,</u> that the term of this Agreement shall automatically be extended for one (1) additional year commencing on the third anniversary of the Effective Date and on each anniversary thereafter (each, a ***"Renewal Term"**)* unless, not less than ninety (90) days prior to the commencement of any such Renewal Term, either the Company or Member shall have given written notice to the other that it does not wish to extend this Agreement (a **"*****Non-Renewal Notice"**),* in which case, Member's engagement under this Agreement shall terminate upon the close of business on the last day of the Initial Term or the then-current Renewal Term as applicable. The period during which Member is engaged by the Company pursuant to this Agreement is hereinafter referred to as the ***"Term".*** Member understands and acknowledges that as an equity holder in the Company he is a member thereof and therefore is not an employee of the Company and that Member is, and shall perform services under this Agreement as, a self-employed individual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Service Duties.</u> During the Term, Member shall be engaged and serve as the Chief Administrative Officer of the Company and shall have such duties, authorities and responsibilities as are customarily performed, undertaken and exercised by persons serving in a similar capacity. To the extent the Company is a party to any services agreements ***("Services Agreement"**),* Member shall be responsible for performing such duties within Member's scope of responsibility to facilitate the Company's performance under such agreements. During Member's engagement with the Company hereunder, Member shall report to the board of directors (or similar governing body) of ASEP (the ***"Board"**)* and the Chief Executive Officer of the Company. If requested, Member shall also serve as (i) an executive officer of the Company or any of its affiliates and/or (ii) a board member or advisor of the Board and/or the board of directors (or similar governing body) of any of the Company's affiliates, in each case, without additional compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Performance;</u> <u>Principal Place of Service</u>. Member shall devote Member's full working time and attention and Member's best efforts to Member's service with the Company and shall perform Member's services in a capacity and in a manner consistent with Member's position for the Company, and shall not engage in any other business or occupation during the Term; <u>provided,</u> that the foregoing shall not be interpreted as prohibiting Member from (i) managing Member's personal investments (so long as such investment activities are of a passive nature), (ii) engaging in charitable or civic activities or (iii) holding passive investments (including co-investments in entities unrelated to the Company); in the case of clauses (i), (ii) and (iii), so long as such activities do not, individually or in the aggregate, (x) conflict with or materially interfere with the performance of Member's duties and responsibilities hereunder, (y) create a fiduciary conflict, or (z) result in a violation of the Restrictive Covenant Agreement. In performance of the services hereunder, Member generally shall provide no less than forty (40) hours of work per week. The Company shall provide Member an office located at the Company's principal office in Nashville, TN for so long as Member resides in such locality during the Term. Member understands and agrees that Member may be required to travel from time to time for business reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Base</u> <u>Compensation.</u> During the Term, the Company shall pay Member base compensation at an annual rate of Three Hundred Fifty Thousand and NO/100 Dollars ($350,000.00), payable in accordance with the Company's normal payment practices as in effect from time to time, but in no event less than bi-weekly. Member's annual base compensation, as in effect from time to time, is hereinafter referred to as the **"Base Compensation"**. The Base Compensation shall be reviewed annually by the Board, and, in the sole discretion of the Board, may be increased (but not decreased) effective as of the date determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Annual Bonus.</u> With respect to each calendar year during the Term, Member shall be eligible to earn an annual bonus award (the ***"Annual Bonus")*** payable in cash, vested property or a combination thereof, as determined by the Company, subject to the achievement of individual and company performance goals determined by the Board and communicated to the Member in writing. The Annual Bonus, if any, for each calendar year during the Term shall be paid to Member as soon as reasonably practicable after the certification of the financial statements for the performance period to which such Annual Bonus relates and at the same time that other senior executives of the Company receive annual bonus payments, but in all events no earlier than January 1 and no later than June 30 of the calendar year following the calendar year to which the Annual Bonus relates. Except as otherwise provided for in this Agreement, Member shall not be paid any Annual Bonus with respect to a calendar year unless Member is engaged hereunder with the Company on December 31 of the calendar year to which such Annual Bonus relates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Benefits.</u> During the Term, Member shall be entitled to participate in any benefit plans or programs (but excluding any severance plan unless specifically referenced in this Agreement) offered by the Company to individuals who provide services to the Company (including employees and member service providers) as in effect from time to time (collectively, ***"Benefit Plans"**),* to the extent consistent with applicable law and the terms of the applicable Benefit Plan, including as regards participation by self-employed individuals. The Company does not promise the adoption or continuance of any particular Benefit Plan or that Member, as a self employed individual, will be eligible to participate therein or to participate on the same terms thereunder as employees of the Company and reserves the right to amend or cancel any Benefit Plan at any time in its sole discretion (subject to the terms of such Benefit Plan and applicable law). Member shall be entitled to twenty-nine (29) days of paid time off per year, and up to ten (10) days of such accrued, unused paid time off may be carried over into subsequent years (with any accrued, unused paid time off exceeding ten (10) days forfeited at the end of the year). During the Term, the Company shall also provide Member with substantially the same perquisite benefits made available to other similarly situated individuals who provide services to the Company (including employees and member service providers), to the extent consistent with applicable law, including as regards provision of such benefits to self-employed individuals. Member agrees to pay all tax liabilities associated with any and all benefits provided pursuant to this Section 6 and shall hold the Company harmless with respect thereto as well as with respect to his benefit plan participation as a self-employed individual providing services to the Company and any of its predecessors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Expense Reimbursement</u>. Member shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by Member in connection with the performance of Member's duties hereunder in accordance with the Company's expense reimbursement policies and procedures for service providers as may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination of Service</u> <u>Engagement.</u> The Term of Member's engagement hereunder may be terminated as follows:

&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) Automatically in the event of the death of 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;(b) At the option of the Company, by written notice to Member or Member's personal representative in the event of the Disability of Member. As used herein, the term ***"Disability"*** shall mean a physical or mental incapacity or disability which, despite any reasonable accommodation required by applicable law, has rendered Member unable to perform Member's material duties for a period of not less than one hundred and eighty (180) consecutive days, as certified in writing by a competent medical physician selected 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;(c) At the option of the Company, by written notice to Member, at any time following the occurrence of an event that constitutes Cause (as defined in and subject to <u>Section</u> <u>10(a)</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;(d) At the option of the Company, without Cause (provided that the assignment of this Agreement to, and assumption of this Agreement by, the purchaser of all or substantially all of the assets of the Company shall not be treated as a termination without Cause under this <u>Section 8(d))</u>, upon sixty (60) days prior written notice to Member of its determination to terminate 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) At the option of Member, for Good Reason (as defined in and subject to <u>Section 10(b));</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;(f) At the option of Member, without Good Reason, upon sixty (60) days prior written notice 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;(g) Upon the close of business on the last day of the Initial Term or the then current Renewal Term, as applicable, as a result of a Non-Renewal Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Payments by Virtue of Termination of Service Engagement</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;(a) <u>Termination</u> <u>by the Company Without Cause, by Member For Good</u> <u>Reason, or on account of a Non-Renewal Notice by the Company.</u> If (i) the Company terminates Member's engagement at any time during the Term without Cause at a time that Member is otherwise willing and able to continue providing services hereunder, (ii) Member terminates Member's engagement during the Term for Good Reason, or (iii) Member's engagement terminates at the expiration of the Term pursuant to a Non-Renewal Notice by the Company, and, in each such case, no event constituting Cause has occurred as of such time, then, subject to <u>Section</u> <u>9(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Member shall be entitled to, within thirty (30) days following such termination, or as otherwise provided by law, the terms of the applicable Benefit Plan or herein, (A) payment of Member's accrued and unpaid Base Compensation accrued through the date of termination of Member's engagement, (B) payment of any accrued and unpaid Annual Bonus for the calendar year ending immediately prior to calendar year of termination of Member's engagement, payable at such time as set forth in Section 5, above, (C) reimbursement of expenses under <u>Section 7,</u> (D) any accrued but unused paid time off, (E) all other accrued amounts or accrued benefits due to Member in accordance with the Company's Benefit Plans (other than any severance plan or program), and (F) any benefits to which Member is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (collectively, the ***"Accrued Obligations"**);* 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;(ii) provided Member (or Member's family or legal representatives) is eligible for and timely elects to continue coverage for Member and Member's eligible dependents under the Company's group health plans under Section 4980B of the Internal Revenue Code of 1986, as amended (the ***"Code"**)* and Section 601 et. Seq. of the Employee Retirement Income Security Act of 1974, as amended (collectively, ***"COBRA"**),* the Company shall pay to Member on the first regularly scheduled payroll date of each calendar month following Member's termination of service an amount that is equal to the full premium amount for coverage under the Company's group health plans at the coverage levels in effect for Member and any dependents immediately prior to the Member's termination of service for the Severance Period or such shorter period as Member remains eligible to continue such coverage pursuant to COBRA. Amounts paid by the Company on behalf of Member pursuant to this <u>Section 9(a)(ii),</u> to the extent not otherwise taxable, shall be imputed to Member as additional taxable income to the minimum extent as may be required to avoid adverse consequences to Member or the Company under either Section 105(h) of the Internal Revenue Code of 1986, as amended (the ***"Code"**)* or the Patient Protection and Affordable Care Act of 2010, as amended; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the parties agree, consistent with the requirements for compliance with or exemption from Section 409A (as defined below), to restructure such payments in a manner that avoids such adverse consequences; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) solely if and to the extent that (A) the date of termination of Member's engagement occurs on or following the first day of October during such calendar year and (B) similar annual bonus awards are made to similarly situated individuals who provide services to the Company (including employees and member service providers) as Member with respect to such calendar year, then Member shall be entitled to receive a bonus for the calendar year in which the date of termination occurs in an amount equal to the Annual Bonus for such year as determined by the Board in good faith in accordance with the criteria established under and at such time as set forth in <u>Section *5*</u> and taking into account the annual bonus award so made to such similarly situated individuals, which amount shall be prorated through and including the date of termination; 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;(iv) Member shall be entitled to receive an amount equal to one (1) times Member's Base Compensation as in effect immediately prior to the date of termination of Member's engagement (excluding any reduction in Base Compensation that constituted Good Reason leading to such termination), payable in substantially equal installments for a period of twelve (12) months following the date of termination of Member's engagement (the ***"Severance Period"**),* payable in accordance with the Company's payment practices as in effect from time to time, but in no event less than bi-weekly; <u>provided,</u> that the first payment pursuant to this <u>Section 9(a)(iv)</u> shall be made on the next regularly scheduled payment date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto.

&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) <u>Termination</u> <u>Due to Death.</u> If Member's engagement terminates at any time during the Term due to Member's death, Member's estate shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in <u>Section 9(a)(i)</u>, and (ii) one (1) times Member's Base Compensation as in effect immediately prior to the date of Member's death payable in substantially equal installments for the Severance Period; <u>provided,</u> that the first payment pursuant to clause (ii) of this <u>Section 9(b)</u> shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto.

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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;(c) <u>Termination by the Company For Cause, by Member Without Good</u> <u>Reason, or on account of a Non-Renewal by Member.</u> If (i) the Company terminates Member's engagement during the Term and following the occurrence of an event that constitutes Cause, (ii) Member terminates Member's engagement during the Term without Good Reason or otherwise following the occurrence of an event that constitutes Cause, or (iii) Member's engagement terminates at the expiration of the Term pursuant to a Non-Renewal Notice by Member, Member shall be entitled to receive only the Accrued Obligations at such time as set forth in <u>Section 9(a)(i).</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;(d) <u>Termination by the Company upon Disability.</u> If the Company terminates Member's engagement during the Term due to Disability of Member, Member shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in <u>Section 9(a)(i),</u> and (ii) one (1) times Member's Base Compensation as in effect immediately prior to the date of termination of Member's engagement payable in substantially equal installments for the Severance Period, payable in accordance with the Company's regular payment practices as in effect from time to time, but in no event less than bi-weekly; <u>provided,</u> that the first payment pursuant to clause (ii) of this sentence shall be made on the next regularly scheduled payment date following the sixtieth (60th) day after the date of termination of Member's engagement and shall include payment of any amounts that would otherwise be due prior thereto. For the avoidance of doubt, whenever compensation is payable to Member under the terms of this Agreement during a time when Member is partially or totally disabled and such disability would entitle Member to disability income or to salary continuation payments from the Company according to the terms of any plan or policy now or hereafter provided by the Company or according to any Company or insurance policy in effect at the time of such disability, the compensation payable to Member hereunder following termination of Member's engagement in accordance with this <u>Section 9(d)</u> shall be in addition to any such disability income or salary continuation. This provision shall not be construed to limit Member's rights, or ability to take any leave to which Member may be entitled, under applicable law.

&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) <u>Conditions to Payment.</u> All payments and benefits due to Member (or, in the case of Member's death, Member's estate) <u>under Section 9(a)(ii)-(iv)</u>, clause (ii) of <u>Section 9(b)</u> and clause (ii) of the first sentence of <u>Section 9(d)</u>, which are not otherwise required by applicable law, shall be payable only if Member (or, to the extent applicable, Member's legal representatives or estate) executes and delivers to the Company a general release of claims substantially in the form attached as <u>Exhibit A</u> hereto (the ***"Release"**)* and such Release is no longer subject to revocation (to the extent applicable), in each case, within sixty (60) days following termination of Member's engagement. Failure to timely execute and return such Release or the revocation of such Release shall be a waiver by Member (or, to the extent applicable, Member's legal representatives or estate) of Member's (or, to the extent applicable, Member's legal representatives' or estate's) right to severance payments (which, for the avoidance of doubt, shall not include the Accrued Obligations). In addition, all payments and benefits due to Member <u>under Section 9(a)(ii)-(iv)</u> and clause (ii) of the first sentence of <u>Section</u> <u>9(d)</u> shall be conditioned on Member's continued compliance with Member's obligations under Sections 2(c) and 2(f) of the Restrictive Covenant 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;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Other Severance.</u> Member hereby acknowledges and agrees that, other than the severance payments and benefits described in this <u>Section 9</u>, upon the effective date of the termination of Member's engagement, Member shall not be entitled to any other severance payments or benefits of any kind under any Company benefit plan, severance policy generally available to the Company's employees or otherwise and all other rights of Member to compensation under this Agreement shall end as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <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;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***"Cause"*** shall mean, (i) the conviction of Member for (or pleading guilty or *nolo contendere* to) a felony or a crime involving moral turpitude, (ii) Member's willful and continued failure to perform substantially Member's material duties and responsibilities with respect to the Company and its affiliates or to follow the lawful directions or instructions of the Board (and, if Member reports to the Chief Executive Officer of the Company, of the Chief Executive Officer), (iii) Member's breach of fiduciary duty owed to the Company or any of its affiliates, (iv) Member's theft, fraud, embezzlement, or dishonesty (including material misrepresentations or concealments in written reports submitted to the Company or the Board) with regard to the Company or any of its affiliates, or in connection with Member's duties or responsibilities with respect thereto, (v) Member's material violation of the Company's code of conduct, code of ethics or similar written material policies, including but not limited to those relating to sexual harassment, (vi) Member's willful misconduct unrelated to the Company or any of its affiliates having, or likely to have, a material negative impact on the Company or any of its affiliates (economically or to its reputation), (vii) any material breach or violation by Member of any provisions of this Agreement or the Restrictive Covenant Agreement. To the extent any of the foregoing items (ii), (v) (excluding a material violation of any sexual misconduct policy), or (vii) (excluding any material violation of the Restrictive Covenant Agreement) are capable of being cured, Cause shall not be deemed to have occurred with respect thereto until the Company has given Member written notice, setting forth the issue(s) that is alleged to constitute Cause, and the Company has provided Member at least thirty (30) days following the date on which such notice is provided to cure such conduct and Member has failed to do so. Such event, conduct or condition described in this definition will not give rise to a termination for Cause if the action or omission is done at the request of the Board. In the event a determination is to be made as to whether Cause exists, such determination shall be a reasonable, good-faith determination made 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;(b) ***"Good Reason"*** shall mean that any one or more of the following has occurred without Member's specific written consent, (i) any material diminution in Member's responsibilities, authorities or duties or in Member's title, (ii) any reduction in Member's Base Compensation or target bonus opportunity, (iii) a transfer of Member's principal place of service by more than thirty-five (35) miles from its then current location, or (iv) any breach or violation by the Company of any material provisions of this Agreement; provided, that no event described in clause (i), (ii), (iii) or (iv) shall constitute Good Reason unless (A) Member has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within sixty (60) days following the occurrence of such event, (B) Member has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so, and (C) a termination of service by Member for Good Reason is effective on the day following the expiration of such cure period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Resignation</u> <u>as Officer or Director.</u> Upon the effective date of Member's termination of service, Member shall be deemed to have resigned, to the extent applicable, as an officer of the Company or any other applicable affiliate of the Company, as an officer of Alpine Energy Capital, LLC and any of its subsidiaries, as a member or advisor of the Board and/or the board of managers or similar governing body of any of the Company's affiliates, and as a fiduciary of any of the Company's Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Cooperation.</u> From and after Member's termination of service, Member shall provide Member's reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Member's engagement hereunder, <u>provided,</u> that the Company shall reimburse Member for Member's reasonable costs and expenses (including legal counsel selected by Member and reasonably acceptable to the Company) and such cooperation shall not unreasonably burden Member or unreasonably interfere with any subsequent employment or service engagement that Member may undertake. In the event Company requires Member to devote significant time to post-separation cooperation and at the time of such post-separation cooperation Member is no longer receiving severance benefits hereunder, the Company and Member shall establish in good faith and Company shall pay to Member an hourly or daily rate based on Member's Base Compensation (as in effect on the date of termination of Member's engagement) to compensate Member for Member's time expended at the Company's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Indemnification/Exculpation</u>; <u>D&O</u> <u>Liability</u> <u>Insurance.</u> The Company shall indemnify and hold Member harmless to the fullest extent permitted by the Company's limited liability company agreement and by the law in the State of Tennessee in effect on the date hereof, or as such agreement or laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all losses, payments, expenses, fines, costs, claims, proceedings, damages, suits, actions and liabilities (***"Losses"***) incurred by Member by reason of or arising in whole or in part, directly or indirectly, out of (a) Member being a service provider, employee, manager or officer of the Company or any affiliate thereof or (b) any matter associated with or related to the Company or any affiliate thereof (each, an ***"Indemnifiable Event"**).* Losses shall include any fees and expenses incurred by Member in connection with any proceeding, suit, action or other matter (a ***"Proceeding"**)* (including defense costs and attorney's fees) that relates to or arise in connection with an Indemnifiable Event. The Company shall advance all expenses of Member incurred thereby in connection with any Proceeding prior to the final disposition of any Proceeding by final adjudication arising out of an Indemnifiable Event. Without limiting the generality or effect of the foregoing, within ten (10) days after any request by Member, the Company shall, in accordance with such request, (a) pay such expenses on behalf of Member, (b) advance to Member funds in an amount sufficient to pay such expenses, or (c) reimburse Member for such expenses. Member shall not be indemnified for Losses to the extent such Losses are determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Member. Member shall be completely exculpated from any liability owing to the Company or any of its affiliates and shall not have any liability to the Company or any of its affiliates except to the extent such liability is determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Member. The Company shall cover Member as an insured under any contract of directors' and officers' liability insurance both during and, while potential liability exists, after the term of this Agreement, and in the same amount and to the same extent as the Company covers other senior executives of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Services Agreement Duty to Maintain Confidential Information.</u> To the extent Member has access to confidential information provided to the Company or its affiliates in connection with a Services Agreement, Member will use Member's best efforts and diligence to protect such confidential information and will not use, copy, remove, disclose or disseminate to any person or entity, directly or indirectly, such confidential information, except as required in the course of performing Member's duties pursuant to this Agreement or as required in a legal proceeding or by a governmental or regulatory authority. Member acknowledges and agrees to be bound by the confidentiality provisions set forth in any such Services Agreements, provided that the Company has provided Member with a written copy of such provisions. <u>Exhibit B</u> hereto sets forth a copy of such provisions applicable to Member pursuant to Services Agreements in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</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;(a) All notices under this Agreement shall be in writing and shall be deemed given: (i) when delivered personally by hand (with written confirmation of receipt); or (ii) one business day following the day sent by overnight courier (with written confirmation of receipt), in each case at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision, except that notices of change of address shall be effective only upon receipt). All notices and communications by Member to the Company shall be mailed or delivered to the Company at its principal office identified in Section 3 herein, and all notices and communications by the Company to Member may be given to Member at Member's home address as then shown in the Company's personnel 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;(b) Member shall not have the right to assign or otherwise transfer Member's rights or obligations under this Agreement (except by will or the laws of descent and distribution), and any purported assignment or transfer by Member in violation of this Agreement shall be null and void from the initial date of the purported assignment or transfer. Any payments under this Agreement will inure to the benefit of and be enforceable by the Member's legal personal representative. The Company and Member agree that the Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and its successors and assigns, and the Company shall require such successors and assigns expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such succession had taken 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;(c) If any of the payments or benefits received or to be received by Member pursuant to this Agreement or otherwise constitute "parachute payments" within the meaning of Section 280G of the Code (each, a ***"Section 280G Payment"**)* and would, but for this <u>Section 14(c)</u>, be subject to the excise tax imposed under Section 4999 of the Code (the ***"Golden Parachute Tax"**)**,*** then, if the shareholder approval described in Q/A-7 of Treas. Reg. section 1.280G-1 is inapplicable, prior to making such Section 280G Payment, a calculation shall be made comparing (i) the Net Benefit (as defined below) to Member of the Section 280G Payment paid in full to (ii) the Net Benefit to Member if the Section 280G Payment is limited to the extent necessary to avoid being subject to the Golden Parachute Tax. Only if the amount calculated under clause (i) of the immediately preceding sentence is less than the amount under clause (ii) of such sentence will the Section 280G Payment be reduced, and then, only to the minimum extent necessary to ensure that no portion of the Section 280G Payment is subject to the Golden Parachute Tax. For purposes of this <u>Section 14(c)</u> only, ***"Net Benefit"*** shall mean the present value of the payment, net of all federal, state, local, foreign income, employment, and excise taxes, including the Golden Parachute Tax. Any reduction made pursuant to this <u>Section 14(c)</u> shall be made in a manner consistent with the requirements of Section 409A of the Code, provided that Member shall not have any discretion as to which 280G Payments shall be reduced or how any such 280G Payment shall be reduced. All calculations and determinations under this <u>Section 14(c)</u> shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the ***"Tax** **Counsel"**)**,*** whose determinations shall be conclusive and binding on the Company and Member for all purposes. The Company and Member shall furnish the Tax Counsel with such information and documents as requested by the Tax Counsel to make its determinations under this <u>Section 14(c)</u>, and the Company shall bear all costs incurred by the Tax Counsel under this <u>Section</u> <u>14(c)</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;(d) This Agreement and the Restrictive Covenant Agreement contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements, term sheets, offer letters, and drafts thereof, oral or written, between the parties hereto with respect to the subject matter hereof Member acknowledges and agrees that Member is not entitled to terminate for Good Reason pursuant to that certain employment agreement with Alpine Energy Capital, LLC (f/k/a Colony HB2 Energy, LLC), dated effective as of October 26, 2018, and terminated effective June 21, 2021, whether as a result of the transactions contemplated in the Red Pine Petroleum Ltd. Notice of Annual General and Special Meeting of Shareholders held on May 25, 2021 and Management Information Circular dated April 23, 2021, or otherwise. No promises, statements, understandings, representations or warranties of any kind, whether oral or in writing, express or implied, have been made to Member by any person or entity to induce Member to enter into this Agreement other than the express terms set forth herein, and Member is not relying upon any promises, statements, understandings, representations, or warranties other than those expressly set forth 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;(e) No change or modification of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party charged with waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, unless so provided in the waiver.

&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) If any provisions of this Agreement (or portions thereof) shall, for any reason, be held invalid or unenforceable, such provisions (or portions thereof) shall be ineffective only to the extent of such invalidity or unenforceability, and the remaining provisions of this Agreement (or portions thereof) shall nevertheless be valid, enforceable and of full force and effect.

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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;(g) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original 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;(h) The section or paragraph headings or titles herein are for convenience of reference only and shall not be deemed a part of this Agreement. The parties have jointly participated in the drafting of this Agreement, and the rule of construction that a contract shall be construed against the drafter shall not be applied. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which they are found.

&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) Notwithstanding anything to the contrary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Code and the regulations and authoritative guidance promulgated thereunder to the extent applicable (collectively, ***"Section 409A"**),* and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. In no event whatsoever will the Company or any of its affiliates, or any of their respective directors, officers, agents, attorneys, employees, executives, shareholders, investors, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors or assigns be liable for any additional tax, interest or penalties that may be imposed on Member under Section 409A or any damages for failing to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 termination of service shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits considered "nonqualified deferred compensation" under Section 409A upon or following a termination of service unless such termination is also a "separation from service" within the meaning of Section 409A, and for purposes of any such provision of this Agreement, references to a "resignation," "termination," "terminate," "termination of service" or like terms shall mean separation from service. If any payment, compensation or other benefit provided to Member in connection with the termination of Member's engagement is determined, in whole or in part, to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Member is a specified employee as defined in Section 409A(2)(B)(i) of the Code, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the date of termination or, if earlier, ten (10) business days following Member's death (the ***"New Payment Date"**).* The aggregate of any payments that otherwise would have been paid to Member, during the period between the date of termination and the New Payment Date shall be paid to Member in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. If the period during which Member may consider and sign the release spans two (2) calendar years, notwithstanding anything in this Agreement to the contrary, the payment of severance will not be made or begin until the later calendar year.

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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;(iii) All reimbursements for costs and expenses under this Agreement shall be paid in no event later than the end of the calendar year following the calendar year in which Member incurs such expense. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (x) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (y) the amount of expenses eligible for reimbursements 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If under this Agreement, an amount is paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment. Whenever a payment under this Agreement specifies a payment period with reference to a number of days *(e.g.,* "payment shall be made within thirty (30) days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion 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;(i) This Agreement, for all purposes, shall be construed in accordance with and governed by the laws of the State of Tennessee (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction). None of the parties hereto has agreed with or represented to any other party that the provisions of this <u>Section 14(i)</u> will not be fully enforced in all instances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispute Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 and Member agree that, other than the Company's right to seek injunctive relief or specific performance as provided in the Restrictive Covenant Agreement, any dispute, controversy, or claim between Member, on the one hand, and the Company, on the other hand, arising out of, under, pursuant to, or in any way relating to this Agreement (a ***"Dispute"**),* shall first be submitted for confidential, non-binding mediation *(**"Mediation"**)* in a good-faith attempt to resolve the Dispute. Mediation refers to a forum in which an impartial person or persons (the ***"Mediator"**)* facilitates communication between parties to promote reconciliation, settlement, or understanding among them. The Mediator may not impose his or her own judgment on the issues for that of the parties. The parties shall jointly select a Mediator, and the Mediation shall be administered by the American Arbitration Association *(**"AAA"**) .* The Mediation shall take place in the State of Tennessee. The cost of Mediation shall be shared equally by the parties to the Mediation; provided that each party shall pay for and bear the cost of Member's or the Company's own experts, evidence, and attorney's fees.

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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;ii. In the event a Dispute is not resolved by mediation, such Dispute shall be submitted to and resolved by confidential and binding arbitration *(**"Arbitration"**),* administered by the AAA and conducted pursuant to the rules then in effect of the AAA governing commercial disputes. The Arbitration hearing shall take place in the State of Tennessee. Such Arbitration shall be before three neutral arbitrators (the ***"Panel"**)* licensed to practice law and familiar with employment disputes. Any award rendered in any Arbitration shall be final and conclusive upon the parties to the Arbitration and not subject to judicial review, and the judgment thereon may be entered in the highest court of the forum (state or federal) having jurisdiction over the issues addressed in the Arbitration, but entry of such judgment will not be required to make such award effective. The Panel may enter a default decision against any party who fails to participate in the Arbitration. The administration fees and expenses of the Arbitration shall be borne equally by the parties to the Arbitration; provided that each party shall pay for and bear the cost of Member's or its own experts, evidence, and attorney's fees, except that, in the discretion of the Panel, any award may include the costs of a party's counsel and/or its share of the expense of Arbitration if the Panel expressly determines that an award of such costs is appropriate to the party whose position substantially prevails in such Arbitration. Notwithstanding any other provision of this Agreement, no party shall be entitled to an award of special, punitive, or consequential damages. To submit a matter to Arbitration, the party seeking redress shall notify in writing, in accordance with Section 14(a), the party against whom such redress is sought, describe the nature of such claim, the provision of this Agreement that has been allegedly violated and the material facts surrounding such claim. The Panel shall render a single written, reasoned decision. The decision of the Panel shall be binding upon the parties to the Arbitration, and after the completion of such Arbitration, the parties to the Arbitration may only institute litigation regarding this Agreement for the sole purpose of enforcing the determination of the Arbitration hearing or, with respect to the Company, to seek injunctive or equitable relief. The Panel shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this agreement to arbitrate, including any claim that all or part of this Agreement is void or voidable and any claim that an issue is not subject to arbitration. All proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or award of the arbitrator, shall be kept confidential by all parties except to the extent such disclosure is required by law, or in a proceeding to enforce any rights under this Agreement.

MEMBER ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, MEMBER IS WAVING ANY RIGHT THAT MEMBER MAY HAVE TO A JURY TRIAL OR A COURT TRIAL RELATED TO 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;(k) Member hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Member does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Member is a party or by which Member is bound, (ii) except as previously disclosed to the Company, Member is not a party to or bound by any employment agreement, service agreement, noncompete agreement or confidentiality agreement with any other person or entity and (iii) upon the execution and delivery of this Agreement by both Member and the Company, this Agreement shall be the valid and binding obligation of Member and the Company on and after the Effective Date, enforceable in accordance with its terms. In addition, Member represents and warrants to the Company that (A) Member has provided to the Company, or Company is already in possession of, copies of any and all agreements or other covenants between Member and Member's current or former employers relating to Member's conduct in connection with or following Member's employment with such employer, (B) Member's commencement of service with the Company will not be a violation of any such pre-existing agreement or covenant or such pre-existing agreement or covenant will terminate on the Effective Date according to the terms of this Agreement, and (C) Member will abide by the terms of such pre-existing agreements or covenants at all times while providing services to the Company, *provided,* they are not terminated according to the terms of this Agreement. Member hereby acknowledges and represents that Member has had the opportunity to consult with independent legal counsel or other advisor of Member's choice and has done so regarding Member's rights and obligations under this Agreement, that Member is entering into this Agreement knowingly, voluntarily, and of Member's own free will, that Member is relying on Member's own judgment in doing so, and that Member fully understands the terms and conditions contained herein.

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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;(1) The Company and Member acknowledge and agree that the payments made to Member under <u>Sections 4,</u> <u>5</u>, and, to the extent applicable, <u>6</u>, <u>7</u> and <u>9</u> constitute "guaranteed payments" within the meaning of Section 707(c) of the Code, and shall be treated as such for income tax purposes by the Company and Member. Member agrees that the Company shall not make any deductions, withholding or other contributions on account of Social Security, unemployment compensation, income tax or otherwise, under any federal and, to the extent applicable, state or local law with respect to payments made to him under this Agreement. Member agrees and understands that he shall be solely responsible for the payment of all income, self employment, and other applicable taxes that are due with respect to such payments under this Agreement and as a result of his self-employment with the Company and any of its predecessors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The covenants and obligations of the Company under <u>Sections 9, 12, 13</u> and <u>14</u>, and the covenants and obligations of Member under <u>Sections 9, 12</u>, and <u>14</u>, shall continue and survive any expiration of the Term, termination of Member's engagement or any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Termination of Existing Employment Agreement</u>. Member and the Company, by agreement, do hereby terminate that certain Employment Agreement by and between Member and Company dated September 7, 2021, which is replaced and superseded in its entirety by this Member Services Agreement, effective May 7, 2022.

*[signature page follows]*

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

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| | |
|:---|:---|
| **HB2 ORIGINATION, LLC** | **HB2 ORIGINATION, LLC** |
| By: | **/**s/ Craig Perry |
| Printed Name: | Craig Perry |
| Title: | Chief Executive Officer |
| **MEMBER:** | **MEMBER:** |
| **/**s/ Travis Reagan Brown | **/**s/ Travis Reagan Brown |
| Printed Name: | Travis Reagan Brown |

---

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## Exhibit 10.24

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***Execution Version***

<u>**EMPLOYMENT AGREEMENT**</u>

THIS EMPLOYMENT AGREEMENT (this "***Agreement***") is entered into as of September 7, 2021 (the "***Effective Date***"), by and between HB2 Origination, LLC, a Delaware limited liability company (the "***Company***"), and Darren Moulds ("***Executive***").

WHEREAS, the Company is a majority owned subsidiary of Alpine Summit Energy Investors, Inc. ("ASEI"), and ASEI is a wholly owned subsidiary of Alpine Summit Energy Partners, Inc. ("ASEP"). References to the Company's affiliates in this Agreement shall include, without limitation, ASEI and ASEP;

WHEREAS, concurrently herewith, Executive is entering into a Restrictive Covenant Agreement with the Company (the "***Restrictive Covenant Agreement***"); and

WHEREAS, effective as of September 7, 2021, the Company desires to employ Executive and to enter into this Agreement embodying the terms of such employment, and Executive desires to enter into this Agreement and to accept such employment, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment Terms</u>. The Company hereby agrees to employ Executive, and Executive hereby agrees to accept such employment with the Company, upon terms and conditions contained in this Agreement for the period beginning on the Effective Date and continuing until the third anniversary of the Effective Date (the "***Initial Term***"), subject to <u>Section 8</u>; <u>provided</u>, that the term of this Agreement shall automatically be extended for one (1) additional year commencing on the third anniversary of the Effective Date and on each anniversary thereafter (each, a "***Renewal Term***") unless, not less than ninety (90) days prior to the commencement of any such Renewal Term, either the Company or Executive shall have given written notice to the other that it does not wish to extend this Agreement (a "***Non-Renewal Notice***"), in which case, Executive's employment under this Agreement shall terminate upon the close of business on the last day of the Initial Term or the then-current Renewal Term, as applicable. The period during which Executive is employed by the Company pursuant to this Agreement is hereinafter referred to as the "***Term***".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Employment Duties</u>. During the Term, Executive shall be employed and serve as the Chief Administrative Officer of the Company and shall have such duties, authorities and responsibilities as are customarily performed, undertaken and exercised by persons employed in a similar executive capacity. To the extent the Company is a party to any services agreements ("***Services Agreement***"), Executive shall be responsible for performing such duties within Executive's scope of responsibility to facilitate the Company's performance under such agreements. During Executive's employment with the Company, Executive shall report to the board of directors (or similar governing body) of ASEP (the "***Board***") and the Chief Executive Officer of the Company. If requested, Executive shall also serve as (i) an executive officer of the Company or any of its affiliates and/or (ii) a board member or advisor of the Board and/or the board of directors (or similar governing body) of any of the Company's affiliates, in each case, without additional compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Performance; Principal Place of Employment</u>. Executive shall devote Executive's full working time and attention and Executive's best efforts to Executive's service with the Company and shall perform Executive's services in a capacity and in a manner consistent with Executive's position for the Company, and shall not engage in any other business or occupation during the Term; <u>provided</u>, that the foregoing shall not be interpreted as prohibiting Executive from (i) managing Executive's personal investments (so long as such investment activities are of a passive nature), (ii) engaging in charitable or civic activities or (iii) holding passive investments (including co-investments in entities unrelated to the Company); in the case of clauses (i), (ii) and (iii), so long as such activities do not, individually or in the aggregate, (x) conflict with or materially interfere with the performance of Executive's duties and responsibilities hereunder, (y) create a fiduciary conflict, or (z) result in a violation of the Restrictive Covenant Agreement. The Company shall provide Executive an office located at the Company's principal office in the Nashville, TN metropolitan statistical area for so long as Executive resides in such locality during the Term. Executive understands and agrees that Executive may be required to travel from time to time for business reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Base Salary</u>. During the Term, the Company shall pay Executive a base salary at an annual rate of Three Hundred Fifty Thousand and NO/100 Dollars ($350,000.00), payable in accordance with the Company's normal payroll practices for employees as in effect from time to time. Executive's annual base salary, as in effect from time to time, is hereinafter referred to as the "Base Salary." The Base Salary shall be reviewed annually by the Board, and, in the sole discretion of the Board, may be increased (but not decreased) effective as of the date determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Annual Bonus</u>. With respect to each calendar year during the Term, Executive shall be eligible to earn an annual bonus award (the "***Annual Bonus***") payable in cash, vested property or a combination thereof, as determined by the Company, subject to the achievement of individual and company performance goals determined by the Board and communicated to the Executive in writing. The Annual Bonus, if any, for each calendar year during the Term shall be paid to Executive as soon as reasonably practicable after the certification of the financial statements for the performance period to which such Annual Bonus relates and at the same time that other senior executives of the Company receive annual bonus payments, but in all events no earlier than January 1 and no later than June 30 of the calendar year following the calendar year to which the Annual Bonus relates. Except as otherwise provided for in this Agreement, Executive shall not be paid any Annual Bonus with respect to a calendar year unless Executive is employed with the Company on December 31 of the calendar year to which such Annual Bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Benefits</u>. During the Term, Executive shall be entitled to participate in any benefit plans or programs (but excluding any severance plan unless specifically referenced in this Agreement) offered by the Company as in effect from time to time (collectively, "***Benefit Plans***"), on the same basis as those generally made available to similarly situated employees of the Company, to the extent consistent with applicable law and the terms of the applicable Benefit Plan. The Company does not promise the adoption or continuance of any particular Benefit Plan and reserves the right to amend or cancel any Benefit Plan at any time in its sole discretion (subject to the terms of such Benefit Plan and applicable law). Executive shall be entitled to four (4) weeks of vacation per year and unused vacation may be carried over into subsequent years in accordance with the Company's paid time off policies as may be in effect from time to time. During the Term, the Company shall also provide Executive with substantially the same perquisite benefits made available to other similarly situated employees of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Expense Reimbursement</u>. Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by Executive in connection with the performance of Executive's duties hereunder in accordance with the Company's expense reimbursement policies and procedures as may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination of Employment</u>. The Term of Executive's employment hereunder may be terminated as follows:

&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) Automatically in the event of the death of Executive;

&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) At the option of the Company, by written notice to Executive or Executive's personal representative in the event of the Disability of Executive. As used herein, the term "***Disability***" shall mean a physical or mental incapacity or disability which, despite any reasonable accommodation required by applicable law, has rendered Executive unable to perform Executive's material duties for a period of not less than one hundred and eighty (180) consecutive days, as certified in writing by a competent medical physician selected 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;(c) At the option of the Company, by written notice to Executive, at any time following the occurrence of an event that constitutes Cause (as defined in and subject to <u>Section</u> <u>10(a)</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;(d) At the option of the Company, without Cause (provided that the assignment of this Agreement to, and assumption of this Agreement by, the purchaser of all or substantially all of the assets of the Company shall not be treated as a termination without Cause under this <u>Section 8(d)</u>), upon sixty (60) days prior written notice to Executive of its determination to terminate Executive;

&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) At the option of Executive, for Good Reason (as defined in and subject to <u>Section 10(b)</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;(f) At the option of Executive, without Good Reason, upon sixty (60) days prior written notice 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;(g) Upon the close of business on the last day of the Initial Term or the then current Renewal Term, as applicable, as a result of a Non-Renewal Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Payments by Virtue of Termination of Employment</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;(a) <u>Termination by the Company Without Cause, by Executive For Good</u> <u>Reason, or on account of a Non-Renewal Notice by the Company</u>. If (i) the Company terminates Executive's employment at any time during the Term without Cause at a time that Executive is otherwise willing and able to continue employment hereunder, (ii) Executive terminates Executive's employment during the Term for Good Reason, or (iii) Executive's employment terminates at the expiration of the Term pursuant to a Non-Renewal Notice by the Company, and, in each such case, no event constituting Cause has occurred as of such time, then, subject to <u>Section 9(d)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Executive shall be entitled to, within thirty (30) days following such termination, or as otherwise provided by law, the terms of the applicable Benefit Plan or herein, (A) payment of Executive's accrued and unpaid Base Salary accrued through the date of termination of Executive's employment, (B) payment of any accrued and unpaid Annual Bonus for the calendar year ending immediately prior to calendar year of termination of Executive's employment, payable at such time as set forth in Section 5, above, (C) reimbursement of expenses under <u>Section 7</u>, (D) any accrued but unused paid time off to the extent required by any Company policy, (E) all other accrued amounts or accrued benefits due to Executive in accordance with the Company's Benefit Plans (other than any severance plan or program), and (F) any benefits to which Executive is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (collectively, the "***Accrued Obligations***"); 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;(ii) provided Executive (or Executive's family or legal representatives) timely elects to continue coverage for Executive and Executive's eligible dependents under the Company's group health plans under Section 4980B of the Internal Revenue Code of 1986, as amended (the "***Code***") and Section 601 et. Seq. of the Employee Retirement Income Security Act of 1974, as amended (collectively, "***COBRA***"), the Company shall pay to Executive on the first regularly scheduled payroll date of each calendar month following Executive's termination of employment an amount that is equal to the full premium amount on an after-tax basis for coverage under the Company's group health plans at the coverage levels in effect for Executive and any dependents immediately prior to the Executive's termination of employment for the Severance Period or such shorter period as Executive remains eligible to continue such coverage pursuant to COBRA. Amounts paid by the Company on behalf of Executive pursuant to this <u>Section 9(a)(ii)</u>, to the extent not otherwise taxable, shall be imputed to Executive as additional taxable income to the minimum extent as may be required to avoid adverse consequences to Executive or the Company under either Section 105(h) of the Internal Revenue Code of 1986, as amended (the "***Code***") or the Patient Protection and Affordable Care Act of 2010, as amended; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the parties agree, consistent with the requirements for compliance with or exemption from Section 409A (as defined below), to restructure such payments in a manner that avoids such adverse consequences; 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;(iii) solely if and to the extent that (A) the date of termination of Executive's employment occurs on or following the first day of October during such calendar year and (B) similar annual bonus awards are made to similarly situated employees of the Company as Executive with respect to such calendar year, then Executive shall be entitled to receive a bonus for the calendar year in which the date of termination occurs in an amount equal to the Annual Bonus for such year as determined by the Board in good faith in accordance with the criteria established under and at such time as set forth in <u>Section 5</u> and taking into account the annual bonus award so made to such similarly situated employees, which amount shall be prorated through and including the date of termination; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Executive shall be entitled to receive an amount equal to one (1) times Executive's Base Salary as in effect immediately prior to the date of termination of Executive's employment (excluding any reduction in Base Salary that constituted Good Reason leading to such termination), payable in substantially equal installments for a period of twelve (12) months following the date of termination of Executive's employment (the "***Severance Period***"), payable in accordance with the Company's regular payroll practices as in effect from time to time; <u>provided</u>, that the first payment pursuant to this <u>Section 9(a)(iv)</u> shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Executive's employment and shall include payment of any amounts that would otherwise be due prior thereto.

&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) <u>Termination Due to Death</u>. If Executive's employment terminates at any time during the Term due to Executive's death, Executive's estate shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in Section 9(a)(i), and (ii) one (1) times Executive's Base Salary as in effect immediately prior to the date of Executive's death payable in substantially equal installments for the Severance Period; <u>provided</u>, that the first payment pursuant to clause (ii) of this <u>Section 9(b)</u> shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Executive's employment and shall include payment of any amounts that would otherwise be due prior thereto.

&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) <u>Termination by the Company For Cause, by Executive Without Good Reason, or on account of a Non-Renewal by Executive</u>. If (i) the Company terminates Executive's employment during the Term and following the occurrence of an event that constitutes Cause, (ii) Executive terminates Executive's employment during the Term without Good Reason or otherwise following the occurrence of an event that constitutes Cause, or (iii) Executive's employment terminates at the expiration of the Term pursuant to a Non-Renewal Notice by Executive, Executive shall be entitled to receive only the Accrued Obligations at such time as set forth in <u>Section 9(a)(i)</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;(d) <u>Termination by the Company upon Disability.</u> If the Company terminates Executive's employment during the Term due to Disability of Executive, Executive shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in Section 9(a)(i), and (ii) one (1) times Executive's Base Salary as in effect immediately prior to the date of termination of Executive's employment payable in substantially equal installments for the Severance Period, payable in accordance with the Company's regular payroll practices as in effect from time to time; <u>provided</u>, that the first payment pursuant to clause (ii) of this sentence shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Executive's employment and shall include payment of any amounts that would otherwise be due prior thereto. For the avoidance of doubt, whenever compensation is payable to Executive under the terms of this Agreement during a time when Executive is partially or totally disabled and such disability would entitle Executive to disability income or to salary continuation payments from the Company according to the terms of any plan or policy now or hereafter provided by the Company or according to any Company or insurance policy in effect at the time of such disability, the compensation payable to Executive hereunder following termination of Executive's employment in accordance with this Section 9(d) shall be in addition to any such disability income or salary continuation. This provision shall not be construed to limit Executive's rights, or ability to take any leave to which Executive may be entitled, under applicable 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Conditions to Payment</u>. All payments and benefits due to Executive (or, in the case of Executive's death, Executive's estate) under <u>Section 9(a)(ii)-(iv)</u>, clause (ii) of <u>Section 9(b)</u> and clause (ii) of the first sentence of <u>Section 9(d)</u>, which are not otherwise required by applicable law, shall be payable only if Executive (or, to the extent applicable, Executive's legal representatives or estate) executes and delivers to the Company a general release of claims substantially in the form attached as <u>Exhibit A</u> hereto (the "***Release***") and such Release is no longer subject to revocation (to the extent applicable), in each case, within sixty (60) days following termination of Executive's employment. Failure to timely execute and return such Release or the revocation of such Release shall be a waiver by Executive (or, to the extent applicable, Executive's legal representatives or estate) of Executive's (or, to the extent applicable, Executive's legal representatives' or estate's) right to severance payments (which, for the avoidance of doubt, shall not include the Accrued Obligations). In addition, all payments and benefits due to Executive under <u>Section 9(a)(ii)-(iv)</u> and clause (ii) of the first sentence of <u>Section 9(d)</u> shall be conditioned on Executive's continued compliance with Executive's obligations under Sections 2(c) and 2(f) of the Restrictive Covenant 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;(f) <u>No Other Severance</u>. Executive hereby acknowledges and agrees that, other than the severance payments and benefits described in this <u>Section 9</u>, upon the effective date of the termination of Executive's employment, Executive shall not be entitled to any other severance payments or benefits of any kind under any Company benefit plan, severance policy generally available to the Company's employees or otherwise and all other rights of Executive to compensation under this Agreement shall end as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <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;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Cause***" shall mean, (i) the conviction of Executive for (or pleading guilty or *nolo contendere* to) a felony or a crime involving moral turpitude, (ii) Executive's willful and continued failure to perform substantially Executive's material duties and responsibilities with respect to the Company and its affiliates or to follow the lawful directions or instructions of the Board (and, if Executive reports to the Chief Executive Officer of the Company, of the Chief Executive Officer), (iii) Executive's breach of fiduciary duty owed to the Company or any of its affiliates, (iv) Executive's theft, fraud, embezzlement, or dishonesty (including material misrepresentations or concealments in written reports submitted to the Company or the Board) with regard to the Company or any of its affiliates, or in connection with Executive's duties or responsibilities with respect thereto, (v) Executive's material violation of the Company's code of conduct, code of ethics or similar written material policies, including but not limited to those relating to sexual harassment, (vi) Executive's willful misconduct unrelated to the Company or any of its affiliates having, or likely to have, a material negative impact on the Company or any of its affiliates (economically or to its reputation), (vii) any material breach or violation by Executive of any provisions of this Agreement or the Restrictive Covenant Agreement. To the extent any of the foregoing items (ii), (v) (excluding a material violation of any sexual misconduct policy), or (vii) (excluding any material violation of the Restrictive Covenant Agreement) are capable of being cured, Cause shall not be deemed to have occurred with respect thereto until the Company has given Executive written notice, setting forth the issue(s) that is alleged to constitute Cause, and the Company has provided Executive at least thirty (30) days following the date on which such notice is provided to cure such conduct and Executive has failed to do so. Such event, conduct or condition described in this definition will not give rise to a termination for Cause if the action or omission is done at the request of the Board. In the event a determination is to be made as to whether Cause exists, such determination shall be a reasonable, good-faith determination made by 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;(b) "***Good Reason***" shall mean that any one or more of the following has occurred without Executive's specific written consent, (i) any material diminution in Executive's responsibilities, authorities or duties or in Executive's title, (ii) any reduction in Executive's Base Salary or target bonus opportunity, (iii) a transfer of Executive's principal place of employment by more than thirty-five (35) miles from its then current location, or (iv) any breach or violation by the Company of any material provisions of this Agreement; provided, that no event described in clause (i), (ii), (iii) or (iv) shall constitute Good Reason unless (A) Executive has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within sixty (60) days following the occurrence of such event, (B) Executive has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so, and (C) a termination of employment by Executive for Good Reason is effective on the day following the expiration of such cure period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Resignation as Officer or Director</u>. Upon the effective date of Executive's termination of employment, Executive shall be deemed to have resigned, to the extent applicable, as an officer of the Company or any other applicable affiliate of the Company, as an officer of Alpine Energy Capital, LLC and any of its subsidiaries, as a member or advisor of the Board and/or the board of managers or similar governing body of any of the Company's affiliates, and as a fiduciary of any of the Company's Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Cooperation</u>. From and after Executive's termination of employment, Executive shall provide Executive's reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive's employment hereunder, <u>provided</u>, that the Company shall reimburse Executive for Executive's reasonable costs and expenses (including legal counsel selected by Executive and reasonably acceptable to the Company) and such cooperation shall not unreasonably burden Executive or unreasonably interfere with any subsequent employment that Executive may undertake. In the event Company requires Executive to devote significant time to post-separation cooperation and at the time of such post-separation cooperation Executive is no longer receiving severance benefits hereunder, the Company and Executive shall establish in good faith and Company shall pay to Executive an hourly or daily rate based on Executive's Base Salary (as in effect on the date of termination of Executive's employment) to compensate Executive for Executive's time expended at the Company's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Indemnification/Exculpation; D&O Liability Insurance</u>. The Company shall indemnify and hold Executive harmless to the fullest extent permitted by the Company's limited liability company agreement and by the law in the State of Texas in effect on the date hereof, or as such agreement or laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all losses, payments, expenses, fines, costs, claims, proceedings, damages, suits, actions and liabilities ("Losses") incurred by Executive by reason of or arising in whole or in part, directly or indirectly, out of (a) Executive being an employee, manager or officer of the Company or any affiliate thereof or (b) any matter associated with or related to the Company or any affiliate thereof (each, an "***Indemnifiable Event***"). Losses shall include any fees and expenses incurred by Executive in connection with any proceeding, suit, action or other matter (a "***Proceeding***") (including defense costs and attorney's fees) that relates to or arise in connection with an Indemnifiable Event. The Company shall advance all expenses of Executive incurred thereby in connection with any Proceeding prior to the final disposition of any Proceeding by final adjudication arising out of an Indemnifiable Event. Without limiting the generality or effect of the foregoing, within ten (10) days after any request by Executive, the Company shall, in accordance with such request, (a) pay such expenses on behalf of Executive, (b) advance to Executive funds in an amount sufficient to pay such expenses, or (c) reimburse Executive for such expenses. Executive shall not be indemnified for Losses to the extent such Losses are determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Executive. Executive shall be completely exculpated from any liability owing to the Company or any of its affiliates and shall not have any liability to the Company or any of its affiliates except to the extent such liability is determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Executive. The Company shall cover Executive as an insured under any contract of directors' and officers' liability insurance both during and, while potential liability exists, after the term of this Agreement, and in the same amount and to the same extent as the Company covers other senior executives of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Services Agreement Duty to Maintain Confidential Information</u>. To the extent Executive has access to confidential information provided to the Company or its affiliates in connection with a Services Agreement, Executive will use Executive's best efforts and diligence to protect such confidential information and will not use, copy, remove, disclose or disseminate to any person or entity, directly or indirectly, such confidential information, except as required in the course of performing Executive's duties pursuant to this Agreement or as required in a legal proceeding or by a governmental or regulatory authority. Executive acknowledges and agrees to be bound by the confidentiality provisions set forth in any such Services Agreements, provided that the Company has provided Executive with a written copy of such provisions. <u>Exhibit B</u> hereto sets forth a copy of such provisions applicable to Executive pursuant to Services Agreements in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</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;(a) All notices under this Agreement shall be in writing and shall be deemed given: (i) when delivered personally by hand (with written confirmation of receipt); or (ii) one business day following the day sent by overnight courier (with written confirmation of receipt), in each case at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision, except that notices of change of address shall be effective only upon receipt). All notices and communications by Executive to the Company shall be mailed or delivered to the Company at its principal office identified in Section 3 herein, and all notices and communications by the Company to Executive may be given to Executive at Executive's home address as then shown in the Company's personnel records.

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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;(b) Executive shall not have the right to assign or otherwise transfer Executive's rights or obligations under this Agreement (except by will or the laws of descent and distribution), and any purported assignment or transfer by Executive in violation of this Agreement shall be null and void from the initial date of the purported assignment or transfer. Any payments under this Agreement will inure to the benefit of and be enforceable by the Executive's legal personal representative. The Company and Executive agree that the Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and its successors and assigns, and the Company shall require such successors and assigns expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such succession had taken 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;(c) If any of the payments or benefits received or to be received by Executive pursuant to this Agreement or otherwise constitute "parachute payments" within the meaning of Section 280G of the Code (each, a "***Section 280G Payment***") and would, but for this <u>Section 14(c)</u>, be subject to the excise tax imposed under Section 4999 of the Code (the "***Golden Parachute Tax***"), then, if the shareholder approval described in Q/A-7 of Treas. Reg. section 1.280G-1 is inapplicable, prior to making such Section 280G Payment, a calculation shall be made comparing (i) the Net Benefit (as defined below) to Executive of the Section 280G Payment paid in full to (ii) the Net Benefit to Executive if the Section 280G Payment is limited to the extent necessary to avoid being subject to the Golden Parachute Tax. Only if the amount calculated under clause (i) of the immediately preceding sentence is less than the amount under clause (ii) of such sentence will the Section 280G Payment be reduced, and then, only to the minimum extent necessary to ensure that no portion of the Section 280G Payment is subject to the Golden Parachute Tax. For purposes of this <u>Section 14(c)</u> only, "***Net Benefit***" shall mean the present value of the payment, net of all federal, state, local, foreign income, employment, and excise taxes, including the Golden Parachute Tax. Any reduction made pursuant to this <u>Section 14(c)</u> shall be made in a manner consistent with the requirements of Section 409A of the Code, provided that Executive shall not have any discretion as to which 280G Payments shall be reduced or how any such 280G Payment shall be reduced. All calculations and determinations under this <u>Section 14(c)</u> shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the "***Tax Counsel***"), whose determinations shall be conclusive and binding on the Company and Executive for all purposes. The Company and Executive shall furnish the Tax Counsel with such information and documents as requested by the Tax Counsel to make its determinations under this <u>Section 14(c)</u>, and the Company shall bear all costs incurred by the Tax Counsel under this <u>Section 14(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;(d) This Agreement and the Restrictive Covenant Agreement contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements, term sheets, offer letters, and drafts thereof, oral or written, between the parties hereto with respect to the subject matter hereof. No promises, statements, understandings, representations or warranties of any kind, whether oral or in writing, express or implied, have been made to Executive by any person or entity to induce Executive to enter into this Agreement other than the express terms set forth herein, and Executive is not relying upon any promises, statements, understandings, representations, or warranties other than those expressly set forth in 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) No change or modification of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party charged with waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, unless so provided in the waiver.

&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) If any provisions of this Agreement (or portions thereof) shall, for any reason, be held invalid or unenforceable, such provisions (or portions thereof) shall be ineffective only to the extent of such invalidity or unenforceability, and the remaining provisions of this Agreement (or portions thereof) shall nevertheless be valid, enforceable and of full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original 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;(h) The section or paragraph headings or titles herein are for convenience of reference only and shall not be deemed a part of this Agreement. The parties have jointly participated in the drafting of this Agreement, and the rule of construction that a contract shall be construed against the drafter shall not be applied. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which they are found.

&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) Notwithstanding anything to the contrary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Code and the regulations and authoritative guidance promulgated thereunder to the extent applicable (collectively, "***Section 409A***"), and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. In no event whatsoever will the Company or any of its affiliates, or any of their respective directors, officers, agents, attorneys, employees, executives, shareholders, investors, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors or assigns be liable for any additional tax, interest or penalties that may be imposed on Executive under Section 409A or any damages for failing to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits considered "nonqualified deferred compensation" under Section 409A upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Section 409A, and for purposes of any such provision of this Agreement, references to a "resignation," "termination," "terminate," "termination of employment" or like terms shall mean separation from service. If any payment, compensation or other benefit provided to Executive in connection with the termination of Executive's employment is determined, in whole or in part, to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Executive is a specified employee as defined in Section 409A(2)(B)(i) of the Code, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the date of termination or, if earlier, ten (10) business days following Executive's death (the "***New Payment Date***"). The aggregate of any payments that otherwise would have been paid to Executive, during the period between the date of termination and the New Payment Date shall be paid to Executive in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. If the period during which Executive may consider and sign the release spans two (2) calendar years, notwithstanding anything in this Agreement to the contrary, the payment of severance will not be made or begin until the later calendar year.

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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;(iii) All reimbursements for costs and expenses under this Agreement shall be paid in no event later than the end of the calendar year following the calendar year in which Executive incurs such expense. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (x) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (y) the amount of expenses eligible for reimbursements 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If under this Agreement, an amount is paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (*e.g*., "payment shall be made within thirty (30) days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion 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;(i) This Agreement, for all purposes, shall be construed in accordance with and governed by the laws of the State of Texas (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction). None of the parties hereto has agreed with or represented to any other party that the provisions of this <u>Section 14(i)</u> will not be fully enforced in all instances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispute Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 and Executive agree that, other than the Company's right to seek injunctive relief or specific performance as provided in the Restrictive Covenant Agreement, any dispute, controversy, or claim between Executive, on the one hand, and the Company, on the other hand, arising out of, under, pursuant to, or in any way relating to this Agreement (a "***Dispute***"), shall first be submitted for confidential, non-binding mediation ("***Mediation***") in a good-faith attempt to resolve the Dispute. Mediation refers to a forum in which an impartial person or persons (the "***Mediator***") facilitates communication between parties to promote reconciliation, settlement, or understanding among them. The Mediator may not impose his or her own judgment on the issues for that of the parties. The parties shall jointly select a Mediator, and the Mediation shall be administered by the American Arbitration Association ("***AAA***"). The Mediation shall take place in the State of Texas. The cost of Mediation shall be shared equally by the parties to the Mediation; provided that each party shall pay for and bear the cost of Executive's or the Company's own experts, evidence, and attorney's fees.

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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;ii. In the event a Dispute is not resolved by mediation, such Dispute shall be submitted to and resolved by confidential and binding arbitration ("***Arbitration***"), administered by the AAA and conducted pursuant to the rules then in effect of the AAA governing commercial disputes. The Arbitration hearing shall take place in the State of Texas. Such Arbitration shall be before three neutral arbitrators (the "***Panel***") licensed to practice law and familiar with employment disputes. Any award rendered in any Arbitration shall be final and conclusive upon the parties to the Arbitration and not subject to judicial review, and the judgment thereon may be entered in the highest court of the forum (state or federal) having jurisdiction over the issues addressed in the Arbitration, but entry of such judgment will not be required to make such award effective. The Panel may enter a default decision against any party who fails to participate in the Arbitration. The administration fees and expenses of the Arbitration shall be borne equally by the parties to the Arbitration; provided that each party shall pay for and bear the cost of Executive's or its own experts, evidence, and attorney's fees, except that, in the discretion of the Panel, any award may include the costs of a party's counsel and/or its share of the expense of Arbitration if the Panel expressly determines that an award of such costs is appropriate to the party whose position substantially prevails in such Arbitration. Notwithstanding any other provision of this Agreement, no party shall be entitled to an award of special, punitive, or consequential damages. To submit a matter to Arbitration, the party seeking redress shall notify in writing, in accordance with Section 14(a), the party against whom such redress is sought, describe the nature of such claim, the provision of this Agreement that has been allegedly violated and the material facts surrounding such claim. The Panel shall render a single written, reasoned decision. The decision of the Panel shall be binding upon the parties to the Arbitration, and after the completion of such Arbitration, the parties to the Arbitration may only institute litigation regarding this Agreement for the sole purpose of enforcing the determination of the Arbitration hearing or, with respect to the Company, to seek injunctive or equitable relief. The Panel shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this agreement to arbitrate, including any claim that all or part of this Agreement is void or voidable and any claim that an issue is not subject to arbitration. All proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or award of the arbitrator, shall be kept confidential by all parties except to the extent such disclosure is required by law, or in a proceeding to enforce any rights under this Agreement.

EXECUTIVE ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, EXECUTIVE IS WAIVING ANY RIGHT THAT EXECUTIVE MAY HAVE TO A JURY TRIAL OR A COURT TRIAL RELATED TO 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;(k) Executive hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Executive does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or by which Executive is bound, (ii) except as previously disclosed to the Company, Executive is not a party to or bound by any employment agreement, service agreement, noncompete agreement or confidentiality agreement with any other person or entity<sup>1</sup> and (iii) upon the execution and delivery of this Agreement by both Executive and the Company, this Agreement shall be the valid and binding obligation of Executive and the Company on and after the Effective Date, enforceable in accordance with its terms. In addition, Executive represents and warrants to the Company that (A) Executive has provided to the Company, or Company is already in possession of, copies of any and all agreements or other covenants between Executive and Executive's current or former employers relating to Executive's conduct in connection with or following Executive's employment with such employer, (B) Executive's commencement of employment with the Company will not be a violation of any such pre-existing agreement or covenant or such pre-existing agreement or covenant will terminate on the Effective Date according to the terms of this Agreement, and (C) Executive will abide by the terms of such pre-existing agreements or covenants at all times while employed by the Company, *provided*, they are not terminated according to the terms of this Agreement. Executive hereby acknowledges and represents that Executive has had the opportunity to consult with independent legal counsel or other advisor of Executive's choice and has done so regarding Executive's rights and obligations under this Agreement, that Executive is entering into this Agreement knowingly, voluntarily, and of Executive's own free will, that Executive is relying on Executive's own judgment in doing so, and that Executive fully understands the terms and conditions contained herein.

<sup>____________________________</sup>

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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;(l) 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 and any other amount otherwise authorized by Executive to be withheld or deducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The covenants and obligations of the Company under <u>Sections 9</u>, <u>12</u>, <u>13</u> and <u>14</u>, and the covenants and obligations of Executive under <u>Sections 9</u>, <u>12</u>, and <u>14</u>, shall continue and survive any expiration of the Term, termination of Executive's employment or any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Conditional Upon Closing of Transactions</u>. This Agreement shall be conditioned upon the closing of the transactions contemplated in the Red Pine Petroleum Ltd. Notice of Annual General and Special Meeting of Shareholders held on May 25, 2021 and Management Information Circular dated April 23, 2021. In the event that the transactions do not close, this Agreement shall be *void ab initio*.

*[signature page follows]*

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

**HB2 ORIGINATION, LLC**

By: <u>/s/ Craig Perry</u> 

Printed Name: Craig Perry

Title: Chief Executive Officer

**EXECUTIVE:**

<u>/s/Darren Moulds</u><u> </u><u> </u>

Darren Moulds

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**Exhibit A**

**GENERAL RELEASE AND WAIVER AGREEMENT**

This Confidential General Release and Waiver Agreement (the "Agreement") is made by and between HB2 Origination, LLC, a Delaware limited liability company (the "Company"), and _________________("Executive").<sup>2</sup>

WHEREAS, Executive and the Company entered into that certain Employment Agreement, dated ________________ (the "Employment Agreement"); and

WHEREAS, the Employment Agreement terminated effective _______________.

NOW, THEREFORE, in consideration of the promises and mutual covenants set forth in this Agreement, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, Executive and the Company agree as follows:

1. **Employment Termination**. Executive's employment with the Company terminated effective ___________________________ (the "Separation Date").

2. **Consideration**. In consideration for Executive timely signing (and not revoking) this Agreement, including the promises made in this Agreement, the Company agrees to provide Executive the benefits as defined in Section [____] of the Employment Agreement (the "Severance Benefits"). Executive acknowledges that Executive is not otherwise entitled to receive the Severance Benefits, that Executive has been paid all wages and other payments owed, and that the Severance Benefits are being provided by the Company in exchange for Executive's execution and non-revocation of this Agreement. Executive understands and acknowledges that in order to receive the Severance Benefits, Executive must timely sign and return this Agreement, as described in Section 8 below, and not revoke this Agreement, as described in Section 8 below. The Severance Benefits will be provided pursuant to the timing set forth in the Employment Agreement. The Company's agreement to provide the Severance Benefits is not an admission, express or implied, by the Company of liability.

3. **Release**. In consideration of the Severance Benefits provided to Executive, Executive for [himself/herself] and for Executive's spouse, heirs, executors, administrators, trustees, and legal representatives, hereby forever releases the Company and its affiliates, and any and all of their respective parent companies, subsidiaries, successors and assigns, and any of their officers, directors, agents, fiduciaries, trustees, administrators, shareholders, insurers, attorneys, and employees (collectively, the "Released Parties") from any and all claims and/or causes of action of whatever kind or character, arising out of or related to Executive's employment with the Company, or any other Released Party, that have accrued or may accrue, whether known or unknown, and that are based on facts, acts, omissions, transactions, occurrences or events occurring on or prior to the time this Agreement is signed by Executive (hereinafter referred to as "Claims"), including, but not limited to:

<sup>____________________________<br>2</sup> NTD: In the event of a termination of employment due to Executive's death, adjust terms to reflect execution by Executive's estate as applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any and all Claims arising out of the Employment Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all Claims under local, state, or federal law, or the laws of any foreign jurisdiction, including, but not limited to, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq., as amended by the Civil Rights Act of 1991, the Civil Rights Act of 1866, 42 U.S.C. § 1981, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, the Family and Medical Leave Act, the Equal Pay Act of 1963, the Lilly Ledbetter Fair Pay Act of 2009, the Employee Retirement Income Security Act of 1974, the Genetic Information Nondiscrimination Act, the Fair Credit Reporting Act; [Chapter 451 of the Texas Labor Code, Chapter 21 of the Texas Labor Code, and the Texas Payday Law; the Tennessee Human Rights Act, and the Tennessee Disability Act];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any and all tort, contract, and/or common law Claims, including but not limited to, wrongful termination, constructive discharge, slander, defamation, personal injury, negligence, gross negligence, intentional or negligent infliction of emotional distress, fraud, and misrepresentation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any and all Claims for past or future employment compensation and employment benefits, including, but not limited to, wages, overtime payments, bonuses, vacation pay, separation, termination, or severance pay, medical or dental insurance coverage; short or long term disability benefits; claims for options or shares of any kind, including, but not limited to, rights or benefits under any bonus or incentive compensation plan; welfare benefits, including life insurance or health insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any and all Claims relating in any way to Executive's employment with, and/or separation from, the Company or any Released Party; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Claim for attorneys' fees, costs, disbursements and the like.

This release does not include any claims the release of which is expressly barred by law or claims for vested benefits.

4. **Surviving Covenants**. The Company acknowledges that the indemnification provisions in Section 13 of the Employment Agreement survive termination of the Employment Agreement and that the Company remains bound by such provisions. Executive acknowledges that Executive remains bound by those provisions in that certain Restrictive Covenant Agreement between Executive and the Company dated ________________ (the "Restrictive Covenant Agreement") that survive termination of Executive's employment.

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5. **Non-Disparagement**. To the extent permitted by law, and subject to the Lawful Communications provision below, Executive agrees that Executive will not engage in any act (including a verbal or written statement) that is intended, or reasonably may be expected, to defame, disparage, or harm the reputation, business, prospects, or operations of the Released Parties. The Company agrees that it will provide the following instruction to the Company's executives and officers: "As you know, [Executive] is no longer employed with the Company. You are instructed not to engage in any act which is intended, or reasonably may be expected, to defame, disparage, or harm the reputation or business prospects of [Executive]. Thank you in advance for your cooperation with this important instruction. Please direct any third-party inquiries regarding [Executive] to the Company's Human Resources department."

6. **Lawful Communications**. Nothing in this Agreement prevents Executive from exercising any rights that cannot be lawfully waived or restricted. Nothing in this Agreement prevents Executive from testifying at a hearing, deposition, or in court in response to a lawful subpoena. Nothing in this Agreement limits Executive's ability to file a charge or complaint with the Equal Employment Opportunity Commission or other federal, state or local governmental agency or commission ("Government Agencies"). Further, this Agreement does not limit Executive's ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to The Company. This Agreement does not limit Executive's right to receive an award from a Government Agency for information provided to any Government Agency. However, Executive agrees that Executive has waived any right to recover monetary damages or other personal relief-where such rights can be lawfully waived-from the Released Parties in any action filed by Executive or by anyone else on Executive's behalf.

7. **Return of Company Property**. Executive represents and warrants that Executive has returned to the Company any and all property of and information relating to the business or affairs of the Released Parties, regardless of the form of such information, without retaining copies of any such information.

8. **Voluntary Agreement**. The Company hereby advises Executive to consult with an attorney of Executive's choosing to review and discuss this Agreement before Executive signs this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive acknowledges that Executive has carefully read and fully understands all of the provisions of this Agreement. Executive acknowledges that Executive has voluntarily and knowingly signed this Agreement in exchange for valuable consideration that Executive is not otherwise entitled to receive.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive further acknowledges that, in entering into this Agreement, Executive has not relied upon any representation or statement made by any Company agent or representative that is not expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Executive has [twenty-one (21)/forty-five (45) days] to review and consider this Agreement before signing the Agreement. Executive may not sign this Agreement before the Separation Date. Executive must return the signed Agreement to the attention of [name] at [address].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Executive is advised that Executive may revoke this Agreement within seven (7) days of signing it. Revocation must be made by delivering a written notice of revocation to the attention of [name] at [address]. If this Agreement is revoked by Executive in this seven (7)-day period, this Agreement will not be effective and enforceable and Executive will not be entitled to the Severance Benefits.

9. **Effective Date**. Unless revoked in accordance with Section 8(d) above, this Agreement will become effective on the eighth (8<sup>th</sup>) day following Executive's execution of this Agreement (the "Effective Date").

10. **Confidentiality of Agreement**. Executive agrees that Executive will not disclose, or cause to be disclosed, the terms of this Agreement, except to Executive's spouse, attorneys, accountants, or tax advisors-but only on the condition that Executive advises such individuals in advance of disclosure that the terms of this Agreement are strictly confidential and the condition that such individuals agree to be bound by this Agreement's confidentiality provisions-or to the extent otherwise permitted or required by law.

11. **Severability**. If any provision of this Agreement is held to be illegal, void, or unenforceable, such provision will be of no force and effect. The illegality or unenforceability of such provision will have no effect upon, and will not impair the enforceability of, any other provision of this Agreement; provided, however, that, upon any finding that the release and agreements provided for in this Agreement are illegal, void, or unenforceable, Executive agrees to execute a release, waiver and/or agreement that is legal and enforceable and is substantially similar to the form of this Agreement except without any provision in this Agreement that is illegal, void or unenforceable.

12. **Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive warrants and represents that Executive has not assigned, transferred, or subrogated any portion of any claim that Executive could assert against the Released Parties and Executive has full authority to enter into this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement cannot be modified except by written agreement signed by Executive and the Company's duly authorized officer;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement shall inure to the benefit of the Company and its successors and assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With the exception of any confidentiality agreements or any provisions of the Employment Agreement and the Restrictive Covenant Agreement that survive termination of such agreement, as applicable, this Agreement sets forth the entire agreement between the parties, and supersedes all prior agreements, understandings, negotiations and correspondence between the parties concerning the matters described in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Agreement is not an admission of any liability or wrongdoing by the Released Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Agreement is intended to settle and release any and all claims for attorneys' fees and/or costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All descriptive headings in this Agreement are inserted for convenience only and shall be disregarded in construing or applying any provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No waiver by either party of any breach by the other party of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any other provision or condition at the time or at any prior or subsequent time. This Agreement and the provisions contained in it shall not be construed or interpreted for or against either party because that party drafted or caused that party's legal representative to draft any of its provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Agreement will be governed exclusively by the laws of the State of Texas and the parties in any action arising out of this Agreement will be subject to the jurisdiction and venue of the federal and state courts, as applicable, in Houston, Texas.

**SIGNATURE PAGE FOLLOWS**

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IN WITNESS WHEREOF, this Agreement has been duly executed as of the dates written below.

Dated: _______________ ____________________________________<br>[__________] <br> Dated: _______________ [__________]<br>By_________________________________ Name: Title:

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**Exhibit B**

[MSA Confidentiality Provisions]

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## Exhibit 10.25

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***Execution Version***

<u>**EMPLOYMENT AGREEMENT**</u>

THIS EMPLOYMENT AGREEMENT (this "***Agreement***") is entered into as of September 7, 2021 (the "***Effective Date***"), by and between HB2 Origination, LLC, a Delaware limited liability company (the "***Company***"), and Chrystie Holmstrom ("***Executive***").

WHEREAS, the Company is a majority owned subsidiary of Alpine Summit Energy Investors, Inc. ("ASEI"), and ASEI is a wholly owned subsidiary of Alpine Summit Energy Partners, Inc. ("ASEP"). References to the Company's affiliates in this Agreement shall include, without limitation, ASEI and ASEP;

WHEREAS, concurrently herewith, Executive is entering into a Restrictive Covenant Agreement with the Company (the "***Restrictive Covenant Agreement***"); and

WHEREAS, effective as of September 7, 2021, the Company desires to employ Executive and to enter into this Agreement embodying the terms of such employment, and Executive desires to enter into this Agreement and to accept such employment, subject to the terms and provisions of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment Terms</u>. The Company hereby agrees to employ Executive, and Executive hereby agrees to accept such employment with the Company, upon terms and conditions contained in this Agreement for the period beginning on the Effective Date and continuing until the third anniversary of the Effective Date (the "***Initial Term***"), subject to <u>Section 8</u>; <u>provided</u>, that the term of this Agreement shall automatically be extended for one (1) additional year commencing on the third anniversary of the Effective Date and on each anniversary thereafter (each, a "***Renewal Term***") unless, not less than ninety (90) days prior to the commencement of any such Renewal Term, either the Company or Executive shall have given written notice to the other that it does not wish to extend this Agreement (a "***Non-Renewal Notice***"), in which case, Executive's employment under this Agreement shall terminate upon the close of business on the last day of the Initial Term or the then-current Renewal Term, as applicable. The period during which Executive is employed by the Company pursuant to this Agreement is hereinafter referred to as the "***Term***".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Employment Duties</u>. During the Term, Executive shall be employed and serve as the Chief Legal Officer of the Company and shall have such duties, authorities and responsibilities as are customarily performed, undertaken and exercised by persons employed in a similar executive capacity. To the extent the Company is a party to any services agreements ("***Services Agreement***"), Executive shall be responsible for performing such duties within Executive's scope of responsibility to facilitate the Company's performance under such agreements. During Executive's employment with the Company, Executive shall report to the board of directors (or similar governing body) of ASEP (the "***Board***") and the Chief Executive Officer of the Company. If requested, Executive shall also serve as (i) an executive officer of the Company or any of its affiliates and/or (ii) a board member or advisor of the Board and/or the board of directors (or similar governing body) of any of the Company's affiliates, in each case, without additional compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Performance; Principal Place of Employment</u>. Executive shall devote Executive's full working time and attention and Executive's best efforts to Executive's service with the Company and shall perform Executive's services in a capacity and in a manner consistent with Executive's position for the Company, and shall not engage in any other business or occupation during the Term; <u>provided</u>, that the foregoing shall not be interpreted as prohibiting Executive from (i) managing Executive's personal investments (so long as such investment activities are of a passive nature), (ii) engaging in charitable or civic activities or (iii) holding passive investments (including co-investments in entities unrelated to the Company); in the case of clauses (i), (ii) and (iii), so long as such activities do not, individually or in the aggregate, (x) conflict with or materially interfere with the performance of Executive's duties and responsibilities hereunder, (y) create a fiduciary conflict, or (z) result in a violation of the Restrictive Covenant Agreement. The Company shall provide Executive an office located at the Company's principal office in the Nashville, TN metropolitan statistical area for so long as Executive resides in such locality during the Term. Executive understands and agrees that Executive may be required to travel from time to time for business reasons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Base Salary</u>. During the Term, the Company shall pay Executive a base salary at an annual rate of Three Hundred Fifty Thousand and NO/100 Dollars ($350,000.00), payable in accordance with the Company's normal payroll practices for employees as in effect from time to time. Executive's annual base salary, as in effect from time to time, is hereinafter referred to as the "Base Salary." The Base Salary shall be reviewed annually by the Board, and, in the sole discretion of the Board, may be increased (but not decreased) effective as of the date determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Annual Bonus</u>. With respect to each calendar year during the Term, Executive shall be eligible to earn an annual bonus award (the "***Annual Bonus***") payable in cash, vested property or a combination thereof, as determined by the Company, subject to the achievement of individual and company performance goals determined by the Board and communicated to the Executive in writing. The Annual Bonus, if any, for each calendar year during the Term shall be paid to Executive as soon as reasonably practicable after the certification of the financial statements for the performance period to which such Annual Bonus relates and at the same time that other senior executives of the Company receive annual bonus payments, but in all events no earlier than January 1 and no later than June 30 of the calendar year following the calendar year to which the Annual Bonus relates. Except as otherwise provided for in this Agreement, Executive shall not be paid any Annual Bonus with respect to a calendar year unless Executive is employed with the Company on December 31 of the calendar year to which such Annual Bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Benefits</u>. During the Term, Executive shall be entitled to participate in any benefit plans or programs (but excluding any severance plan unless specifically referenced in this Agreement) offered by the Company as in effect from time to time (collectively, "***Benefit Plans***"), on the same basis as those generally made available to similarly situated employees of the Company, to the extent consistent with applicable law and the terms of the applicable Benefit Plan. The Company does not promise the adoption or continuance of any particular Benefit Plan and reserves the right to amend or cancel any Benefit Plan at any time in its sole discretion (subject to the terms of such Benefit Plan and applicable law). Executive shall be entitled to four (4) weeks of vacation per year and unused vacation may be carried over into subsequent years in accordance with the Company's paid time off policies as may be in effect from time to time. During the Term, the Company shall also provide Executive with substantially the same perquisite benefits made available to other similarly situated employees of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Expense Reimbursement</u>. Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by Executive in connection with the performance of Executive's duties hereunder in accordance with the Company's expense reimbursement policies and procedures as may be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination of Employment</u>. The Term of Executive's employment hereunder may be terminated as follows:

&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) Automatically in the event of the death of Executive;

&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) At the option of the Company, by written notice to Executive or Executive's personal representative in the event of the Disability of Executive. As used herein, the term "***Disability***" shall mean a physical or mental incapacity or disability which, despite any reasonable accommodation required by applicable law, has rendered Executive unable to perform Executive's material duties for a period of not less than one hundred and eighty (180) consecutive days, as certified in writing by a competent medical physician selected 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;(c) At the option of the Company, by written notice to Executive, at any time following the occurrence of an event that constitutes Cause (as defined in and subject to <u>Section</u> <u>10(a)</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;(d) At the option of the Company, without Cause (provided that the assignment of this Agreement to, and assumption of this Agreement by, the purchaser of all or substantially all of the assets of the Company shall not be treated as a termination without Cause under this <u>Section 8(d)</u>), upon sixty (60) days prior written notice to Executive of its determination to terminate Executive;

&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) At the option of Executive, for Good Reason (as defined in and subject to <u>Section 10(b)</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;(f) At the option of Executive, without Good Reason, upon sixty (60) days prior written notice 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;(g) Upon the close of business on the last day of the Initial Term or the then current Renewal Term, as applicable, as a result of a Non-Renewal Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Payments by Virtue of Termination of Employment</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;(a) <u>Termination by the Company Without Cause, by Executive For Good</u> <u>Reason, or on account of a Non-Renewal Notice by the Company</u>. If (i) the Company terminates Executive's employment at any time during the Term without Cause at a time that Executive is otherwise willing and able to continue employment hereunder, (ii) Executive terminates Executive's employment during the Term for Good Reason, or (iii) Executive's employment terminates at the expiration of the Term pursuant to a Non-Renewal Notice by the Company, and, in each such case, no event constituting Cause has occurred as of such time, then, subject to <u>Section 9(d)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Executive shall be entitled to, within thirty (30) days following such termination, or as otherwise provided by law, the terms of the applicable Benefit Plan or herein, (A) payment of Executive's accrued and unpaid Base Salary accrued through the date of termination of Executive's employment, (B) payment of any accrued and unpaid Annual Bonus for the calendar year ending immediately prior to calendar year of termination of Executive's employment, payable at such time as set forth in Section 5, above, (C) reimbursement of expenses under <u>Section 7</u>, (D) any accrued but unused paid time off to the extent required by any Company policy, (E) all other accrued amounts or accrued benefits due to Executive in accordance with the Company's Benefit Plans (other than any severance plan or program), and (F) any benefits to which Executive is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (collectively, the "***Accrued Obligations***"); 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;(ii) provided Executive (or Executive's family or legal representatives) timely elects to continue coverage for Executive and Executive's eligible dependents under the Company's group health plans under Section 4980B of the Internal Revenue Code of 1986, as amended (the "***Code***") and Section 601 et. Seq. of the Employee Retirement Income Security Act of 1974, as amended (collectively, "***COBRA***"), the Company shall pay to Executive on the first regularly scheduled payroll date of each calendar month following Executive's termination of employment an amount that is equal to the full premium amount on an after-tax basis for coverage under the Company's group health plans at the coverage levels in effect for Executive and any dependents immediately prior to the Executive's termination of employment for the Severance Period or such shorter period as Executive remains eligible to continue such coverage pursuant to COBRA. Amounts paid by the Company on behalf of Executive pursuant to this <u>Section 9(a)(ii)</u>, to the extent not otherwise taxable, shall be imputed to Executive as additional taxable income to the minimum extent as may be required to avoid adverse consequences to Executive or the Company under either Section 105(h) of the Internal Revenue Code of 1986, as amended (the "***Code***") or the Patient Protection and Affordable Care Act of 2010, as amended; provided that, if such imputation does not prevent the imposition of an excise tax under, or the violation of, the Patient Protection and Affordable Care Act (as amended by the Health Care and Education Reconciliation Act of 2010 and as amended from time to time), including, without limitation, Section 4980D of the Code, the parties agree, consistent with the requirements for compliance with or exemption from Section 409A (as defined below), to restructure such payments in a manner that avoids such adverse consequences; 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;(iii) solely if and to the extent that (A) the date of termination of Executive's employment occurs on or following the first day of October during such calendar year and (B) similar annual bonus awards are made to similarly situated employees of the Company as Executive with respect to such calendar year, then Executive shall be entitled to receive a bonus for the calendar year in which the date of termination occurs in an amount equal to the Annual Bonus for such year as determined by the Board in good faith in accordance with the criteria established under and at such time as set forth in <u>Section 5</u> and taking into account the annual bonus award so made to such similarly situated employees, which amount shall be prorated through and including the date of termination; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Executive shall be entitled to receive an amount equal to one (1) times Executive's Base Salary as in effect immediately prior to the date of termination of Executive's employment (excluding any reduction in Base Salary that constituted Good Reason leading to such termination), payable in substantially equal installments for a period of twelve (12) months following the date of termination of Executive's employment (the "***Severance Period***"), payable in accordance with the Company's regular payroll practices as in effect from time to time; <u>provided</u>, that the first payment pursuant to this <u>Section 9(a)(iv)</u> shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Executive's employment and shall include payment of any amounts that would otherwise be due prior thereto.

&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) <u>Termination Due to Death</u>. If Executive's employment terminates at any time during the Term due to Executive's death, Executive's estate shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in Section 9(a)(i), and (ii) one (1) times Executive's Base Salary as in effect immediately prior to the date of Executive's death payable in substantially equal installments for the Severance Period; <u>provided</u>, that the first payment pursuant to clause (ii) of this <u>Section 9(b)</u> shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Executive's employment and shall include payment of any amounts that would otherwise be due prior thereto.

&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) <u>Termination by the Company For Cause, by Executive Without Good Reason, or on account of a Non-Renewal by Executive</u>. If (i) the Company terminates Executive's employment during the Term and following the occurrence of an event that constitutes Cause, (ii) Executive terminates Executive's employment during the Term without Good Reason or otherwise following the occurrence of an event that constitutes Cause, or (iii) Executive's employment terminates at the expiration of the Term pursuant to a Non-Renewal Notice by Executive, Executive shall be entitled to receive only the Accrued Obligations at such time as set forth in <u>Section 9(a)(i)</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;(d) <u>Termination by the Company upon Disability.</u> If the Company terminates Executive's employment during the Term due to Disability of Executive, Executive shall be entitled to receive (i) the Accrued Obligations payable at such time as set forth in Section 9(a)(i), and (ii) one (1) times Executive's Base Salary as in effect immediately prior to the date of termination of Executive's employment payable in substantially equal installments for the Severance Period, payable in accordance with the Company's regular payroll practices as in effect from time to time; <u>provided</u>, that the first payment pursuant to clause (ii) of this sentence shall be made on the next regularly scheduled payroll date following the sixtieth (60th) day after the date of termination of Executive's employment and shall include payment of any amounts that would otherwise be due prior thereto. For the avoidance of doubt, whenever compensation is payable to Executive under the terms of this Agreement during a time when Executive is partially or totally disabled and such disability would entitle Executive to disability income or to salary continuation payments from the Company according to the terms of any plan or policy now or hereafter provided by the Company or according to any Company or insurance policy in effect at the time of such disability, the compensation payable to Executive hereunder following termination of Executive's employment in accordance with this Section 9(d) shall be in addition to any such disability income or salary continuation. This provision shall not be construed to limit Executive's rights, or ability to take any leave to which Executive may be entitled, under applicable 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Conditions to Payment</u>. All payments and benefits due to Executive (or, in the case of Executive's death, Executive's estate) under <u>Section 9(a)(ii)-(iv)</u>, clause (ii) of <u>Section 9(b)</u> and clause (ii) of the first sentence of <u>Section 9(d)</u>, which are not otherwise required by applicable law, shall be payable only if Executive (or, to the extent applicable, Executive's legal representatives or estate) executes and delivers to the Company a general release of claims substantially in the form attached as <u>Exhibit A</u> hereto (the "***Release***") and such Release is no longer subject to revocation (to the extent applicable), in each case, within sixty (60) days following termination of Executive's employment. Failure to timely execute and return such Release or the revocation of such Release shall be a waiver by Executive (or, to the extent applicable, Executive's legal representatives or estate) of Executive's (or, to the extent applicable, Executive's legal representatives' or estate's) right to severance payments (which, for the avoidance of doubt, shall not include the Accrued Obligations). In addition, all payments and benefits due to Executive under <u>Section 9(a)(ii)-(iv)</u> and clause (ii) of the first sentence of <u>Section 9(d)</u> shall be conditioned on Executive's continued compliance with Executive's obligations under Sections 2(c) and 2(f) of the Restrictive Covenant 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;(f) <u>No Other Severance</u>. Executive hereby acknowledges and agrees that, other than the severance payments and benefits described in this <u>Section 9</u>, upon the effective date of the termination of Executive's employment, Executive shall not be entitled to any other severance payments or benefits of any kind under any Company benefit plan, severance policy generally available to the Company's employees or otherwise and all other rights of Executive to compensation under this Agreement shall end as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <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;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***Cause***" shall mean, (i) the conviction of Executive for (or pleading guilty or *nolo contendere* to) a felony or a crime involving moral turpitude, (ii) Executive's willful and continued failure to perform substantially Executive's material duties and responsibilities with respect to the Company and its affiliates or to follow the lawful directions or instructions of the Board (and, if Executive reports to the Chief Executive Officer of the Company, of the Chief Executive Officer), (iii) Executive's breach of fiduciary duty owed to the Company or any of its affiliates, (iv) Executive's theft, fraud, embezzlement, or dishonesty (including material misrepresentations or concealments in written reports submitted to the Company or the Board) with regard to the Company or any of its affiliates, or in connection with Executive's duties or responsibilities with respect thereto, (v) Executive's material violation of the Company's code of conduct, code of ethics or similar written material policies, including but not limited to those relating to sexual harassment, (vi) Executive's willful misconduct unrelated to the Company or any of its affiliates having, or likely to have, a material negative impact on the Company or any of its affiliates (economically or to its reputation), (vii) any material breach or violation by Executive of any provisions of this Agreement or the Restrictive Covenant Agreement. To the extent any of the foregoing items (ii), (v) (excluding a material violation of any sexual misconduct policy), or (vii) (excluding any material violation of the Restrictive Covenant Agreement) are capable of being cured, Cause shall not be deemed to have occurred with respect thereto until the Company has given Executive written notice, setting forth the issue(s) that is alleged to constitute Cause, and the Company has provided Executive at least thirty (30) days following the date on which such notice is provided to cure such conduct and Executive has failed to do so. Such event, conduct or condition described in this definition will not give rise to a termination for Cause if the action or omission is done at the request of the Board. In the event a determination is to be made as to whether Cause exists, such determination shall be a reasonable, good-faith determination made by 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;(b) "***Good Reason***" shall mean that any one or more of the following has occurred without Executive's specific written consent, (i) any material diminution in Executive's responsibilities, authorities or duties or in Executive's title, (ii) any reduction in Executive's Base Salary or target bonus opportunity, (iii) a transfer of Executive's principal place of employment by more than thirty-five (35) miles from its then current location, or (iv) any breach or violation by the Company of any material provisions of this Agreement; provided, that no event described in clause (i), (ii), (iii) or (iv) shall constitute Good Reason unless (A) Executive has given the Company written notice of the termination, setting forth the conduct of the Company that is alleged to constitute Good Reason, within sixty (60) days following the occurrence of such event, (B) Executive has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so, and (C) a termination of employment by Executive for Good Reason is effective on the day following the expiration of such cure period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Resignation as Officer or Director</u>. Upon the effective date of Executive's termination of employment, Executive shall be deemed to have resigned, to the extent applicable, as an officer of the Company or any other applicable affiliate of the Company, as an officer of Alpine Energy Capital, LLC and any of its subsidiaries, as a member or advisor of the Board and/or the board of managers or similar governing body of any of the Company's affiliates, and as a fiduciary of any of the Company's Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Cooperation</u>. From and after Executive's termination of employment, Executive shall provide Executive's reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive's employment hereunder, <u>provided</u>, that the Company shall reimburse Executive for Executive's reasonable costs and expenses (including legal counsel selected by Executive and reasonably acceptable to the Company) and such cooperation shall not unreasonably burden Executive or unreasonably interfere with any subsequent employment that Executive may undertake. In the event Company requires Executive to devote significant time to post-separation cooperation and at the time of such post-separation cooperation Executive is no longer receiving severance benefits hereunder, the Company and Executive shall establish in good faith and Company shall pay to Executive an hourly or daily rate based on Executive's Base Salary (as in effect on the date of termination of Executive's employment) to compensate Executive for Executive's time expended at the Company's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Indemnification/Exculpation; D&O Liability Insurance</u>. The Company shall indemnify and hold Executive harmless to the fullest extent permitted by the Company's limited liability company agreement and by the law in the State of Texas in effect on the date hereof, or as such agreement or laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all losses, payments, expenses, fines, costs, claims, proceedings, damages, suits, actions and liabilities ("Losses") incurred by Executive by reason of or arising in whole or in part, directly or indirectly, out of (a) Executive being an employee, manager or officer of the Company or any affiliate thereof or (b) any matter associated with or related to the Company or any affiliate thereof (each, an "***Indemnifiable Event***"). Losses shall include any fees and expenses incurred by Executive in connection with any proceeding, suit, action or other matter (a "***Proceeding***") (including defense costs and attorney's fees) that relates to or arise in connection with an Indemnifiable Event. The Company shall advance all expenses of Executive incurred thereby in connection with any Proceeding prior to the final disposition of any Proceeding by final adjudication arising out of an Indemnifiable Event. Without limiting the generality or effect of the foregoing, within ten (10) days after any request by Executive, the Company shall, in accordance with such request, (a) pay such expenses on behalf of Executive, (b) advance to Executive funds in an amount sufficient to pay such expenses, or (c) reimburse Executive for such expenses. Executive shall not be indemnified for Losses to the extent such Losses are determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Executive. Executive shall be completely exculpated from any liability owing to the Company or any of its affiliates and shall not have any liability to the Company or any of its affiliates except to the extent such liability is determined by a court of competent jurisdiction by order that is not subject to appeal and is no longer appealable to have primarily resulted from the fraud or bad faith actions of Executive. The Company shall cover Executive as an insured under any contract of directors' and officers' liability insurance both during and, while potential liability exists, after the term of this Agreement, and in the same amount and to the same extent as the Company covers other senior executives of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Services Agreement Duty to Maintain Confidential Information</u>. To the extent Executive has access to confidential information provided to the Company or its affiliates in connection with a Services Agreement, Executive will use Executive's best efforts and diligence to protect such confidential information and will not use, copy, remove, disclose or disseminate to any person or entity, directly or indirectly, such confidential information, except as required in the course of performing Executive's duties pursuant to this Agreement or as required in a legal proceeding or by a governmental or regulatory authority. Executive acknowledges and agrees to be bound by the confidentiality provisions set forth in any such Services Agreements, provided that the Company has provided Executive with a written copy of such provisions. <u>Exhibit B</u> hereto sets forth a copy of such provisions applicable to Executive pursuant to Services Agreements in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</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;(a) All notices under this Agreement shall be in writing and shall be deemed given: (i) when delivered personally by hand (with written confirmation of receipt); or (ii) one business day following the day sent by overnight courier (with written confirmation of receipt), in each case at the following addresses (or to such other address as a party may have specified by notice given to the other party pursuant to this provision, except that notices of change of address shall be effective only upon receipt). All notices and communications by Executive to the Company shall be mailed or delivered to the Company at its principal office identified in Section 3 herein, and all notices and communications by the Company to Executive may be given to Executive at Executive's home address as then shown in the Company's personnel records.

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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;(b) Executive shall not have the right to assign or otherwise transfer Executive's rights or obligations under this Agreement (except by will or the laws of descent and distribution), and any purported assignment or transfer by Executive in violation of this Agreement shall be null and void from the initial date of the purported assignment or transfer. Any payments under this Agreement will inure to the benefit of and be enforceable by the Executive's legal personal representative. The Company and Executive agree that the Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and its successors and assigns, and the Company shall require such successors and assigns expressly to assume and agree to perform this Agreement to the same extent that the Company would be required to perform it if no such succession had taken 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;(c) If any of the payments or benefits received or to be received by Executive pursuant to this Agreement or otherwise constitute "parachute payments" within the meaning of Section 280G of the Code (each, a "***Section 280G Payment***") and would, but for this <u>Section 14(c)</u>, be subject to the excise tax imposed under Section 4999 of the Code (the "***Golden Parachute Tax***"), then, if the shareholder approval described in Q/A-7 of Treas. Reg. section 1.280G-1 is inapplicable, prior to making such Section 280G Payment, a calculation shall be made comparing (i) the Net Benefit (as defined below) to Executive of the Section 280G Payment paid in full to (ii) the Net Benefit to Executive if the Section 280G Payment is limited to the extent necessary to avoid being subject to the Golden Parachute Tax. Only if the amount calculated under clause (i) of the immediately preceding sentence is less than the amount under clause (ii) of such sentence will the Section 280G Payment be reduced, and then, only to the minimum extent necessary to ensure that no portion of the Section 280G Payment is subject to the Golden Parachute Tax. For purposes of this <u>Section 14(c)</u> only, "***Net Benefit***" shall mean the present value of the payment, net of all federal, state, local, foreign income, employment, and excise taxes, including the Golden Parachute Tax. Any reduction made pursuant to this <u>Section 14(c)</u> shall be made in a manner consistent with the requirements of Section 409A of the Code, provided that Executive shall not have any discretion as to which 280G Payments shall be reduced or how any such 280G Payment shall be reduced. All calculations and determinations under this <u>Section 14(c)</u> shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the "***Tax Counsel***"), whose determinations shall be conclusive and binding on the Company and Executive for all purposes. The Company and Executive shall furnish the Tax Counsel with such information and documents as requested by the Tax Counsel to make its determinations under this <u>Section 14(c)</u>, and the Company shall bear all costs incurred by the Tax Counsel under this <u>Section 14(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;(d) This Agreement and the Restrictive Covenant Agreement contain the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements, term sheets, offer letters, and drafts thereof, oral or written, between the parties hereto with respect to the subject matter hereof. No promises, statements, understandings, representations or warranties of any kind, whether oral or in writing, express or implied, have been made to Executive by any person or entity to induce Executive to enter into this Agreement other than the express terms set forth herein, and Executive is not relying upon any promises, statements, understandings, representations, or warranties other than those expressly set forth in 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;&nbsp;&nbsp;&nbsp;&nbsp;(e) No change or modification of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver of any provisions of this Agreement shall be valid unless in writing and signed by the party charged with waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, unless so provided in the waiver.

&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) If any provisions of this Agreement (or portions thereof) shall, for any reason, be held invalid or unenforceable, such provisions (or portions thereof) shall be ineffective only to the extent of such invalidity or unenforceability, and the remaining provisions of this Agreement (or portions thereof) shall nevertheless be valid, enforceable and of full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original 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;(h) The section or paragraph headings or titles herein are for convenience of reference only and shall not be deemed a part of this Agreement. The parties have jointly participated in the drafting of this Agreement, and the rule of construction that a contract shall be construed against the drafter shall not be applied. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which they are found.

&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) Notwithstanding anything to the contrary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The parties agree that this Agreement shall be interpreted to comply with or be exempt from Section 409A of the Code and the regulations and authoritative guidance promulgated thereunder to the extent applicable (collectively, "***Section 409A***"), and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. In no event whatsoever will the Company or any of its affiliates, or any of their respective directors, officers, agents, attorneys, employees, executives, shareholders, investors, members, managers, trustees, fiduciaries, representatives, principals, accountants, insurers, successors or assigns be liable for any additional tax, interest or penalties that may be imposed on Executive under Section 409A or any damages for failing to comply with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits considered "nonqualified deferred compensation" under Section 409A upon or following a termination of employment unless such termination is also a "separation from service" within the meaning of Section 409A, and for purposes of any such provision of this Agreement, references to a "resignation," "termination," "terminate," "termination of employment" or like terms shall mean separation from service. If any payment, compensation or other benefit provided to Executive in connection with the termination of Executive's employment is determined, in whole or in part, to constitute "nonqualified deferred compensation" within the meaning of Section 409A and Executive is a specified employee as defined in Section 409A(2)(B)(i) of the Code, no part of such payments shall be paid before the day that is six (6) months plus one (1) day after the date of termination or, if earlier, ten (10) business days following Executive's death (the "***New Payment Date***"). The aggregate of any payments that otherwise would have been paid to Executive, during the period between the date of termination and the New Payment Date shall be paid to Executive in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding as of the day immediately following the New Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement. If the period during which Executive may consider and sign the release spans two (2) calendar years, notwithstanding anything in this Agreement to the contrary, the payment of severance will not be made or begin until the later calendar year.

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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;(iii) All reimbursements for costs and expenses under this Agreement shall be paid in no event later than the end of the calendar year following the calendar year in which Executive incurs such expense. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, (x) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (y) the amount of expenses eligible for reimbursements 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If under this Agreement, an amount is paid in two or more installments, for purposes of Section 409A, each installment shall be treated as a separate payment. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (*e.g*., "payment shall be made within thirty (30) days following the date of termination"), the actual date of payment within the specified period shall be within the sole discretion 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;(i) This Agreement, for all purposes, shall be construed in accordance with and governed by the laws of the State of Texas (without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction). None of the parties hereto has agreed with or represented to any other party that the provisions of this <u>Section 14(i)</u> will not be fully enforced in all instances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Dispute Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 and Executive agree that, other than the Company's right to seek injunctive relief or specific performance as provided in the Restrictive Covenant Agreement, any dispute, controversy, or claim between Executive, on the one hand, and the Company, on the other hand, arising out of, under, pursuant to, or in any way relating to this Agreement (a "***Dispute***"), shall first be submitted for confidential, non-binding mediation ("***Mediation***") in a good-faith attempt to resolve the Dispute. Mediation refers to a forum in which an impartial person or persons (the "***Mediator***") facilitates communication between parties to promote reconciliation, settlement, or understanding among them. The Mediator may not impose his or her own judgment on the issues for that of the parties. The parties shall jointly select a Mediator, and the Mediation shall be administered by the American Arbitration Association ("***AAA***"). The Mediation shall take place in the State of Texas. The cost of Mediation shall be shared equally by the parties to the Mediation; provided that each party shall pay for and bear the cost of Executive's or the Company's own experts, evidence, and attorney's fees.

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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;&nbsp;&nbsp;&nbsp;&nbsp;ii. In the event a Dispute is not resolved by mediation, such Dispute shall be submitted to and resolved by confidential and binding arbitration ("***Arbitration***"), administered by the AAA and conducted pursuant to the rules then in effect of the AAA governing commercial disputes. The Arbitration hearing shall take place in the State of Texas. Such Arbitration shall be before three neutral arbitrators (the "***Panel***") licensed to practice law and familiar with employment disputes. Any award rendered in any Arbitration shall be final and conclusive upon the parties to the Arbitration and not subject to judicial review, and the judgment thereon may be entered in the highest court of the forum (state or federal) having jurisdiction over the issues addressed in the Arbitration, but entry of such judgment will not be required to make such award effective. The Panel may enter a default decision against any party who fails to participate in the Arbitration. The administration fees and expenses of the Arbitration shall be borne equally by the parties to the Arbitration; provided that each party shall pay for and bear the cost of Executive's or its own experts, evidence, and attorney's fees, except that, in the discretion of the Panel, any award may include the costs of a party's counsel and/or its share of the expense of Arbitration if the Panel expressly determines that an award of such costs is appropriate to the party whose position substantially prevails in such Arbitration. Notwithstanding any other provision of this Agreement, no party shall be entitled to an award of special, punitive, or consequential damages. To submit a matter to Arbitration, the party seeking redress shall notify in writing, in accordance with Section 14(a), the party against whom such redress is sought, describe the nature of such claim, the provision of this Agreement that has been allegedly violated and the material facts surrounding such claim. The Panel shall render a single written, reasoned decision. The decision of the Panel shall be binding upon the parties to the Arbitration, and after the completion of such Arbitration, the parties to the Arbitration may only institute litigation regarding this Agreement for the sole purpose of enforcing the determination of the Arbitration hearing or, with respect to the Company, to seek injunctive or equitable relief. The Panel shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability or formation of this agreement to arbitrate, including any claim that all or part of this Agreement is void or voidable and any claim that an issue is not subject to arbitration. All proceedings conducted pursuant to this agreement to arbitrate, including any order, decision or award of the arbitrator, shall be kept confidential by all parties except to the extent such disclosure is required by law, or in a proceeding to enforce any rights under this Agreement.

EXECUTIVE ACKNOWLEDGES THAT, BY SIGNING THIS AGREEMENT, EXECUTIVE IS WAIVING ANY RIGHT THAT EXECUTIVE MAY HAVE TO A JURY TRIAL OR A COURT TRIAL RELATED TO 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;(k) Executive hereby represents and warrants to the Company that (i) the execution, delivery and performance of this Agreement by Executive does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or by which Executive is bound, (ii) except as previously disclosed to the Company, Executive is not a party to or bound by any employment agreement, service agreement, noncompete agreement or confidentiality agreement with any other person or entity<sup>1</sup> and (iii) upon the execution and delivery of this Agreement by both Executive and the Company, this Agreement shall be the valid and binding obligation of Executive and the Company on and after the Effective Date, enforceable in accordance with its terms. In addition, Executive represents and warrants to the Company that (A) Executive has provided to the Company, or Company is already in possession of, copies of any and all agreements or other covenants between Executive and Executive's current or former employers relating to Executive's conduct in connection with or following Executive's employment with such employer, (B) Executive's commencement of employment with the Company will not be a violation of any such pre-existing agreement or covenant or such pre-existing agreement or covenant will terminate on the Effective Date according to the terms of this Agreement, and (C) Executive will abide by the terms of such pre-existing agreements or covenants at all times while employed by the Company, *provided*, they are not terminated according to the terms of this Agreement. Executive hereby acknowledges and represents that Executive has had the opportunity to consult with independent legal counsel or other advisor of Executive's choice and has done so regarding Executive's rights and obligations under this Agreement, that Executive is entering into this Agreement knowingly, voluntarily, and of Executive's own free will, that Executive is relying on Executive's own judgment in doing so, and that Executive fully understands the terms and conditions contained herein.<sup></sup>

<sup>_________________________________________________</sup>

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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;(l) 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 and any other amount otherwise authorized by Executive to be withheld or deducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The covenants and obligations of the Company under <u>Sections 9</u>, <u>12</u>, <u>13</u> and <u>14</u>, and the covenants and obligations of Executive under <u>Sections 9</u>, <u>12</u>, and <u>14</u>, shall continue and survive any expiration of the Term, termination of Executive's employment or any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Conditional Upon Closing of Transactions</u>. This Agreement shall be conditioned upon the closing of the transactions contemplated in the Red Pine Petroleum Ltd. Notice of Annual General and Special Meeting of Shareholders held on May 25, 2021 and Management Information Circular dated April 23, 2021. In the event that the transactions do not close, this Agreement shall be *void ab initio*.

*[signature page follows]*

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

**HB2 ORIGINATION, LLC**

By:<u> </u><u>/s/Craig Perry</u><u> </u>

Printed Name: Craig Perry

Title: Chief Executive Officer

**EXECUTIVE:<br>**

<br> <u>/s/ Chrystie Holmstrom</u><u> </u>

Chrystie Holmstrom

*[Signature Page to Chrystie Holmstrom Employment Agreement]*

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**Exhibit A**

**GENERAL RELEASE AND WAIVER AGREEMENT**

This Confidential General Release and Waiver Agreement (the "Agreement") is made by and between HB2 Origination, LLC, a Delaware limited liability company (the "Company"), and _________________("Executive").[<sup>2</sup>](#_ftn2)

WHEREAS, Executive and the Company entered into that certain Employment Agreement, dated ________________ (the "Employment Agreement"); and

WHEREAS, the Employment Agreement terminated effective _______________.

NOW, THEREFORE, in consideration of the promises and mutual covenants set forth in this Agreement, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, Executive and the Company agree as follows:

1. **Employment Termination**. Executive's employment with the Company terminated effective ___________________________ (the "Separation Date").

2. **Consideration**. In consideration for Executive timely signing (and not revoking) this Agreement, including the promises made in this Agreement, the Company agrees to provide Executive the benefits as defined in Section [____] of the Employment Agreement (the "Severance Benefits"). Executive acknowledges that Executive is not otherwise entitled to receive the Severance Benefits, that Executive has been paid all wages and other payments owed, and that the Severance Benefits are being provided by the Company in exchange for Executive's execution and non-revocation of this Agreement. Executive understands and acknowledges that in order to receive the Severance Benefits, Executive must timely sign and return this Agreement, as described in Section 8 below, and not revoke this Agreement, as described in Section 8 below. The Severance Benefits will be provided pursuant to the timing set forth in the Employment Agreement. The Company's agreement to provide the Severance Benefits is not an admission, express or implied, by the Company of liability.

3. **Release**. In consideration of the Severance Benefits provided to Executive, Executive for [himself/herself] and for Executive's spouse, heirs, executors, administrators, trustees, and legal representatives, hereby forever releases the Company and its affiliates, and any and all of their respective parent companies, subsidiaries, successors and assigns, and any of their officers, directors, agents, fiduciaries, trustees, administrators, shareholders, insurers, attorneys, and employees (collectively, the "Released Parties") from any and all claims and/or causes of action of whatever kind or character, arising out of or related to Executive's employment with the Company, or any other Released Party, that have accrued or may accrue, whether known or unknown, and that are based on facts, acts, omissions, transactions, occurrences or events occurring on or prior to the time this Agreement is signed by Executive (hereinafter referred to as "Claims"), including, but not limited to:

<sup>_________________________________________________<br>2</sup> NTD: In the event of a termination of employment due to Executive's death, adjust terms to reflect execution by Executive's estate as applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any and all Claims arising out of the Employment Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any and all Claims under local, state, or federal law, or the laws of any foreign jurisdiction, including, but not limited to, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq., as amended by the Civil Rights Act of 1991, the Civil Rights Act of 1866, 42 U.S.C. § 1981, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards Act, the Family and Medical Leave Act, the Equal Pay Act of 1963, the Lilly Ledbetter Fair Pay Act of 2009, the Employee Retirement Income Security Act of 1974, the Genetic Information Nondiscrimination Act, the Fair Credit Reporting Act; [Chapter 451 of the Texas Labor Code, Chapter 21 of the Texas Labor Code, and the Texas Payday Law; the Tennessee Human Rights Act, and the Tennessee Disability Act];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any and all tort, contract, and/or common law Claims, including but not limited to, wrongful termination, constructive discharge, slander, defamation, personal injury, negligence, gross negligence, intentional or negligent infliction of emotional distress, fraud, and misrepresentation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any and all Claims for past or future employment compensation and employment benefits, including, but not limited to, wages, overtime payments, bonuses, vacation pay, separation, termination, or severance pay, medical or dental insurance coverage; short or long term disability benefits; claims for options or shares of any kind, including, but not limited to, rights or benefits under any bonus or incentive compensation plan; welfare benefits, including life insurance or health insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any and all Claims relating in any way to Executive's employment with, and/or separation from, the Company or any Released Party; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Claim for attorneys' fees, costs, disbursements and the like.

This release does not include any claims the release of which is expressly barred by law or claims for vested benefits.

4. **Surviving Covenants**. The Company acknowledges that the indemnification provisions in Section 13 of the Employment Agreement survive termination of the Employment Agreement and that the Company remains bound by such provisions. Executive acknowledges that Executive remains bound by those provisions in that certain Restrictive Covenant Agreement between Executive and the Company dated ________________ (the "Restrictive Covenant Agreement") that survive termination of Executive's employment.

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5. **Non-Disparagement**. To the extent permitted by law, and subject to the Lawful Communications provision below, Executive agrees that Executive will not engage in any act (including a verbal or written statement) that is intended, or reasonably may be expected, to defame, disparage, or harm the reputation, business, prospects, or operations of the Released Parties. The Company agrees that it will provide the following instruction to the Company's executives and officers: "As you know, [Executive] is no longer employed with the Company. You are instructed not to engage in any act which is intended, or reasonably may be expected, to defame, disparage, or harm the reputation or business prospects of [Executive]. Thank you in advance for your cooperation with this important instruction. Please direct any third-party inquiries regarding [Executive] to the Company's Human Resources department."

6. **Lawful Communications**. Nothing in this Agreement prevents Executive from exercising any rights that cannot be lawfully waived or restricted. Nothing in this Agreement prevents Executive from testifying at a hearing, deposition, or in court in response to a lawful subpoena. Nothing in this Agreement limits Executive's ability to file a charge or complaint with the Equal Employment Opportunity Commission or other federal, state or local governmental agency or commission ("Government Agencies"). Further, this Agreement does not limit Executive's ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to The Company. This Agreement does not limit Executive's right to receive an award from a Government Agency for information provided to any Government Agency. However, Executive agrees that Executive has waived any right to recover monetary damages or other personal relief-where such rights can be lawfully waived-from the Released Parties in any action filed by Executive or by anyone else on Executive's behalf.

7. **Return of Company Property**. Executive represents and warrants that Executive has returned to the Company any and all property of and information relating to the business or affairs of the Released Parties, regardless of the form of such information, without retaining copies of any such information.

8. **Voluntary Agreement**. The Company hereby advises Executive to consult with an attorney of Executive's choosing to review and discuss this Agreement before Executive signs this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive acknowledges that Executive has carefully read and fully understands all of the provisions of this Agreement. Executive acknowledges that Executive has voluntarily and knowingly signed this Agreement in exchange for valuable consideration that Executive is not otherwise entitled to receive.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive further acknowledges that, in entering into this Agreement, Executive has not relied upon any representation or statement made by any Company agent or representative that is not expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Executive has [twenty-one (21)/forty-five (45) days] to review and consider this Agreement before signing the Agreement. Executive may not sign this Agreement before the Separation Date. Executive must return the signed Agreement to the attention of [name] at [address].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Executive is advised that Executive may revoke this Agreement within seven (7) days of signing it. Revocation must be made by delivering a written notice of revocation to the attention of [name] at [address]. If this Agreement is revoked by Executive in this seven (7)-day period, this Agreement will not be effective and enforceable and Executive will not be entitled to the Severance Benefits.

9. **Effective Date**. Unless revoked in accordance with Section 8(d) above, this Agreement will become effective on the eighth (8<sup>th</sup>) day following Executive's execution of this Agreement (the "Effective Date").

10. **Confidentiality of Agreement**. Executive agrees that Executive will not disclose, or cause to be disclosed, the terms of this Agreement, except to Executive's spouse, attorneys, accountants, or tax advisors-but only on the condition that Executive advises such individuals in advance of disclosure that the terms of this Agreement are strictly confidential and the condition that such individuals agree to be bound by this Agreement's confidentiality provisions-or to the extent otherwise permitted or required by law.

11. **Severability**. If any provision of this Agreement is held to be illegal, void, or unenforceable, such provision will be of no force and effect. The illegality or unenforceability of such provision will have no effect upon, and will not impair the enforceability of, any other provision of this Agreement; provided, however, that, upon any finding that the release and agreements provided for in this Agreement are illegal, void, or unenforceable, Executive agrees to execute a release, waiver and/or agreement that is legal and enforceable and is substantially similar to the form of this Agreement except without any provision in this Agreement that is illegal, void or unenforceable.

12. **Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive warrants and represents that Executive has not assigned, transferred, or subrogated any portion of any claim that Executive could assert against the Released Parties and Executive has full authority to enter into this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement cannot be modified except by written agreement signed by Executive and the Company's duly authorized officer;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement shall inure to the benefit of the Company and its successors and assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With the exception of any confidentiality agreements or any provisions of the Employment Agreement and the Restrictive Covenant Agreement that survive termination of such agreement, as applicable, this Agreement sets forth the entire agreement between the parties, and supersedes all prior agreements, understandings, negotiations and correspondence between the parties concerning the matters described in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Agreement is not an admission of any liability or wrongdoing by the Released Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Agreement is intended to settle and release any and all claims for attorneys' fees and/or costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All descriptive headings in this Agreement are inserted for convenience only and shall be disregarded in construing or applying any provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No waiver by either party of any breach by the other party of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any other provision or condition at the time or at any prior or subsequent time. This Agreement and the provisions contained in it shall not be construed or interpreted for or against either party because that party drafted or caused that party's legal representative to draft any of its provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) This Agreement will be governed exclusively by the laws of the State of Texas and the parties in any action arising out of this Agreement will be subject to the jurisdiction and venue of the federal and state courts, as applicable, in Houston, Texas.

**SIGNATURE PAGE FOLLOWS**

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IN WITNESS WHEREOF, this Agreement has been duly executed as of the dates written below.

Dated: _______________ ____________________________________<br>[__________] <br>Dated: _______________ [__________]<br>By_________________________________ Name: Title:

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**Exhibit B**

[MSA Confidentiality Provisions]

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## Exhibit 10.26

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***Execution Version***

<u>**[FORM OF] RESTRICTIVE COVENANT <br>AGREEMENT**</u>

THIS RESTRICTIVE COVENANT AGREEMENT (this "***Agreement***") is entered into as of _______________, by and between HB2 Origination, LLC, a Delaware limited liability company (the "***Company***"), and _____________ (the "***Executive***").

<u>W I T N E S S E T H</u>:

WHEREAS, concurrently herewith, the Executive is entering into an employment agreement with the Company (the "***Employment Agreement***") and will be employed in accordance with terms of the Employment Agreement;

WHEREAS, this Agreement is being executed and delivered by the Executive for the benefit of the Company, and the Company would not be willing to enter into the Employment Agreement unless the Executive enters into this Agreement on the terms and conditions set forth herein;

WHEREAS, the Company is a majority owned subsidiary of Alpine Summit Energy Investors, Inc. ("ASEI"), and ASEI is a wholly owned subsidiary of Alpine Summit Energy Partners, Inc. ("ASEP");

WHEREAS, the Executive (i) has been actively involved in the management of the business of the Company's affiliated entities including but not limited to ASEI, ASEP, and Ironroc Energy Partners, LLC (collectively, the "***HB2 Entities***") and has thereby acquired significant experience, skill, and confidential and proprietary information relating to the business and operation of the HB2 Entities and (ii) in the course of Executive's participation in the business of the HB2 Entities, has also developed on behalf of the HB2 Entities significant goodwill that is now a significant part of the value of the HB2 Entities;

WHEREAS, the Company desires to protect in the value of the assets, businesses and goodwill of the HB2 Entities and, accordingly, as a material condition to its willingness to enter into the Employment Agreement, has required that the Executive agree to limit certain activities by the Executive (as contemplated hereby) that would compete with or otherwise harm such assets, businesses or goodwill; and

WHEREAS, as part of the consideration and inducement to the Company to enter into the Employment Agreement and employ the Executive in respect to such assets, businesses and goodwill, the Executive is willing to agree to enter into this Agreement and abide by such restrictions.

NOW, THEREFORE, in consideration of the confidential information of the Company and its affiliates and the substantial benefits to be received by the Executive, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Executive and the Company, intending to be legally bound, hereby confirm and ratify the foregoing recitals and agree as follows:

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1. <u>EFFECTIVE DATE</u>. This Agreement shall be effective on and as of the date hereof (the "***Effective Date***").

2. <u>PROTECTIVE COVENANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Company's Promise</u>. On or around the Effective Date and prior to Executive's employment termination date, the Company promises to provide Executive with access to its confidential information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Acknowledgements and Agreements</u>. Executive hereby acknowledges and agrees that in the performance of Executive's duties on behalf of the Company during Executive's employment with the Company, Executive will be brought into frequent contact with existing and potential customers of the Company. Executive also hereby acknowledges and agrees that trade secrets and confidential information of the Company and its affiliates, more fully described below, gained by Executive during Executive's association with the Company or its affiliates, have been developed by the Company and/or its affiliates through substantial expenditures of time, effort and money and constitute valuable and unique property of the Company. Executive further acknowledges and agrees that the foregoing makes it necessary for the protection of the Business that Executive not compete with the Company or its affiliates during Executive's employment with the Company and not compete with the Company or its affiliates for a reasonable period thereafter, as further provided in the following Sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-Competition; Non-Solicitation</u>. Subject to <u>Section 2(d)</u>, the Executive agrees

that:

&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) During the Restrictive Period, Executive will not, directly or indirectly in any Relevant Capacity, own, manage, operate, control, be employed by, or participate in the ownership, management, operation or control of, or carry on, be engaged in, provide services to or have an economic interest in any Competing Business within the Restricted Territory in any capacity in which Executive would perform similar duties to those performed while employed by the Company and will not induce or assist any Relevant Person to do so or take any such action through or by means of any Relevant 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;(ii) During the Restrictive Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Executive will not, directly or indirectly in any Relevant Capacity, and will not induce or assist any Relevant Person, within the Restricted Territory, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) solicit or induce, directly or indirectly, any Person for the purpose (which need not be the sole or primary purpose) of (x) causing any funds or investment accounts with respect to which any Company Group Entity provides investment or other services to be withdrawn from such investment or other services, or (y) causing any existing or prospective investors in Company, its affiliated entities, or development partnerships related thereto to refrain from, withdraw, or cease their investments therein (or otherwise attempt to cause any of the foregoing to occur); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) otherwise intentionally divert or take away (or seek to divert or take away) any funds or investment accounts with respect to which the Company Group Entities provide investment or other services; 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;(B) Executive will not, directly or indirectly in any Relevant Capacity, and will not induce or assist, directly or indirectly, any Relevant Person to, solicit or induce any limited partner or other investor in any Company Group Entity for the purpose (which need not be the sole or primary purpose) of participating in any Competing Business with Executive or any Relevant Person, in each case within the Restricted Territory; 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) Executive will not, directly or indirectly in any Relevant Capacity, and will not induce or assist, directly or indirectly, any Relevant Person to, solicit, hire, recruit or partner with, or seek to solicit, hire, recruit or partner with (or directly or indirectly assist others, including, without limitation, headhunters, recruiters or other Persons involved in a "lift out," in soliciting, hiring, recruiting or partnering with), any Relevant Employee to join, work for or otherwise become associated with any Competing Business whether as principal, partner, director, employee, employer, consultant or agent or in any other capacity within the Restricted Territory; <u>*provided*</u>, however, that Section 2(c)(ii)(C) shall not prohibit the Executive (following the termination of the Executive's employment with, or arrangement to provide services to, the Company Group Entity) from hiring any Relevant Employee that responds to general advertisement (not specially targeted at the Relevant Employees) for employment or constitutes a Family Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Certain Definitions</u>. The following terms shall have the following meanings for the purposes of 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;(i) "***Business***" means the business of any Company Group Entity that is engaged in (A) the Oil and Gas Business and (B) the development partnership financing vehicles or the sponsorship and management of Investment Vehicles that provide equity and/or debt financing related to the Oil and Gas 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;(ii) "***Company Group Entities***" means the Company, ASEI, ASEP, and the Company's Controlled Affiliates, and their respective successors.

&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) "***Competing Business***" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any business similar to the business of any Company Group Entity engaged in the Oil and Gas Business, including the development partnership financing vehicles or the sponsorship or management of Investment Vehicles that provide equity and/or debt financing related to the Oil and Gas Business; 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;&nbsp;&nbsp;&nbsp;&nbsp;(B) any other business that makes investments of the same or substantially similar type as made by any Company Group Entity at any time during its existence but prior to the date of the applicable Termination Event.

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For the avoidance of doubt, a "business similar to the business of any Company Group Entity" does not include a business that has multiple business lines, including that of the Company's business, where the Executive works for a business line that does not compete with the Company's 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;(iv) "***Control***" or "***Controlled***" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, as trustee or executor, or otherwise. For purposes of this definition, a general partner or managing member of a Person shall be deemed to Control such 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;(v) "***Controlled Affiliate***" means, with respect to any Person, (A) any other Person that has voting rights or capital that are more than 50% owned or controlled by such first Person or (B) any other Person that such first Person directly, or indirectly through one or more intermediaries, Controls.

&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) "***Estate Planning Entity***" means, in relation to the Executive, any trust or other entity created during the life of the Executive for estate planning purposes, all of the ownership interests of which are held beneficially by the Executive and Executive's Family 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;(vii) "***Family Member***" means, in relation to the Executive, Executive's spouse, former spouse, lineal descendants (including adopted children), siblings, and parents.

&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) "***Investment Vehicle***" means any fund or other investment vehicle or product, whether structured as a limited partnership, limited liability company, corporation, trust or other legal 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;(ix) "***Oil and Gas Business***" means any business or activity that involves the exploration for and production of, in each case, crude oil or natural gas (including its constituents), which includes (A) acquiring, owning, operating, exploring and being a party to, as applicable, (I) oil and gas leasehold interests or mineral interests and (II) contracts, easements, servitudes, permits, licenses and other rights relating to the foregoing; (B) exploring for, drilling for, developing, or producing, oil, gas and other hydrocarbons; (C) farming-out, selling, abandoning and otherwise disposing of oil and gas assets or properties; (D) any and all debt and equity financing activities (including any related off-balance sheet arrangements) associated with the foregoing oil and gas and related business activities; and (E) effectuating commodity hedging transactions in order to minimize the risk associated with the fluctuation of prices to be received from the sale of oil, gas and related hydrocarbons and minerals.

&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) "***Person***" means a person, firm, corporation or other business 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;(xi) "***Prospective Client***" means, at any time of determination, any Person known by the Executive to be a Person in whom a Company Group Entity has invested significant time, money or other resources in marketing the services of a Company Group Entity in the one (1) year period prior to the occurrence of the Termination Event.

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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;(xii) "***Relevant Capacity***" means, in the case of the Executive, for Executive's own account or that of any other Person, whether as principal, partner, director, employee, employer, consultant or agent, or in any other manner or capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) "***Relevant Employee***" means any Person who, at the time of the solicitation, is or was, in the six (6) month period prior to such solicitation, an employee of, or a member engaged to provide services to, the Company or the other Company Group Entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) "***Relevant Person***" means, in relation to the Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any Controlled Affiliate of the Executive; 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;(B) any Estate Planning Entity in respect of the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) "***Restricted Territory***" means within a fifty (50) mile radius of each of the Company's principal offices in The Woodlands, Texas and Nashville, Tennessee, United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) "***Restrictive Period***" means a period commencing upon the Effective Date and ending on the date that is six (6) months following the Termination Event; <u>*provided*</u>, that if the Termination Event is due to a termination of the Executive's employment by the Executive for Good Reason as defined in Section 10(b)(iii) of the Employment Agreement, the Executive shall have no obligations under Section 2(c) of this Agreement after the Termination Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) "***Termination Event***" means the termination of Executive's employment with the Company or, if Executive's employment is transferred, any of the Company Group Entities, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certain Exceptions</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;(i) The restrictions in <u>Section 2(c)(i)</u> shall not operate to prohibit the Executive from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) holding, or being interested in, solely for passive investment purposes, up to 5% of the issued and outstanding shares of any company traded on any recognized securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) providing, directly or indirectly, services (for no more than nominal consideration) to philanthropic organizations having a bona fide charitable purpose (<u>provided</u>, that such services do not, individually or in the aggregate, interfere with Executive's obligations pursuant to <u>Sections 2 and 3 of the Employment Agreement</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;&nbsp;&nbsp;&nbsp;&nbsp;(C) providing or performing any investment management services for the Executive's own account or the account of any Family Member or any Estate Planning Entity without a fee or other remuneration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) providing or performing services with respect to (I) the affiliates of Company, including but not limited to ASEI, ASEP, the Company's direct and indirect subsidiaries, Ironroc Energy Partners, LLC, or any development partnership entities associated with any of the foregoing, or (II) Alpine Energy Capital, LLC or any Subsidiary Recipient defined in the Management Services Agreement (the "***MSA***") by and between the Company and Alpine Energy Capital, LLC dated June 21, 2021, or any other entity with which Company or its affiliates have a management services or similar agreement for the provision of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) following the termination of the Executive's employment with the Company any of the Company Group Entities, as applicable, being employed by, or providing or performing services to, a Person that is engaged in a Competing Business so long as and only to the extent that the Executive is so employed by or providing or performing services to a division of or within such Person that is not so engaged in or directly supporting such Competing 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) owning any direct fee mineral, royalty, non-operating working interests or other similar interests in oil and gas properties and (I) are owned by Executive as of the Effective Date and described on <u>Schedule A</u> attached hereto or (II) are acquired by Executive after the Effective Date with the prior written consent of the Company (which consent will not be unreasonably withheld, conditioned or delayed) and not so acquired in such capacity to circumvent the restrictions of <u>Section 2(c)(i)</u>; 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;&nbsp;&nbsp;&nbsp;&nbsp;(G) owning any warrants, equity interests or similar interests in, or participating in the raising of capital for, the Company or its direct or indirect subsidiaries, other affiliates of Company, or any development partnership entities related to any of them.

&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 restrictions in <u>Section 2(c)</u> shall not operate to prohibit the Executive from fulfilling any express obligation under this Agreement, the Employment Agreement, applicable bylaws, the organizational documents of any affiliates of Company, or any management services agreement to which Company or its affiliates are a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Confidentiality</u>. The Executive agrees not to divulge to anyone (other than the Company or its affiliates or any Persons employed or designated by them) any knowledge or information of any type whatsoever of a confidential or proprietary nature relating to the Business or any Company Group Entity, including, without limitation, any trade secrets, non-public financial information, information regarding business strategies, methods and procedures, pending or contemplated transactions, or employees of any Company Group Entity, or disclose, publish or make use for the benefit of the Executive or others of any such knowledge or information of a confidential or proprietary nature, in each case except (i) as required by the Executive's membership or partnership in, employment, service or engagement with, or other arrangement to provide services to, the Company Group Entities, (ii) information that is obtained through a lawful disclosure from an unrelated third party or that is in or has entered the public domain other than by a breach of this Section 2(f) or other unauthorized disclosure, (iii) as required in a legal proceeding or by a governmental or regulatory authority, provided, that unless prohibited by law, the Executive notifies the Company in advance of disclosure in order to allow the Company time to obtain an appropriate protective order and the Company has not obtained such an order, or (iv) as authorized in advance by the Company in writing. The Executive further agrees to maintain the confidentiality of any information of a confidential or proprietary nature belonging to a third party to which the Executive has access as a result and in the course of the Executive's employment with the Company or any member of the Company Group Entities. Notwithstanding the foregoing, nothing in this Agreement limits, restricts, or in any other way affects Executive's right to communicate with a governmental agency or entity concerning matters relevant to the governmental agency or entity, without notice to the Company or engage in any activities protected under whistleblower statutes. Further, Executive shall not be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (2) in a complaint or other document filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for retaliation, Executive may disclose the Company's trade secrets to Executive's attorney and use the trade secret information in the court proceeding if Executive: (i) files any document containing the trade secret under seal; and (ii) does not disclose the trade secret, except pursuant to court order. Notwithstanding this immunity from liability, unlawfully accessing trade secrets by unauthorized means may result in liability.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Equitable Relief</u>. The parties recognize that damages alone may not be an adequate remedy for any breach of the provisions of this Agreement. The Executive agrees that in the event of the breach by the Executive of any of the covenants contained in this <u>Section 2</u> or any part thereof, the Company may suffer irreparable harm, and Company shall be entitled, if it so elects, to institute and prosecute proceedings in any manner consistent with <u>Section 15</u> herein, to seek to obtain damages for any breach of this <u>Section 2</u>, to seek to enforce the specific performance thereof by the Executive, to seek to enjoin the Executive from performing services for any Person in violation of this Agreement and to seek to obtain remedies of injunction and other equitable relief for any threatened or actual breach of this Agreement, in each case without the posting of any bond. The parties acknowledge and agree that no proof of special damages will be necessary for enforcement of such remedies and that no objection will be made to the application by any party for any such remedies. The provisions of this <u>Section 2</u> shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Acknowledgements</u>. The Executive irrevocably and unconditionally acknowledges and agrees that: (i) the Business is intensely competitive, (ii) the Executive has extensive knowledge of the Company Group Entities, the Business and the Company Group Entities' client relationships, (iii) the Executive has had, and will continue to have, a key role in developing and maintaining the Company Group Entities' client relationships, including, without limitation, as a direct or indirect equity owner of the Company, for the sole benefit of the Company Group Entities, (iv) the Executive has had, and will continue to have, access to and knowledge of confidential information of the Company Group Entities and their clients, (v) the direct or indirect disclosure of any such confidential information to existing or potential competitors of the Company Group Entities, or the use of such confidential information other than on behalf and for the sole benefit of the Company Group Entities, in violation of this Agreement would place the Company Group Entities at a competitive disadvantage and cause them harm, (vi) the Company Group Entities have developed, and will continue to develop, goodwill with their clients at the Company Group Entities' substantial expense, including, without limitation, through the Executive's efforts on behalf of the Company Group Entities, (vii) the Executive's engaging in any of the activities prohibited by this <u>Section 2</u> may constitute improper appropriation or use of the Company Group Entities' confidential information or goodwill, (viii) the Executive's association with the Company Group Entities has been, and is expected to continue to be, critical to the success of the Company Group Entities, (ix) because of the nature of the products and services provided by the Company Group Entities, the Business would be adversely affected by the Executive's engaging in a Competing Business within the Restricted Territory during the Restrictive Period, (x) the restrictions provided for in this <u>Section 2</u> are no greater than is reasonable and necessary for the protection of the interests of the Company, and (xi) in light of the foregoing and of the Executive's education, skills, abilities and financial resources, the Executive will not assert, and it should not be considered, that enforcement of any of the covenants set forth in this <u>Section 2</u> would prevent the Executive from earning a living or that such covenants are otherwise void, voidable or unenforceable or should be voided or held unenforceable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Enforcement</u>. It is the desire and intent of the parties that the provisions of <u>Section 2(c)</u> be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Each of the provisions in <u>Section 2(c)</u> shall be construed as separate and independent and, if one or more of the provisions are held to be or become illegal, invalid or unenforceable in any respect under the laws of any jurisdiction, the legality, validity and enforceability in that jurisdiction of the remaining provisions, and the legality, validity and enforceability under the law of any other jurisdiction of that or any other provision of this Agreement, shall not be affected. If any restriction or covenant set forth in <u>Section 2(c)</u>, or any element thereof, is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted, as to that jurisdiction only, to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable. If any particular provision or portion of <u>Section 2</u> shall be adjudicated to be illegal, invalid or unenforceable, <u>Section 2</u> shall be deemed amended to delete therefrom such provision or portion adjudicated to be illegal, invalid or unenforceable, such amendment to apply only with respect to the operation of <u>Section 2</u> in the particular jurisdiction in which such adjudication is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Replacement Restrictions</u>. If any restriction or covenant in <u>Section 2(c)</u> is found to be void or unenforceable, the parties shall negotiate in good faith to replace such restriction or covenant with a valid provision which, to the greatest extent possible, has the same commercial effect as the one which it replaces.

3. <u>MUTUAL NON-DISPARAGEMENT</u>. At all times on and following the Effective Date, the Executive shall refrain from making any disparaging statements about the Company Group Entities or any of its present or (to the extent such Persons serve in such capacity during the Executive's employment with the Company Group Entities) future officers, directors, and, in their capacity as such, employees to any third Persons, including, without limitation, to any press or other media. The Company shall instruct the senior executive officers of the Company Group Entities not to make, or cause to be made by any of the Company Group Entities, any disparaging statements about the Executive to any third Persons, including, without limitation, to any press or other media. The foregoing provisions of this <u>Section 3</u> shall not be violated by truthful statements made (a) to the extent required by law or legal process, by any governmental authority with apparent jurisdiction or applicable securities considerations, (b) in connection with any good faith litigation or similar proceeding between the Executive and the Company or any of such officers or directors or otherwise in connection with any good faith litigation or similar proceeding or other efforts by the Executive to enforce Executive's rights or defend Executive's actions under this Agreement, the Employment Agreement, the Bylaws or any other agreement with the Company or any of such officers or directors or (c) in connection with any analyses made or opinions expressed in the ordinary course of Executive's duties to the Company Group Entities during Executive's employment with Company.

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4. <u>RETURN OF PROPERTY</u>. The Executive agrees, immediately upon the earlier of (a) termination of the Executive's employment with, or arrangement to provide services to, any Company Group Entity for any reason and (b) request by any Company Group Entity to turn over to such Company Group Entity all property, documents and equipment of the Company Group Entity of any kind in the Executive's possession, including, without limitation, all Company Group Entity computer equipment, computer disks and other storage devices, identification cards, credit cards, cellular telephones, smartphones, magnetic key cards and similar items, as well as all business correspondence, letters, papers, reports, writings, programs or material of a related nature, customer lists, trade secrets, confidential information and all confidential writings, records and data of every nature, form (electronic or otherwise) and description in the possession or control of the Executive and, in each case, solely to the extent relating to or pertaining to the Business.

5. <u>INTELLECTUAL PROPERTY</u>. The Executive agrees that all work product, including, without limitation, any inventions, information, trade secrets, materials, content, analyses, processes, methodologies, documentation, reports, drawings, data and databases and business plans, and any and all intellectual property rights embodied therein, that are conceived or developed by the Executive, whether solely or jointly with another person(s), during the period the Executive is employed by any Company Group Entity that relates, directly or indirectly, to the Business, including, without limitation, any process, operation, product or improvement that may be registrable, patentable or copyrightable (including, without limitation, any such work product created on behalf of such Company Group Entity, or any predecessor of such Company Group Entity, prior to or after the date hereof) will be the sole and exclusive property of such Company Group Entity, and the Executive hereby irrevocably assigns to such Company Group Entity all of the Executive's right, title and interest in and to any and all such work product and intellectual property rights embodied therein. The Executive further agrees that the Executive will, at such Company Group Entity's request and cost, do whatever is reasonably necessary, including, without limitation, to execute any documents, to fully vest such Company Group Entity's ownership rights thereto and to obtain any registration, patent, copyright or otherwise therefor. If a Company Group Entity is unable to secure the Executive's signature on any such document, for any reason or cause, the Executive hereby irrevocably designates and appoints such Company Group Entity and each of its duly authorized officers and agents as the Executive's agent and attorney-in-fact, to act for and in the Executive's behalf to execute and file any such document and to do all other lawfully permitted acts to further the intent of the foregoing sentence, including, without limitation, the prosecution, issuance, and enforcement of patents, copyrights, or other rights or protections, with the same force and effect as if executed and delivered by the Executive. For the avoidance of doubt, no Executive shall challenge, or assist others in challenging, any Company Group Entity's use or registration of any of the work product that is subject to this provision or any modification or improvement thereof that such Company Group Entity owns, uses or possesses or holds for use, or provides, in connection with the Business.

6. <u>ASSIGNMENT; THIRD PARTY BENEFICIARIES</u>. This Agreement is a personal contract of the Executive and the rights, obligations and interests of the Executive herein may not be sold, transferred, assigned, pledged or hypothecated. The rights and obligations of the Company hereunder shall be binding upon and run in favor of any successors and assigns of the Company. Nothing set forth herein contains or gives, or shall be construed to contain or to give, any Person other than the Company and the Executive any remedies under or by reason of, or any rights to enforce or cause the Company or the Executive, as applicable, to enforce, the commitments set forth herein.

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7. <u>CAPTIONS</u>. Section headings are for convenience of reference only and shall not be considered a part of this Agreement.

8. <u>ENTIRE AGREEMENT</u>. This Agreement contains the entire agreement and understanding between the parties with respect to the subject matter hereof (except to the extent that the Employment Agreement pertains thereto), and supersedes and terminates all prior agreements and arrangements (whether written or oral) between the parties relating thereto; <u>provided</u>, that this clause shall not supersede or terminate any provision of the Employment Agreement. In the event of any conflict between a provision of an existing agreement between the Company and the Executive and this Agreement, the provisions of this Agreement shall govern; <u>provided</u>, <u>however</u>, that this Agreement shall not limit any covenants, agreements, duties or obligations of the Executive under the Employment Agreement.

9. <u>AMENDMENT; WAIVER</u>. No amendment or other modification of this Agreement nor any waiver of any term of this Agreement shall be valid unless it is in writing and signed by (a) the Executive and (b) the Company. Neither any failure nor any delay by any party in exercising any right, power or privilege under this Agreement or any of the documents referred to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. To the maximum extent permitted by applicable law, (x) subject to <u>Section 6</u>, no claim or right arising out of this Agreement or any of the documents referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other party; (y) no waiver that may be given by a party will be applicable except in the specific instance for which it is given; and (z) no notice to or demand on one party will be deemed to be a waiver of any obligation of that party or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement. The rights, powers, privileges and remedies available to the parties to this Agreement are cumulative and not exclusive or alternative of any rights, powers, privileges or remedies provided by law or otherwise.

10. <u>COUNSEL</u>. Executive hereby acknowledges and represents that Executive has had the opportunity to consult with independent legal counsel or other advisor of Executive's choice regarding his rights and obligations under this Agreement, that Executive is entering into this Agreement knowingly, voluntarily, and of Executive's own free will, that the Executive is relying on Executive's own judgment in doing so, and that Executive fully understands the terms and conditions contained herein.

11. <u>BENEFITS OF AGREEMENT</u>. The Executive and the Company each acknowledge that this Agreement has been entered into in connection with the Employment Agreement and for the benefit of the Company.

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12. <u>NOTICES</u>. Any notice or other communication required or permitted hereunder shall be sufficiently given if delivered in person or sent by electronic mail, telecopy or by registered or certified mail, postage prepaid, as follows:

If to the Company:

HB2 Origination, LLC

3322 West End Ave., Suite 450

Nashville, TN 37203

Attn: Legal Department

Email: legal@ae-cap.com

If to the Executive:

________________________

_________________________

_________________________

Email: ___________________

or to such other address or number as shall be furnished in writing by any such party to the others, and such notice or communication shall be deemed to have been given as of the date received.

13. <u>CONSTRUCTION AND SEVERABILITY</u>. Without limitation of <u>Sections 2(h)</u> and <u>2(i)</u>, if any provision of this Agreement shall be held invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired, and the parties undertake to implement all efforts which are necessary, desirable and sufficient to amend, supplement or substitute all and any such invalid, illegal or unenforceable provisions with enforceable and valid provisions which would produce as nearly as may be possible the result previously intended by the parties without renegotiation of any material terms or conditions stipulated herein.

14. <u>GOVERNING LAW</u>. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS (WITHOUT GIVING EFFECT TO ANY CONFLICTS OR CHOICE OF LAW PROVISIONS THAT WOULD CAUSE THE APPLICATION OF THE DOMESTIC SUBSTANTIVE LAWS OF ANY OTHER JURISDICTION). NONE OF THE PARTIES HERETO HAS AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS SECTION 14 WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

**15.** <u>CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL</u>**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the parties hereby consents to personal jurisdiction, the service of process and venue in the federal and state courts sitting in the State of Texas and hereby irrevocably agrees that any such judicial proceedings may be heard and determined in any such state court or, to the extent permitted by law, in such federal court. Each of the parties hereby irrevocably consents to the service of process in any such proceedings by the mailing by certified mail of copies of any service or copies of the summons and complaint and any other process to such party at the address specified in <u>Section 12</u> hereof, or by any other method permitted by law. The parties agree that a final judgment in any such proceedings shall be conclusive and may be enforced in other jurisdictions by suit or in any other manner permitted by law, and nothing contained herein shall affect the right of a party to service legal process or to bring any action or proceeding in the courts of other jurisdictions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the parties hereby voluntarily and irrevocably waives trial by jury in any action or proceeding brought in connection with this Agreement or any of the transactions contemplated hereby. No party has agreed with or represented to any other party that the provisions of this <u>Section 15(b)</u> will not be fully enforced in all instances.

16. <u>COUNTERPARTS</u>. This Agreement may be executed by facsimile or .pdf format scanned signatures and in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together, be deemed an original, and shall constitute one and the same instrument.

*[Signature pages follow]*

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

**HB2 ORIGINATION, LLC**

By: ________________

Printed Name: ________________

Title: _______________________

**EXECUTIVE:**

**___________________________________**

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**SCHEDULE A**

Oil and Gas Interests

[None.]

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## Exhibit 14.1

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,![](exhibit14-1x001.jpg)

**CODE OF BUSINESS CONDUCT AND CODE OF ETHICS**

**Amended and Restated as of December 12, 2022**

**Section 1. Purpose**

It is the policy of Alpine Summit (as defined below) to conduct its affairs in accordance with all applicable laws, rules and regulations of the jurisdictions in which it does business.

The purpose of this Code of Business Conduct and Code of Ethics (the "**Code**") is to communicate the commitment of Alpine Summit to conducting business with integrity, honesty and respect, in compliance with applicable laws, rules, regulations and policies, and in a manner that preserves Alpine Summit's reputation and prohibits unethical behavior and wrongdoing. This Code provides an overview of requirements, standards and expectations to guide you in carrying out your duties for, your dealings with, and when acting as a representative of, Alpine Summit. It is not intended to cover every issue that may arise and may be supplemented by other policies that have been or may be adopted by Alpine Summit from time to time.

The Company (as defined below) encourages its Representatives (as defined below) to talk to supervisors, managers, the general counsel of the Company (the "**Chief Legal Officer**") or other appropriate personnel when in doubt about the best course of action in a particular situation. Anyone aware of a situation that they believe may violate or lead to a violation of this Code should follow the guidelines under "Reporting Violations of the Code" below.

**Section 2. Application**

This Code applies to all members of the board of directors of Alpine Summit (the "**Board**"), officers, employees, consultants, contractors and agents (collectively, "**Representatives**") of Alpine Summit Energy Partners, Inc. and its subsidiaries (collectively, "**Alpine Summit**" or the "**Company**"). Familiarity with and adherence to this Code is a condition of employment with, or of providing services to, Alpine Summit.

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**Section 3. Ethics and Integrity**

3.1 <u>Standards of Good Professional Ethics</u>

The Company's policy is to promote high standards of integrity by conducting its business activities and affairs ethically and honestly. Alpine Summit expects all Representatives to conduct themselves with honesty and integrity and to avoid even the appearance of improper behavior.

3.2 <u>Activities Outside the Company</u>

Representatives must ensure that their activities during nonworking hours do not conflict or interfere with their responsibilities to the Company.

3.3 <u>Compliance with Laws, Code and Policies</u>

All Representatives shall comply with the laws, rules and regulations of the jurisdictions where they carry out their duties and all jurisdictions where Alpine Summit conducts its business activities. Because of its cross-border operations, the Company is subject to both Canadian and U.S. law as well as law of any other jurisdiction where it has business dealings. All Representatives shall comply with this Code and all Alpine Summit policies that apply to them, including, without limitation, the Company's Insider Trading Policy and the Company's Disclosure Policy.

The Company is subject to regulation by foreign, state and local agencies as well as the rules and regulations of stock exchanges on which the securities of the Company are listed for trading. The Company and Representatives must comply with the regulatory requirements of these agencies and stock exchanges. Representatives are expected to take an active role by being knowledgeable about all applicable laws and regulations, attending trainings and requesting information. Representatives are required to immediately report regulatory violations, suspected regulatory violations or potentially harmful or dangerous conditions to the Chief Legal Officer and/or the Chief Administrative Officer.

Should a Representative wish to make an anonymous report, Cornerstone Governance Corporation ("**Cornerstone**"), an independent third-party, has been engaged by the Company to receive anonymous whistleblower reports via their website:

<u>https://reporting.cornerstonegovernance.com.</u>

3.4 <u>Bribery</u>

In Canada, the United States and in many other countries, it is illegal and/or contrary to applicable ethical codes, to provide, offer or accept a kickback or bribe. A kickback or bribe may be defined as any money, fee, commission, credit, gift, gratuity, loan, reward, advantage, benefit, thing of value or compensation of any kind that is provided, directly or indirectly, and that has as one of its purposes, the improper obtaining or rewarding of favorable treatment in a business transaction. Alpine Summit's policy is that kickbacks and bribes are illegal and not allowed. (Please see Section 3.7 below for additional anti-corruption requirements.)

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Bribery, anti-kickback or similar laws could be applicable when a Representative receives or is offered payments, gifts or gratuities that might unduly influence Alpine Summit's business judgment or practices. Representatives must comply with this Code and all Alpine Summit policies that apply to them and, if offered payments, gifts or other gratuities that might unduly influence the conduct of Alpine Summit's business, such Representative should seek guidance from the Chief Legal Officer and/or the Chief Administrative Officer.

3.5 <u>Fair Dealing</u>

Representatives must deal fairly with the Company's customers, suppliers, partners, service providers, competitors, employees and anyone else with whom they have contact in the course of performing their job. No director, officer or employee may take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of facts or any other unfair dealing practice.

3.6 <u>Fair Competition</u>

Competition and antitrust laws in Canada, the United States and elsewhere are designed to protect competition. Generally speaking, the following types of topics, and any others that may limit competition, should never be discussed with a competitor (including a potential or prospective competitor): prices, pricing policy, discounts or rebates (including competitive bidding practices); costs, profits, or profit margins; terms or conditions of sale, including credit terms and return policies; division of markets, market territories, customers or sales territories; market share of any products; marketing, advertising or promotional plans; controlling, preventing or reducing the supply of any product; pricing or promotional practices of wholesalers, dealers, distributors or customers; classifying, rejecting, terminating or allocating customers; or any other non-public and/or competitively sensitive information about Alpine Summit or a competitor.

Each Representative is responsible for making sure that their actions on behalf of the Company do not in any way violate or appear to violate antitrust laws or regulations. When in doubt, Representatives should seek assistance from the Chief Legal Officer and/or Chief Administrative Officer.

3.7 <u>Fair Dealing and Doing Business Internationally</u>

All business dealings undertaken on behalf of Alpine Summit, including with its security holders, customers, suppliers, competitors and Representatives, must be conducted in a manner that preserves Alpine Summit's integrity and reputation. Alpine Summit seeks to avoid misrepresentations of material facts, manipulation, concealment, abuse of confidential information, or any other illegal or unfair practices in all activities undertaken by or on behalf of Alpine Summit.

The Company is committed to the highest business conduct standards wherever it operates. While no one can anticipate all the situations that may present challenges to the Company, Representatives doing business in the worldwide marketplace shall follow these general guidelines, as further discussed in this Code:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Observe all applicable laws and regulations in Canada, the United States and any other jurisdiction in which Alpine Summit operates or conducts business. To the extent that the Company conducts business in countries other than Canada or the United States, the Company's services or products should be offered in accordance with the applicable local country's regulations and requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Paying bribes to government officials in connection with Company business is absolutely prohibited under Canadian and U.S. law that apply to the Company, even if those bribes are common practice. Representatives may not give, promise to give or authorize the giving to a government official, a political party or official thereof, any candidate for political office, any official of a government instrumentality or state owned enterprise, or any agent or representative acting on behalf of any of the foregoing (collectively, "**Officials**"), anything of value to influence any act or decision; to induce such Official to act or omit any act in violation of the lawful duty of such Official; to induce such Official to use that Official's influence with a government or agency to affect or influence any act or decision of such government or agency; or to secure any improper advantage for the purpose of obtaining, retaining, or directing any business to any person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Although the U.S. Foreign Corrupt Practices Act (the "**FCPA**") does allow for certain low-value "facilitating" payments to expedite routine government actions such as obtaining permits, licenses, visas, mail, utilities hook-ups and the like, it can be difficult to assess what constitutes a facilitating payment, and the exemption does not exist under Canadian law that also applies to the Company. Therefore, Representatives must obtain permission from the Chief Legal Officer and/or Chief Administrative Officer before offering, making, or promising to make any facilitating payments or any other payment or gift thought to be exempt from the FCPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Observe all requirements of applicable import, export control, and economic sanctions laws, including without limitation all laws, regulations, and orders administered by the Canada Border Services Agency; U.S. Customs and Border Protection within the U.S. Department of Homeland Security; the Bureau of Industry and Security within the U.S. Department of Commerce; and the Office of Foreign Assets Control within the U.S. Department of the Treasury.

3.8 <u>Conflicts of Interest</u>

A conflict of interest arises when an individual's personal interests interfere with, or appear to interfere, in any way with the interests of the Company. A conflict of interest can arise when a Representative takes actions or has interests that make it difficult to undertake and perform their work with the Company objectively and effectively.

Representatives shall act honestly and in good faith in discharging their duties with a view to the best interests of Alpine Summit. Representatives shall avoid situations involving a conflict, or potential conflict, between their personal, family or business interests, and the interests of Alpine Summit, and shall promptly disclose any such conflict, or potential conflict, to the Chief Legal Officer and/or the Chief Administrative Officer, who can advise the Representative as to whether or not the Company believes a conflict of interest exists.

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Serving as a director of another company may create a conflict of interest. Representatives must disclose such service to the Chief Legal Officer and/or the Chief Administrative Officer and obtain prior approval before serving on the board of another company, whether or not such company is a competitor of the Company.

Representatives must avoid even the appearance of a conflict of interest in their relationships with competitors.

A conflict of interest also can arise because of the business activities of a Representative's close relatives. For example, a Representative may have a potential conflict of interest wherever a close relative has a significant relationship with, or has a significant financial interest in, any supplier, commercialization, development or other partner, customer or competitor of the Company.

A Representative may not make or attempt to influence any decision that could directly or indirectly benefit their close relative. To protect a Representative and the Company from the appearance of a conflict of interest, they should make appropriate disclosure of the interest to the Chief Legal Officer and/or Chief Administrative Officer.

3.9 <u>Investment Activities</u>

Unless a Representative has sought and received written pre-approval from the Chief Legal Officer and/or the Chief Administrative Officer, such Representative may not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• participate in so-called "directed shares", "friends and family" and similar stock purchase programs of customers, vendors or suppliers of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• invest in non-public companies that are, or are likely to be, customers, vendors or suppliers of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• invest in non-public companies in which the Company has made or is expected to make an investment.

Investments in non-public companies that do not exceed 1% of that company's equity securities are exempt from this restriction.

3.10 <u>Corporate Opportunities</u>

Representatives are prohibited from personally taking opportunities that arise through the use of corporate property, information or position and from using Alpine Summit property, information or position for personal gain. Representatives are also prohibited from competing with Alpine Summit, directly or indirectly, and owe a duty to Alpine Summit to advance the legitimate interests of the Company when the opportunity arises.

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3.11 <u>Gifts and Entertainment</u>

Representatives shall perform their duties and arrange their personal business affairs in a manner that does not interfere with their independent exercise of judgment. Generally, Representatives shall not give or accept any gift, favor, entertainment, special accommodation or other items of value, to or from any vendors, suppliers, potential candidates, potential or actual business partners or other third parties except in strict compliance with this Code and with applicable laws. No one working for Alpine Summit shall accept financial compensation of any kind, nor any special discount, loan or favor, from persons, corporations or organizations having dealings or potential dealings with Alpine Summit.

From time to time, Representatives may accept unsolicited gifts or entertainment, but only under the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• gifts have a maximum value not exceeding US$1,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any entertainment occurs infrequently and has a maximum value not exceeding US$2,000 per instance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the offers of gifts and/or entertainment arise out of the ordinary course of business.

To the extent any unsolicited gifts or entertainment exceed the values stated in this Code, it must be reported to the Chief Legal Officer and/or the Chief Administrative Officer who will decide the appropriate course of action and such gift or entertainment will be included in a log and may be shared with the Board.

Representatives may entertain friends or relatives doing business with the Company provided that the entertainment is clearly not related to Company business. No expenses of such entertainment are reimbursable by the Company.

3.12 <u>Charitable and Political Activities</u>

Alpine Summit values the culture of giving, of social engagement and of caring for others. Alpine Summit wants to foster good relations within the communities where it operates. Representatives are encouraged to participate in local activities that address the needs of the communities in which they live and work and to participate as a private citizen in government and the political process, using their own money and their own time. It should always be clear to outside observers that these are your personal actions and not actions taken on behalf of Alpine Summit.

Contributions to political parties and to candidates for public office are prohibited or tightly restricted in many countries, and, where not prohibited outright, can raise corruption concerns. Accordingly, you cannot make a political or campaign contribution in the name of, or on behalf of, Alpine Summit, or where the contribution will be associated with Alpine Summit.

Make sure any involvement in charitable or political activities is not prohibited by other Company policies or suggestive of anything improper and do not use, without specific written authorization, any Company funds, facilities or resources to help or promote any charitable cause or political candidate or party.

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3.13 <u>Public Relations</u>

The Board and the Company's management, including the Chief Executive Officer, are responsible for all public relations, including all contact with the media. Unless specifically authorized to represent Alpine Summit to the media, a Representative may not respond to inquiries or requests for information. This includes newspapers, magazines, trade publications, radio and television, as well as any other external sources requesting information about Alpine Summit. If the media contacts a Representative about any topic, they must immediately refer the call to the Chief Legal Officer and/or the Chief Administrative Officer.

3.14 <u>Social Media</u>

In order to maintain the consistency and quality of the disclosures by Alpine Summit to its stakeholders, and to better limit the potential for leaks of confidential information or selective disclosure, Representatives should, unless authorized by the Chief Legal Officer and/or the Chief Administrative Officer, refrain from disclosing or discussing matters relating to Alpine Summit on blogs, tweets, bulletin boards, social networking sites and other social media sites.

**Section 4. Safe, Respectful and Inclusive Workplace**

4.1 <u>No Discrimination, and Harassment</u>

As further outlined in the Employee Handbook, Alpine Summit is committed to providing a collegial working environment in which all individuals are treated with dignity and respect. Each individual has the right to work in a professional atmosphere which promotes equal opportunities and prohibits discriminatory practices. Any discrimination or harassment, including on the basis of age, color, creed, disability, ethnic origin, gender, marital status, national origin, political belief, race, religion, sexual orientation, gender identity, gender expression or any other characteristics protected by law, is strictly prohibited.

4.2 <u>Workplace Safety</u>

Alpine Summit is committed to providing a safe and healthy work environment that complies with all relevant laws, regulations and guidelines, as provided in the Employee Handbook. Workplace violence is not tolerated. Any misuse of alcohol or legal drugs (prescribed or un-prescribed), or the use of any illegal drugs, may jeopardize job safety and/or performance, and is prohibited in the workplace. No Representative shall enter the workplace under the influence of alcohol or such drugs that may impair safety and/or performance.

4.3 <u>Environmental</u>

The Company must comply fully with all laws, rules and regulations of any national, federal, provincial, state, local, municipal, regional, territorial or other governmental or quasi-governmental authority in any jurisdiction in which the Company operates relating to the protection of the environment in the conduct of its business. Representatives must use, store and dispose of all hazardous materials properly and in accordance with applicable laws, rules and regulations.

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**Section 5. Safeguarding Alpine Summit's Assets and Information**

5.1 <u>Protection and Proper Use of Alpine Summit's Assets</u>

All Representatives shall deal with Alpine Summit's assets, including all data, information (confidential or otherwise), records, products, material, facilities, inventory, "know-how", trade secrets, trademarks, copyrights and other intellectual property, and equipment, with the strictest integrity and with due regard to the interests of the Company. The accuracy, confidentiality, privacy and security of these types of information must be maintained in order to comply with all applicable privacy laws. Similarly, Representatives must not disclose commercially confidential or otherwise sensitive information. Alpine Summit's assets may not to be used for personal gain or benefit. In addition, all Representatives must act in a manner to protect such assets from loss, damage, misuse, theft, misappropriation, disparagement and waste, and ensure that such assets are used only for legitimate business purposes.

Management of Alpine Summit expects its Representatives to use internet access for business-related purposes (i.e., to communicate with customers and suppliers, to research relevant topics and to obtain useful business information). All existing Alpine Summit policies apply to conduct on the internet, particularly (but not exclusively) to those policies dealing with intellectual property protection, privacy, misuse of Alpine Summit's resources, sexual harassment, information and data security and confidentiality. All Representatives must take special care to maintain clarity, consistency and integrity of Alpine Summit's corporate image. Access to the Company's technology resources is within the sole discretion of the Company and subject to the Company's policies, which are provided in the Employee Handbook. Generally, Representatives are given access to the Company's various technologies consistent with their job functions. The Company reserves the right to limit such access by any means available to it, including revoking access altogether.

5.2 <u>Confidentiality of Alpine Summit's Information</u>

Information is one of Alpine Summit's key assets. It is Alpine Summit's policy to ensure that its proprietary and confidential information, including proprietary and confidential information that has been entrusted to Alpine Summit by others ("Confidential Information"), is adequately safeguarded. All Representatives are responsible for protecting Confidential Information, including information about Alpine Summit's business, assets, opportunities, suppliers and competitors, from unauthorized advertent or inadvertent disclosure. The obligation to preserve confidential information continues even after employment ends.

Representatives may not use the Company's technology resources to copy, retrieve, forward or send copyrighted materials unless they have the author's permission or are accessing a single copy only for personal reference.

Nothing contained in this Code, or any confidentiality policy of the Company, limits the Company's directors, officers, employees and others in possession of material non-public information to file a charge or complaint with a governmental regulatory agency in the United States or Canada and nothing herein limits their ability to communicate with any such agencies or otherwise participate in any investigation or proceeding that may be conducted by any such agency, including providing documents or other information, without notice to the Company.

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5.3 <u>Communications</u>

Representatives should take care to ensure that all business records and communications (including email, texts, and instant messages) are clear and accurate. Please remember that your business communications may be shared or become public through litigation, government investigation, or publication in the media. Potential risks from inaccurate or misleading statements include claims of false advertising, misrepresentation, breach of contract, securities fraud, unfair disclosure, and competition violations.

Representatives may not give an endorsement or other statement on behalf of Alpine Summit or personal endorsement that identifies their affiliation with Alpine Summit, except when approved by the Chief Legal Officer and/or the Chief Administrative Officer. In addition, Representatives may not discuss Alpine Summit's business, including financial condition, business or financial performance, products, or business prospects with anyone, including, but not limited to, financial analysts and actual or potential investors without the prior approval of the Chief Legal Officer and/or the Chief Administrative Officer. All requests for a representative of Alpine Summit to participate in a financial conference (including speaking on a panel, or attending a dinner or any event that targets the financial community) must be referred to the Chief Legal Officer and/or the Chief Administrative Officer for approval. If any such analysts or investors contact you, please refer such inquiries to the Chief Legal Officer and/or the Chief Administrative Officer.

5.4 <u>Inside Information and Insider Trading Laws</u>

Representatives are prohibited from buying or selling shares of Alpine Summit if they are aware of material non-public information about Alpine Summit (also referred to as "**material information**"). Trading in shares while in possession of non-public material information is a violation of applicable insider trading laws.

Material information can be positive or negative. Information is "material" if it would influence a reasonable investor in deciding whether to buy, sell or hold Alpine Summit's shares or, if disclosed to the public, would reasonably be expected to have a significant effect on the market price or value of the shares. Possible examples include, but are not limited to, financial information such as production, financial projections or the Company's financial performance, or the hiring or departure of key personnel. Information is considered to be "public" as of the opening of trading on the third trading day after it has been widely released to the public through a press release or by making a SEDAR, or similar, filing, giving the public markets adequate time to digest the material information.

Representatives are prohibited from disclosing inside information pursuant to the Company's Disclosure Policy. Only certain individuals who are authorized may publicly disclose material non-public information. Improper disclosure, even accidentally, can violate insider trading laws. Disclosing material non-public information to other people, including immediate family members or friends, or recommending the purchase or sale of Alpine Summit's shares to others while aware of material non-public information, is known as "tipping" and is illegal. A person who receives the information (i.e., is "tipped") and then trades in Alpine Summit shares or informs others of that information is also in violation of insider trading laws. More information about Alpine Summit's trading policy can be found in the Company's Insider Trading Policy.

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5.5 <u>Financial Integrity and Responsibility</u>

Representatives are expected to act responsibly and exercise sound judgment with respect to matters involving Company finances. Representatives must adhere to all applicable accepted accounting standards and practices, keep accurate, complete and timely records, submit accurate and complete reports as required, comply with Alpine Summit's system of internal controls, and sign only those documents they believe to be correct and complete.

Alpine Summit will not: (i) establish any undisclosed or unrecorded funds or assets for any purpose; (ii) enter into side agreements or other informal arrangements, either written or oral; or (iii) take any actions or fail to take any actions that would cause its financial records or financial disclosure to fail to comply with generally accepted accounting principles and all applicable laws, rules and regulations. All Representatives must cooperate fully and completely with Alpine Summit's accounting and audit teams, as well as Alpine Summit's independent public accountants and counsel, providing them with complete and accurate information and assistance. Representatives are prohibited from coercing, manipulating, misleading or improperly influencing Alpine Summit's auditors at any time. Representatives are prohibited from knowingly making, or causing or encouraging any other person from making, in any of Alpine Summit's public disclosure, any false or misleading statements or any omissions of any information necessary to make the disclosure complete and accurate in all material respects.

If you suspect or observe any irregularities relating to financial integrity and responsibility, immediately report them to the Chief Legal Officer and/or the Chief Administrative Officer. Should you wish to make an anonymous report, Cornerstone has been engaged by the Company to receive anonymous whistleblower reports via their website:

<u>https://reporting.cornerstonegovernance.com.</u>

**Section 6. Compliance with and Violations of The Code**

The Chief Legal Officer is responsible for reviewing and evaluating this Code at least annually and will recommend any necessary or appropriate changes to the Board for consideration.

6.1 <u>Questions</u>

If you have any questions about how this Code should be followed in a particular case, please contact the Chief Legal Officer and/or the Chief Administrative Officer.

6.2 <u>Reporting Violations of the Code</u>

All Representatives shall adhere to Alpine Summit's commitment to conduct its business and affairs in a lawful and ethical manner. All Representatives are encouraged to talk to the Chief Legal Officer and/or the Chief Administrative Officer when in doubt about the best course of action in a particular situation and to report any breach or suspected breach of law, regulation, this Code or any of Alpine Summit's corporate policies.

------

Alpine Summit prohibits retaliatory action against any Representative who, in good faith, reports a possible violation of this Code. Any Representative who believes they have been retaliated against should promptly report it to the Chief Legal Officer and/or the Chief Administrative Officer.

Additionally, Cornerstone has been retained to receive anonymous whistleblower reports. If at any time you believe a violation of law or regulation applicable to our Company, or any irregularities relating to financial integrity and responsibility have taken place, you may anonymously submit a whistleblower report by contacting Cornerstone via their website:

<u>https://reporting.cornerstonegovernance.com.</u>

Cornerstone will provide the reported information to the Chief Legal Officer and/or the Chief Administrative Officer, or Chair of the Audit Committee of the Board, if it relates to irregularities relating to financial integrity and responsibility, to evaluate whether an internal investigation is warranted.

6.3 <u>Consequences of Violation of the Code</u>

Representatives will be required to certify their understanding of and compliance with this Code from time to time, as applicable. Failure to comply with the Code may result in severe consequences, which could include internal disciplinary action or termination of employment or consulting arrangements without notice. Violation of the Code may also violate certain laws of Canada and the United States. If it appears a Representative may have violated such laws, the Company may refer the matter to the appropriate authorities, which could lead to legal proceedings, penalties, fines or imprisonment.

6.4 <u>Waivers of the Code</u>

Certain provisions of this Code require you to act, or refrain from acting, unless prior approval is received from the appropriate person. Representatives requiring approval for certain activities governed by this Code should request such approval in writing from the Chief Legal Officer and/or the Chief Administrative Officer. Approvals relating to executive officers and directors must be obtained from the Board.

Waivers or exceptions to this Code must be granted only in advance and under exceptional circumstances. Any waiver of this Code with respect to a Director or an Executive Officer of Alpine Summit (which includes the Chief Legal Officer and the Chief Administrative Officer) may be granted only by the Board, with interested parties recused from deliberations. Any such waiver, and the reasons for granting such waiver, shall be disclosed to the extent and in the manner required by applicable laws and stock exchange rules.

6.5 <u>Publication of the Code</u>

This Code, and any amendments, shall be posted on:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's website at www.alpinesummitenergy.com; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's issuer profile on SEDAR's website at <u>www.sedar.com</u>.

This document is not an employment contract between the Company and its Representatives, nor does it modify any employment or consulting relationship with the Company.

This Code is intended to clarify the existing obligation of Representatives for proper conduct. The standards and the supporting policies and procedures may change from time to time in the Company's discretion. Representatives are responsible for knowing and complying with the current laws, regulations, standards, policies and procedures that apply to the Company's business and operations.

---

| | |
|:---|:---|
| **The Chief Legal Officer of the Company is:** Chrystie Holmstrom | **The Chief Legal Officer of the Company is:** Chrystie Holmstrom |
| **E-mail:** cholmstrom@alpsummit.com | **E-mail:** cholmstrom@alpsummit.com |
| **The Chief Administrative Officer of the Company is:** Reagan Brown, | **The Chief Administrative Officer of the Company is:** Reagan Brown, |
| **Email:** rbrown@alpsummit.com | **Email:** rbrown@alpsummit.com |
| **Address:** 3322 West End Avenue, St 450, Nashville, TN 37205 | **Address:** 3322 West End Avenue, St 450, Nashville, TN 37205 |
| **Dated:** December 12, 2022 | **Approved by:** Board of Directors of the Company |

---

------

**CODE OF BUSINESS CONDUCT AND CODE OF ETHICS**<br>**CERTIFICATE**

I certify that I have read and fully understand Alpine Summit's CODE OF BUSINESS CONDUCT AND CODE OF ETHICS and will comply fully with its provisions.

---

| | |
|:---|:---|
| Per: |  |
| Per: | Signature |
| Per: |  |
| Per: | Name |
| Per: |  |
| Per: | Position |
| Per: |  |
| Per: | Date |

---

------

## Exhibit 21.1

------

**Exhibit 21.1**

**Subsidiaries of Alpine Summit Energy Partners, Inc.**

---

| | |
|:---|:---|
| &nbsp;&nbsp;<u>**Name**</u> | &nbsp;&nbsp;<u>**Jurisdiction of Organization**</u> |
| &nbsp;&nbsp;HB2 Origination, LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Alpine Summit Funding Holdings LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Alpine Summit Funding LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Ageron Energy II, LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Alpine Maverick VI, LP | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Alpine Maverick VII, LP | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Alpine Red Dawn II, LP | &nbsp;&nbsp;Delaware |

---

------

## Exhibit 23.1

------

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the registration statement No. 333-265412 on Form S-8 of our report dated March 24, 2023, with respect to the consolidated balance sheets of the Company at December 31, 2022 and 2021, and the consolidated statements of operations and comprehensive income (loss), statements of changes in shareholders' deficiency and statement of cash flows for the years then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies, which such report appears in this annual report on Form 10-K.

Yours very truly,

<u>**/s/ Andy Flores**</u>

Weaver and Tidwell, L.L.P.

Houston, Texas <br>March 24, 2023

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## Exhibit 23.2

------

---

| | | |
|:---|:---|:---|
| **W.D. Von Gonten** | &nbsp;&nbsp;&nbsp;&nbsp; **10496 Katy Freeway, Suite 200 Houston, Texas 77043** | &nbsp;&nbsp;&nbsp;&nbsp; ***t:*** **713.224.6333 *f*** ***:*** **71** **3.224.6330 www.wdvgco.com** |
| **Engineering LLC** | &nbsp;&nbsp;&nbsp;&nbsp; **10496 Katy Freeway, Suite 200 Houston, Texas 77043** | &nbsp;&nbsp;&nbsp;&nbsp; ***t:*** **713.224.6333 *f*** ***:*** **71** **3.224.6330 www.wdvgco.com** |

---

W.D. VON GONTEN ENGINEERING LLC

March 27, 2023

Alpine Summit Energy Partners

2445 Technology Forest Blvd., Suite 1010

The Woodlands, TX 77381

To Whom it May Concern:

We hereby consent to the incorporation by reference in the registration statement No. 333-265412 on Form S-8 of Alpine Summit Energy Partners, Inc. (the "**Company**") of our report entitled "Alpine Summit Energy Partners Estimate of Reserves and Revenues 2022 Year-End SEC Pricing Case "As of" January 1, 2023," dated February 3, 2023 (the "**Report**"), and of references to our firm name and references to the Report or information derived from the Report being included in the Form 10-K for the year ended December 31, 2022, filed by the Company with the United States Securities and Exchange Commission.

Yours very truly,

---

| |
|:---|
| W.D. Von Gonten Engineering LLC |
| /s/ W.D. Von Gonten, Jr. |
| W.D. Von Gonten, Jr.<br>CEO<br>Houston, Texas |

---

------

## Exhibit 31.1

------

**CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Craig Perry, certify that:

1. I have reviewed this Annual Report on Form 10-K of Alpine Summit Energy Partners, Inc. for the year ended December 31, 2022;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d - 15f) for the registrant and have:

&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. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&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. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 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;

&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. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; 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;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&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. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; 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;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
|  | By: | /s/ Craig Perry |
|  |  | Name: Craig Perry |
| Date: March 27, 2023 |  | Title: Chief Executive Officer |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |

---

------

## Exhibit 31.2

------

**CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Darren Moulds, certify that:

1. I have reviewed this Annual Report on Form 10-K of Alpine Summit Energy Partners, Inc. for the year ended December 31, 2022;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d - 15f) for the registrant and have:

&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. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&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. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 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;

&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. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; 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;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&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. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; 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;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
|  | By: | /s/ Darren Moulds |
|  |  | Name: Darren Moulds |
| Date: March 27, 2023 |  | Title: Chief Financial Officer |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial and Accounting Officer) |

---

------

## Exhibit 32.1

------

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Alpine Summit Energy Partners, Inc. (the "Company") on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission (the "Report"), I, Craig Perry, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| | | |
|:---|:---|:---|
|  | By: | /s/ Craig Perry |
|  |  | Name: Craig Perry |
| Date: March 27, 2023 |  | Title: Chief Executive Officer<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |

---

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## Exhibit 32.2

------

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Alpine Summit Energy Partners, Inc. (the "Company") on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission (the "Report"), I, Darren Moulds, Principal Financial and Accounting Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

---

| | | |
|:---|:---|:---|
|  | By: | /s/ Darren Moulds |
|  |  | Name: Darren Moulds |
| Date: March 27, 2023 |  | Title: Chief Financial Officer<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial and Accounting Officer) |

---

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## Exhibit 99.1

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February 3, 2023

Mr. William Wicker

Alpine Summit Energy Partners

2445 Technology Forest Blvd, Suite 1010

The Woodlands, TX 77381

---

| | |
|:---|:---|
| Re: | Alpine Summit Energy Partners |
|  | Estimate of Reserves and Revenues |
|  | 2022 Year-End SEC Pricing Case |
|  | "As of" January 1, 2023 |

---

Dear Mr. Wicker:

At your request, W.D. Von Gonten Engineering, LLC has prepared estimates of future reserves and projected net revenues for certain property interests owned by Alpine Summit Energy Partners (Alpine). These properties include producing wells and undeveloped locations located in either Austin, Fayette, Lee, Robertson, Washington, or Webb County, Texas. The undeveloped locations included herein have been classified as Proved, Probable, Possible, or Contingent Resource per the guidelines established by the Society of Petroleum Engineers (SPE). At the request of Alpine, this report was prepared utilizing the 2022 Year-End SEC pricing scenario.

Our conclusions, as of January 1, 2023, are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net to Alpine Summit Energy Partners*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net to Alpine Summit Energy Partners*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net to Alpine Summit Energy Partners*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net to Alpine Summit Energy Partners*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net to Alpine Summit Energy Partners*** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***Net to Alpine Summit Energy Partners*** |
| **2022 Year-End SEC Pricing** | Proved Developed | Proved Developed | Proved | Total | Probable | Possible |
|  | Producing | Non-Producing | Undeveloped | Proved | Undeveloped | Undeveloped |
| **Reserve Estimates** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil/Cond., Mbbl | 3745.4 | 227.8 | 273.5 | 4246.7 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Gas, MMcf | 55716.1 | 14763.5 | 28872.4 | 99352.1 | 167112.0 | 153798.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; NGL, Mbbl | 2797.5 | 165.1 | 248.7 | 3211.4 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil/Cond. Equivalent, MBOE | 15828.9 | 2853.5 | 5334.3 | 24016.8 | 27852.0 | 25633.2 |
| **Proved Revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Oil, $(36.4) % | 350361536 | 21313644 | 25584048 | 397259232 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Gas, $(53.5) % | 327701408 | 87240624 | 168920928 | 583862912 | 991433344 | 912450816 |
| &nbsp;&nbsp;&nbsp;&nbsp; NGL, $(10.2) % | 96324520 | 5929625 | 8931100 | 111185264 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Total, $ | 774387392 | 114483896 | 203436096 | 1092307328 | 991433344 | 912450816 |
| **Expenditures** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Advalorem Taxes, $ | 19353978 | 3034075 | 5301730 | 27689786 | 27512274 | 25320508 |
| &nbsp;&nbsp;&nbsp;&nbsp; Severance Taxes, $ | 47918564 | 7968196 | 14515770 | 70402528 | 74357496 | 68433800 |
| &nbsp;&nbsp;&nbsp;&nbsp; Direct Operating Expense, $ | 42530144 | 9120334 | 9859870 | 61510360 | 60907576 | 68898312 |
| &nbsp;&nbsp;&nbsp;&nbsp; Variable Operating Expense, $ | 22588062 | 3185350 | 4732006 | 30505416 | 17718538 | 16896134 |
| &nbsp;&nbsp;&nbsp;&nbsp; Transportation Expense, $ | 27210362 | 5980786 | 11216190 | 44407336 | 60564064 | 55739224 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total, $ | 159601136 | 29288740 | 45625564 | 234515408 | 241059936 | 235287984 |
| **Investments** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Total, $ | 3987294 | 16897380 | 54617248 | 75501920 | 231282496 | 236124992 |
| **Estimated Future Net Revenues(FNR)** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Undiscounted FNR, $ | 610799040 | 68297776 | 103193280 | 782289984 | 519090944 | 441037760 |
| &nbsp;&nbsp;&nbsp;&nbsp; FNR Disc. @ 10%, $ | 382616864 | 40849036 | 54990720 | 478456608 | 257950128 | 177735712 |
| **Allocation Percentage by Classification** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; FNR Disc. @ 10% | 80.0% | 8.5% | 11.5% | 100.0% |  |  |

---

\*Due to computer rounding, numbers in the above table may not sum exactly.

------

**<u>Report Qualifications</u>**

**<u>Purpose of Report</u>** - The purpose of this report is to provide Alpine and its financial advisors with an estimate of future reserves and net revenues attributable to certain interests owned by Alpine effective January 1, 2023.

**<u>Scope of Work</u>** - W.D. Von Gonten Engineering, LLC was engaged by Alpine to estimate the remaining reserves and future production forecasts associated with the properties included in this report. Once reserves were estimated, future net revenues were determined utilizing the 2022 Year-End SEC pricing scenario.

**<u>Reporting Requirements</u>** - The Society of Petroleum Engineers (SPE) requires Reserves to be economically recoverable with prices and costs in effect on the "as of" date of the report. In conjunction with World Petroleum Council (WPC), American Association of Petroleum Geologists (AAPG), Society of Petroleum Evaluation Engineers (SPEE), Society of Exploration Geophysicists (SEG), Society of Petrophysicists and Well Log Analysts (SPWLA), and the European Associated of Geoscientists and Engineers (EAGE), the SPE has issued *Petroleum Resources Management System* (**2018 ed.**), which sets forth the definitions and requirements associated with the determination and classification of both Reserves and Resources. In addition, the SPE has issued *Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserve Information* (**2019 ed.**)*,* which sets requirements for the qualifications and independence of qualified reserves evaluators and auditors.

The estimated Proved, Probable, and Possible reserves herein have been prepared in conformance with all SPE definitions and requirements in the above referenced publications.

**<u>Projections</u>** - The attached reserves and revenue projections are on a calendar year basis with the first time period being January 1, 2023 through December 31, 2023.

**<u>Property Discussion</u>**

Alpine currently owns interests in 36 producing horizontal Austin Chalk wells and one horizontal Eagle Ford shale well. As of December 2022, the gross production rates from the producing wells included in this report are approximately 5,700 barrels of oil and 103,000 Mcf of gas per day.

In addition, there are four Proved Undeveloped (PUD), 18 Probable Undeveloped (PROB), and 20 Possible Undeveloped (POSS) locations offsetting the producing leases planned to be operated by Ageron Energy, LLC or IRONROC Energy, LLC (IRONROC). The first well is scheduled to be producing by February 2023.

**<u>Reserves Estimates</u>**

**<u>Producing Properties</u>** - Reserves estimates for the Proved Developed Producing (PDP) properties were based on volumetric calculations, log analysis, decline curve analysis, rate transient analysis, and/or analogy to nearby production.

**<u>Undeveloped Properties</u>** - The undeveloped reserves and resources were necessarily estimated using volumetric calculations, log analysis, and geophysical interpretation. In addition, W.D. Von Gonten Engineering, LLC has performed a field study of the Austin Chalk formation independent of this report. Our conclusions from that field study have fortified our confidence in the producing and undeveloped reserves included herein.

Alpine Summit Energy Partners - SEC Pricing - February 3, 2023 - Page 2

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**Reserves and schedules of production included in this report are only estimates. The amount of available data, reservoir and geological complexity, reservoir drive mechanism, and mechanical aspects can have a material effect on the accuracy of these reserve estimates. Due to inherent uncertainties in future production rates, commodity prices, and geologic conditions, it should be realized that the reserves estimates, the reserves actually recovered, the revenue derived therefrom and the actual cost incurred could be more or less than the estimated amounts.**

**We consider the assumptions, data, methods, and procedures used in this report appropriate hereof, and we have used all such methods and procedures that we consider necessary and appropriate to prepare the estimates of reserves and future net revenues.**

**<u>Product Prices</u>**

The estimated net revenues shown herein were based on 2022 SEC Year-End pricing guidelines. SEC pricing is determined by averaging the settlement prices in effect for the first day of each month from the prior twelve months using benchmark oil and gas prices published by the Energy Information Administration. This method renders a price of $94.49 per barrel of oil and $6.245 per MMBtu of gas. These prices were held constant throughout the life of the properties, as per SEC guidelines.

Pricing differentials were applied to all properties on an individual property basis in order to reflect prices actually received at the wellhead. Pricing differentials are typically utilized to account for transportation charges, geographical differentials, quality adjustments, and any marketing bonus or deductions, and any other factors that may affect the price actually received at the wellhead. Alpine provided limited historical pricing data for the nine-month time period of January 2022 through September 2022. The historical averages extracted from the pricing data were applied for this report.

The NGL price differential utilized in this evaluation was based on a comparison of the historical price received versus the average NYMEX oil price.

A gas volume shrinkage factor has been applied to each property. This shrinkage accounts for any line loss, generation of NGLs, and/or fuel usage before the actual sales point.

**<u>Operating Expenses and Capital Costs</u>**

Historical monthly operating expense data for the properties were also provided by Alpine. W.D. Von Gonten Engineering, LLC applied a combination of fixed monthly and variable expenses to each individual property based on the available historical data from January 2022 through September 2022.

Capital costs necessary to perform well completion operations and to develop undeveloped locations were supplied by Alpine. These costs were verified from actual recent work in the area of interest.

All operating expenses and capital costs were held flat for the life of the properties.

**<u>Other Considerations</u>**

**<u>Abandonment Costs</u> -** Cost estimates regarding future plugging and abandonment liabilities associated with these properties were supplied by Alpine for the purposes of this report. As we have not inspected the properties personally, W.D. Von Gonten Engineering, LLC expresses no warranties as to the accuracy or reasonableness of these assumptions. A third party study would be necessary in order to accurately estimate all future abandonment liabilities.

**<u>Additional Costs</u>** - Costs were not deducted for general and administrative expenses, depletion, depreciation and/or amortization (a non-cash item), or federal income tax.

Alpine Summit Energy Partners - SEC Pricing - February 3, 2023 - Page 3

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**<u>Data Sources</u>** - Data furnished by Alpine included basic well information, completion data, lease acreage map, ownership interests, drilling schedules, historical commercial data, and daily production information. Public data sources such as IHS Energy and the U.S. Geological Survey (USGS) were used to gather any additional necessary data.

**<u>Context</u>** - We specifically advise that any particular reserves estimate for a specific property not be used out of context with the overall report. ***The revenues and present worth of future net revenues are not represented to be market value either for individual properties or on a total property basis. The estimation of fair market value for oil and gas properties requires additional analysis other than evaluating undiscounted and discounted future net revenues.***

While the oil and gas industry may be subject to regulatory changes from time to time that could affect an industry participant's ability to recover its oil and gas reserves, we are not aware of any such governmental actions which would restrict the recovery of the January 1, 2023 estimated oil and gas volumes. The reserves in this report can be produced under current regulatory guidelines. Actual future commodity prices may differ substantially from the utilized pricing scenario which may or may not extend or limit the estimated reserves and revenue quantities presented in this report.

We have not inspected the properties included in this report, nor have we conducted independent well tests. W.D. Von Gonten Engineering, LLC and our employees have no direct ownership in any of the properties included in this report. Our fees are based on hourly expenses, and are not related to the reserve and revenue estimates produced in this report. The responsible technical personnel referenced below have obtained the qualifications and meet the requirements of objectivity for Qualified Reserves Evaluator employed internally by W.D. Von Gonten Engineering, LLC as set forth in the *Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserve Information* (**2019 ed.**) promulgated by the SPE.

Thank you for the opportunity to assist Alpine Summit Energy Partners with this project.

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| | |
|:---|:---|
| Respectfully submitted, | ![](exhibit99-1xu004.jpg) |
| ![](exhibit99-1xu002.jpg) | ![](exhibit99-1xu004.jpg) |
| William D. Von Gonten, Jr., P.E. | ![](exhibit99-1xu004.jpg) |
| TX # 73244 | ![](exhibit99-1xu004.jpg) |
|  | ![](exhibit99-1xu004.jpg) |
| ![](exhibit99-1xu003.jpg) | ![](exhibit99-1xu004.jpg) |
| Taylor D. Matthes | ![](exhibit99-1xu004.jpg) |
|  | ![](exhibit99-1xu004.jpg) |
|  | ![](exhibit99-1xu004.jpg) |

---

WDVG/TDM/JPW

I:\data\company\reports\clientletters\misc\AlpineEnergy_YrEnd22_SEC_0123.docx

Alpine Summit Energy Partners - SEC Pricing - February 3, 2023 - Page 4

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![](exhibit99-1x5x1.jpg)

**PETROLEUM RESERVES AND RESOURCES CLASSIFICATION AND DEFINITIONS**

This document contains information excerpted from definitions and guidelines prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG), and the Society of Petroleum Evaluation Engineers (SPEE).

**Preamble**

Petroleum resources are the estimated quantities of hydrocarbons naturally occurring on or within the Earth's crust. Resource assessments estimate total quantities in known and yet-to-be discovered accumulations; resources evaluations are focused on those quantities that can potentially be recovered and marketed by commercial projects. A petroleum resources management system provides a consistent approach to estimating petroleum quantities, evaluating development projects, and presenting results within a comprehensive classification framework.

These definitions and guidelines are designed to provide a common reference for the international petroleum industry, including national reporting and regulatory disclosure agencies, and to support petroleum project and portfolio management requirements. They are intended to improve clarity in global communications regarding petroleum resources. It is expected that this document will be supplemented with industry education programs and application guides addressing their implementation in a wide spectrum of technical and/or commercial settings.

It is understood that these definitions and guidelines allow flexibility for users and agencies to tailor application for their particular needs; however, any modifications to the guidance contained herein should be clearly identified. The definitions and guidelines contained in this document must not be construed as modifying the interpretation or application of any existing regulatory reporting requirements.

**1.0 Basic Principles and Definitions**

The estimation of petroleum resource quantities involves the interpretation of volumes and values that have an inherent degree of uncertainty. These quantities are associated with development projects at various stages of design and implementation. Use of a consistent classification system enhances comparisons between projects, groups of projects, and total company portfolios according to forecast production profiles and recoveries. Such a system must consider both technical and commercial factors that impact the project's economic feasibility, its productive life, and its related cash flows.

**1.1 Petroleum Resources Classification Framework**

Petroleum is defined as a naturally occurring mixture consisting of hydrocarbons in the gaseous, liquid, or solid phase. Petroleum may also contain non-hydrocarbons, common examples of which are carbon dioxide, nitrogen, hydrogen sulfide and sulfur. In rare cases, non-hydrocarbon content could be greater than 50%.

The term "resources" as used herein is intended to encompass all quantities of petroleum naturally occurring on or within the Earth's crust, discovered and undiscovered (recoverable and unrecoverable), plus those quantities already produced. Further, it includes all types of petroleum whether currently considered "conventional" or "unconventional."

Excerpted from the Petroleum Resources Management System Approved by the

Society of Petroleum Engineers (SPE) Board of Directors, March 2007

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![](exhibit99-1x7x1.jpg)

Figure 1-1 is a graphical representation of the SPE/WPC/AAPG/SPEE resources classification system. The system defines the major recoverable resources classes: Production, Reserves, Contingent Resources, and Prospective Resources, as well as Unrecoverable petroleum.

![](exhibit99-1xu005.jpg)

The "Range of Uncertainty" reflects a range of estimated quantities potentially recoverable from an accumulation by a project, while the vertical axis represents the "Chance of Commerciality, that is, the chance that the project that will be developed and reach commercial producing status.

The following pages contain the definitions in **Tables 1, 2, and 3** that display the major classes and sub-classes of petroleum reserves and resources as defined by the SPE:

Excerpted from the Petroleum Resources Management System Approved by the

Society of Petroleum Engineers (SPE) Board of Directors, March 2007

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![](exhibit99-1x7x1.jpg)

**Table 1: Recoverable Resources Classes and Sub-Classes**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Class/Sub-Class | &nbsp;&nbsp;Definition | &nbsp;&nbsp;Guidelines |
| &nbsp;&nbsp;Reserves | &nbsp;&nbsp;Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. | &nbsp;&nbsp;Reserves must satisfy four criteria: they must be discovered, recoverable, commercial, and remaining based on the development project(s) applied. Reserves are further subdivided in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their development and production status. To be included in the Reserves class, a project must be sufficiently defined to establish its commercial viability. There must be a reasonable expectation that all required internal and external approvals will be forthcoming, and there is evidence of firm intention to proceed with development within a reasonable time frame. A reasonable time frame for the initiation of development depends on the specific circumstances and varies according to the scope of the project. While 5 years is recommended as a benchmark, a longer time frame could be applied where, for example, development of economic projects are deferred at the option of the producer for, among other things, market-related reasons, or to meet contractual or strategic objectives. In all cases, the justification for classification as Reserves should be clearly documented. To be included in the Reserves class, there must be a high confidence in the commercial producibility of the reservoir as supported by actual production or formation tests. In certain cases, Reserves may be assigned on the basis of well logs and/or core analysis that indicate that the subject reservoir is hydrocarbonbearing and is analogous to reservoirs in the same area that are producing or have demonstrated the ability to produce on formation tests. |
| &nbsp;&nbsp;On Production | &nbsp;&nbsp;The development project is currently producing and selling petroleum to market. | &nbsp;&nbsp;The key criterion is that the project is receiving income from sales, rather than the approved development project necessarily being complete. This is the point at which the project "chance of commerciality" can be said to be 100%. The project "decision gate" is the decision to initiate commercial production from the project. |
| &nbsp;&nbsp;Approved for Development | &nbsp;&nbsp;All necessary approvals have been obtained, capital funds have been committed, and implementation of the development project is under way. | &nbsp;&nbsp;At this point, it must be certain that the development project is going ahead. The project must not be subject to any contingencies such as outstanding regulatory approvals or sales contracts. Forecast capital expenditures should be included in the reporting entity's current or following year's approved budget. The project "decision gate" is the decision to start investing capital in the construction of production facilities and/or drilling development wells. |

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Excerpted from the Petroleum Resources Management System Approved by the

Society of Petroleum Engineers (SPE) Board of Directors, March 2007

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![](exhibit99-1x8x1.jpg)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Class/Sub-Class | &nbsp;&nbsp;Definition | &nbsp;&nbsp;Guidelines |
| &nbsp;&nbsp;Justified for Development | &nbsp;&nbsp;Implementation of the development project is justified on the basis of reasonable forecast commercial conditions at the time of reporting, and there are reasonable expectations that all necessary approvals/contracts will be obtained. | &nbsp;&nbsp;In order to move to this level of project maturity, and hence have reserves associated with it, the development project must be commercially viable at the time of reporting, based on the reporting entity's assumptions of future prices, costs, etc. ("forecast case") and the specific circumstances of the project. Evidence of a firm intention to proceed with development within a reasonable time frame will be sufficient to demonstrate commerciality. There should be a development plan in sufficient detail to support the assessment of commerciality and a reasonable expectation that any regulatory approvals or sales contracts required prior to project implementation will be forthcoming. Other than such approvals/contracts, there should be no known contingencies that could preclude the development from proceeding within a reasonable timeframe (see Reserves class). The project "decision gate" is the decision by the reporting entity and its partners, if any, that the project has reached a level of technical and commercial maturity sufficient to justify proceeding with development at that point in time. |
| &nbsp;&nbsp;Contingent Resources | &nbsp;&nbsp;Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable due to one or more contingencies. | &nbsp;&nbsp;Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status. |
| &nbsp;&nbsp;Development Pending | &nbsp;&nbsp;A discovered accumulation where project activities are ongoing to justify commercial development in the foreseeable future. | &nbsp;&nbsp;The project is seen to have reasonable potential for eventual commercial development, to the extent that further data acquisition (e.g. drilling, seismic data) and/or evaluations are currently ongoing with a view to confirming that the project is commercially viable and providing the basis for selection of an appropriate development plan. The critical contingencies have been identified and are reasonably expected to be resolved within a reasonable time frame. Note that disappointing appraisal/evaluation results could lead to a re-classification of the project to "On Hold" or "Not Viable" status. The project "decision gate" is the decision to undertake further data acquisition and/or studies designed to move the project to a level of technical and commercial maturity at which a decision can be made to proceed with development and production. |

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Excerpted from the Petroleum Resources Management System Approved by the

Society of Petroleum Engineers (SPE) Board of Directors, March 2007

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![](exhibit99-1x9x1.jpg)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Class/Sub-Class | &nbsp;&nbsp;Definition | &nbsp;&nbsp;Guidelines |
| &nbsp;&nbsp;Development Unclarified or on Hold | &nbsp;&nbsp;A discovered accumulation where project activities are on hold and/or where justification as a commercial development may be subject to significant delay. | &nbsp;&nbsp;The project is seen to have potential for eventual commercial development, but further appraisal/evaluation activities are on hold pending the removal of significant contingencies external to the project, or substantial further appraisal/evaluation activities are required to clarify the potential for eventual commercial development. Development may be subject to a significant time delay. Note that a change in circumstances, such that there is no longer a reasonable expectation that a critical contingency can be removed in the foreseeable future, for example, could lead to a reclassification of the project to "Not Viable" status. The project "decision gate" is the decision to either proceed with additional evaluation designed to clarify the potential for eventual commercial development or to temporarily suspend or delay further activities pending resolution of external contingencies. |
| &nbsp;&nbsp;Development Not Viable | &nbsp;&nbsp;A discovered accumulation for which there are no current plans to develop or to acquire additional data at the time due to limited production potential. | &nbsp;&nbsp;The project is not seen to have potential for eventual commercial development at the time of reporting, but the theoretically recoverable quantities are recorded so that the potential opportunity will be recognized in the event of a major change in technology or commercial conditions. The project "decision gate" is the decision not to undertake any further data acquisition or studies on the project for the foreseeable future. |
| &nbsp;&nbsp;Prospective Resources | &nbsp;&nbsp;Those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations. | &nbsp;&nbsp;Potential accumulations are evaluated according to their chance of discovery and, assuming a discovery, the estimated quantities that would be recoverable under defined development projects. It is recognized that the development programs will be of significantly less detail and depend more heavily on analog developments in the earlier phases of exploration. |
| &nbsp;&nbsp;Prospect | &nbsp;&nbsp;A project associated with a potential accumulation that is sufficiently well defined to represent a viable drilling target. | &nbsp;&nbsp;Project activities are focused on assessing the chance of discovery and, assuming discovery, the range of potential recoverable quantities under a commercial development program. |
| &nbsp;&nbsp;Lead | &nbsp;&nbsp;A project associated with a potential accumulation that is currently poorly defined and requires more data acquisition and/or evaluation in order to be classified as a prospect. | &nbsp;&nbsp;Project activities are focused on acquiring additional data and/or undertaking further evaluation designed to confirm whether or not the lead can be matured into a prospect. Such evaluation includes the assessment of the chance of discovery and, assuming discovery, the range of potential recovery under feasible development scenarios. |
| &nbsp;&nbsp;Play | &nbsp;&nbsp;A project associated with a prospective trend of potential prospects, but which requires more data acquisition and/or evaluation in order to define specific leads or prospects. | &nbsp;&nbsp;Project activities are focused on acquiring additional data and/or undertaking further evaluation designed to define specific leads or prospects for more detailed analysis of their chance of discovery and, assuming discovery, the range of potential recovery under hypothetical development scenarios. |

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Excerpted from the Petroleum Resources Management System Approved by the

Society of Petroleum Engineers (SPE) Board of Directors, March 2007

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![](exhibit99-1x10x1.jpg)

**Table 2: Reserves Status Definitions and Guidelines**

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|:---|:---|:---|
| &nbsp;&nbsp;Status | &nbsp;&nbsp;&nbsp;Definition | &nbsp;&nbsp;Guidelines |
| &nbsp;&nbsp;Developed Reserves | &nbsp;&nbsp;Developed Reserves are expected quantities to be recovered from existing wells and facilities. | &nbsp;&nbsp;Reserves are considered developed only after the necessary equipment has been installed, or when the costs to do so are relatively minor compared to the cost of a well. Where required facilities become unavailable, it may be necessary to reclassify Developed Reserves as Undeveloped. Developed Reserves may be further sub-classified as Producing or Non-Producing. |
| &nbsp;&nbsp;Developed Producing Reserves | &nbsp;&nbsp;Developed Producing Reserves are expected to be recovered from completion intervals that are open and producing at the time of the estimate. | &nbsp;&nbsp;Improved recovery reserves are considered producing only after the improved recovery project is in operation. |
| &nbsp;&nbsp;Developed Non-Producing Reserves | &nbsp;&nbsp;Developed Non-Producing Reserves include shut-in and behind-pipe Reserves. | &nbsp;&nbsp;Shut-in Reserves are expected to be recovered from (1) completion intervals which are open at the time of the estimate but which have not yet started producing, (2) wells which were shut-in for market conditions or pipeline connections, or (3) wells not capable of production for mechanical reasons. Behind-pipe Reserves are expected to be recovered from zones in existing wells which will require additional completion work or future recompletion prior to start of production. In all cases, production can be initiated or restored with relatively low expenditure compared to the cost of drilling a new well. |
| &nbsp;&nbsp;Undeveloped Reserves | &nbsp;&nbsp;Undeveloped Reserves are quantities expected to be recovered through future investments: | &nbsp;&nbsp;(1) from new wells on undrilled acreage in known accumulations, (2) from deepening existing wells to a different (but known) reservoir, (3) from infill wells that will increase recovery, or (4) where a relatively large expenditure (e.g. when compared to the cost of drilling a new well) is required to (a) recomplete an existing well or (b) install production or transportation facilities for primary or improved recovery projects. |

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Excerpted from the Petroleum Resources Management System Approved by the

Society of Petroleum Engineers (SPE) Board of Directors, March 2007

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![](exhibit99-1x10x1.jpg)

**Table 3: Reserves Category Definitions and Guidelines**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Category | Definition | Guidelines |
| &nbsp;&nbsp;Proved Reserves | &nbsp;&nbsp;Proved Reserves are those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations. | &nbsp;&nbsp;If deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate. The area of the reservoir considered as Proved includes (1) the area delineated by drilling and defined by fluid contacts, if any, and (2) adjacent undrilled portions of the reservoir that can reasonably be judged as continuous with it and commercially productive on the basis of available geoscience and engineering data. In the absence of data on fluid contacts, Proved quantities in a reservoir are limited by the lowest known hydrocarbon (LKH) as seen in a well penetration unless otherwise indicated by definitive geoscience, engineering, or performance data. Such definitive information may include pressure gradient analysis and seismic indicators. Seismic data alone may not be sufficient to define fluid contacts for Proved reserves (see "2001 Supplemental Guidelines," Chapter 8). Reserves in undeveloped locations may be classified as Proved provided that: •The locations are in undrilled areas of the reservoir that can be judged with reasonable certainty to be commercially productive. •Interpretations of available geoscience and engineering data indicate with reasonable certainty that the objective formation is laterally continuous with drilled Proved locations. For Proved Reserves, the recovery efficiency applied to these reservoirs should be defined based on a range of possibilities supported by analogs and sound engineering judgment considering the characteristics of the Proved area and the applied development program. |
| &nbsp;&nbsp;Probable Reserves | &nbsp;&nbsp;Probable Reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. | &nbsp;&nbsp;It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves (2P). In this context, when probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the 2P estimate. Probable Reserves may be assigned to areas of a reservoir adjacent to Proved where data control or interpretations of available data are less certain. The interpreted reservoir continuity may not meet the reasonable certainty criteria. Probable estimates also include incremental recoveries associated with project recovery efficiencies beyond that assumed for Proved. |

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Excerpted from the Petroleum Resources Management System Approved by the

Society of Petroleum Engineers (SPE) Board of Directors, March 2007

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![](exhibit99-1x12x1.jpg)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Category | &nbsp;&nbsp;Definition | &nbsp;&nbsp;Guidelines |
| &nbsp;&nbsp;Possible Reserves | &nbsp;&nbsp;Possible Reserves are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recoverable than Probable Reserves. | &nbsp;&nbsp;The total quantities ultimately recovered from the project have a low probability to exceed the sum of Proved plus Probable plus Possible (3P), which is equivalent to the high estimate scenario. When probabilistic methods are used, there should be at least a 10% probability that the actual quantities recovered will equal or exceed the 3P estimate. Possible Reserves may be assigned to areas of a reservoir adjacent to Probable where data control and interpretations of available data are progressively less certain. Frequently, this may be in areas where geoscience and engineering data are unable to clearly define the area and vertical reservoir limits of commercial production from the reservoir by a defined project. Possible estimates also include incremental quantities associated with project recovery efficiencies beyond that assumed for Probable. |
| &nbsp;&nbsp;Probable and Possible Reserves | &nbsp;&nbsp;(See above for separate criteria for Probable Reserves and Possible Reserves.) | &nbsp;&nbsp;The 2P and 3P estimates may be based on reasonable alternative technical and commercial interpretations within the reservoir and/or subject project that are clearly documented, including comparisons to results in successful similar projects. In conventional accumulations, Probable and/or Possible Reserves may be assigned where geoscience and engineering data identify directly adjacent portions of a reservoir within the same accumulation that may be separated from Proved areas by minor faulting or other geological discontinuities and have not been penetrated by a wellbore but are interpreted to be in communication with the known (Proved) reservoir. Probable or Possible Reserves may be assigned to areas that are structurally higher than the Proved area. Possible (and in some cases, Probable) Reserves may be assigned to areas that are structurally lower than the adjacent Proved or 2P area. Caution should be exercised in assigning Reserves to adjacent reservoirs isolated by major, potentially sealing, faults until this reservoir is penetrated and evaluated as commercially productive. Justification for assigning Reserves in such cases should be clearly documented. Reserves should not be assigned to areas that are clearly separated from a known accumulation by non-productive reservoir (i.e., absence of reservoir, structurally low reservoir, or negative test results); such areas may contain Prospective Resources. In conventional accumulations, where drilling has defined a highest known oil (HKO) elevation and there exists the potential for an associated gas cap, Proved oil Reserves should only be assigned in the structurally higher portions of the reservoir if there is reasonable certainty that such portions are initially above bubble point pressure based on documented engineering analyses. Reservoir portions that do not meet this certainty may be assigned as Probable and Possible oil and/or gas based on reservoir fluid properties and pressure gradient interpretations. |

---

Excerpted from the Petroleum Resources Management System Approved by the

Society of Petroleum Engineers (SPE) Board of Directors, March 2007

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| 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 | 2/9/2023 |
| ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 | ***Alpine Summit Energy Partners*** <br> Reserves & Economics Summary <br>3P Report with Interest Reversions <br>2022 Year-End SEC Pricing Case <br>Effective January 1, 2023 |
| Sort: Class - Lease |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | \*\*Reserves Not Risk Adjusted\*\* | \*\*Reserves Not Risk Adjusted\*\* | \*\*Reserves Not Risk Adjusted\*\* |
| <br>Lease | <br>Well No | <br>API | <br>Field | <br>State | <br>County | <br>Reservoir | <br>Operator | Before Payout | Before Payout | After Payout | After Payout | Gross | Gross | Gross | Net | Net | Net | Gross<br>Revenue<br>$ | Production<br>Taxes<br>$ | Operating<br>Expense<br>$ | Capital<br>Investment<br>$ | Life<br>Yrs | Future Net <br>Revenue<br>$ | 10% Disc.<br>FNR<br>$ | % Value<br>Allocation% |
| <br>Lease | <br>Well No | <br>API | <br>Field | <br>State | <br>County | <br>Reservoir | <br>Operator | WI | NRI<br>Gas | WI | NRI<br>Gas | Oil<br>MBO | Gas<br>MMCF | NGL<br>MBO | Oil<br>MBO | Gas<br>MMCF | NGL<br>MBO | Gross<br>Revenue<br>$ | Production<br>Taxes<br>$ | Operating<br>Expense<br>$ | Capital<br>Investment<br>$ | Life<br>Yrs | Future Net <br>Revenue<br>$ | 10% Disc.<br>FNR<br>$ | % Value<br>Allocation% |
| **CLASS = PROVED DEV. PRODUCING** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;AI OCHO | 101H | 4247944665 | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 99.60% | 74.70% | 84.66% | 63.49% |  | 2564.9 |  |  | 1738.0 |  | 10311338 | 1059490 | 2238496 | 21165 | 20 | 6992189 | 5680240 | 1.2% |
| &nbsp;&nbsp;AI SAN ROMAN | 101H | 4247944505 | HAWKVILLE | TX | WEBB | AUSTIN CHALK | AGERON IRONROC ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 12338.0 |  |  | 8260.9 |  | 49009712 | 5035747 | 5924803 | 21250 | 39 | 38027904 | 27801786 | 5.8% |
| &nbsp;&nbsp;AI SAN ROMAN | 102H | 4247944506 | HAWKVILLE | TX | WEBB | AUSTIN CHALK | AGERON IRONROC ENERGY LLC | 92.50% | 68.91% | 85.00% | 63.33% |  | 12419.4 |  |  | 7893.0 |  | 46827232 | 4811497 | 5798834 | 21250 | 42 | 36195636 | 23495460 | 4.9% |
| &nbsp;&nbsp;AI SAN ROMAN | 103H | 4247944627 | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 99.46% | 74.10% | 84.54% | 62.98% |  | 9594.8 |  |  | 6309.6 |  | 37433144 | 3846255 | 5127220 | 21136 | 38 | 28438522 | 19621842 | 4.1% |
| &nbsp;&nbsp;AI SAN ROMAN | 104H | 4247944628 | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 99.46% | 74.10% | 84.54% | 62.98% |  | 9921.3 |  |  | 6504.9 |  | 38591828 | 3965310 | 5333126 | 21136 | 39 | 29272264 | 19794934 | 4.1% |
| &nbsp;&nbsp;AI SAN ROMAN SOUTH | 101H | 4247944666 | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 83.33% | 62.08% | 70.83% | 52.77% |  | 11563.7 |  |  | 6392.6 |  | 37925732 | 3896869 | 4920757 | 17709 | 40 | 29090398 | 20272220 | 4.2% |
| &nbsp;&nbsp;AI SAN ROMAN SOUTH | 102H | 4247944667 | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 83.33% | 62.08% | 70.83% | 52.77% |  | 11482.1 |  |  | 6352.3 |  | 37686504 | 3872289 | 4872164 | 17709 | 40 | 28924348 | 20247126 | 4.2% |
| &nbsp;&nbsp;ANIMAL | 1H | 4228732758 | GIDDINGS DIST 3 | TX | LEE | AUSTIN CHALK | IRONROC ENERGY | 82.01% | 58.22% | 82.01% | 58.22% | 103.6 | 186.5 | 28.0 | 60.3 | 69.5 | 16.3 | 6582251 | 486295 | 1101830 | 159913 | 34 | 4834213 | 3207094 | 0.7% |
| &nbsp;&nbsp;ANIMAL | 2H | 4228732760 | GIDDINGS | TX | LEE | AUSTIN CHALK-3 | IRONROC ENERGY | 82.23% | 58.38% | 82.23% | 58.38% | 308.7 | 1541.6 | 231.2 | 180.2 | 576.0 | 135.0 | 24633818 | 1940489 | 2278407 | 160351 | 47 | 20254564 | 12634326 | 2.6% |
| &nbsp;&nbsp;BEAKER B | 2H | 4228732740 | GIDDINGS | TX | LEE | EAGLE FORD | IRONROC ENERGY | 100.00% | 75.44% | 100.00% | 75.44% | 116.4 | 139.6 | 21.6 | 87.8 | 63.2 | 16.3 | 9111590 | 661871 | 1419491 | 195000 | 48 | 6835226 | 3257735 | 0.7% |
| &nbsp;&nbsp;BEAKER B | 3H | 4228732741 | GIDDINGS | TX | LEE | AUSTIN CHALK-3 | IRONROC ENERGY | 100.00% | 75.44% | 100.00% | 75.44% | 119.0 | 166.6 | 25.8 | 89.7 | 75.4 | 19.5 | 9467850 | 691654 | 1361849 | 25000 | 39 | 7389347 | 4175937 | 0.9% |
| &nbsp;&nbsp;CINCINNATUS | 2H | 4214933557 | GIDDINGS | TX | FAYETTE | AUSTIN CHALK-3 | DALLAS PETROLEUM GROUP LLC | 71.00% | 51.50% | 55.75% | 40.41% | 280.3 | 2093.3 | 324.5 | 116.7 | 522.5 | 135.0 | 18351080 | 1491983 | 1473256 | 108713 | 45 | 15277128 | 10030864 | 2.1% |
| &nbsp;&nbsp;CONSTANTINE | 1H | 4214933502 | GIDDINGS DIST 5 | TX | FAYETTE | AUSTIN CHALK-3 | IRONROC ENERGY | 78.40% | 56.50% | 78.40% | 56.50% | 300.9 | 1564.7 | 341.1 | 170.0 | 716.0 | 192.7 | 26890428 | 2188993 | 2934910 | 152880 | 49 | 21613648 | 11988882 | 2.5% |
| &nbsp;&nbsp;CONSTANTINE | 2H | 4214933521 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK | IRONROC ENERGY | 79.74% | 57.48% | 79.74% | 57.48% | 350.1 | 1295.2 | 282.4 | 201.2 | 603.0 | 162.3 | 28074888 | 2222683 | 2934574 | 155498 | 63 | 22762140 | 11357852 | 2.4% |
| &nbsp;&nbsp;ELECTRIC MAYHEM | 1H | 4228732768 | GIDDINGS | TX | LEE | AUSTIN CHALK-3 | IRONROC ENERGY | 90.00% | 63.90% | 76.50% | 54.32% | 414.8 | 1003.4 | 150.5 | 227.2 | 352.4 | 82.6 | 26006492 | 1951051 | 2691879 | 149175 | 51 | 21214378 | 12930880 | 2.7% |
| &nbsp;&nbsp;ELECTRIC MAYHEM | 2H | 4228732769 | GIDDINGS | TX | LEE | AUSTIN CHALK-3 | IRONROC ENERGY | 90.00% | 63.90% | 76.50% | 54.32% | 418.8 | 1803.5 | 270.5 | 229.1 | 630.3 | 147.7 | 29942790 | 2332045 | 2443146 | 149175 | 49 | 25018426 | 16208753 | 3.4% |
| &nbsp;&nbsp;GONZO 1H | 1H | 4228732747 | GIDDINGS DIST 3 | TX | LEE | AUSTIN CHALK-3 | IRONROC ENERGY | 87.50% | 65.01% | 75.00% | 55.72% | 186.9 | 486.0 | 105.9 | 104.5 | 220.2 | 59.3 | 13157406 | 1014575 | 1618748 | 146250 | 44 | 10377838 | 5494631 | 1.1% |
| &nbsp;&nbsp;GONZO 2H | 2H | 4228732748 | GIDDINGS DIST 3 | TX | LEE | AUSTIN CHALK-3 | IRONROC ENERGY | 87.50% | 65.52% | 75.00% | 56.16% | 196.7 | 737.6 | 160.8 | 110.7 | 336.1 | 90.5 | 15511047 | 1229310 | 1949967 | 146250 | 45 | 12185514 | 6402580 | 1.3% |
| &nbsp;&nbsp;GONZO 3H | 3H | 4214933498 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK-3 | IRONROC ENERGY | 100.00% | 75.10% | 80.00% | 60.10% | 175.1 | 350.2 | 76.3 | 105.2 | 170.5 | 45.9 | 12459263 | 944248 | 1643080 | 156000 | 44 | 9715935 | 5154637 | 1.1% |
| &nbsp;&nbsp;GONZO B | 4H | 4214933499 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK-3 | IRONROC ENERGY | 98.44% | 73.83% | 78.75% | 59.07% | 104.5 | 352.2 | 76.8 | 62.6 | 171.0 | 46.0 | 8481967 | 666658 | 1407715 | 153569 | 37 | 6254024 | 3518118 | 0.7% |
| &nbsp;&nbsp;GONZO B | 5H | 4214933500 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK-3 | IRONROC ENERGY | 78.44% | 58.83% | 78.44% | 58.83% | 185.7 | 222.8 | 48.6 | 109.2 | 106.2 | 28.6 | 11847765 | 873638 | 1364129 | 152962 | 44 | 9457034 | 5083258 | 1.1% |
| &nbsp;&nbsp;GROVER 1H | 1H | 4247731162 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK | IRONROC ENERGY | 75.00% | 56.25% | 75.00% | 56.25% | 301.2 | 602.3 | 131.3 | 169.4 | 274.4 | 73.9 | 20058716 | 1520186 | 1871188 | 146250 | 49 | 16521093 | 9157581 | 1.9% |
| &nbsp;&nbsp;HUEBNER KLAUS GU 1H | 1H | 4201531065 | GIDDINGS DIST 3 | TX | AUSTIN | AUSTIN CHALK | CARR RESOURCES INC | 85.00% | 63.75% | 50.00% | 37.50% |  | 3005.8 |  |  | 1188.1 |  | 6677637 | 655243 | 1602267 | 12500 | 29 | 4407627 | 2918637 | 0.6% |
| &nbsp;&nbsp;LONNIE MAE 2H | 2H | 4228732764 | GIDDINGS | TX | LEE | AUSTIN CHALK-3 | IRONROC ENERGY | 61.60% | 46.20% | 46.20% | 34.65% | 616.0 | 2849.9 | 427.5 | 239.4 | 693.4 | 162.5 | 31754128 | 2482637 | 2991777 | 90090 | 52 | 26189630 | 18269406 | 3.8% |
| &nbsp;&nbsp;PORTER MURPHY | 1H | 4214933544 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK-3 | IRONROC ENERGY | 79.35% | 59.51% | 59.51% | 44.63% | 182.0 | 1183.0 | 257.9 | 94.2 | 496.1 | 133.5 | 16426474 | 1362642 | 2109857 | 149768 | 41 | 12804205 | 8291828 | 1.7% |
| &nbsp;&nbsp;ROWLF 1H | 1H | 4239532066 | GIDDINGS D5 | TX | ROBERTSON | AUSTIN CHALK | IRONROC ENERGY | 77.00% | 58.92% | 77.00% | 58.92% | 58.4 | 73.0 | 11.0 | 34.4 | 27.5 | 6.5 | 3590445 | 261298 | 1374359 | 19250 | 26 | 1935539 | 1343893 | 0.3% |
| &nbsp;&nbsp;ROWLF 2H | 2H | 4239532067 | GIDDINGS D5 | TX | ROBERTSON | AUSTIN CHALK | IRONROC ENERGY | 77.00% | 58.92% | 77.00% | 58.92% | 86.5 | 108.1 | 16.2 | 51.0 | 40.8 | 9.6 | 5316887 | 386941 | 1754579 | 19250 | 31 | 3156117 | 2031033 | 0.4% |
| &nbsp;&nbsp;SAMPSON-MUELLER B | 5H | 4214933549 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK-3 | DALLAS PETROLEUM GROUP LLC | 78.39% | 56.44% | 62.71% | 45.38% | 393.3 | 1964.8 | 428.3 | 192.7 | 779.6 | 209.8 | 29990602 | 2433136 | 3028100 | 122292 | 49 | 24407070 | 16142706 | 3.4% |
| &nbsp;&nbsp;SAMPSON-MUELLER UNIT A | 4H | 4214933532 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK-3 | DALLAS PETROLEUM GROUP LLC | 86.32% | 62.61% | 86.32% | 62.61% | 416.3 | 2074.1 | 452.2 | 260.6 | 1051.8 | 283.1 | 40519688 | 3286702 | 4088906 | 168318 | 50 | 32975760 | 20429390 | 4.3% |
| &nbsp;&nbsp;STATLER 1H (OPEN HOLE/RECOMP) |  | 4214932749 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK | IRONROC ENERGY | 75.00% | 56.84% | 75.00% | 56.84% | 104.8 | 104.8 | 16.2 | 59.6 | 48.3 | 9.2 | 6180033 | 448808 | 871407 | 146250 | 36 | 4713568 | 2846525 | 0.6% |
| &nbsp;&nbsp;STELLA MAE 2H | 2H | 4214933525 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK | IRONROC ENERGY | 71.74% | 53.81% | 71.74% | 53.81% | 245.0 | 1531.1 | 237.3 | 131.8 | 494.3 | 127.7 | 19362734 | 1551322 | 1445732 | 139898 | 45 | 16225786 | 9440235 | 2.0% |
| &nbsp;&nbsp;STELLA MAE 3H | 3H | 4214933526 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK | IRONROC ENERGY | 71.74% | 53.81% | 71.74% | 53.81% | 158.8 | 833.6 | 129.2 | 85.4 | 269.1 | 69.5 | 11820404 | 933907 | 1135673 | 139898 | 40 | 9610921 | 5726986 | 1.2% |
| &nbsp;&nbsp;SWEDISH CHEF 1H (OPEN HOLE) | 1H | 4247730727 | GIDDINGS DIST 3 | TX | WASHINGTON | AUSTIN CHALK | IRONROC ENERGY | 60.00% | 42.00% | 60.00% | 42.00% | 21.2 | 127.0 | 19.7 | 8.9 | 43.2 | 8.3 | 1373708 | 111286 | 407290 | 117000 | 22 | 738131 | 444090 | 0.1% |
| &nbsp;&nbsp;SWEDISH CHEF 2H | 2H | 4247731150 | GIDDINGS DIST 3 | TX | WASHINGTON | AUSTIN CHALK | IRONROC ENERGY | 60.00% | 42.00% | 60.00% | 42.00% | 260.3 | 1301.7 | 195.3 | 109.3 | 349.9 | 82.0 | 14951261 | 1177875 | 1675801 | 117000 | 57 | 11980587 | 6311325 | 1.3% |
| &nbsp;&nbsp;SWEDISH CHEF 3H | 3H | 4247731151 | GIDDINGS DIST 3 | TX | WASHINGTON | AUSTIN CHALK | IRONROC ENERGY | 60.00% | 42.00% | 60.00% | 42.00% | 348.3 | 1393.1 | 209.0 | 146.3 | 374.5 | 87.8 | 18737872 | 1451745 | 1900064 | 117000 | 62 | 15269058 | 7881625 | 1.6% |
| &nbsp;&nbsp;SWEDISH CHEF 4H | 4H | 4247731178 | GIDDINGS DIST 3 | TX | WASHINGTON | AUSTIN CHALK | IRONROC ENERGY | 77.39% | 54.17% | 77.39% | 54.17% | 281.2 | 1827.5 | 274.1 | 152.3 | 633.6 | 148.5 | 22799206 | 1834317 | 2514731 | 150911 | 58 | 18299246 | 9839046 | 2.1% |
| &nbsp;&nbsp;SWEDISH CHEF B 5H | 5H | 4247731208 | GIDDINGS DIST 3 | TX | WASHINGTON | AUSTIN CHALK | IRONROC ENERGY | 94.49% | 66.14% | 75.59% | 52.91% | 271.8 | 2429.3 | 364.4 | 155.4 | 888.0 | 208.1 | 26523538 | 2191555 | 2718475 | 179529 | 55 | 21433986 | 13183410 | 2.8% |
| **Subtotal:** |  |  |  |  |  |  |  |  |  |  |  | **7006** | **103237** | **5314** | **3745** | **55716** | **2798** | **774387456** | **67272549** | **92328584** | **3987293** |  | **610798999** | **382616867** | **80.0%** |
| **CLASS = PROVED NONPRODUCING** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;KERMIT B 2H |  | 4214933559 | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK | IRONROC ENERGY | 78.47% | 54.93% | 62.78% | 43.94% | 457.5 | 1593.6 | 347.4 | 221.1 | 613.6 | 165.1 | 30098102 | 2368610 | 3092837 | 4830629 | 48 | 19806030 | 12339879 | 2.6% |
| &nbsp;&nbsp;MVP A-152 GAS UNIT | 3ST | 4224130816 | ADAMS RANCH | TX | JASPER | YEGUA EY-9 | SOUTHERN OIL OF LOUISIANA LLC | 97.00% | 68.87% | 97.00% | 68.87% | 9.8 | 982.2 |  | 6.8 | 622.3 |  | 4130043 | 387384 | 1406378 | 24250 | 15 | 2312031 | 1694495 | 0.4% |
| &nbsp;&nbsp;SAN ROMAN | 201H | 4247944755 | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 10231.2 |  |  | 6763.8 |  | 40127872 | 4123140 | 6893628 | 6021250 | 47 | 23089864 | 13407333 | 2.8% |
| &nbsp;&nbsp;SAN ROMAN | 202H | 4247944756 | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 10231.2 |  |  | 6763.8 |  | 40127872 | 4123140 | 6893628 | 6021250 | 47 | 23089864 | 13407333 | 2.8% |
| **Subtotal:** |  |  |  |  |  |  |  |  |  |  |  | **467** | **23038** | **347** | **228** | **14764** | **165** | **114483889** | **11002273** | **18286470** | **16897379** |  | **68297789** | **40849040** | **8.5%** |
| **CLASS = PROVED UNDEVELOPED** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;AI SAN ROMAN | 105H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10559.4 |  | 62646460 | 6436921 | 8270996 | 13721250 | 43 | 34217284 | 19425950 | 4.1% |
| &nbsp;&nbsp;AI SAN ROMAN | 106H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10531.8 |  | 62482692 | 6420097 | 8255026 | 13721250 | 43 | 34086316 | 19017410 | 4.0% |
| &nbsp;&nbsp;HUEBNER KLAUS 3H (ENDURANCE 1H) |  |  | GIDDINGS DIST 3 | TX | AUSTIN | AUSTIN CHALK | IRONROC ENERGY | 100.00% | 75.00% | 75.00% | 56.25% |  | 11855.3 |  |  | 6857.0 |  | 38539660 | 3781703 | 5332531 | 15018750 | 39 | 14406666 | 5858522 | 1.2% |
| &nbsp;&nbsp;KERMIT A 1H |  |  | GIDDINGS DIST 3 | TX | FAYETTE | AUSTIN CHALK | IRONROC ENERGY | 100.00% | 75.00% | 80.00% | 60.00% | 421.9 | 1806.9 | 393.9 | 273.5 | 924.2 | 248.7 | 39767308 | 3178777 | 3949514 | 12156000 | 47 | 20483016 | 10688837 | 2.2% |
| **Subtotal:** |  |  |  |  |  |  |  |  |  |  |  | **422** | **45499** | **394** | **273** | **28872** | **249** | **203436120** | **19817497** | **25808066** | **54617250** |  | **103193282** | **54990719** | **11.5%** |
| **TOTAL PROVED:** |  |  |  |  |  |  |  |  |  |  |  | **7896** | **171773** | **6055** | **4247** | **99352** | **3211** | **1092307465** | **98092319** | **136423121** | **75501922** |  | **782290069** | **478456626** | **100.0%** |
| **CLASS = PROBABLE UNDEVELOPED** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;AI SAN ROMAN | 107H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10486.9 |  | 62215972 | 6392690 | 8229376 | 13721250 | 43 | 33872652 | 18403222 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 108H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10486.9 |  | 62215972 | 6392690 | 8229376 | 13721250 | 43 | 33872652 | 18403222 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 109H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10559.4 |  | 62646460 | 6436921 | 8270996 | 13721250 | 43 | 34217284 | 19425950 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 110H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10454.2 |  | 62021944 | 6372755 | 8207979 | 13721250 | 43 | 33719968 | 17993826 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 111H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10454.2 |  | 62021944 | 6372755 | 8207979 | 13721250 | 43 | 33719968 | 17993826 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 112H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10454.2 |  | 62021944 | 6372755 | 8207979 | 13721250 | 43 | 33719968 | 17993826 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 113H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10454.2 |  | 62021944 | 6372755 | 8207979 | 13721250 | 43 | 33719968 | 17993826 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 114H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10454.2 |  | 62021944 | 6372755 | 8207979 | 13721250 | 43 | 33719968 | 17993826 |  |
| &nbsp;&nbsp;AI SAN ROMAN SOUTH | 103H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10531.8 |  | 62482692 | 6420097 | 8255026 | 13721250 | 43 | 34086316 | 19017410 |  |
| &nbsp;&nbsp;AI SAN ROMAN SOUTH | 104H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10454.2 |  | 62021944 | 6372755 | 8207979 | 13721250 | 43 | 33719968 | 17993826 |  |
| &nbsp;&nbsp;AI SAN ROMAN SOUTH | 105H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10531.8 |  | 62482692 | 6420097 | 8255026 | 13721250 | 43 | 34086316 | 19017410 |  |
| &nbsp;&nbsp;AI SAN ROMAN SOUTH | 106H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 9970.8 |  | 59154004 | 6078075 | 7902046 | 13721250 | 45 | 31452632 | 13913063 |  |
| &nbsp;&nbsp;AI SAN ROMAN SOUTH | 107H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 9970.8 |  | 59154004 | 6078075 | 7902046 | 13721250 | 45 | 31452632 | 13913063 |  |
| &nbsp;&nbsp;SAN ROMAN | 212H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284508 | 3830984 | 6510665 | 10221250 | 50 | 16721614 | 5354557 |  |
| &nbsp;&nbsp;SAN ROMAN | 213H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284508 | 3830984 | 6510665 | 10221250 | 50 | 16721614 | 5354557 |  |
| &nbsp;&nbsp;SAN ROMAN | 214H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284508 | 3830983 | 6510664 | 10221250 | 50 | 16721617 | 5228479 |  |
| &nbsp;&nbsp;SAN ROMAN | 215H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284508 | 3830983 | 6510664 | 10221250 | 50 | 16721617 | 5228479 |  |
| &nbsp;&nbsp;SAN ROMAN SOUTH | 201H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.32% |  | 10231.2 |  |  | 6710.5 |  | 39811864 | 4090669 | 6855746 | 12021250 | 48 | 16844204 | 6727758 |  |
| **Subtotal:** |  |  |  |  |  |  |  |  |  |  |  | **-** | **258093** | **-** | **-** | **167112** | **-** | **991433356** | **101869778** | **139190168** | **231282500** |  | **519090958** | **257950125** |  |
| **CLASS = POSSIBLE UNDEVELOPED** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;AI SAN ROMAN | 115H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10243.5 |  | 60771880 | 6244310 | 8078603 | 13721250 | 44 | 32727714 | 15866058 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 116H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10243.5 |  | 60771880 | 6244310 | 8078603 | 13721250 | 44 | 32727714 | 15866058 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 117H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10243.5 |  | 60771880 | 6244310 | 8078603 | 13721250 | 44 | 32727714 | 15866058 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 118H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10187.6 |  | 60440280 | 6210238 | 8040225 | 13721250 | 44 | 32468568 | 15413409 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 119H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10187.6 |  | 60440280 | 6210238 | 8040225 | 13721250 | 44 | 32468568 | 15413409 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 120H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10187.6 |  | 60440280 | 6210238 | 8040225 | 13721250 | 44 | 32468568 | 15413409 |  |
| &nbsp;&nbsp;AI SAN ROMAN | 121H |  | GIDDINGS DIST 3 | TX | WEBB | AUSTIN CHALK | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 15918.2 |  |  | 10157.1 |  | 60259636 | 6191677 | 8019859 | 13721250 | 44 | 32326846 | 15180241 |  |
| &nbsp;&nbsp;SAN ROMAN | 203H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.32% |  | 10231.2 |  |  | 6284.5 |  | 37284500 | 3830983 | 6510663 | 10221250 | 50 | 16721613 | 5571480 |  |
| &nbsp;&nbsp;SAN ROMAN | 204H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.32% |  | 10231.2 |  |  | 6284.5 |  | 37284500 | 3830983 | 6510663 | 10221250 | 50 | 16721613 | 5571480 |  |
| &nbsp;&nbsp;SAN ROMAN | 205H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.32% |  | 10231.2 |  |  | 6284.5 |  | 37284500 | 3830983 | 6510663 | 10221250 | 50 | 16721613 | 5571480 |  |
| &nbsp;&nbsp;SAN ROMAN | 206H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 10231.2 |  |  | 6353.7 |  | 37694696 | 3873130 | 6564331 | 12021250 | 49 | 15235996 | 4502701 |  |
| &nbsp;&nbsp;SAN ROMAN | 207H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 10231.2 |  |  | 6353.7 |  | 37694696 | 3873130 | 6564331 | 12021250 | 49 | 15235996 | 4502701 |  |
| &nbsp;&nbsp;SAN ROMAN | 208H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 10231.2 |  |  | 6353.7 |  | 37694696 | 3873130 | 6564331 | 12021250 | 49 | 15235996 | 4502701 |  |
| &nbsp;&nbsp;SAN ROMAN | 209H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284496 | 3830982 | 6510665 | 10221250 | 50 | 16721613 | 5440294 |  |
| &nbsp;&nbsp;SAN ROMAN | 210H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284496 | 3830982 | 6510665 | 10221250 | 50 | 16721613 | 5440294 |  |
| &nbsp;&nbsp;SAN ROMAN | 211H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284496 | 3830982 | 6510665 | 10221250 | 50 | 16721613 | 5440294 |  |
| &nbsp;&nbsp;SAN ROMAN | 216H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284508 | 3830983 | 6510664 | 10221250 | 50 | 16721617 | 5228479 |  |
| &nbsp;&nbsp;SAN ROMAN SOUTH | 202H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 100.00% | 74.50% | 85.00% | 63.33% |  | 10231.2 |  |  | 6727.1 |  | 39909936 | 4100746 | 6868368 | 12021250 | 47 | 16919574 | 6895347 |  |
| &nbsp;&nbsp;SAN ROMAN SOUTH | 203H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284516 | 3830983 | 6510664 | 10221250 | 51 | 16721616 | 5024913 |  |
| &nbsp;&nbsp;SAN ROMAN SOUTH | 204H |  | GIDDINGS DIST 3 | TX | WEBB | EAGLE FORD | AGERON ENERGY LLC | 85.00% | 63.33% | 85.00% | 63.33% |  | 10231.2 |  |  | 6284.5 |  | 37284516 | 3830983 | 6510664 | 10221250 | 51 | 16721616 | 5024913 |  |
| **Subtotal:** |  |  |  |  |  |  |  |  |  |  |  | **-** | **244433** | **-** | **-** | **153799** | **-** | **912450668** | **93754303** | **141533678** | **236125000** |  | **441037781** | **177735716** |  |

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| AlpineEnergy_YrEnd2022-3P_SEC_Oneline_020223 Sort Class-Lease | Page 1 | ![](exhibit99-1xm001.jpg) |

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