Document:

Contribution Agreement

 Exhibit 10.2 
 CONTRIBUTION AGREEMENT 
 Between 

SCINTILLA, LLC, 
 An Oklahoma Limited Liability Company 
 (Grantor) 

and 
 NEW
SOURCE ENERGY CORPORATION 
 A Delaware Corporation 
 (Grantee) 
 Dated this 12th day of August, 2011 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 ARTICLE I
	 	 DEFINITIONS
	  	 	1	  
	 ARTICLE II
	 	 PROPERTIES
	  	 	7	  
	         Section 2.01
	 	 Contribution
	  	 	7	  
	         Section 2.02
	 	 Properties
	  	 	7	  
	         Section 2.03
	 	 Excluded Assets
	  	 	9	  
	         Section 2.04
	 	 Operator Owns Saltwater Disposal Infrastructure
	  	 	9	  
	         Section 2.05
	 	 Effective Time
	  	 	10	  
	         Section 2.06
	 	 Ownership of Properties
	  	 	10	  
	 ARTICLE III
	 	 CONSIDERATION; ADJUSTMENT PERIOD CASH FLOW
	  	 	10	  
	         Section 3.01
	 	 Consideration
	  	 	10	  
	         Section 3.02
	 	 Adjustment Period Cash Flow
	  	 	10	  
	 ARTICLE IV
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	11	  
	         Section 4.01
	 	 Representations and Warranties of Grantor
	  	 	11	  
	         Section 4.02
	 	 Representations and Warranties of Grantee
	  	 	14	  
	         Section 4.03
	 	 Waiver of Representations and Warranties
	  	 	16	  
	 ARTICLE V
	 	 TAX MATTERS
	  	 	16	  
	         Section 5.01
	 	 Apportionment of Tax Liability
	  	 	16	  
	         Section 5.02
	 	 Tax Reports and Returns
	  	 	16	  
	 ARTICLE VI
	 	 CLOSING
	  	 	17	  
	         Section 6.01
	 	 Closing
	  	 	17	  
	         Section 6.02
	 	 Closing Obligations
	  	 	17	  
	 ARTICLE VII
	 	 POST-CLOSING RIGHTS AND OBLIGATIONS
	  	 	17	  
	         Section 7.01
	 	 Files and Records
	  	 	17	  
	         Section 7.02
	 	 Taxes and Recording Fees
	  	 	17	  
	         Section 7.03
	 	 Further Assurances
	  	 	18	  
	         Section 7.04
	 	 Assumption of Plugging Liabilities
	  	 	18	  
	         Section 7.05
	 	 Grantee’s Assumption of Environmental Liabilities
	  	 	18	  
	         Section 7.06
	 	 Joint Billing Audits and Credits
	  	 	18	  
	 ARTICLE VIII
	 	 INDEMNIFICATION
	  	 	18	  
	         Section 8.01
	 	 Survival
	  	 	18	  
	         Section 8.02
	 	 Indemnification
	  	 	19	  
	         Section 8.03
	 	 Duty to Use Reasonable Efforts
	  	 	19	  
	         Section 8.04
	 	 Indemnification Procedures
	  	 	19	  
	         Section 8.05
	 	 Additional Agreements Regarding Indemnification
	  	 	20	  
	         Section 8.06
	 	 Wavier of Consequential Damages
	  	 	21	  
	 ARTICLE IX
	 	 ARBITRATION
	  	 	21	  
	         Section 9.01
	 	 Arbitration
	  	 	21	  
	         Section 9.02
	 	 Location
	  	 	21	  
	         Section 9.03
	 	 Rules
	  	 	21	  
	         Section 9.04
	 	 Hearings
	  	 	21	  
	         Section 9.05
	 	 Jurisdiction of Provisions
	  	 	21	  
	         Section 9.06
	 	 Written Decision or Award
	  	 	21	  
	         Section 9.07
	 	 Authority of Arbitrator
	  	 	22	  
	 ARTICLE X
	 	 MISCELLANEOUS
	  	 	22	  
	         Section 10.01
	 	 Notices
	  	 	22	  
	         Section 10.02
	 	 Amendments and Severability
	  	 	22	  
	         Section 10.03
	 	 Assignment
	  	 	22	  

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
			
	         Section 10.04
	 	 Table of Contents Headings
	  	 	23	  
	         Section 10.05
	 	 References
	  	 	23	  
	         Section 10.06
	 	 Governing Law
	  	 	23	  
	         Section 10.07
	 	 Announcements
	  	 	23	  
	         Section 10.08
	 	 Entire Agreement
	  	 	23	  
	         Section 10.09
	 	 Parties in Interest
	  	 	23	  
	         Section 10.10
	 	 Waiver
	  	 	23	  
	         Section 10.11
	 	 Litigation Costs
	  	 	23	  
	         Section 10.12
	 	 Exhibits
	  	 	23	  
	         Section 10.13
	 	 No Partnership Created
	  	 	23	  
	         Section 10.14
	 	 Not to Be Construed Against Drafter
	  	 	23	  
	         Section 10.15
	 	 No Third Party Beneficiaries
	  	 	24	  

  
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 CONTRIBUTION AGREEMENT 

This Contribution Agreement (“Agreement”) is entered into this 12th day of August, 2011 by and between Scintilla, LLC, an Oklahoma
limited liability company (“Grantor”), and New Source Energy Corporation, a Delaware corporation (“Grantee”). Grantor and Grantee are collectively referred to herein as the “Parties” and
sometimes individually referred to as a “Party.” 
 W I T N E S S E T H: 

WHEREAS, Grantor owns fractional working interests in certain oil and gas leases and wells as described in Exhibit “A”
and Exhibit “B” attached hereto; and 
 WHEREAS, Grantor is willing to contribute to Grantee, and Grantee is
willing to have contributed to it from Grantor, (i) an undivided 90% interest of Grantor’s interest in the Misener-Hunton formation in the oil and gas leases and oil and gas wells listed in Exhibit “A” attached hereto and certain
other rights and interests of Grantor associated therewith, and (ii) an undivided 50% interest in the Misener-Hunton formation in the oil and gas leases and oil and gas wells listed in Exhibit “B” attached hereto and certain other
rights and interests of Grantor associated therewith. 
 NOW, THEREFORE, in consideration of the mutual benefits derived and to
be derived herefrom by each Party, Grantor and Grantee hereby agree as follows: 
 ARTICLE I 

DEFINITIONS 
 As used herein, the following terms shall have the meaning ascribed to them: 

“Affiliate” means any Party controlled by, controlling, or under common control with another Person. For the
purposes of this definition, “control” means, where used with respect to any Party, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Party, whether through the
ownership of voting securities, by contract, or otherwise. The terms “controlling” and “controlled” have correlative meanings. 
 “Ancillary Documents” means both the Grantee Ancillary Documents and the Grantor Ancillary Documents. 
 “Applicable Contracts” means the Contracts described in Sections 2.02(a)(iv) and (b)(iv). 
 “Business Day” means any day that is not a Saturday, Sunday, or legal holiday in the State of Oklahoma or a federal holiday in the United States. 

“Claim Notice” has the meaning given such term in Section 8.04(a). 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Contract” means any legally binding agreement, commitment, lease, license or contract, including any amendments,
modifications and supplements thereto. 
 “Dollars” and “$” mean the lawful
currency of the United States. 
 “Effective Time” means 12:01 am central time time as of August 1,
2011. 

 “Environmental Law” means any applicable Law relating to health,
safety, the environment, natural resources, or the protection thereof, including any applicable provisions of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.; the Hazardous
Materials Transportation Act, 49 U.S.C. § 5101 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1251 et seq.; the Clean Air Act,
42 U.S.C. § 7401 et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.; the Oil Pollution Act of
1990, 33 U.S.C. § 2701 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300f et seq.; the Pipeline Safety Act, as amended by the Pipeline Inspection, Protection, Enforcement and Safety Act of 2006, 49 U.S.C.
§ 60101 et seq.; and any other applicable Law relating to health, safety, the environment, natural resources or the protection thereof, and all analogous state or local statutes, and the regulations promulgated pursuant thereto.

 “Fundamental Representations and Warranties” means the representations and warranties contained in
Sections 4.01(a), (b), (c) and Sections 4.02(a), (b), (c). 

“GAAP” means “generally accepted accounting principles” of the United States, consistently applied.

 “Golden Lane Hydrocarbons” has the meaning given such term in Section 2.02(a)(iii).

 “Golden Lane Leases” has the meaning given such term in Section 2.02(a)(i). 

“Golden Lane Wells” has the meaning given such term in Section 2.02(a)(ii). 

“Good and Defensible Title” means, with respect to each Lease and Well, as applicable, such record title and
ownership by Grantor that: 
 a) entitles Grantor to receive and retain, without reduction, suspension or termination, not less
than the percentage set forth in Exhibit “A” for the Golden Lane Wells and Exhibit “B” for the Luther Wells as Grantor’s Net Revenue Interest of all Hydrocarbons produced, saved and marketed through such Well;

 b) obligates Grantor to bear not greater than the percentage set forth in Exhibit “A” for the Golden Lane
Wells and Exhibit “B” for the Luther Wells as Grantor’s Working Interest of the costs and expenses relating to the maintenance, development and operation of such Well (unless there is a corresponding increase in
Grantor’s Net Revenue Interest); 
 c) is free and clear of all Liens, except for Permitted Liens; 

d) reflects that all consents to assignment, notices of assignment or preferential purchase rights which are applicable to or must be
complied with in connection with the transaction contemplated by this Agreement (other than Governmental Authority approvals of the type customarily obtained after Closing), or any prior sale, assignment or the transfer of such Lease or Well, have
been obtained and complied with to the extent the failure to obtain or comply with the same could render this transaction or any such sale, assignment or transfer (or any right or interest affected thereby) void or voidable; provided, that this
Subsection (d) shall not require that any of the aforementioned consents, notices or preferential rights be reflected of record if same are not customarily recorded. 

“Governmental Authority” means any federal, state, municipal, local, or similar governmental authority;
regulatory or administrative agency; court or arbitral body. 
 “Grantee” has the meaning set forth in
the opening paragraph of this Agreement. 

  
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 “Grantee Ancillary Document” means each agreement, document, or
certificate that is to be delivered by Grantee at Closing. 
 “Grantor” has the meaning set forth in the
opening paragraph of this Agreement. 
 “Grantor Ancillary Document” means each agreement, document, or
certificate that is to be delivered by Grantor at Closing. 
 “Hazardous Substance(s)” means and
includes, each substance defined, designated, classified or regulated as a hazardous waste, hazardous substance, hazardous material, pollutant, contaminant, radioactive material or byproduct, or toxic substance under any Environmental Law, and any
petroleum or petroleum products. 
 “Hydrocarbons” means the Golden Lane Hydrocarbons and the Luther
Hydrocarbons. 
 “Infrastructure” means, collectively, all easements, grants of right-of-way, surface
leases and surface lands, buildings, oil transport lines, electrical distribution lines, saltwater transport lines, saltwater disposal facilities, and telecommunication, and SCADA facilities used in the operation of the Properties. 

“Indebtedness” means, with respect to any Party, at any date, without duplication, (a) all obligations of
such Party for borrowed money, including all principal, interest, premiums, fees, expenses, overdrafts, and penalties with respect thereto, (b) all obligations of such Party evidenced by bonds, debentures, notes, or other similar instruments,
(c) all obligations of such Party to pay the deferred purchase price of property, except trade payables incurred in the ordinary course of business, (d) all obligations of such Party to reimburse any bank or other Party in respect of
amounts paid under a letter of credit or similar instrument, (e) all capitalized lease obligations, (f) all other obligations of a Party that would be required to be shown as indebtedness on a balance sheet of such Party prepared in
accordance with GAAP, and (g) all indebtedness of any other Party of the type referred to in clauses (a) to (f) above directly or indirectly guaranteed by such Party or secured by any assets of such Party, whether such indebtedness
has been assumed by such Party. 
 “Knowledge” as used herein shall mean and be limited to the actual
knowledge of any officer or manager of a Party directly involved in the transaction that is the subject matter of this Agreement or in the ownership, operation, or administration of the Properties. 

“Law” means any applicable law (including common law) rule, regulation, ordinance, order, judgment, or decree of
a Governmental Authority; in each case as in effect on and as interpreted on the date of this Agreement. 

“Leases” means collectively the Golden Lane Leases and the Luther Leases. 

“Lien(s)” means, with respect to any property or asset, any mortgage, pledge, charge, security interest, or other
encumbrance of any kind in respect of such property or asset. 
 “Losses” means all actual liabilities,
losses, damages, fines, penalties, judgments, settlements, awards, costs, and expenses (including reasonable fees and expenses of counsel); provided, however, the foregoing definition of “Losses” is subject to and restricted by the
provisions of Section 8.06. 
 “Luther Hydrocarbons” has the meaning given such term in
Section 2.02(b)(iii). 
 “Luther Leases” has the meaning given such term in
Section 2.02(b)(i). 

  
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 “Luther Wells” has the meaning given such term in
Section 2.02(b)(ii). 
 “Material Adverse Effect” means, with respect to any Party, any
circumstance, change or effect that is materially adverse to the business, operations, or financial condition of such Party or that materially impedes the ability of such Party to complete the transactions contemplated herein, but shall exclude any
circumstance, change, or effect resulting or arising from: 
 a) any change in general economic conditions in the industries or
markets in which the Grantee operates or in which the Properties are used; 
 b) seasonal reductions in revenues and/or earnings
of the Grantee or the Properties in the ordinary course of its business; 
 c) national or international political conditions,
including any engagement in hostilities, whether pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack; 
 d) changes in Law or GAAP; and 
 e) the entry into or announcement of this
Agreement, actions contemplated by this Agreement, or the consummation of the transactions contemplated hereby. 

Notwithstanding the foregoing clauses (a), (c) and (d) shall not apply in the event of a disproportionate effect on the
Properties as compared to other entities in the markets in which the Properties are operated. 
 “Net Mineral
Acres” means the gross number of surface acres subject to a Lease multiplied by (i) the percentage ownership of the lessor in the minerals located on, in or beneath the surface acres and burdened by such Lease and (ii) the
percentage of the lessee’s interest in such Lease. For clarity, Grantor’s Net Mineral Acres under a Lease that covers 1,000 gross surface acres but only 50% of the mineral interests, in which Grantor owns 100% of the lessee’s
interest, is 500 Net Mineral Acres. 
 “Net Revenue Interest” means an interest in and to oil, gas,
natural gas liquids, condensate or related hydrocarbons saved, produced and sold from any Lease or any Well. 
 “Oil
and Gas Interests” means collectively the Leases and Wells. 
 “Operator” means New
Dominion, LLC, an Oklahoma limited liability company. 
 “Organizational Documents” means any charter,
certificate of incorporation, articles of association, certificate of limited partnership, bylaws, partnership agreement, operating agreement, or similar formation, or governing documents and instruments. 

“Participation Agreement” means that certain Golden Lane Participation Agreement dated January 10, 2007
covering the Golden Lane Leases and the Golden Lane Wells by and among Operator, Grantor and the other signatories thereto. 

“Permits” means authorizations, licenses, permits, or certifications issued by Governmental Authorities,
provided, right-of-way agreements and similar rights and approvals that are not included in the definition of Permits. 

“Permitted Liens” means any of the following matters: 

a) the terms, conditions, restrictions, exceptions, reservations, limitations, and other matters contained in any applicable Leases if
the net cumulative effect of such burdens does not operate to increase the Grantor’s Working Interest in any Well from that set forth in Exhibit “A” for the Golden Lane Wells or Exhibit “B” for the Luther Wells
(without a corresponding increase in the Net Revenue Interest in such Well), or decrease Grantor’s Net Revenue Interest in any Well to less than the amount shown therefore in Exhibit “A” for the Golden Lane Wells or Exhibit
“B” for the Luther Wells; 

  
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 b) materialman’s, mechanics’, repairman’s, employees’,
contractors’, operators’, non-operators’, or other similar Liens or charges for amounts that are not yet delinquent (including any amounts being withheld as provided by Law) or if delinquent, they are being contested in good faith by
appropriate actions with appropriate reserves maintained by Grantor; 
 c) Liens for Taxes and assessments that are, in either
case, allocable to the Properties and are not yet due or delinquent; 
 d) rights reserved to or vested in any Governmental
Authority to control or regulate any of the Properties in any manner and all applicable Laws; 
 e) easements, rights-of-way,
servitudes, permits, surface leases, surface-use restrictions, and other surface uses and impediments on, over, or in respect of property covered by the Leases or by any of the rights-of-way, easements, permits, or licenses included in the
Properties to the extent such matters, individually or in the aggregate, do not materially interfere with the ownership or use of the Leases, taken as a whole; 
 f) all lessors’ royalties, overriding royalties, net profits interests, carried interests, reversionary interests, and similar burdens encumbering the Properties as of the Effective Time; provided,
the net cumulative effect of such burdens does not operate to reduce the Grantor’s Net Revenue Interest in any Well to an amount less than the Net Revenue Interest in such Well set forth in Exhibit “A” for the Golden Lane Wells
or Exhibit “B” for the Luther Wells; 
 g) any other Liens, defects or irregularities that do not, individually
or in the aggregate, materially interfere with the ownership or use of the Leases affected thereby (as currently used or owned) and that would be acceptable to a reasonably prudent purchaser engaged in the business of owning and operating oil and
gas properties; 
 h) all rights to consent by, required notices to, filings with, and other actions by any Governmental
Authorities in connection with the sale or conveyance of oil and gas leases or interests therein, if the same are customarily obtained subsequent to such sale or conveyance; 
 i) contracts and agreements of public record in the county where a Lease is located; 
 j) rights and duties under orders (i) establishing, amending or otherwise pertaining to drilling and spacing units or (ii) for forced pooling of interests; 

k) statutory liens securing the payment of production proceeds to parties entitled thereto, but only to the extent that payment
obligations are not in default; 
 l) any Lien of which the enforcement is barred under applicable statute of limitations;

 m) the terms and conditions of this Agreement and all exhibits, schedules and attachments hereto; 

  
 5 

 n) heirship and probate issues which are ordinarily and typically cured in the ordinary
course of business after acquisition whether while preparing for drilling or in the revenue distribution process; and 
 o) a
mortgage encumbering the mineral estate of any lessor of any of the Leases unless a complaint of has been filed or any similar action taken by the mortgagee thereunder and such mortgage has not been subordinated to such Leases. 

“Person” means any individual, firm, corporation, partnership, limited liability company, incorporated or
unincorporated association, joint venture, joint stock company, trust, Governmental Authority, or other entity of any kind. 

“Post-Closing Environmental Liabilities” means (i) any violation of Environmental Law by Grantee or
Grantee’s Affiliates after the Effective Time or arising in connection with the ownership or operation of the Properties after the Effective Time, (ii) any Release of Hazardous Substances onto or from the Properties after the Effective
Time or relating to or arising from any activities conducted on such properties or from operation of such assets after the Effective Time and (iii) any claim, action, cause of action, inquiry, investigation, remediation, removal or restoration
with respect to the matters set forth in subsection (i) or (ii) above. 
 “Pre-Closing Environmental
Liabilities” means (i) any violation of Environmental Law, Grantor or Grantor’s Affiliates prior to the Effective Time or arising in connection with the ownership or operation of the Properties prior to the Effective Time,
(ii) any Release of Hazardous Substances onto or from the Properties prior to the Effective Time or relating to or arising from any activities conducted on such properties or from operation of such assets prior to the Effective Time and
(iii) any claim, action, cause of action, inquiry, investigation, remediation, removal or restoration with respect to the matters set forth in subsection (i) or (ii) above. 

“Reasonable Efforts” means efforts in accordance with reasonable commercial practice and without the incurrence
of unreasonable expense. 
 “Release” means any depositing, spilling, leaking, pumping, pouring,
placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing. 
 “Representatives” means, as to any Party, its officers, directors, employees, counsel, accountants, financial advisers and consultants. 

“Tax Authority” means any Governmental Authority having jurisdiction over the assessment, determination,
collection or imposition of any Tax. 
 “Tax Returns” means any report, return, election, document,
estimated tax filing, declaration or other filing provided to any Tax Authority including any amendments thereto. 

“Taxes” or “Tax” means (a) all taxes, assessments, duties, levies, imposts or other
similar charges imposed by a Governmental Authority, including all income, franchise, profits, capital gains, capital stock, transfer, gross receipts, sales, use, transfer, service, occupation, ad valorem, property, excise, severance, windfall
profits, premium, stamp, license, payroll, employment, social security, unemployment, disability, environmental (including taxes under Code Section 59A), alternative minimum, add-on, value-added, withholding (including backup withholding) and
other taxes, assessments, duties, levies, imposts or other similar charges of any kind whatsoever (whether payable 

  
 6 

 
directly or by withholding and whether or not requiring the filing of a Tax Return), and all estimated taxes, deficiency assessments, additions to tax, additional amounts imposed by any
Governmental Authority, penalties and interest, and (b) any liability for the payment of any amounts of any of the foregoing types as a result of being a member of an affiliated, consolidated, combined or unitary group, or being a party to any
agreement or arrangement whereby liability of Grantor for payment of such amounts was determined or taken into account with reference to the liability of any other Party. 
 “Third-Party Claim” any claim asserted against the Indemnified Party by a Third Party. 
 “United States” means United States of America. 

“Wells” means collectively the Golden Lane Wells and the Luther Wells. 

“Working Interest” means, with respect to each Lease, a percentage interest in the full and entire leasehold
estate created under and by virtue of the Lease and all rights and obligations of every kind and character appurtenant thereto or arising therefrom, without regard to any valid royalty, overriding royalties, production payments, carried interests,
liens, or other encumbrances or charges against production insofar as such interest in said leasehold is burdened with the obligation to bear and pay costs of operations. 
 ARTICLE II 
 PROPERTIES 

Section 2.01 Contribution. Subject to the terms and conditions of this Agreement, Grantor agrees to contribute, transfer,
assign, and convey to Grantee, Grantor’s interest in the Properties, as hereinafter defined, effective as of the Effective Time. 
 Section 2.02 Properties. The term “Properties” as used herein shall mean: 
 a) an undivided 90% interest of Grantor’s right, title and interest, whether present, contingent or reversionary, limited to the Misener-Hunton formation only, in and to and only in and to the
following described assets (with the Grantor retaining 10% of Grantor’s interest therein): 
 (i) the oil
and/or gas leases, the rights under the pooling orders, and the mineral interests covered thereby as listed on Exhibit “A” (the “Golden Lane Leases”); 

(ii) the oil wells, gas wells, temporarily abandoned wells and other wells of every nature and kind as described on
Exhibit “A” including but not limited to, all wells that are or are capable of producing oil, natural gas, or natural gas liquids which are located on the Golden Lane Leases or lands pooled therewith or otherwise associated
with the Golden Lane Leases (the “Golden Lane Wells”); 
 (iii) all oil, gas well gas,
casinghead gas, condensate, and all components of any of them produced from or allocated to the Golden Lane Leases and/or the Golden Lane Wells and produced from the Misener-Hunton formation after the Effective Time (the “Golden Lane
Hydrocarbons”); 
 (iv) all of the assignments or arrangements other instruments or agreements that
pertain to the Properties and all contractually binding to which the Properties may be subject and which will be binding on the assets described in this Section 2.02(a) or Grantee after the Closing, including, without limitation: the
Participation Agreement; farmin and farmout agreements; bottom-hole agreements; crude oil, condensate, and natural gas purchase and sale, exchange, 

  
 7 

 
gathering, transportation, and marketing agreements; hydrocarbon storage agreements; acreage contribution agreements; operating agreements; hydrocarbon balancing agreements; pooling agreements;
unitization, pooling and communitization agreements; processing agreements; saltwater disposal agreements; options; permits; licenses; servitudes, easements; rights-of-way; facilities or equipment leases; oil and gas leases; and other contracts and
agreements, owned by Grantor, in whole or in part, to the extent that they are used or held for use in connection with the ownership or operation of the assets described in this Section 2.02(a) or the production or treatment of the
Golden Lane Hydrocarbons on or produced therefrom, or the transportation, sale or disposal of water, the Golden Lane Hydrocarbons, or associated substances therefrom; 

(v) all of the personal property, equipment, fixtures, movable and immovable property and improvements appurtenant to the
Golden Lane Wells not otherwise covered herein. 
 b) an undivided 50% interest, whether present, contingent or reversionary,
limited to the Misener-Hunton formation only, in and to and only in and to the following described assets: 
 (i)
the oil and/or gas leases, the rights under the pooling orders, and the mineral interests covered thereby as listed on Exhibit “B” (the “Luther Leases”); 

(ii) the oil wells, gas wells, temporarily abandoned wells and other wells of every nature and kind as described on
Exhibit “B” including but not limited to, all wells that are or are capable of producing oil, natural gas, or natural gas liquids which are located on the Luther Leases or lands pooled therewith or otherwise associated with the
Luther Leases (the “Luther Wells”); 
 (iii) all oil, gas well gas, casinghead gas,
condensate, and all components of any of them produced from or allocated to the Luther Leases and/or the Luther Wells and produced from the Misener-Hunton formation after the Effective Time (the “Luther Hydrocarbons”);

 (iv) all of the assignments or arrangements other instruments or agreements that pertain to the Properties and
all contractually binding to which the Properties may be subject and which will be binding on the assets described in this Section 2.02(b) or Grantee after the Closing, including, without limitation: farmin and farmout agreements;
bottom-hole agreements; crude oil, condensate, and natural gas purchase and sale, exchange, gathering, transportation, and marketing agreements; hydrocarbon storage agreements; acreage contribution agreements; operating agreements; hydrocarbon
balancing agreements; pooling agreements; unitization, pooling and communitization agreements; processing agreements; saltwater disposal agreements; options; permits; licenses; servitudes, easements; rights-of-way; facilities or equipment leases;
oil and gas leases; and other contracts and agreements, owned by Grantor, in whole or in part, to the extent that they are used or held for use in connection with the ownership or operation of the assets described in this Section 2.02(b)
or the production or treatment of the Luther Hydrocarbons on or produced therefrom, or the transportation, sale or disposal of water, the Luther Hydrocarbons, or associated substances therefrom; and 

(v) all of the personal property, equipment, fixtures, movable and immovable property and improvements appurtenant to the
Luther Wells not otherwise covered herein 
 c) copies of all of the land and well files in Grantor’s possession, and
copies of any other files, records and data directly relating to the assets described in this Section 2.02, to the extent Grantor is not prohibited by any contractual restraints or which are not proprietary or privileged. 

  
 8 

 Section 2.03 Excluded Assets. Other than the Properties, Grantee is not
acquiring any other assets of Grantor and specifically is excluded from the Properties; and reserved unto Grantor are the following (the “Excluded Assets”): 

a) Grantor’s rights in the leases, force-pooling orders and wells in formations other than the Misener-Hunton formation; 

b) all trade credits and all accounts, instruments and general intangibles attributable to the Properties with respect to any period of
time prior to the Effective Time; 
 c) all claims and causes of action of Grantor (i) arising from acts, omissions or
events, or damage to or destruction of property, occurring prior to the Effective Time, or (ii) arising under or with respect to Applicable Contracts that are attributable to periods of time prior to the Effective Time (including claims for
adjustments or refunds); 
 d) all rights and interests of Grantor (i) under any policy or agreement of insurance or
indemnity, (ii) under any bond, or (iii) to any insurance or condemnation proceeds or awards arising, in each case, from acts, omissions or events, or damage to or destruction of property, occurring prior to the Effective Time; 

e) all proceeds from the sale of Hydrocarbons produced from the Properties with respect to all periods prior to the Effective Time;

 f) claims of Grantor for refunds of or loss carry forwards with respect to (i) production or any other taxes
attributable to any period prior to the Effective Time, (ii) income or franchise taxes, or (iii) any taxes attributable to the Excluded Assets; 
 g) all amounts due or payable to Grantor as adjustments to insurance premiums related to the Properties with respect to any period prior to the Effective Time; 

h) all proceeds, income or revenues (and any security or other deposits made) attributable to the Properties for any period prior to the
Effective Time; 
 i) all of Grantor’s proprietary computer software, patents, trade secrets, copyrights, names,
trademarks, logos and other intellectual property; 
 j) data, licenses or permits that cannot be disclosed or assigned to
Grantee as a result of confidentiality, licensing, or permitting arrangements under agreements with third parties; 
 k) all
amounts due and payable to Grantor as adjustments or refunds under Applicable Contracts affecting the Properties, with respect to any period prior to the Effective Time, including without limitation all audit rights, amounts due or payable arising
under Applicable Contracts or otherwise with respect to any period prior to the Effective Time or to any of the Excluded Assets; 
 l) all of Grantor’s internal appraisals and interpretive data, all privileged information such as data, licenses or permits that cannot be disclosed or assigned to Grantee as a result of
confidentiality, licensing or permitting arrangements under agreements with third parties; and all corporate, financial, legal and tax records of Grantor, except as otherwise provided herein. 

Section 2.04 Operator Owns Saltwater Disposal Infrastructure. Grantee acknowledges and agrees that it will not acquire
ownership of saltwater disposal wells, pipelines, equipment or other Infrastructure relating to saltwater disposal or any byproducts of saltwater as a result of this Agreement or 

  
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payment of any saltwater disposal fees under the Participation Agreement and the Joint Operating Agreement and that such saltwater disposal facilities and byproducts of saltwater shall remain the
sole property of Operator and its assignees, but which shall continue to be operated by Operator pursuant to the Participation Agreement and the Joint Operating Agreement. 
 Section 2.05 Effective Time. The purchase of the Properties shall be effective as the Effective Time. 
 Section 2.06 Ownership of Properties. Subject to the provisions hereof, Grantor shall be entitled to all of the rights (including, without limitation, the right to all production, proceeds of
production and other proceeds) of ownership, and shall be subject to the duties and obligations of such ownership attributable to the Properties for the periods of time prior to the Effective Time. Subject to the provisions of this Agreement,
Grantee shall be entitled to all of the rights (including, without limitation, the right to all production, proceeds of production and other proceeds) of such ownership and shall assume and be subject to the duties, costs, assessments, liabilities,
expenses, disbursements and obligations of such ownership, attributable to the Properties for the periods of time from and after the Effective Time and any plugging and environmental liability or obligation as provided for pursuant to
Section 10.04 “Assumption of Plugging Liabilities” and Section 10.05 “Grantee’s Assumption of Environmental Liabilities” of this Agreement whether arising before or after the Effective Time.

 ARTICLE III 
 CONSIDERATION; ADJUSTMENT PERIOD CASH FLOW 
 Section 3.01
Consideration. As consideration for the contribution of the Properties by Grantor to Grantee, Grantee shall issue to Grantor, or its designee, at Closing twenty million (20,000,000) shares of Grantee’s common stock (the
“Shares”) and shall pay, subject to the adjustments described in Section 3.02 hereof, Grantor Sixty Million and 00/100 Dollars ($60,000,000.00) (the “Cash Consideration”). 

Section 3.02 Adjustment Period Cash Flow. 
 a) The Cash Consideration shall be increased or decreased (at the times provided in Section 3.02(c)), as the case may be, by an amount equal to the Net Cash Flow (the “Adjustment
Amount”) with respect to the Properties for the time period (the “Adjustment Period”) beginning at the Effective Time and ending at 7:00 a.m. (local time) on the Closing Date. 

b) The “Net Cash Flow” shall be the algebraic sum of (i) a positive amount equal to the aggregate amount
paid by Grantor as Grantor’s share of the costs and expenses of maintenance, development and operation of the Properties incurred with respect to the Adjustment Period in accordance with the terms hereof, and (ii) a negative amount equal
to the aggregate gross proceeds received by Grantor or Grantee from the sale or disposition of the Hydrocarbons produced from the Properties during the Adjustment Period. 
 c) Within sixty (60) days following the Closing Date, Grantor shall deliver to Grantee a statement (the “Adjustment Statement”) setting forth in reasonable detail the
Grantor’s good faith determination of the Adjustment Amount. Grantor shall provide Grantee access to all relevant books and records and supporting documentation in connection with Grantor’s preparation of the Adjustment Statement.

 d) On or before the 15th day after receipt of the Adjustment Statement or the first Business Day thereafter if such 15th day
is a not a Business Day, Grantor shall pay any and all amounts as showed to be owed by Grantor to Grantee under the Adjustment Statement. If the Adjustment Amount shown on the Adjustment Statement is a positive number, then the Cash Consideration
shall be increased by such 

  
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amount, and Grantee shall pay Grantor such amount. If the Adjustment Amount shown on the Adjustment Statement is a negative number, then the Cash Consideration shall be decreased by such amount,
and Grantor shall pay Grantee such amount. 
 e) Should Grantee dispute any amount showing payable by Grantee or payable by
Grantor under the Adjustment Statement, Grantee shall deliver to Grantor a written report containing any changes that Grantee proposes to be made to the Adjustment Statement on or before the date that Grantee or Grantor, as applicable, owes a
payment under the Adjustment Statement. Grantee and Grantor shall undertake to agree upon a final resolution of the amounts owing under the Adjustment Statement not later than ninety (90) days after the Closing Date should Grantee dispute any
amounts thereunder. If Grantee timely propose changes to the Adjustment Statement and thereafter Grantor and Grantee are unable to agree upon the final resolution of the Adjustment Statement within one hundred twenty (120) days from the Closing
Date, a mutually acceptable, nationally recognized, accounting firm not performing services for either of the Grantee or Grantor shall be designated to act as an arbitrator and to decide all points of disagreement with respect to the Adjustment
Statement, such decision to be binding upon all of the Parties. The costs and expenses of the arbitrator, shall be shared equally by Grantor and Grantee. If the Adjustment Statement, after resolution of all disputes, reflects an amount due to
Grantor, Grantee shall within five (5) Business Days pay to Grantor in immediately available funds such amount. If the Adjustment Statement, after resolution of all disputes, reflects an amount due to Grantee, Grantor shall within five
(5) Business Days pay to Grantee, in immediately available funds such amount. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 
 Section 4.01 Representations and Warranties of Grantor. Grantor represents and warrants the following to Grantee: 
 a) Organization. Grantor is duly organized, validly existing and in good standing under the laws of the State of Oklahoma, has full legal power to carry on its business as now conducted, is
authorized to hold title to the Properties and is in good standing and duly qualified to conduct its business in the jurisdiction where the Properties are located. 
 b) Authorization and Enforceability. The execution, delivery and performance of this Agreement and the Grantor Ancillary Documents by Grantor and the consummation of the transactions contemplated
hereby and thereby have been duly and validly authorized pursuant to the Organizational Documents of Grantor. 
 c)
Enforceability. This Agreement and all other Grantor Ancillary Documents hav been duly executed and delivered on behalf of Grantor and constitutes the legal, valid and binding obligation of Grantor enforceable in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, reorganization or moratorium statutes, or other similar Laws affecting the rights of creditors generally or equitable principles (collectively, “Equitable
Limitations”). 
 d) No Conflict. The consummation of the transactions contemplated by this Agreement and
the Grantor Ancillary Documents will not violate, or be in conflict with, the Organizational Documents of Grantor or any material provision of any agreement or instrument to which Grantor is a party or by which it, or the Properties, is bound or
will not violate or be in conflict with any material provision of any judgment, decree, order, statute, rule or regulation applicable to Grantor or any Property, or result in the creation or imposition of any Lien on any Property other than
Permitted Liens. 

  
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 e) Brokers. Grantor has not made any agreement with respect to any broker’s or
finder’s fees arising out of or in any way related to the transactions contemplated by this Agreement for which Grantee will have any liability. 
 f) Litigation. Except as set forth in Schedule 4.01(f) (the “Retained Litigation”), Grantor has not received written notice of any suit, action or other proceeding,
nor has any suit, action or other proceeding to the Knowledge of Grantor been threatened or is pending against Grantor or the Properties before any Governmental Authority and there exist no unsatisfied judgments any of kind which might result in
impairment or loss of Grantor’s interest in any part of the Properties or that might hinder or impede the operation of the Properties in any material respect. Grantor has not received written notice of any pending proceeding, notice of
violation, action, suit, claim or investigation before any federal, state or other governmental court or agency involving the ownership, operation or environmental condition of the Properties. There is no action, suit, proceeding, protest, claim or
investigation by any Party or Governmental Authority, to Grantor’s Knowledge, pending or threatened against Grantor before any Governmental Authority that impedes or is likely to impede Grantor’s ability to consummate the transaction
contemplated by this Agreement or to assume the liabilities to be assumed by Grantor under this Agreement. 
 g) Taxes.
All federal, state and local Tax returns relating to the Properties and required under the statutes, rules and regulations of such jurisdictions have been filed and all Taxes, including, but not limited to, ad valorem, severance and income taxes
(other than those being contested in good faith for which adequate provisions will be made) shown on said returns to be due, and additional assessments received prior to the date hereof, which are due and payable, have been paid. The Properties are
not subject to any tax partnership agreements requiring a partnership income tax return to be filed under Subchapter K of Chapter 1 of Subtitle A of the Code. 
 h) Solvency. There are no bankruptcy proceedings pending, being contemplated by or, to Grantor’s Knowledge, based upon reasonable inquiry and investigation, threatened against Grantor. Grantor
represents that it is, and after the completion of the transactions contemplated hereby, will be solvent and is and will continue to be able to pay its debts as they become due. 

i) Material Contracts. 
 (i) All of the material agreements pertaining to the Properties which affect the interest being acquired by Grantee in the Properties pursuant to this Agreement, or Grantor’s exploration, development
or production operations on the Leases are listed in Schedule 4.01(i). 
 (ii) There are no agreements
involving any prepayments for production or any agreements requiring the delivery of oil, gas or other minerals produced from or allocated to any of the Leases at some future time without receiving full payment therefore at the time of delivery.

 (iii) Except as set forth in Schedule 4.01(i), no Hydrocarbons are subject to a sale contract (other
than division orders or spot sales agreements terminable on no more than thirty (30) days’ notice) and no Person has any call upon, option to purchase or similar rights with respect to the production from the Leases. Proceeds from the
Hydrocarbons from the Leases and Wells are being received in all respects by Grantor in a timely manner and are not being held in suspense for any reason. 
 (iv) The Leases and Wells are not subject to any gas sales, gathering or transportation contracts within include provisions for hedging, price risk management or other financial arrangements or
transactions, which will affect or burden the Leases from and after the Closing Date. 

  
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 j) Consents. No approval of a Governmental Authority or consent or approval of any
other Person is required to be obtained or made by or with respect to Grantor in connection with the execution, delivery, and performance of this Agreement (including the assignment of the Properties) or the other Ancillary Documents or the
consummation of the transactions contemplated hereby or thereby, except consents by, required notices to, filings with, or other actions by any Governmental Authority in connection with the sale or conveyance of oil and gas leases or interests
therein, if the same are customarily obtained routinely and subsequent to such sale or conveyance. 
 k) Production Burdens,
Taxes and Expenses. (i) All rentals, royalties, excess royalty, overriding royalty interests and other payments due under or with respect to the Leases and Wells have been properly and timely paid pursuant to the terms and conditions of the
Leases or other agreements or applicable Laws, and (ii) all Taxes based on or measured by the ownership of the Properties or the production of Hydrocarbons from the Properties that have become due have been properly and timely paid. 

l) Surface Use. With the exception of Lease provisions, including provisions set forth in recorded addendums to Leases, and
agreements listed in Schedule 4.01(l), there are no surface use agreements to which Grantor is a party covering a portion of the Lands. 
 m) Compliance with Laws. Except for matters that would not be reasonable expected to have a Material Adverse Effect or listed in Schedule 4.01(m), Grantor has not received a written notice
of a material violation of any Law of any Governmental Authority, or any judgment, decree or order of any court, applicable to the Properties or operations on the Properties, which remain uncured. 

n) Gas Imbalances. There do not exist any gas imbalances (i) which are with gatherers, processors or transporters or with
co-tenants or working interest owners in a well, unit or field, (ii) which are associated with the Properties and (iii) where Grantor has received a quantity of gas prior to the Effective Time for which Grantee will have a duty after the
Effective Time to deliver an equivalent quantity of gas or pay a sum of money. 
 o) Commitments. (i) Except as set
forth in Schedule 4.01(o), Grantor has incurred no expenses and has made no commitments to make expenditures in connection with the ownership or operation of the Properties after the Effective Time, other than with respect to routine
operations performed in the ordinary course of operating existing wells on the Properties, which operations are, individually, estimated to cost $50,000 or less, net to Grantor’s interest, and (ii) except as set forth in Schedule
4.01(o), no proposals or authorities for expenditures are currently outstanding (whether made by Grantor or by any other party) to drill additional Wells, or to deepen, plug back or rework existing well or to conduct other operations of the
Leases for which consent is required under the applicable operating agreement or to abandon any wells on the Leases, or to conduct any other operation on the Properties for with the estimated cost exceeds $50,000 net to Grantor’s interest per
Lease. 
 p) Environmental Matters. Except as may be disclosed in Schedule 4.01(p) or for matters that would not
be reasonably expected to have a Material Adverse Effect: 
 (i) the operations of the Properties are, and have
been, in compliance with all Environmental Laws, which compliance includes the possession and maintenance of, and compliance in all respects with, all Permits required under all applicable Environmental Laws; 

(ii) neither Grantor nor any of its assets are the subject of any outstanding administrative or judicial order or
judgment, agreement or arbitration award from any Governmental Authority under any Environmental Laws requiring remediation or the payment of a fine or penalty; 

  
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 (iii) the Properties are not subject to any action, claim, suit,
investigation, inquiry, or proceeding pending or threatened in writing, whether judicial or administrative, alleging noncompliance with or potential liability under any Environmental Law; 

(iv) no circumstances exist with respect to the Properties that give rise to an obligation by Grantor to investigate,
remediate, monitor or otherwise address the presence, on-site or offsite, of Hazardous Substances under any applicable Environmental Laws; 
 (v) there has been no Release of any Hazardous Substances into the environment from any of the Properties; and 
 Grantor has provided copies to Grantee of all environmental studies, assessments, and investigations related to Grantee and its assets. 

q) Permits. Grantor possesses all Permits necessary for Grantor to own and operate the Properties, as currently conducted. All
such Permits are in full force and effect and Grantor has complied with all terms and conditions of such Permits. There are no lawsuits or other proceedings pending or, to the Knowledge of Grantor, threatened in writing before any Governmental
Authority that seeks the revocation, cancellation, suspension, or adverse modification thereof. The Permits, a list of which has been provided to Grantee as Schedule 4.01(q), will not be subject to suspension, modification, revocation, or
non-renewal as a result of the execution and delivery of this Agreement and the Grantor Ancillary Documents or the consummation of the transactions contemplated hereby or thereby. 

r) Title to Properties and Related Matters. Grantor has Good and Defensible Title to the Leases and Wells and upon the Closing
Grantee will acquire Good and Defensible Title to the Leases and Wells being contributed hereunder. Each of the Leases is in full force and effect and Grantor (i) is not in breach of or default under any of the Leases and (ii) has not
received written notice of any default under, or action to alter, terminate, rescind or procure a judicial reformation of, any such Lease and, to Grantor’s Knowledge, none of the foregoing is or has been threatened against Gramtpr. 

s) Insurance. All the assets of Grantor are covered by, and insured under insurance policies underwritten by reputable insurers
that include coverages and related limits and deductibles that are customary in the oil and gas industry. All such insurance policies are in full force and effect and all premiums due and payable on such policies have been paid. No notice of
cancellation of or indication of an intention not to renew, any such insurance policy has been received by either Grantee or any of its Affiliates. 
 Section 4.02 Representations and Warranties of Grantee. Grantee represents and warrants the following to Grantor of the execution of this Agreement and as of Closing: 

a) Organization. Grantee is a corporation duly organized, validly existing and in good standing under the Laws of the State of
Delaware, has full legal power to carry on its business as now conducted, is authorized to hold title to its assets and is in good standing and duly qualified to conduct its business in the jurisdictions where its assets are located. 

b) Authorization and Enforceability. The execution, delivery and performance of this Agreement and the Grantee Ancillary Documents
by Grantee and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized pursuant to the Organizational Documents of Grantee. 
 c) Enforceability. This Agreement and all other Grantee Ancillary Documents have been duly executed and delivered on behalf of Grantee and constitutes the legal, valid and binding obligation of
Grantee enforceable in accordance with its terms, except as enforceability may be limited by Equitable Limitations. 

  
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 d) No Conflict. The consummation of the transactions contemplated by this Agreement
and the Grantee Ancillary Documents will not violate, or be in conflict with, the Organizational Documents or any material provision of any agreement or instrument to which Grantee is a party or by which it, or the its assets, is bound or will not
violate or be in conflict with any material provision of any judgment, decree, order, statute, rule or regulation applicable to Grantee or any asset of Grantee, or result in the creation or imposition of any Lien or any asset of Grantee other than
Permitted Liens. 
 e) Brokers. Grantee has not made any agreement with respect to any broker’s or finder’s
fees arising out of or in any way related to the transactions contemplated by this Agreement for which Grantor will have any liability. 
 f) Litigation. Grantee has not received written notice of any suit, action or other proceeding, nor has any suit, action or other proceeding to the Knowledge of Grantee been threatened or is
pending against Grantee or its assets before any Governmental Authority and there exist no unsatisfied judgments any of kind which might result in impairment or loss of Grantee’s interest in any part of its assets or that might hinder or impede
the operation of Grantee in any material respect. Grantee has not received written notice of any pending proceeding, notice of violation, action, suit, claim or investigation before any federal, state or other governmental court or agency involving
the ownership, operation or environmental condition of Grantee’s assets or operations. There is no action, suit, proceeding, protest, claim or investigation by any Party, entity, administrative agency or governmental body, to Grantee’s
Knowledge, pending or threatened against Grantee before any Governmental Authority that impedes or is likely to impede Grantee’s ability to consummate the transaction contemplated by this Agreement or to assume the liabilities to be assumed by
Grantee under this Agreement. 
 g) Capitalization. The authorized capital stock of Grantee consists of one-hundred and
eighty million (180,000,000) shares of common stock and twenty million (20,000,000) shares of preferred stock of which twenty one million two hundred thousand (21,200,000) shares of common stock will be issued and outstanding after
the concurrent consummation of the transactions contemplated hereunder and under that certain Contribution Agreement among Grantee, Deylau, LLC, Timothy R. and Robin L. Cargile, W.K. Chernicky, L.L.C., Okeanos, Inc., Tony McKaig and Red Dragon, LLC,
and no more than five million (5,000,000) additional shares of common stock of Grantee shall be issued and outstanding as of the close of business on the date hereof. All of such shares are, or will be, validly issued, fully paid,
nonassessable, issued free of preemptive rights in compliance with applicable Laws and have been, or will be, accorded full voting rights. With respect to Grantee, there are no outstanding options, warrants, rights or other securities convertible
into or exchangeable or exercisable for equity securities, any other commitments or agreements providing for the issuance of additional equity interests or the repurchase or redemption of equity interests, and there are no agreements of any kind
which may obligate Grantee to issue, purchase, redeem or otherwise acquire any of its equity interests. There are no voting agreements, proxies or other similar agreements or understandings with respect to the equity interests of Grantee. Upon
consummation of the transactions contemplated by this Agreement, Grantor will acquire good and valid title to all of the Shares, free and clear and any Liens. 
 h) Acknowledgement. Grantee agrees and acknowledges that the Properties have been used for oil and gas drilling and production operations, related oil field operations and possibly for the storage
and disposal of deleterious substances and the Properties may be contaminated with such materials. Physical changes in or under the Properties or adjacent lands may have occurred as a result of such uses. The Properties may contain wells, sumps
landfills, pits, ponds, tanks impoundments, foundations, pipelines and other equipment whether or not of a similar nature, any of which may be buried and contain 

  
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deleterious substances, and the locations of which may not be readily apparent by a physical inspection of the Property. In addition Grantee acknowledges that some oil field production equipment
may contain hazardous materials, including, without limitation, asbestos and/or natural occurring radioactive material (“NORM”). In this regard, Grantee expressly understands that NORM in the form of scale or in other forms
may have become dislodged from the inside of wells, materials and equipment and be located on the Properties. Grantee expressly understands that special procedures may be required for the removal and disposal of asbestos, NORM, and other deleterious
substances from the Properties where they may be found. Grantee represents that at Closing it will have satisfied itself as to the physical and environmental condition of the Properties, both surface and subsurface, and their method of operation and
agrees to accept an assignment of the Properties at Closing on an “AS IS, WHERE IS” basis, “WITH ALL FAULTS” and in making the decision to enter in this Agreement and consummate the transactions contemplated hereby, Grantee has
relied solely on the basis of its own independent investigation of the Properties. 
 i) Experience. Grantee represents
that by reason of Grantee’s Knowledge and experience in the evaluation, acquisition, and operation of oil and gas properties, Grantee has evaluated the merits and risks of acquiring the Properties from Grantor and has formed an opinion based
solely upon Grantee’s Knowledge and experience and not upon any representations or warranties by Grantor. 
 j) No
Distribution. Grantee is acquiring the Properties for its own account and not with the intent to make a distribution within the meaning of the Securities Act of 1933 (and the rules and regulations pertaining thereto) or a distribution thereof in
violation of any other applicable securities laws. 
 Section 4.03 Waiver of Representations and Warranties. THE
EXPRESS REPRESENTATIONS OF GRANTOR CONTAINED IN THIS AGREEMENT ARE EXCLUSIVE AND ARE IN LIEU OF, AND GRANTOR EXPRESSLY DISCLAIMS AND NEGATES AND GRANTEE HEREBY WAIVES, ANY REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY OR IMPLIED, WITH RESPECT TO
(i) TITLE, (ii) THE QUALITY, QUANTITY OR VOLUME OF THE RESERVES, IF ANY, OF HYDROCARBONS IN OR UNDER THE PROPERTIES AND (iii) THE ENVIRONMENTAL CONDITION OF THE PROPERTIES, BOTH SURFACE AND SUBSURFACE. GRANTOR DOES NOT MAKE OR
PROVIDE, AND GRANTEE HEREBY WAIVES, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE QUALITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS. EXCEPT AS PROVIDED HEREIN, GRANTOR
DISCLAIMS AND NEGATES, AND GRANTEE HEREBY WAIVES, ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED OR STATUTORY. THE ITEMS OF PERSONAL PROPERTY, EQUIPMENT, IMPROVEMENTS, FIXTURES AND APPURTENANCES CONVEYED AS PART OF THE PROPERTIES ARE
SOLD, AND GRANTEE ACCEPTS SUCH ITEMS “AS IS, WITH ALL FAULTS.” THERE ARE NO WARRANTIES THAT EXTEND BEYOND THE FACE OF THIS AGREEMENT. GRANTEE ACKNOWLEDGES THAT THIS WAIVER IS CONSPICUOUS. 

ARTICLE V 

TAX MATTERS 
 Section 5.01 Apportionment of Tax Liability. All Taxes based on or measured by production or Hydrocarbons shall be deemed attributable to the period during which such production occurred and
not attributable to the year in which such Taxes are assessed. 
 Section 5.02 Tax Reports and Returns. With respect
to the Properties, Grantor agrees to file all Tax Returns for the period of time prior to the Effective Time, and Grantee agrees to file all Tax Returns for the period of time after the Effective Time. The Party not filing the Tax Return agrees to

  
 16 

 
provide the Party filing the return with the information which is necessary and appropriate to file any required tax reports and returns related to the Properties. Grantee agrees to file all tax
returns and reports applicable to the Properties that are required to be filed after Closing, and pay all required Taxes payable with respect to the Properties. 
 ARTICLE VI 
 CLOSING 

Section 6.01 Closing. The purchase by Grantee and the sale by Grantor of the Properties as contemplated by this Agreement
(herein called the “Closing”) shall take place on the date hereof. 
 Section 6.02 Closing
Obligations. At the Closing the following events shall occur: 
 a) Grantee shall deliver and issue duly endorsed and
executed certificates for the Shares to Grantor, or its designee, in accordance with Law. 
 b) Grantor, Grantee and Operator
shall have entered into that Joint Operating Agreement substantially in the form of Exhibit “C” attached hereto with respect to the ownership and operation of the Luther Leases and the Luther Wells. 

c) Grantee and Operator shall have entered into that certain Agreement providing for the Right to Participate substantially in the form
of Exhibit “D.” 
 d) Grantor shall deliver to Grantee a properly executed Assignment, Bill of Sale and
Conveyance in form and substance as set forth on Exhibit “E” for the Properties and copies, at Grantor’s cost, of all other records, information and data, whether written or electronically stored, relating to the Properties,
including, without limitation all lease, contract, well data, gas control and accounting files maintained by Grantor covering the Properties, to the extent Grantor is not prohibited by any contractual restraints or which are not proprietary or
privileged. 
 e) Grantor shall deliver to Grantee a non-foreign affidavit(s) in compliance with United States Treasury
Regulation Section 1.1445-2(b)(2). 
 f) Grantor and Grantee shall execute and deliver all documents necessary directing
Operator or the purchaser of the Hydrocarbons to pay Grantee the proceeds attributable to the production form the Leases and the Wells from and after the Effective Time. 
 ARTICLE VII 
 POST-CLOSING RIGHTS AND OBLIGATIONS 

Section 7.01 Files and Records. Grantee will retain and will provide Grantor with reasonable access to any books and records
so retained by Grantee for a period of seven (7) years from and after Closing, together with such additional files, data and records of Grantee as may be reasonably requested by Grantor in order to pursue any claims, obligations and disputes
relating to the Properties. Grantee shall use all reasonable efforts to obtain access, for Grantor’s benefit, to all such books and records that are appurtenant to any Property which may be subsequently conveyed by Grantee. 

Section 7.02 Taxes and Recording Fees. Grantee shall pay all sales and use taxes and related penalties and interest, if any,
due as a result of this transaction. Grantee shall pay all transfer, documentary filing and recording fees required in connection with the filing and recording of any assignments and furnish Grantor copies of recorded and/or filed documents.

  
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 Section 7.03 Further Assurances. From and after Closing, Grantor and Grantee
shall, without further consideration, execute, acknowledge and deliver or use reasonable efforts to cause to be executed, acknowledged and delivered such instruments and take such other action as may be necessary or advisable to carry out their
obligations under this Agreement and under any document, certificate or other instrument delivered pursuant hereto. 

Section 7.04 Assumption of Plugging Liabilities. Upon Closing, Grantee assumes hereby its proportionate share of any and all
plugging and abandonment obligations associated with the Properties, regardless of when the obligations arose. Plugging and abandonment obligations shall mean all usual and normal prudent operations for the plugging, abandonment, surface
restoration, site clearance, and disposal of related waste materials, including, without limitation, NORM and asbestos, and of all oil, gas, injection, water or other wells, sumps, pits, ponds, tanks, impoundments, foundations, pipelines, structures
and equipment of any kind or description on the Properties, in compliance with all applicable contractual obligations and applicable rules and regulations of governmental bodies having jurisdiction over the Properties. 

Section 7.05 Grantee’s Assumption of Environmental Liabilities. Upon Closing, Grantee assumes responsibility for any and
all Post Closing Environmental Liabilities. 
 Section 7.06 Joint Billing Audits and Credits. Subject to the
provisions of this Agreement, Grantor shall retain all of the rights incidental to its ownership of the Properties prior to the Effective Time, including, without limitation, the rights to all proceeds of production, retroactive price adjustments,
windfall profit tax refunds, judgments or settlements, and any reimbursement or refund of ad valorem taxes paid by Grantor and shall be responsible for all costs, assessments, gas imbalances, liabilities, expenses and disbursements with respect
thereto prior to the Effective Time resulting from, relating to or arising out of the ownership, occupancy, use or operation of the Properties except as to environmental matters and plugging and abandonment liabilities which are assumed by Grantee
under this Agreement. Grantor shall be responsible for the settlement of all joint billing audits which relate to the Properties and the accounting periods prior to the Effective Time. Grantee shall be responsible for the payment of it proportionate
share of any amounts finally determined to be due and payable as a result of any joint billing audit which relate to the Properties and the accounting periods after the Effective Time. Any credits received by Grantee attributable to expenses paid
prior to the Effective Time shall be reimbursed to Grantor by Grantee. Any credits received by Grantor attributable to expenses paid after the Effective Time shall be reimbursed to Grantee by Grantor. 

ARTICLE VIII 
 INDEMNIFICATION 
 Section 8.01 Survival. 

a) The representations and warranties of the Parties contained herein and all covenants contained herein that are to be performed prior
to the Closing will survive for twelve (12) months following the Closing; provided, however, the Fundamental Representations and Warranties shall survive the Closing up to the applicable statute of limitations. No Party shall have any liability
for indemnification claims made under this Article VIII with respect to any such representation, warranty or covenant unless a Claim Notice is provided by the non-breaching Party to the other Party prior to the expiration of the applicable
survival period for such representation, warranty or pre-closing covenant. If a Claim Notice has been timely given in accordance with this Agreement prior to the expiration of the applicable survival period for such representation, warranty or
covenant or claim, then the applicable representation, warranty or covenant shall survive as to such claim, until such claim has been finally resolved. 

  
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 b) All covenants and agreements of the Parties contained in this Agreement to be performed
after the Closing, will survive the Closing in accordance with their terms. 
 Section 8.02 Indemnification.

 a) From and after the Closing, Grantor shall hold harmless Grantee, Grantee’s Affiliates and their respective
Representatives (the “Grantee Indemnified Parties”) from and against all Losses that the Grantee Indemnified Parties incur from or out of; (i) any breach of any representation, warranty or covenant of Grantor in this
Agreement and; (ii) the business and operations of the Properties relating to periods prior to the Effective Time, including Pre-Closing Environmental Liabilities and (iii) any Taxes that are attributable to the ownership or operation of
the Properties during any periods or partial periods ending on or before the Effective Time. 
 b) From and after the Closing,
Grantee shall indemnify and hold harmless the Grantor, Grantor’s Affiliates and their respective Representatives (the “Grantor Indemnified Parties”) from and against all Losses that the Grantor Indemnified Parties incur
from or out of (i) any breach of any representation, warranty or covenant of Grantee in this Agreement; (ii) the business and operations of the Properties relating to periods after the Effective Time, including Post-Closing Environmental
Liabilities and (iii) any Taxes which are attributable to the ownership or operation of the Properties during any periods or partial periods ending after the Effective Time. 

Section 8.03 Duty to Use Reasonable Efforts. Notwithstanding anything to the contrary herein, the Parties shall have a duty
to use Reasonable Efforts to mitigate any Loss arising out of or relating to this Agreement or the transactions contemplated hereby. 
 Section 8.04 Indemnification Procedures. Claims for indemnification under this Agreement shall be asserted and resolved as follows: 

a) Any Grantee Indemnified Party or Grantor Indemnified Party claiming indemnification under this Agreement (an “Indemnified
Party”) with respect to any claim asserted against the Indemnified Party by a third party (a “Third Party Claim”) in respect of any matter that is subject to indemnification under Section 8.02 shall
promptly (i) notify the indemnifying Party (the “Indemnifying Party”) of the Third-Party Claim and (ii) transmit to the Indemnifying Party a written notice (a “Claim Notice”) describing in
reasonable detail the nature of the Third-Party Claim, a copy of all papers served with respect to such claim (if any), the Indemnified Party’s best estimate of the amount of Losses attributable to the Third-Party Claim and the basis of the
Indemnified Party’s request for indemnification under this Agreement. Failure to timely provide such Claim Notice shall not affect the right of the Indemnified Party’s indemnification hereunder, except to the extent the Indemnifying Party
is prejudiced by such delay or omission. 
 b) The Indemnifying Party shall have the right to defend the Indemnified Party
against such Third-Party Claim. If the Indemnifying Party notifies the Indemnified Party that the Indemnifying Party elects to assume the defense of the Third-Party Claim, then the Indemnifying Party shall have the right to defend such Third-Party
Claim with counsel selected by the Indemnifying Party (who shall be reasonably satisfactory to the Indemnified Party), by all appropriate proceedings, to a final conclusion or settlement at the discretion of the Indemnifying Party in accordance with
this Section 8.03(b). The Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided that the Indemnifying Party shall not enter into any settlement agreement
without the written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed); provided, further, that such consent shall not be required if (i) the settlement agreement contains a complete and
unconditional general release by the third party asserting the claim to all Indemnified Parties affected by the claim and (ii) the settlement agreement does not contain any sanction 

  
 19 

 
or restriction upon the conduct of any business by the Indemnified Party or its Affiliates. If requested by the Indemnifying Party, the Indemnified Party agrees, at the sole cost and expense of
the Indemnifying Party, to cooperate with the Indemnifying Party and its counsel in contesting any Third-Party Claim which the Indemnifying Party elects to contest, including the making of any related counterclaim against the Party asserting the
Third-Party Claim or any cross complaint against any Party. The Indemnified Party may participate in, but not control, any defense or settlement of any Third-Party Claim controlled by the Indemnifying Party), and the Indemnified Party shall bear its
own costs and expenses with respect to such participation. 
 c) If the Indemnifying Party does not notify the Indemnified Party
that the Indemnifying Party elects to defend the Indemnified Party pursuant to Section 8.03(b), then the Indemnified Party shall have the right to defend, and be reimbursed for its reasonable cost and expense (but only if the Indemnified
Party is actually entitled to indemnification hereunder) in regard to the Third-Party Claim with counsel selected by the Indemnified Party (who shall be reasonably satisfactory to the Indemnifying Party), by all appropriate proceedings, which
proceedings shall be prosecuted diligently by the Indemnified Party. In such circumstances, the Indemnified Party shall defend any such Third-Party Claim in good faith and have full control of such defense and proceedings; provided, however, that
the Indemnified Party may not enter into any compromise or settlement of such Third-Party Claim if indemnification is to be sought hereunder, without the Indemnifying Party’s consent (which consent shall not be unreasonably withheld,
conditioned or delayed). The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this Section 8.03(c), and the Indemnifying Party shall bear its own costs and
expenses with respect to such participation. 
 d) Subject to the other provisions of this Article VIII, a claim for
indemnification for any matter not involving a Third-Party Claim may be asserted by notice to the Party from whom indemnification is sought. 
 e) In the event an Indemnified Party shall recover Losses in respect of a claim of indemnification under this Article VIII, no other Indemnified Party shall be entitled to recover the same Losses
in respect of a claim for indemnification. 
 Section 8.05 Additional Agreements Regarding Indemnification.
Notwithstanding anything to the contrary herein: 
 a) Grantor shall have no liability arising out of or relating to
Section 8.02(a) for any Loss that does not exceed $50,000.00 (a “Recoverable Loss”) and then only to the extent the aggregate amount of all such Recoverable Losses actually incurred by Grantee Indemnified Parties
thereunder exceed $3,200,000 (and then, subject to Section 8.04(c), only to the extent such aggregate Recoverable Losses exceed such amount); 
 b) in no event shall Grantor’s aggregate liability arising out of or relating to Section 8.02(a) exceed $24,000,000.00, 

c) the amount of any Loss for which a Grantee Indemnified Party claims indemnification under this Agreement shall be reduced by:
(i) any insurance proceeds actually recovered with respect to such Loss and (ii) indemnification or reimbursement payments actually recovered from third parties with respect to such Loss. 

d) For purposes of determining whether there has been a breach or inaccuracy of a representation or warranty by a party in connection
with the assertion of a claim for indemnification under Article VIII, or determining the amount of a Loss, with respect to any asserted breach or inaccuracy, such determination shall be made without regard to any qualifier as to
“material,” or “materiality” expressly contained in Article III or Article IV. 

  
 20 

 Section 8.06 Wavier of Consequential Damages. Any Losses or damages recoverable
under this Agreement, including the indemnification obligations of the parties provided for in this Article VIII, will be limited to actual Losses and damages and will not include, and each party entitled to indemnity or to recover Losses or
damages under this Agreement expressly and irrevocably waives and releases any right to recover, any incidental, consequential, indirect, punitive, special or exemplary damages, provided that any incidental, consequential, indirect, punitive,
special or exemplary Damages recovered by a third Person (including a Governmental Authority, but excluding any Affiliate of any party) against a party entitled to Losses and damages, including indemnity pursuant to this Article VIII, will be
included in the Losses and damages recoverable under this Agreement. 
 ARTICLE IX 

ARBITRATION 
 Section 9.01 Arbitration. If arbitration is required pursuant to this Agreement, the Parties shall agree on a sole arbitrator to hear and decide all matters under this Agreement. In the event
that the parties are unable to agree on an arbitrator within thirty (30) days after a notice of arbitration is filed be either party, then such arbitrator shall be chosen in accordance with the Commercial Arbitration Rules
(“Rules”) of the American Arbitration Association (“AAA”). 
 Section 9.02
Location. Any arbitration hearing shall be held in Oklahoma City, Oklahoma unless another place is determined to be mutually acceptable to the arbitrator, the Grantee and the Grantor. 

Section 9.03 Rules. The arbitrator shall settle all disputes concerning matters for which this Agreement requires the use of
arbitration in accordance with the Rules of the AAA to the extent such Rules do not conflict with the terms of this Agreement. 

Section 9.04 Hearings. The arbitrator promptly shall hear and determine (after giving the Parties due notice of hearing and
reasonable opportunity to be heard) the questions submitted and shall render a decision within sixty (60) days after notifying the Parties that the arbitration hearings have been closed or, if oral hearings have been waived, from the date of
the transmittal of the Parties’ final statements and proofs to the arbitrator. 
 Section 9.05 Jurisdiction of
Provisions. The arbitrator shall not have jurisdiction or authority to add to, detract from or alter in any way the provisions of this Agreement. Pending the final decision of the arbitrator of any dispute, both Parties will proceed diligently
with performance of all contract obligations, including the payment of all sums not in dispute, required by this Agreement. Notwithstanding the foregoing, the Parties reserve the right to apply to any court of competent jurisdiction for the purpose
of obtaining security or other provisional relief to satisfy or effectuate an eventual arbitration award, including, without limitation, attachment and injunctive relief. The commencement of any action for such relief in aid of arbitration shall not
constitute a waiver of the right to arbitration nor shall it prejudice in any way the right to proceed to arbitration. 

Section 9.06 Written Decision or Award. The written decision or award of the arbitrator shall be final and binding upon the
Parties and the Parties shall abide by and comply with such decision and a judgment may be rendered upon such decision or award in a court of competent jurisdiction. Grantee and Grantor shall equally bear the cost of the services and expenses of the
arbitrator and all other costs of the arbitration proceedings. 

  
 21 

 Section 9.07 Authority of Arbitrator. The arbitrator shall be authorized to
consider only issues that this Agreement expressly requires to be submitted to arbitration. The arbitrator shall have the authority to determine whether the arbitrator is authorized by this Agreement to consider a matter submitted for arbitration.
If the arbitrator concludes that he has no such authority, it shall cease consideration of that matter and so notify both Parties. 
 ARTICLE X 
 MISCELLANEOUS 

Section 10.01 Notices. All notices and communications required or permitted under this Agreement shall be in writing and
shall be sufficiently given, effective upon receipt, if personally delivered in writing or if mailed by registered or certified mail, postage prepaid, or bonded overnight carrier, or if communicated by telegram or telecopy, if directed to the
Parties addressed as follows: 
  

			
	Grantee:	 	NEW SOURCE ENERGY CORPORATION
		
		 	Phone: 405.272.3028
		 	Fax: 405.272.3034
		 	Attention: Kristian Kos
		 	E-mail : kkos@newsource.com
		 	Address : 914 N. Broadway Ave., Suite 230
		 	Oklahoma City, OK 73102
		
	Grantor:	 	SCINTILLA, LLC
		
		 	Phone: 918.587.6242
		 	Fax: 918.587.7120
		 	Attention: David J. Chernicky
		 	E-mail: David.Chernicky@newdominion.net
		 	Address: 1307 S. Boulder Ave. Suite 400
		 	Tulsa, OK 74119

 Provided, however, that any notice required or permitted under this Agreement will be effective if given verbally within
the time period provided, so long as such verbal notice is followed by written notice thereof in the manner herein provided within twenty-four hours following the end of such time period. Any party may, by written notice so delivered to the others,
change the address or individual to which delivery shall thereafter be made. 
 Section 10.02 Amendments and
Severability. This Agreement may be amended or modified at any time and in all respects, or any provision may be waived, only by an instrument in writing executed by Grantee and Grantor in the case of amendment or modification, or, in the case
of a waiver, by a written instrument executed by the Party to whom the obligation was owed. The invalidity of any one or more provisions of this Agreement shall not affect the validity of this Agreement as a whole, and in case of any such
invalidity, this Agreement shall be construed as if the invalid provision had not been included herein. 
 Section 10.03
Assignment. This Agreement or any part hereof may not be assigned by either Party without the prior written consent of the other Party. Grantee may designate an Affiliate of Grantee to acquire title to the Properties under any conveyance,
assignment or transfer instruments executed to consummate the transactions contemplated hereby and Grantor may assign its right to acquire title to the Shares. 

  
 22 

 Section 10.04 Table of Contents Headings. The headings of the articles and
sections of this Agreement are for guidance and convenience of reference only and shall not limit or otherwise affect any of the terms or provisions of this Agreement. 
 Section 10.05 References. References made in this Agreement, including use of a pronoun, shall be deemed to include, where applicable, masculine, feminine, singular or plural, individuals,
partnerships or corporations. 
 Section 10.06 Governing Law. This Agreement and its performance shall be construed
in accordance with, and governed by, the internal laws of the State of Oklahoma, excluding any choice of law rules which may direct the application of the laws of another jurisdiction and the Grantee agrees to submit to the exclusive jurisdiction
and venue of the federal and state courts of Oklahoma County, Oklahoma regarding the adjudication of any dispute arising out of the performance or enforcement of this Agreement, except matters that are subject to arbitration under this Agreement.
Grantee waives any objection to venue of such action, suit or proceeding in such courts and waives any claim that any action, suit or proceeding brought in such courts is an inconvenient forum. 

Section 10.07 Announcements. Grantor and Grantee shall consult with each other with regard to all press releases and other
announcements issued at or prior to Closing concerning this Agreement or the transaction contemplated hereby and, except as may be required by applicable laws or the applicable rules or regulations of any governmental agency or stock exchange,
neither Grantee nor Grantor shall issue any such press release or other publicity without the prior written consent of the other Party. 
 Section 10.08 Entire Agreement. This Agreement constitutes the entire understanding among the Parties with respect to the subject matter hereof, superseding all negotiations, prior discussions
and prior agreements and understandings relating to such subject matter, whether oral or written. 
 Section 10.09
Parties in Interest. This Agreement shall be binding upon, and shall inure to the benefit of, the Parties hereto and, except as otherwise prohibited, their respective successors and assigns; and nothing contained in this Agreement, express or
implied, is intended to confer upon any other Party or entity any benefits, rights or remedies. 
 Section 10.10
Waiver. The failure of a Party hereto to insist on the strict performance of any provision of this Agreement or to exercise any right, power, or remedy upon a breach thereof shall not constitute a waiver of any provisions of this Agreement or
limit the Party’s right thereafter to enforce any provision or exercise any right. 
 Section 10.11 Litigation
Costs. In the event that any Party to this Agreement resorts to legal proceedings to enforce this Agreement, the prevailing Party in such proceedings shall be entitled to recover all costs incurred by such Party, including reasonable attorney
fees. 
 Section 10.12 Exhibits. All exhibits and disclosure schedules attached to or referred to in this Agreement
are incorporated into and made a part of this Agreement. 
 Section 10.13 No Partnership Created. It is not the
purpose or intention of this Agreement to create (and it shall not be construed as creating) a joint venture, partnership or any type of association, and the Parties are not authorized to act as agent or principal for each other with respect to any
matter related hereto. 
 Section 10.14 Not to Be Construed Against Drafter. The Parties acknowledge that they have
had an adequate opportunity to review each and every provision contained in this Agreement and to submit the same to legal counsel for review and comment, including expressly, but without limitation, the

  
 23 

 
waivers and indemnities contained herein. Based on said review and consultation, the Parties agree with each and every term contained in this Agreement. Based on the foregoing, the Parties agree
that the rule of construction that a contract be construed against the drafter, if any, shall not be applied in the interpretation and construction of this Agreement. 
 Section 10.15 No Third Party Beneficiaries. Nothing contained in this Agreement shall entitle anyone other than the Grantor or Grantee or their authorized successors and assigns to any claim,
cause of action, remedy or right of any kind. 
 [remainder of page intentionally left blank] 

  
 24 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
set forth above. 
  

			
	GRANTOR
	Scintilla, LLC
		
	By:	 	 /s/ David J. Chernicky

		 	 David J. Chernicky

		
	Title:	 	Manager
	
	GRANTEE
	New Source Energy Corporation
		
	By:	 	 /s/ Kristian Kos

		 	 Kristian Kos

		
	Title:	 	President and Chief Executive Officer

  
 25 

 Schedule 4.01 
 Litigation 
 Jack Mattingly, Kay Mattingly, Mike Healy Trust, f/k/a Mike
Healy, d/b/a MCR Investments, C.E. Garrett, and G&W, a partnership, v. Equal Energy, a/k/a Altex Energy Corporation, a/k/a Altex Resources Corporation, Special Energy Corporation, New Dominion, LLC, and Scissortail Energy, LLC, Case
No. 10-CV-565-TCK-PJC, in the United States District Court for the Northern District of Oklahoma. This case was originally filed in Creek County District Court on August 16, 2010, but was subsequently removed to federal court on
September 9, 2010, under CAFA provisions. Plaintiffs make claims individually and on behalf of a class of royalty owners alleging that Defendants breached certain duties owed to Plaintiffs arising from oil and gas leases between Plaintiffs and
Defendants by allegedly deducting post-production costs in calculating the royalties paid to Plaintiffs under those leases. Plaintiffs seek damages in excess of $10,000, punitive damages, interest, costs and attorney’s fees. Plaintiffs have
moved to remand the action to state court, and Defendants, including the Company, have filed various motions to dismiss. In addition, the Company has filed a motion for summary judgment and motion for sanctions against Plaintiffs and
Plaintiffs’ counsel. Decision on the Defendants’ motions has been stayed until the Court rules upon Plaintiffs’ motion to remand, which remains pending. 

 Schedule 4.01(i) 

Material Contracts 
  

	1.	Amended and Restated Gas Purchasing and Processing Agreement dated May 1, 2005 between Scissortail Energy, LLC and New Dominion, LLC. 

 

	2.	Gas Purchase Contract dated September 1, 2006 between DCA Midstream (as successor to Duke Energy Field Services) and New Dominion, LLC (as successor to EOG
Resources). 

  

	3.	Crude Oil Purchase Agreement dated November 11, 2010 between Enterprise Crude Oil LLC and New Dominion, LLC. 

 

	4.	Crude Oil Purchase Agreement dated December 16, 2010 between United Petroleum Purchasing Co., LLC and New Dominion, LLC. 

 

	5.	Participation Agreement. 

 Schedule 4.01(l) 
 Surface Use 
 None 

 Schedule 4.01(m) 
 Compliance with Laws 
 None 

 Schedule 4.01(p) 
 Environmental Matters 
 None 

 Schedule 4.01(q) 
 Permits 
 None 

 Exhibit A 
 Golden Lane Leases and Wells 
 [omitted] 

 Exhibit B 
 Luther Leases Wells 
 [omitted] 

 Exhibit C 
 Luther Joint Operating Agreement 
 [omitted] 

 Exhibit D 
 Agreement for Right to Participate 
 [omitted] 

 Exhibit E 
 Assignment, Bill of Sale and Conveyance 
 [omitted]Contribution Agreement

 Exhibit 10.3 
 CONTRIBUTION AGREEMENT 
 Among 

DEYLAU, LLC, 
 a Delaware Limited Liability Company; 
 TIMOTHY R. AND ROBIN L. CARGILE;

 W.K. CHERNICKY, L.L.C., 
 an Oklahoma Limited Liability Company; 
 OKEANOS, INC., 

an Oklahoma Corporation; 
 TONY MCKAIG; 
 RED DRAGON, LLC, 

an Oklahoma Limited Liability Company 
 (the Grantors) 
 and 

NEW SOURCE ENERGY CORPORATION, 
 a Delaware Corporation 
 (Grantee) 

Dated this 12th day of August, 2011 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 ARTICLE I
	  	DEFINITIONS	  	 	1	  
	 ARTICLE II
	  	PROPERTIES	  	 	6	  
	         Section 2.01
	  	 Contribution
	  	 	6	  
	         Section 2.02
	  	 Properties
	  	 	6	  
	         Section 2.03
	  	 Excluded Assets
	  	 	6	  
	         Section 2.04
	  	 Operator Owns Saltwater Disposal Infrastructure
	  	 	7	  
	         Section 2.05
	  	 Effective Time
	  	 	7	  
	         Section 2.06
	  	 Ownership of Properties
	  	 	7	  
	 ARTICLE III
	  	CONSIDERATION; ADJUSTMENT PERIOD CASH FLOW	  	 	7	  
	         Section 3.01
	  	 Consideration
	  	 	7	  
	 ARTICLE IV
	  	REPRESENTATIONS AND WARRANTIES	  	 	7	  
	         Section 4.01
	  	 Representations and Warranties of Grantor
	  	 	7	  
	         Section 4.02
	  	 Representations and Warranties of Grantee
	  	 	9	  
	         Section 4.03
	  	 Waiver of Representations and Warranties
	  	 	10	  
	 ARTICLE V
	  	TAX MATTERS	  	 	11	  
	         Section 5.01
	  	 Apportionment of Tax Liability
	  	 	11	  
	         Section 5.02
	  	 Tax Reports and Returns
	  	 	11	  
	 ARTICLE VI
	  	CLOSING	  	 	11	  
	         Section 6.01
	  	 Closing
	  	 	11	  
	         Section 6.02
	  	 Closing Obligations
	  	 	11	  
	 ARTICLE VII
	  	POST-CLOSING RIGHTS AND OBLIGATIONS	  	 	11	  
	         Section 7.01
	  	 Files and Records
	  	 	11	  
	         Section 7.02
	  	 Taxes and Recording Fees
	  	 	11	  
	         Section 7.03
	  	 Further Assurances
	  	 	12	  
	         Section 7.04
	  	 Assumption of Plugging Liabilities
	  	 	12	  
	         Section 7.05
	  	 Grantee’s Assumption of Environmental Liabilities
	  	 	12	  
	         Section 7.06
	  	 Joint Billing Audits and Credits
	  	 	12	  
	 ARTICLE VIII
	  	INDEMNIFICATION	  	 	12	  
	         Section 8.01
	  	 Survival
	  	 	12	  
	         Section 8.02
	  	 Indemnification
	  	 	13	  
	         Section 8.03
	  	 Duty to Use Reasonable Efforts
	  	 	13	  
	         Section 8.04
	  	 Indemnification Procedures
	  	 	13	  
	         Section 8.05
	  	 Wavier of Consequential Damages
	  	 	14	  
	 ARTICLE IX
	  	ARBITRATION	  	 	14	  
	         Section 9.01
	  	 Arbitration
	  	 	14	  
	         Section 9.02
	  	 Location
	  	 	14	  
	         Section 9.03
	  	 Rules
	  	 	15	  
	         Section 9.04
	  	 Hearings
	  	 	15	  
	         Section 9.05
	  	 Jurisdiction of Provisions
	  	 	15	  
	         Section 9.06
	  	 Written Decision or Award
	  	 	15	  
	         Section 9.07
	  	 Authority of Arbitrator
	  	 	15	  
	 ARTICLE X
	  	MISCELLANEOUS	  	 	15	  
	         Section 10.01
	  	 Notices
	  	 	15	  
	         Section 10.02
	  	 Amendments and Severability
	  	 	16	  
	         Section 10.03
	  	 Assignment
	  	 	16	  
	         Section 10.04
	  	 Table of Contents Headings
	  	 	16	  
	         Section 10.05
	  	 References
	  	 	16	  

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	  	 	  	Page	 
			
	         Section 10.06
	  	 Governing Law
	  	 	16	  
	         Section 10.07
	  	 Announcements
	  	 	16	  
	         Section 10.08
	  	 Entire Agreement
	  	 	16	  
	         Section 10.09
	  	 Parties in Interest
	  	 	17	  
	         Section 10.10
	  	 Waiver
	  	 	17	  
	         Section 10.11
	  	 Litigation Costs
	  	 	17	  
	         Section 10.12
	  	 Exhibits
	  	 	17	  
	         Section 10.13
	  	 No Partnership Created
	  	 	17	  
	         Section 10.14
	  	 Not to Be Construed Against Drafter
	  	 	17	  
	         Section 10.15
	  	 No Third Party Beneficiaries
	  	 	17	  

  
 ii 

 CONTRIBUTION AGREEMENT 

This Contribution Agreement (“Agreement”) is entered into this 12th day of August, 2011 by and among Deylau, LLC,
a Delaware Limited Liability Company; Timothy R. and Robin L. Cargile; W.K. Chernicky, L.L.C., an Oklahoma Limited Liability Company; Okeanos, Inc., an Oklahoma Corporation; Tony McKaig; Red Dragon, LLC, an Oklahoma Limited Liability Company (each,
a “Grantor”, and collectively, the “Grantors”), and New Source Energy Corporation, a Delaware corporation (“Grantee”). Grantors and Grantee are collectively referred to herein
as the “Parties” and sometimes individually referred to as a “Party.” 
 W I T N
E S S E T H: 
 WHEREAS, each Grantor owns fractional working interests in the amount set forth on Exhibit “A”
attached hereto in certain oil and gas leases and wells as described in Exhibit “B” attached hereto; and 

WHEREAS, each Grantor is willing to contribute to Grantee, and Grantee is willing to have contributed to it from each Grantor, all of
such Grantor’s interest in the Misener-Hunton formation in the oil and gas leases and oil and gas wells listed in Exhibit “B” attached hereto and certain other rights and interests of Grantor associated therewith. 

NOW, THEREFORE, in consideration of the mutual benefits derived and to be derived herefrom by each Party, Grantors and Grantee hereby
agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 As used herein, the following terms shall have the
meaning ascribed to them: 
 “Affiliate” means any Party controlled by, controlling, or under common
control with another Person. For the purposes of this definition, “control” means, where used with respect to any Party, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of such Party, whether through the ownership of voting securities, by contract, or otherwise. The terms “controlling” and “controlled” have correlative meanings. 

“Ancillary Documents” means both the Grantee Ancillary Documents and the Grantor Ancillary Documents. 

“Claim Notice” has the meaning given such term in Section 8.04(a). 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Effective Time” means 12:01 am central time time as of August 1, 2011. 

“Environmental Law” means any applicable Law relating to health, safety, the environment, natural resources, or
the protection thereof, including any applicable provisions of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 5101
et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.; the Clean Water Act, 33 U.S.C. § 1251 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.; the
Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et
seq.; the 

 
Safe Drinking Water Act, 42 U.S.C. § 300f et seq.; the Pipeline Safety Act, as amended by the Pipeline Inspection, Protection, Enforcement and Safety Act of 2006, 49 U.S.C.
§ 60101 et seq.; and any other applicable Law relating to health, safety, the environment, natural resources or the protection thereof, and all analogous state or local statutes, and the regulations promulgated pursuant thereto.

 “GAAP” means “generally accepted accounting principles” of the United States, consistently
applied. 
 “Good and Defensible Title” means, with respect to each Luther Lease and Luther Well, such
record title and ownership by the applicable Grantor that: 
 a) entitles such Grantor to receive and retain, without reduction,
suspension or termination, not less than Grantor’s Net Revenue Interest of all Hydrocarbons produced, saved and marketed through such Luther Lease and Luther Well; 
 b) obligates such Grantor to bear not greater than Grantor’s Working Interest of the costs and expenses relating to the maintenance, development and operation of such Luther Lease and Luther Well
(unless there is a corresponding increase in Grantor’s Net Revenue Interest); 
 c) is free and clear of all Liens, except
for Permitted Liens; 
 d) reflects that all consents to assignment, notices of assignment or preferential purchase rights which
are applicable to or must be complied with in connection with the transaction contemplated by this Agreement (other than Governmental Authority approvals of the type customarily obtained after Closing), or any prior sale, assignment or the transfer
of such Luther Lease or Luther Well, have been obtained and complied with to the extent the failure to obtain or comply with the same could render this transaction or any such sale, assignment or transfer (or any right or interest affected thereby)
void or voidable; provided, that this Subsection (d) shall not require that any of the aforementioned consents, notices or preferential rights be reflected of record if same are not customarily recorded. 

“Governmental Authority” means any federal, state, municipal, local, or similar governmental authority;
regulatory or administrative agency; court or arbitral body. 
 “Grantee” has the meaning set forth in
the opening paragraph of this Agreement. 
 “Grantee Ancillary Document” means each agreement, document,
or certificate that is to be delivered by Grantee at Closing. 
 “Grantor(s)” has the meaning set forth
in the opening paragraph of this Agreement. 
 “Grantor Ancillary Document” means each agreement,
document, or certificate that is to be delivered by Grantor at Closing. 
 “Hazardous Substance(s)”
means and includes, each substance defined, designated, classified or regulated as a hazardous waste, hazardous substance, hazardous material, pollutant, contaminant, radioactive material or byproduct, or toxic substance under any Environmental Law,
and any petroleum or petroleum products. 
 “Knowledge” as used herein shall mean and be limited to the
actual knowledge of any individual Party or any officer or manager of a Party directly involved in the transaction that is the subject matter of this Agreement or in the ownership, operation, or administration of the Properties. 

  
 2 

 “Law” means any applicable law (including common law) rule,
regulation, ordinance, order, judgment, or decree of a Governmental Authority; in each case as in effect on and as interpreted on the date of this Agreement. 
 “Lien(s)” means, with respect to any property or asset, any mortgage, pledge, charge, security interest, or other encumbrance of any kind in respect of such property or asset.

 “Losses” means all actual liabilities, losses, damages, fines, penalties, judgments, settlements,
awards, costs, and expenses (including reasonable fees and expenses of counsel); provided, however, the foregoing definition of “Losses” is subject to and restricted by the provisions of Section 8.06. 

“Luther Hydrocarbons” has the meaning given such term in Section 2.02(b)(iii). 

“Luther Leases” has the meaning given such term in Section 2.02(b)(i). 

“Luther Wells” has the meaning given such term in Section 2.02(b)(ii). 

“Net Mineral Acres” means the gross number of surface acres subject to a Luther Lease multiplied by (i) the
percentage ownership of the lessor in the minerals located on, in or beneath the surface acres and burdened by such Luther Lease and (ii) the percentage of the lessee’s interest in such Lease. For clarity, Grantor’s Net Mineral Acres
under a Luther Lease that covers 1,000 gross surface acres but only 50% of the mineral interests, in which Grantor owns 100% of the lessee’s interest, is 500 Net Mineral Acres. 

“Net Revenue Interest” means an interest in and to oil, gas, natural gas liquids, condensate or related
hydrocarbons saved, produced and sold from any Luther Lease or any Luther Well. 
 “Oil and Gas
Interests” means collectively the Luther Leases and Luther Wells. 
 “Operator” means New
Dominion, LLC, an Oklahoma limited liability company. 
 “Organizational Documents” means any charter,
certificate of incorporation, articles of association, certificate of limited partnership, bylaws, partnership agreement, operating agreement, or similar formation, or governing documents and instruments. 

“Permits” means authorizations, licenses, permits, or certifications issued by Governmental Authorities,
provided, right-of-way agreements and similar rights and approvals that are not included in the definition of Permits. 

“Permitted Liens” means any of the following matters: 

a) the terms, conditions, restrictions, exceptions, reservations, limitations, and other matters contained in any applicable Luther
Leases if the net cumulative effect of such burdens does not operate to increase the Grantor’s Working Interest in any Luther Lease (without a corresponding increase in the Net Mineral Acres in such Luther Lease) or the Working Interest in any
Luther Well (without a corresponding increase in the Net Revenue Interest in such Luther Well), or decrease Grantor’s Net Mineral Acres or Net Revenue Interest under a Luther Lease or that decrease Grantor’s Net Revenue Interest in any
Luther Well; 
 b) materialman’s, mechanics’, repairman’s, employees’, contractors’, operators’,
non-operators’, or other similar Liens or charges for amounts that are not yet delinquent (including any amounts being withheld as provided by Law) or if delinquent, they are being contested in good faith by appropriate actions with appropriate
reserves maintained by Grantor; 

  
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 c) Liens for Taxes and assessments that are, in either case, allocable to the Properties and
are not yet due or delinquent; 
 d) rights reserved to or vested in any Governmental Authority to control or regulate any of
the Properties in any manner and all applicable Laws; 
 e) easements, rights-of-way, servitudes, permits, surface leases,
surface-use restrictions, and other surface uses and impediments on, over, or in respect of property covered by the Luther Leases or by any of the rights-of-way, easements, permits, or licenses included in the Properties to the extent such matters,
individually or in the aggregate, do not materially interfere with the ownership or use of the Luther Leases, taken as a whole; 

f) all lessors’ royalties, overriding royalties, net profits interests, carried interests, reversionary interests, and similar
burdens encumbering the Properties as of the Effective Time; provided, the net cumulative effect of such burdens does not operate to reduce the Grantor’s Net Mineral Acres or Net Revenue Interest in any Luther Lease, or to reduce the
Grantor’s Net Revenue Interest in any Luther Well; 
 g) any other Liens, defects or irregularities that do not,
individually or in the aggregate, materially interfere with the ownership or use of the Luther Leases affected thereby (as currently used or owned) and that would be acceptable to a reasonably prudent purchaser engaged in the business of owning and
operating oil and gas properties; 
 h) all rights to consent by, required notices to, filings with, and other actions by any
Governmental Authorities in connection with the sale or conveyance of oil and gas leases or interests therein, if the same are customarily obtained subsequent to such sale or conveyance; 

i) contracts and agreements of public record in the county where a Luther Lease is located; 

j) rights and duties under orders (i) establishing, amending or otherwise pertaining to drilling and spacing units or (ii) for
forced pooling of interests; 
 k) statutory liens securing the payment of production proceeds to parties entitled thereto, but
only to the extent that payment obligations are not in default; 
 l) any Lien of which the enforcement is barred under
applicable statute of limitations; 
 m) the terms and conditions of this Agreement and all exhibits, schedules and attachments
hereto; 
 n) heirship and probate issues which are ordinarily and typically cured in the ordinary course of business after
acquisition whether while preparing for drilling or in the revenue distribution process; and 
 o) a mortgage encumbering the
mineral estate of any lessor of any of the Luther Leases unless a complaint of record has been filed or any similar action taken by the mortgagee thereunder and such mortgage has not been subordinated to such Luther Leases. 

  
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 “Person” means any individual, firm, corporation, partnership,
limited liability company, incorporated or unincorporated association, joint venture, joint stock company, trust, Governmental Authority, or other entity of any kind. 
 “Post-Closing Environmental Liabilities” means (i) any violation of Environmental Law by Grantee or Grantee’s Affiliates after the Effective Time or arising in connection
with the Grantee’s ownership or operation of the Properties after the Effective Time, (ii) any Release of Hazardous Substances onto or from the Properties after the Effective Time or relating to or arising from any activities conducted on
such properties or from operation of such assets after the Effective Time and (iii) any claim, action, cause of action, inquiry, investigation, remediation, removal or restoration with respect to the matters set forth in subsection (i) or
(ii) above. 
 “Pre-Closing Environmental Liabilities” means (i) any violation of
Environmental Law, Grantors or Grantors’ Affiliates prior to the Effective Time or arising in connection with the Grantors’ ownership or operation of the Properties prior to the Effective Time, (ii) any Release of Hazardous Substances
onto or from the Properties prior to the Effective Time or relating to or arising from any activities conducted on such properties or from operation of such assets prior to the Effective Time and (iii) any claim, action, cause of action,
inquiry, investigation, remediation, removal or restoration with respect to the matters set forth in subsection (i) or (ii) above. 
 “Reasonable Efforts” means efforts in accordance with reasonable commercial practice and without the incurrence of unreasonable expense. 

“Release” means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning,
emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing. 

“Representatives” means, as to any Party, its officers, directors, employees, counsel, accountants, financial
advisers and consultants. 
 “Tax Authority” means any Governmental Authority having jurisdiction over
the assessment, determination, collection or imposition of any Tax. 
 “Tax Returns” means any report,
return, election, document, estimated tax filing, declaration or other filing provided to any Tax Authority including any amendments thereto. 
 “Taxes” or “Tax” means (a) all taxes, assessments, duties, levies, imposts or other similar charges imposed by a Governmental Authority, including all
income, franchise, profits, capital gains, capital stock, transfer, gross receipts, sales, use, transfer, service, occupation, ad valorem, property, excise, severance, windfall profits, premium, stamp, license, payroll, employment, social security,
unemployment, disability, environmental (including taxes under Code Section 59A), alternative minimum, add-on, value-added, withholding (including backup withholding) and other taxes, assessments, duties, levies, imposts or other similar
charges of any kind whatsoever (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return), and all estimated taxes, deficiency assessments, additions to tax, additional amounts imposed by any Governmental
Authority, penalties and interest, and (b) any liability for the payment of any amounts of any of the foregoing types as a result of being a member of an affiliated, consolidated, combined or unitary group, or being a party to any agreement or
arrangement whereby liability of Grantor for payment of such amounts was determined or taken into account with reference to the liability of any other Party. 
 “Third-Party Claim” any claim asserted against the Indemnified Party by a Third Party. 

  
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 “United States” means United States of America. 

“Working Interest” means, with respect to each Luther Lease, a percentage interest in the full and entire
leasehold estate created under and by virtue of the Luther Lease and all rights and obligations of every kind and character appurtenant thereto or arising therefrom, without regard to any valid royalty, overriding royalties, production payments,
carried interests, liens, or other encumbrances or charges against production insofar as such interest in said leasehold is burdened with the obligation to bear and pay costs of operations. 

ARTICLE II 

PROPERTIES 
 Section 2.01 Contribution. Subject to the terms and conditions of this Agreement, each Grantor agrees to contribute, transfer, assign, and convey to Grantee, each such Grantor’s entire
right, title and interest in the Properties, as hereinafter defined, effective as of the Effective Time. 
 Section 2.02
Properties. The term “Properties” as used herein shall mean the following described assets limited to the Misener-Hunton formation only: 
 a) the oil and/or gas leases, the rights under the pooling orders, and the mineral interests covered thereby as listed on Exhibit “B” (the “Luther Leases”);

 b) the oil wells, gas wells, temporarily abandoned wells and other wells of every nature and kind as described on Exhibit
“B” including but not limited to, all wells that are or are capable of producing oil, natural gas, or natural gas liquids which are located on the Luther Leases or lands pooled therewith or otherwise associated with the Luther Leases
(the “Luther Wells”); 
 c) all oil, gas well gas, casinghead gas, condensate, and all components of any
of them produced from or allocated to the Luther Leases and/or the Luther Wells and produced from the Misener-Hunton formation after the Effective Time (the “Luther Hydrocarbons”); 

d) all of the assignments or arrangements other instruments or agreements that pertain to the Properties and all contractually binding to
which the Properties may be subject and which will be binding on the assets described in this Section 2.02 or Grantee after the Closing and other contracts and agreements, owned by any Grantor, in whole or in part, to the extent that
they are used or held for use in connection with the ownership or operation of the the assets described in this Section 2.02 or the production or treatment of the Luther Hydrocarbons on or produced therefrom, or the transportation, sale
or disposal of water, the Luther Hydrocarbons, or associated substances therefrom; and 
 e) all of the personal property,
equipment, fixtures, movable and immovable property and improvements appurtenant to the Luther Wells not otherwise covered herein. 
 Section 2.03 Excluded Assets. Other than the Properties, Grantee is not acquiring any other assets of the Grantors and specifically is excluded from the Properties; and reserved unto the
Grantors are the following (the “Excluded Assets”): 
 a) Grantors’ rights in the leases,
force-pooling orders and wells in formations other than the Misener-Hunton formation; 
 b) all claims and causes of action of
any Grantor (i) arising from acts, omissions or events, or damage to or destruction of property, occurring prior to the Effective Time, or (ii) arising under or with respect to any contract that is attributable to periods of time prior to
the Effective Time (including claims for adjustments or refunds); 

  
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 c) all proceeds from the sale of Hydrocarbons produced from the Properties with respect to
all periods prior to the Effective Time; and 
 d) claims of any Grantor for refunds of or loss carry forwards with respect to
(i) production or any other taxes attributable to any period prior to the Effective Time, (ii) income or franchise taxes, or (iii) any taxes attributable to the Excluded Assets. 

Section 2.04 Operator Owns Saltwater Disposal Infrastructure. Grantee acknowledges and agrees that it will not acquire
ownership of saltwater disposal wells, pipelines, equipment or other Infrastructure relating to saltwater disposal or any byproducts of saltwater as a result of this Agreement or payment of any saltwater disposal fees under the Participation
Agreement and the Joint Operating Agreement and that such saltwater disposal facilities and byproducts of saltwater shall remain the sole property of Operator and its assignees, but which shall continue to be operated by Operator pursuant to the
Participation Agreement and the Joint Operating Agreement. 
 Section 2.05 Effective Time. The purchase of the
Properties shall be effective as the Effective Time. 
 Section 2.06 Ownership of Properties. Subject to the
provisions hereof, Grantors shall be entitled to all of the rights (including, without limitation, the right to all production, proceeds of production and other proceeds) of ownership, and shall be subject to the duties and obligations of such
ownership attributable to the Properties for the periods of time prior to the Effective Time. Subject to the provisions of this Agreement, Grantee shall be entitled to all of the rights (including, without limitation, the right to all production,
proceeds of production and other proceeds) of such ownership and shall assume and be subject to the duties, costs, assessments, liabilities, expenses, disbursements and obligations of such ownership, attributable to the Properties for the periods of
time from and after the Effective Time and any plugging and environmental liability or obligation as provided for pursuant to Section 7.04 “Assumption of Plugging Liabilities” and Section 7.05 “Grantee’s
Assumption of Environmental Liabilities” of this Agreement whether arising before or after the Effective Time. 
 ARTICLE
III 
 CONSIDERATION 
 Section 3.01 Consideration. As consideration for the contribution of the Properties by Grantors to Grantee, Grantee shall issue to each Grantor, or its designee, at Closing the number of
shares of Grantee’s common stock (the “Shares”) as shown on Exhibit “A” attached hereto. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 

Section 4.01 Representations and Warranties of Grantors. Each Grantor individually, and not jointly and severally, represents
and warrants the following to Grantee: 
 a) Organization. To the extent that Grantor is a corporation or a limited
liability company, Grantor is duly organized, validly existing and in good standing under the laws of the State of Oklahoma, has full legal power to carry on its business as now conducted, is authorized to hold title to the Properties and is in good
standing and duly qualified to conduct its business in the jurisdiction where the Properties are located. 

  
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 b) Authorization. To the extent that Grantor is a corporation or a limited liability
company, the execution, delivery and performance of this Agreement and the Grantor Ancillary Documents by Grantor and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized pursuant to the
Grantor’s Organizational Documents. 
 c) Enforceability. This Agreement and all other Grantor Ancillary Documents
have been duly executed and delivered on behalf of Grantor and constitutes the legal, valid and binding obligation of Grantor enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, reorganization
or moratorium statutes, or other similar Laws affecting the rights of creditors generally or equitable principles (collectively, “Equitable Limitations”). 

d) Brokers. Grantor has not made any agreement with respect to any broker’s or finder’s fees arising out of or in any
way related to the transactions contemplated by this Agreement for which Grantee will have any liability. 
 e)
Litigation. Grantor has not received written notice of any suit, action or other proceeding, nor has any suit, action or other proceeding to the Knowledge of Grantor been threatened or is pending against Grantor or the Properties before any
Governmental Authority and there exist no unsatisfied judgments any of kind which might result in impairment or loss of Grantor’s interest in any part of the Properties or that might hinder or impede the operation of the Properties in any
material respect. Grantor has not received written notice of any pending proceeding, notice of violation, action, suit, claim or investigation before any federal, state or other governmental court or agency involving the ownership, operation or
environmental condition of the Properties. There is no action, suit, proceeding, protest, claim or investigation by any Party or Governmental Authority, to Grantor’s Knowledge, pending or threatened against Grantor before any Governmental
Authority that impedes or is likely to impede Grantor’s ability to consummate the transaction contemplated by this Agreement or to assume the liabilities to be assumed by Grantor under this Agreement. 

f) Taxes. All federal, state and local Tax returns relating to Grantor’s interest in the Properties and required under the
statutes, rules and regulations of such jurisdictions have been filed and all Taxes, including, but not limited to, ad valorem, severance and income taxes (other than those being contested in good faith for which adequate provisions will be made)
shown on said returns to be due, and additional assessments received prior to the date hereof, which are due and payable, have been paid. The Properties are not subject to any tax partnership agreements requiring a partnership income tax return to
be filed under Subchapter K of Chapter 1 of Subtitle A of the Code. 
 g) Solvency. There are no bankruptcy proceedings
pending, being contemplated by or, to Grantor’s Knowledge, based upon reasonable inquiry and investigation, threatened against Grantor. Grantor represents that it is, and after the completion of the transactions contemplated hereby, will be
solvent and is and will continue to be able to pay its debts as they become due. 
 h) Consents. No approval of a
Governmental Authority or consent or approval of any other Person is required to be obtained or made by or with respect to Grantor in connection with the execution, delivery, and performance of this Agreement (including the assignment of the
Properties) or the other Ancillary Documents or the consummation of the transactions contemplated hereby or thereby, except consents by, required notices to, filings with, or other actions by any Governmental Authority in connection with the sale or
conveyance of oil and gas leases or interests therein, if the same are customarily obtained routinely and subsequent to such sale or conveyance. 
 i) Title to Properties. Grantor has Good and Defensible Title to the Properties being contributed hereunder and, upon the Closing, Grantee will acquire Good and Defensible title to Grantor’s
interest in the Properties being contributed hereunder. 

  
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 Section 4.02 Representations and Warranties of Grantee. Grantee represents and
warrants the following to Grantors as of the execution of this Agreement and as of Closing: 
 a) Organization. Grantee
is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware, has full legal power to carry on its business as now conducted, is authorized to hold title to its assets and is in good standing and
duly qualified to conduct its business in the jurisdictions where its assets are located. 
 b) Authorization. The
execution, delivery and performance of this Agreement and the Grantee Ancillary Documents by Grantee and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized pursuant to the Organizational
Documents of Grantee. 
 c) Enforceability. This Agreement and all other Grantee Ancillary Documents have been duly
executed and delivered on behalf of Grantee and constitutes the legal, valid and binding obligation of Grantee enforceable in accordance with its terms, except as enforceability may be limited by Equitable Limitations. 

d) No Conflict. The consummation of the transactions contemplated by this Agreement and the Grantee Ancillary Documents will not
violate, or be in conflict with, the Organizational Documents or any material provision of any agreement or instrument to which Grantee is a party or by which it, or the its assets, is bound or will not violate or be in conflict with any material
provision of any judgment, decree, order, statute, rule or regulation applicable to Grantee or any asset of Grantee, or result in the creation or imposition of any Lien or any asset of Grantee other than Permitted Liens. 

e) Brokers. Grantee has not made any agreement with respect to any broker’s or finder’s fees arising out of or in any
way related to the transactions contemplated by this Agreement for which Grantors will have any liability. 
 f)
Litigation. Grantee has not received written notice of any suit, action or other proceeding, nor has any suit, action or other proceeding to the Knowledge of Grantee been threatened or is pending against Grantee or its assets before any
Governmental Authority and there exist no unsatisfied judgments any of kind which might result in impairment or loss of Grantee’s interest in any part of its assets or that might hinder or impede the operation of Grantee in any material
respect. Grantee has not received written notice of any pending proceeding, notice of violation, action, suit, claim or investigation before any federal, state or other governmental court or agency involving the ownership, operation or environmental
condition of Grantee’s assets or operations. There is no action, suit, proceeding, protest, claim or investigation by any Party, entity, administrative agency or governmental body, to Grantee’s Knowledge, pending or threatened against
Grantee before any Governmental Authority that impedes or is likely to impede Grantee’s ability to consummate the transaction contemplated by this Agreement or to assume the liabilities to be assumed by Grantee under this Agreement. 

g) Capitalization. The authorized capital stock of Grantee consists of one-hundred and eighty million (180,000,000) shares of
common stock and twenty million (20,000,000) shares of preferred stock of which twenty one million two hundred thousand (21,200,000) shares of common stock will be issued and outstanding after the concurrent consummation of the
transactions contemplated hereunder and under that certain Contribution Agreement among Grantee and Scintilla, LLC, and no more than five million (5,000,000) additional shares of common stock of Grantee shall be issued and outstanding as of the
close of business on the date hereof. All of such shares are, or will be, validly issued, fully paid, nonassessable, issued free of preemptive rights in compliance with applicable Laws and have been, or will be, accorded full voting rights. With
respect to Grantee, there are no outstanding options, warrants, rights or other securities convertible into or exchangeable or exercisable for equity securities, any other commitments or agreements providing for the issuance of additional equity
interests or the repurchase or 

  
 9 

 
redemption of equity interests, and there are no agreements of any kind which may obligate Grantee to issue, purchase, redeem or otherwise acquire any of its equity interests. There are no voting
agreements, proxies or other similar agreements or understandings with respect to the equity interests of Grantee. Upon consummation of the transactions contemplated by this Agreement, Grantors will acquire good and valid title to all of the Shares,
free and clear and any Liens. 
 h) Acknowledgement. Grantee agrees and acknowledges that the Properties have been used
for oil and gas drilling and production operations, related oil field operations and possibly for the storage and disposal of deleterious substances and the Properties may be contaminated with such materials. Physical changes in or under the
Properties or adjacent lands may have occurred as a result of such uses. The Properties may contain wells, sumps landfills, pits, ponds, tanks impoundments, foundations, pipelines and other equipment whether or not of a similar nature, any of which
may be buried and contain deleterious substances, and the locations of which may not be readily apparent by a physical inspection of the Property. In addition Grantee acknowledges that some oil field production equipment may contain hazardous
materials, including, without limitation, asbestos and/or natural occurring radioactive material (“NORM”). In this regard, Grantee expressly understands that NORM in the form of scale or in other forms may have become
dislodged from the inside of wells, materials and equipment and be located on the Properties. Grantee expressly understands that special procedures may be required for the removal and disposal of asbestos, NORM, and other deleterious substances from
the Properties where they may be found. Grantee represents that at Closing it will have satisfied itself as to the physical and environmental condition of the Properties, both surface and subsurface, and their method of operation and agrees to
accept an assignment of the Properties at Closing on an “AS IS, WHERE IS” basis, “WITH ALL FAULTS” and in making the decision to enter in this Agreement and consummate the transactions contemplated hereby, Grantee has relied
solely on the basis of its own independent investigation of the Properties. 
 i) Experience. Grantee represents that by
reason of Grantee’s Knowledge and experience in the evaluation, acquisition, and operation of oil and gas properties, Grantee has evaluated the merits and risks of acquiring the Properties from Grantors and has formed an opinion based solely
upon Grantee’s Knowledge and experience and not upon any representations or warranties by Grantors. 
 j) No
Distribution. Grantee is acquiring the Properties for its own account and not with the intent to make a distribution within the meaning of the Securities Act of 1933 (and the rules and regulations pertaining thereto) or a distribution thereof in
violation of any other applicable securities laws. 
 Section 4.03 Waiver of Representations and Warranties. THE
EXPRESS REPRESENTATIONS OF GRANTORS CONTAINED IN THIS AGREEMENT ARE EXCLUSIVE AND ARE IN LIEU OF, AND GRANTORS EXPRESSLY DISCLAIM AND NEGATE AND GRANTEE HEREBY WAIVES, ANY REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY OR IMPLIED, WITH RESPECT TO
(i) TITLE, (ii) THE QUALITY, QUANTITY OR VOLUME OF THE RESERVES, IF ANY, OF HYDROCARBONS IN OR UNDER THE PROPERTIES AND (iii) THE ENVIRONMENTAL CONDITION OF THE PROPERTIES, BOTH SURFACE AND SUBSURFACE. GRANTORS DO NOT MAKE OR PROVIDE,
AND GRANTEE HEREBY WAIVES, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE QUALITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS. EXCEPT AS PROVIDED HEREIN, GRANTORS DISCLAIM AND
NEGATE, AND GRANTEE HEREBY WAIVES, ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED OR STATUTORY. THE ITEMS OF PERSONAL PROPERTY, EQUIPMENT, IMPROVEMENTS, FIXTURES AND APPURTENANCES CONVEYED AS PART OF THE PROPERTIES ARE SOLD, AND GRANTEE
ACCEPTS SUCH ITEMS “AS IS, WITH ALL FAULTS.” THERE ARE NO WARRANTIES THAT EXTEND BEYOND THE FACE OF THIS AGREEMENT. GRANTEE ACKNOWLEDGES THAT THIS WAIVER IS CONSPICUOUS. 

  
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 ARTICLE V 
 TAX MATTERS 
 Section 5.01 Apportionment of Tax
Liability. All Taxes based on or measured by production or Hydrocarbons shall be deemed attributable to the period during which such production occurred and not attributable to the year in which such Taxes are assessed. 

Section 5.02 Tax Reports and Returns. With respect to the Properties, Grantors agree to file all Tax Returns for the period
of time prior to the Effective Time, and Grantee agrees to file all Tax Returns for the period of time after the Effective Time. The Party not filing the Tax Return agrees to provide the Party filing the return with the information which is
necessary and appropriate to file any required tax reports and returns related to the Properties. Grantee agrees to file all tax returns and reports applicable to the Properties that are required to be filed after Closing, and pay all required Taxes
payable with respect to the Properties. 
 ARTICLE VI 

CLOSING 
 Section 6.01 Closing. The purchase by Grantee and the sale by the Grantors of the Properties as contemplated by this Agreement (herein called the “Closing”) shall take
place on the date hereof. 
 Section 6.02 Closing Obligations. At the Closing the following events shall occur:

 a) Grantee shall deliver and issue duly endorsed and executed certificates for the Shares to each Grantor, or its designee,
in accordance with Law. 
 b) Grantors shall deliver to Grantee a properly executed Assignment, Bill of Sale and Conveyance for
the Properties. 
 c) Each Grantor shall deliver to Grantee a non-foreign affidavit(s) in compliance with United States Treasury
Regulation Section 1.1445-2(b)(2). 
 d) Grantors and Grantee shall execute and deliver all documents necessary directing
Operator or the purchaser of the Hydrocarbons to pay Grantee the proceeds attributable to the production from the Luther Leases and the Luther Wells from and after the Effective Time. 

ARTICLE VII 

POST-CLOSING RIGHTS AND OBLIGATIONS 
 Section 7.01 Files and Records. Grantee will retain and will provide Grantors with reasonable access to any books and records so retained by Grantee for a period of seven (7) years from
and after Closing, together with such additional files, data and records of Grantee as may be reasonably requested by any Grantor in order to pursue any claims, obligations and disputes relating to the Properties. 

Section 7.02 Taxes and Recording Fees. Grantee shall pay all sales and use taxes and related penalties and interest, if any,
due as a result of this transaction. Grantee shall pay all transfer, documentary filing and recording fees required in connection with the filing and recording of any assignments and furnish Grantors copies of recorded and/or filed documents.

  
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 Section 7.03 Further Assurances. From and after Closing, Grantors and Grantee
shall, without further consideration, execute, acknowledge and deliver or use reasonable efforts to cause to be executed, acknowledged and delivered such instruments and take such other action as may be necessary or advisable to carry out their
obligations under this Agreement and under any document, certificate or other instrument delivered pursuant hereto. 

Section 7.04 Assumption of Plugging Liabilities. Upon Closing, Grantee assumes hereby its proportionate share of any and all
plugging and abandonment obligations associated with the Properties, regardless of when the obligations arose. Plugging and abandonment obligations shall mean all usual and normal prudent operations for the plugging, abandonment, surface
restoration, site clearance, and disposal of related waste materials, including, without limitation, NORM and asbestos, and of all oil, gas, injection, water or other wells, sumps, pits, ponds, tanks, impoundments, foundations, pipelines, structures
and equipment of any kind or description on the Properties, in compliance with all applicable contractual obligations and applicable rules and regulations of governmental bodies having jurisdiction over the Properties. 

Section 7.05 Grantee’s Assumption of Environmental Liabilities. Upon Closing, Grantee assumes responsibility for any and
all Post Closing Environmental Liabilities. 
 Section 7.06 Joint Billing Audits and Credits. Subject to the
provisions of this Agreement, each Grantor shall retain all of the rights incidental to its ownership of the Properties prior to the Effective Time, including, without limitation, the rights to all proceeds of production, retroactive price
adjustments, windfall profit tax refunds, judgments or settlements, and any reimbursement or refund of ad valorem taxes paid by any such Grantor and shall be responsible for all costs, assessments, gas imbalances, liabilities, expenses and
disbursements with respect thereto prior to the Effective Time resulting from, relating to or arising out of the ownership, occupancy, use or operation of the Properties except as to environmental matters and plugging and abandonment liabilities
which are assumed by Grantee under this Agreement. Each Grantor shall be responsible for the settlement of all joint billing audits which relate to the Properties and the accounting periods prior to the Effective Time. Grantee shall be responsible
for the payment of it proportionate share of any amounts finally determined to be due and payable as a result of any joint billing audit which relate to the Properties and the accounting periods after the Effective Time. Any credits received by
Grantee attributable to expenses paid prior to the Effective Time shall be reimbursed to Grantors by Grantee. Any credits received by any Grantor attributable to expenses paid after the Effective Time shall be reimbursed to Grantee by such Grantor.

 ARTICLE VIII 
 INDEMNIFICATION 
 Section 8.01 Survival. The
representations and warranties of the Parties contained herein and all covenants contained herein that are to be performed prior to the Closing will survive for twelve (12) months following the Closing. No Party shall have any liability for
indemnification claims made under this Article VIII with respect to any such representation, warranty or covenant unless a Claim Notice is provided by the non-breaching Party to the other Party prior to the expiration of the survival period
for such representation, warranty or pre-closing covenant. If a Claim Notice has been timely given in accordance with this Agreement prior to the expiration of the survival period for such representation, warranty or covenant or claim, then the
applicable representation, warranty or covenant shall survive as to such claim, until such claim has been finally resolved. All covenants and agreements of the Parties contained in this Agreement to be performed after the Closing, will survive the
Closing in accordance with their terms. 

  
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 Section 8.02 Indemnification. 

a) From and after the Closing, each Grantor shall shall hold harmless Grantee, Grantee’s Affiliates and their respective
Representatives (the “Grantee Indemnified Parties”) from and against all Losses that the Grantee Indemnified Parties incur from or out of; (i) any breach of any representation, warranty or covenant of such Grantor in
this Agreement and; (ii) the business and operations of the Properties relating to periods prior to the Effective Time, including Pre-Closing Environmental Liabilities and (iii) any Taxes that are attributable to the ownership or operation
of the Properties during any periods or partial periods ending on or before the Effective Time. 
 b) From and after the
Closing, Grantee shall indemnify and hold harmless the Grantors, Grantors’ Affiliates and their respective Representatives (the “Grantor Indemnified Parties”) from and against all Losses that the Grantor Indemnified
Parties incur from or out of (i) any breach of any representation, warranty or covenant of Grantee in this Agreement; (ii) the business and operations of the Properties relating to periods after the Effective Time, including Post-Closing
Environmental Liabilities and (iii) any Taxes which are attributable to the ownership or operation of the Properties during any periods or partial periods ending after the Effective Time. 

Section 8.03 Duty to Use Reasonable Efforts. Notwithstanding anything to the contrary herein, the Parties shall have a duty
to use Reasonable Efforts to mitigate any Loss arising out of or relating to this Agreement or the transactions contemplated hereby. 
 Section 8.04 Indemnification Procedures. Claims for indemnification under this Agreement shall be asserted and resolved as follows: 

a) Any Grantee Indemnified Party or Grantor Indemnified Party claiming indemnification under this Agreement (an “Indemnified
Party”) with respect to any claim asserted against the Indemnified Party by a third party (a “Third Party Claim”) in respect of any matter that is subject to indemnification under Section 8.02 shall
promptly (i) notify the indemnifying Party (the “Indemnifying Party”) of the Third-Party Claim and (ii) transmit to the Indemnifying Party a written notice (a “Claim Notice”) describing in
reasonable detail the nature of the Third-Party Claim, a copy of all papers served with respect to such claim (if any), the Indemnified Party’s best estimate of the amount of Losses attributable to the Third-Party Claim and the basis of the
Indemnified Party’s request for indemnification under this Agreement. Failure to timely provide such Claim Notice shall not affect the right of the Indemnified Party’s indemnification hereunder, except to the extent the Indemnifying Party
is prejudiced by such delay or omission. 
 b) The Indemnifying Party shall have the right to defend the Indemnified Party
against such Third-Party Claim. If the Indemnifying Party notifies the Indemnified Party that the Indemnifying Party elects to assume the defense of the Third-Party Claim, then the Indemnifying Party shall have the right to defend such Third-Party
Claim with counsel selected by the Indemnifying Party (who shall be reasonably satisfactory to the Indemnified Party), by all appropriate proceedings, to a final conclusion or settlement at the discretion of the Indemnifying Party in accordance with
this Section 8.04(b). The Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided that the Indemnifying Party shall not enter into any settlement agreement
without the written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed); provided, further, that such consent shall not be required if (i) the settlement agreement contains a complete and
unconditional general release by the third party asserting the claim to all Indemnified Parties affected by the claim and (ii) the settlement agreement does not contain any sanction or restriction upon the conduct of any business by the
Indemnified Party or its Affiliates. If requested by the Indemnifying Party, the Indemnified Party agrees, at the sole cost and expense of the Indemnifying Party, to cooperate with the Indemnifying Party and its counsel in contesting any Third-Party
Claim 

  
 13 

 
which the Indemnifying Party elects to contest, including the making of any related counterclaim against the Party asserting the Third-Party Claim or any cross complaint against any Party. The
Indemnified Party may participate in, but not control, any defense or settlement of any Third-Party Claim controlled by the Indemnifying Party), and the Indemnified Party shall bear its own costs and expenses with respect to such participation.

 c) If the Indemnifying Party does not notify the Indemnified Party that the Indemnifying Party elects to defend the
Indemnified Party pursuant to Section 8.04(b), then the Indemnified Party shall have the right to defend, and be reimbursed for its reasonable cost and expense (but only if the Indemnified Party is actually entitled to indemnification
hereunder) in regard to the Third-Party Claim with counsel selected by the Indemnified Party (who shall be reasonably satisfactory to the Indemnifying Party), by all appropriate proceedings, which proceedings shall be prosecuted diligently by the
Indemnified Party. In such circumstances, the Indemnified Party shall defend any such Third-Party Claim in good faith and have full control of such defense and proceedings; provided, however, that the Indemnified Party may not enter into any
compromise or settlement of such Third-Party Claim if indemnification is to be sought hereunder, without the Indemnifying Party’s consent (which consent shall not be unreasonably withheld, conditioned or delayed). The Indemnifying Party may
participate in, but not control, any defense or settlement controlled by the Indemnified Party pursuant to this Section 8.04(c), and the Indemnifying Party shall bear its own costs and expenses with respect to such participation.

 d) Subject to the other provisions of this Article VIII, a claim for indemnification for any matter not involving a
Third-Party Claim may be asserted by notice to the Party from whom indemnification is sought. 
 e) In the event an Indemnified
Party shall recover Losses in respect of a claim of indemnification under this Article VIII, no other Indemnified Party shall be entitled to recover the same Losses in respect of a claim for indemnification. 

Section 8.05 Wavier of Consequential Damages. Any Losses or damages recoverable under this Agreement, including the
indemnification obligations of the parties provided for in this Article VIII, will be limited to actual Losses and damages and will not include, and each party entitled to indemnity or to recover Losses or damages under this Agreement
expressly and irrevocably waives and releases any right to recover, any incidental, consequential, indirect, punitive, special or exemplary damages, provided that any incidental, consequential, indirect, punitive, special or exemplary Damages
recovered by a third Person (including a Governmental Authority, but excluding any Affiliate of any party) against a party entitled to Losses and damages, including indemnity pursuant to this Article VIII, will be included in the Losses and
damages recoverable under this Agreement. 
 ARTICLE IX 

ARBITRATION 
 Section 9.01 Arbitration. If arbitration is required pursuant to this Agreement, the Parties shall agree on a sole arbitrator to hear and decide all matters under this Agreement. In the event
that the parties are unable to agree on an arbitrator within thirty (30) days after a notice of arbitration is filed be either party, then such arbitrator shall be chosen in accordance with the Commercial Arbitration Rules
(“Rules”) of the American Arbitration Association (“AAA”). 
 Section 9.02
Location. Any arbitration hearing shall be held in Oklahoma City, Oklahoma unless another place is determined to be mutually acceptable to the arbitrator, the Grantee and the Grantor. 

  
 14 

 Section 9.03 Rules. The arbitrator shall settle all disputes concerning matters
for which this Agreement requires the use of arbitration in accordance with the Rules of the AAA to the extent such Rules do not conflict with the terms of this Agreement. 
 Section 9.04 Hearings. The arbitrator promptly shall hear and determine (after giving the Parties due notice of hearing and reasonable opportunity to be heard) the questions submitted and
shall render a decision within sixty (60) days after notifying the Parties that the arbitration hearings have been closed or, if oral hearings have been waived, from the date of the transmittal of the Parties’ final statements and proofs
to the arbitrator. 
 Section 9.05 Jurisdiction of Provisions. The arbitrator shall not have jurisdiction or
authority to add to, detract from or alter in any way the provisions of this Agreement. Pending the final decision of the arbitrator of any dispute, both Parties will proceed diligently with performance of all contract obligations, including the
payment of all sums not in dispute, required by this Agreement. Notwithstanding the foregoing, the Parties reserve the right to apply to any court of competent jurisdiction for the purpose of obtaining security or other provisional relief to satisfy
or effectuate an eventual arbitration award, including, without limitation, attachment and injunctive relief. The commencement of any action for such relief in aid of arbitration shall not constitute a waiver of the right to arbitration nor shall it
prejudice in any way the right to proceed to arbitration. 
 Section 9.06 Written Decision or Award. The written
decision or award of the arbitrator shall be final and binding upon the Parties and the Parties shall abide by and comply with such decision and a judgment may be rendered upon such decision or award in a court of competent jurisdiction. Grantee and
Grantor shall equally bear the cost of the services and expenses of the arbitrator and all other costs of the arbitration proceedings. 
 Section 9.07 Authority of Arbitrator. The arbitrator shall be authorized to consider only issues that this Agreement expressly requires to be submitted to arbitration. The arbitrator shall
have the authority to determine whether the arbitrator is authorized by this Agreement to consider a matter submitted for arbitration. If the arbitrator concludes that he has no such authority, it shall cease consideration of that matter and so
notify both Parties. 
 ARTICLE X 
 MISCELLANEOUS 
 Section 10.01 Notices. All notices and
communications required or permitted under this Agreement shall be in writing and shall be sufficiently given, effective upon receipt, if personally delivered in writing or if mailed by registered or certified mail, postage prepaid, or bonded
overnight carrier, or if communicated by telegram or telecopy, if directed to the Parties addressed as follows: 
  

			
	Grantee:	  	NEW SOURCE ENERGY CORPORATION
		
		  	Phone: 405.272.3028
		  	Fax: 405.272.3034
		  	Attention: Kristian Kos
		  	E-mail: kkos@newsource.com
		  	Address: 914 N. Broadway Ave., Suite 230
		  	Oklahoma City, OK 73102

  
 15 

			
		
	Grantors:	  	In care of:
		  	 NEW DOMINION, LLC
 Phone:
918.587.6242

		  	 Fax: 918.587.7120

Attention: David J. Chernicky
 E-mail:
David.Chernicky@newdominion.net
 Address: 1307 S. Boulder Ave. Suite 400
 Tulsa, OK 74119

 Provided, however, that any notice required or permitted under this Agreement will be effective if given verbally within
the time period provided, so long as such verbal notice is followed by written notice thereof in the manner herein provided within twenty-four hours following the end of such time period. Any party may, by written notice so delivered to the others,
change the address or individual to which delivery shall thereafter be made. 
 Section 10.02 Amendments and
Severability. This Agreement may be amended or modified at any time and in all respects, or any provision may be waived, only by an instrument in writing executed by Grantee and Grantors in the case of amendment or modification, or, in the case
of a waiver, by a written instrument executed by the Party to whom the obligation was owed. The invalidity of any one or more provisions of this Agreement shall not affect the validity of this Agreement as a whole, and in case of any such
invalidity, this Agreement shall be construed as if the invalid provision had not been included herein. 
 Section 10.03
Assignment. This Agreement or any part hereof may not be assigned by any Party without the prior written consent of the other Parties. Grantee may designate an Affiliate of Grantee to acquire title to the Properties under any conveyance,
assignment or transfer instruments executed to consummate the transactions contemplated hereby and Grantors may assign their rights to acquire title to the Shares. 
 Section 10.04 Table of Contents Headings. The headings of the articles and sections of this Agreement are for guidance and convenience of reference only and shall not limit or otherwise affect
any of the terms or provisions of this Agreement. 
 Section 10.05 References. References made in this Agreement,
including use of a pronoun, shall be deemed to include, where applicable, masculine, feminine, singular or plural, individuals, partnerships or corporations. 
 Section 10.06 Governing Law. This Agreement and its performance shall be construed in accordance with, and governed by, the internal laws of the State of Oklahoma, excluding any choice of law
rules which may direct the application of the laws of another jurisdiction and the Grantee agrees to submit to the exclusive jurisdiction and venue of the federal and state courts of Oklahoma County, Oklahoma regarding the adjudication of any
dispute arising out of the performance or enforcement of this Agreement, except matters that are subject to arbitration under this Agreement. The Parties waives any objection to venue of such action, suit or proceeding in such courts and waives any
claim that any action, suit or proceeding brought in such courts is an inconvenient forum. 
 Section 10.07
Announcements. The Parties shall consult with one another with regard to all press releases and other announcements issued at or prior to Closing concerning this Agreement or the transaction contemplated hereby and, except as may be required
by applicable laws or the applicable rules or regulations of any governmental agency or stock exchange, neither Grantee nor any Grantor shall issue any such press release or other publicity without the prior written consent of the other Parties.

 Section 10.08 Entire Agreement. This Agreement constitutes the entire understanding among the Parties with
respect to the subject matter hereof, superseding all negotiations, prior discussions and prior agreements and understandings relating to such subject matter, whether oral or written. 

  
 16 

 Section 10.09 Parties in Interest. This Agreement shall be binding upon, and
shall inure to the benefit of, the Parties hereto and, except as otherwise prohibited, their respective successors and assigns; and nothing contained in this Agreement, express or implied, is intended to confer upon any other Party or entity any
benefits, rights or remedies. 
 Section 10.10 Waiver. The failure of a Party hereto to insist on the strict
performance of any provision of this Agreement or to exercise any right, power, or remedy upon a breach thereof shall not constitute a waiver of any provisions of this Agreement or limit the Party’s right thereafter to enforce any provision or
exercise any right. 
 Section 10.11 Litigation Costs. In the event that any Party to this Agreement resorts to
legal proceedings to enforce this Agreement, the prevailing Party in such proceedings shall be entitled to recover all costs incurred by such Party, including reasonable attorney fees. 

Section 10.12 Exhibits. All exhibits and disclosure schedules attached to or referred to in this Agreement are incorporated
into and made a part of this Agreement. 
 Section 10.13 No Partnership Created. It is not the purpose or intention
of this Agreement to create (and it shall not be construed as creating) a joint venture, partnership or any type of association, and the Parties are not authorized to act as agent or principal for each other with respect to any matter related
hereto. 
 Section 10.14 Not to Be Construed Against Drafter. The Parties acknowledge that they have had an adequate
opportunity to review each and every provision contained in this Agreement and to submit the same to legal counsel for review and comment, including expressly, but without limitation, the waivers and indemnities contained herein. Based on said
review and consultation, the Parties agree with each and every term contained in this Agreement. Based on the foregoing, the Parties agree that the rule of construction that a contract be construed against the drafter, if any, shall not be applied
in the interpretation and construction of this Agreement. 
 Section 10.15 No Third Party Beneficiaries. Nothing
contained in this Agreement shall entitle anyone other than the Grantor or Grantee or their authorized successors and assigns to any claim, cause of action, remedy or right of any kind. 

[remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
set forth above. 
  

					
	GRANTORS:
	
	Deylau, LLC
		
	By:	 	 /s/ Kristian Kos

		 	Name:	 	 Kristian Kos

		 	Title:	 	 Manager

 [remainder of page intentionally left blank] 

  
 18 

 
	
	 /s/ Timothy R. Cargile

	Timothy R. Cargile
	
	 /s/ Robin L. Cargile

	Robin L. Cargile

 [remainder of page intentionally left blank] 

  
 19 

 
					
	W.K. Chernicky, L.L.C.
		
	By:	 	 /s/ Wayne K. Chernicky

		 	Name:	 	 Wayne K. Chernicky

		 	Title:	 	 Manager

 [remainder of page intentionally left blank] 

  
 20 

 
					
	Okeanos, Inc.
		
	By:	 	 /s/ Jean J. Antonides

		 	Name:	 	 Jean J. Antonides

		 	Title:	 	 President

 [remainder of page intentionally left blank] 

  
 21 

 
	
	 /s/ Tony McKaig

	Tony McKaig

 [remainder of page intentionally left blank] 

  
 22 

 
					
	Red Dragon, LLC
		
	By:	 	 /s/ Michael C.K. Chuns

		 	Name:	 	 Michael C.K. Chuns

		 	Title:	 	 Manager

 [remainder of page intentionally left blank] 

  
 23 

 
			
	GRANTEE:
	
	New Source Energy Corporation
		
	By:	 	 /s/ Kristian Kos

		 	Kristian Kos
		 	President and Chief Executive Officer

  
 24 

 Exhibit “A” 

Luther Working Interest Percentages and Shares Issued in Respect Thereof 

 

									
	 Grantor
	  	Working Interest Percentage	 	 	Shares to be Issued to Grantor	 
			
	 Deylau, LLC
	  	 	3.00	% 	 	 	360,000	  
			
	 Timothy R. and Robin L. Cargile
	  	 	1.50	% 	 	 	180,000	  
			
	 W.K. Chernicky, L.L.C.
	  	 	2.00	% 	 	 	240,000	  
			
	 Okeanos, Inc.
	  	 	1.00	% 	 	 	120,000	  
			
	 Tony McKaig
	  	 	1.50	% 	 	 	180,000	  
			
	 Red Dragon, LLC
	  	 	1.00	% 	 	 	120,000	  

 Exhibit B 
 Luther Leases and Luther Wells 
 [omitted]

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