Document:

exv10w1

Exhibit 10.1

FORM OF CONVEYANCE OF NET PROFITS INTEREST

     This Conveyance of Net Profits Interest (as may be amended, supplemented or otherwise modified
from time to time, this “Conveyance”) has been executed on [_________ __], 2011 (the
“Execution Date”), but is made effective as of the Effective Time (as defined below), from
Enduro Operating LLC, a Delaware limited liability company (“Grantor”) and wholly owned
subsidiary of Enduro Resource Partners LLC, a Delaware limited liability company (“Enduro
Sponsor”), to Enduro Texas LLC, a Delaware limited liability company and wholly owned
subsidiary of Enduro Sponsor (“Grantee”). The Parties acknowledge and agree that this
Conveyance has been effected pursuant to the terms and conditions of that certain Agreement and
Plan of Merger, dated as of the Effective Time, between Grantor and Grantee (the “Grantee
Merger”).

     Grantor and Grantee are sometimes referred to herein individually as a “Party” and
collectively as the “Parties.” Capitalized terms used in this Conveyance shall have the
respective meanings ascribed to them in Article II.

ARTICLE I

GRANT OF NET PROFITS INTEREST

     For and in consideration of Ten and No/100 Dollars ($10.00) and other good and valuable
consideration to Grantor paid by Grantee, the receipt and sufficiency of which are hereby
acknowledged by Grantor, Grantor has bargained, sold, granted, conveyed, transferred, assigned, set
over, and delivered, and by this Conveyance does hereby bargain, sell, grant, convey, transfer,
assign, set over, and deliver unto Grantee, its successors and assigns, effective as of the
Effective Time, the Net Profits Interest, which shall be calculated in accordance with the
provisions of Article IV and payable solely out of the Net Profits derived from the gross proceeds
attributable to the sale of the Subject Hydrocarbons, all as more fully provided hereinbelow.

     TO HAVE AND TO HOLD the Net Profits Interest, together with all and singular the rights and
appurtenances thereto in anywise belonging, unto Grantee, its successors and assigns, subject,
however, to the following terms and provisions:

ARTICLE II

INTERPRETATION; DEFINITIONS

     Section 2.1 Interpretation

          (a) All references in this Conveyance to Exhibits, Articles, Sections, subsections, clauses
and other subdivisions refer to the corresponding Exhibits, Articles, Sections, subsections,
clauses and other subdivisions of or to this Conveyance unless expressly provided otherwise.
Titles or headings appearing at the beginning of any Exhibits, Articles, Sections, subsections,
clauses and other subdivisions of this Conveyance are for convenience only, do not constitute any
part of this Conveyance and shall be disregarded in construing the language hereof. The words
“this Conveyance,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer
to this Conveyance as a whole and not to any particular Article, Section, subsection, clause or
other subdivision unless expressly so limited. The words

 

 

“this Article,” “this Section,” “this subsection,” “this clause,” and words of similar import,
refer only to the Article, Section, subsection and clause hereof in which such words occur. The
word “including” (in its various forms) means including without limitation. All references to “$”
or “dollars” shall be deemed references to United States dollars. Each accounting term not defined
herein will have the meaning given to it under GAAP as interpreted as of the date of this
Conveyance. Unless expressly provided to the contrary, the word “or” is not exclusive. Pronouns
in masculine, feminine or neuter genders shall be construed to state and include any other gender,
and words, terms and titles (including terms defined herein) in the singular form shall be
construed to include the plural and vice versa, unless the context otherwise requires. Exhibits
referred to herein are attached to and by this reference incorporated herein for all purposes.
Reference herein to any federal, state, local or foreign Law shall be deemed to also refer to all
rules and regulations promulgated thereunder, unless the context requires otherwise. The terms
“grant,” “convey,” “transfer” and “assign” or words of a similar nature, when used in relation to
the Grantee Merger, shall mean “allocated to” and “vested in.”

          (b) As used in this Conveyance, in regard to Subject Interests located in Louisiana:

          (i) Each reference to “person” will include “juridical persons” as such term is used in
the Louisiana Civil Code.

          (ii) Each reference to “lien” will include a reference to “privilege.”

          (iii) Each reference to “sale” or “conveyance” (and derivations thereof) will, if the
context requires, include a reference to “assignment” and “transfer of ownership” as such
terms are used in the Louisiana Civil Code.

          (iv) The term “fee interest” will refer to the rights of a landowner or a mineral
servitude owner in minerals as used in the Louisiana Mineral Code. Each reference to
“leaseholds” or “leasehold interests” will include a reference to “interests in a mineral
lease” as contemplated by the Louisiana Mineral Code.

          (v) Each reference to “pooling or unitization agreement” will include a reference to
“unitization orders,” and each reference to “pooled unit” will include a reference to units
created by order or by agreement or declared pursuant to contractual authority.

          (vi) Each reference to “property” will include, as the context may require,
“corporeals” and “incorporeals” and “movables” and “immovables” as such terms are used in
the Louisiana Civil Code. Each reference to “real property” will include “immovables,”
whether corporeal immovables or incorporeal immovables as the context may require, as such
terms are used in the Louisiana Civil Code, and also “minerals rights” as such term is used
in the Louisiana Mineral Code. Each reference to the term “personal property” will include
“movables,” whether corporeal movables or incorporeal movables as the context may require,
as such terms are used in the Louisiana Civil Code. Each reference to “fixtures” will
include a reference to “component parts” as such term is used in the Louisiana Civil Code.
Each reference to “easement” or “right-of-

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way” will include a reference to “servitude” as such term is used in the Louisiana Civil Code.
Each reference to “running with the Subject Interests” will include the phrase “and a real
right in the Subject Interests.”

     Section 2.2 Definitions

     “As used herein, the following terms shall have the respective meanings ascribed to them
below:

     “Acquisition Date” shall mean the date on which Grantor or its Affiliate acquired the
applicable Subject Interest.

     “Administrative Hedge Costs” shall mean those costs paid by Grantor after June 30,
2011 to counter-parties under the Existing Hedges or to Persons that provide credit to maintain any
Existing Hedge, but excluding any Hedge Settlement Costs.

     “Affiliate” shall mean with respect to a specified Person, any Person that directly or
indirectly controls, is controlled by, or is under common control with, the specified Person. As
used in this definition, the term “control” (and the related terms “controlling,” “controlled by,”
and “under common control”) shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person, whether through ownership
of voting securities, by contract or otherwise.

     “BOE” shall mean (a) for Oil included in the Subject Hydrocarbons, one barrel, (b) for
Gas Liquids included in the Subject Hydrocarbons, one (1) barrel, and (c) for Gas included in the
Subject Hydrocarbons, the amount of such hydrocarbons equal to one barrel, determined using the
ratio of six (6) Mcf of Gas to one barrel of Oil.

     “Business Day” shall mean any day that is not a Saturday, Sunday, a holiday determined
by the New York Stock Exchange as affecting “‘ex’ dates” or any other day on which national banking
institutions in New York, New York are closed as authorized or required by law.

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

     “Conveyance” shall have the meaning ascribed to it in the Preamble to this Conveyance.

     “Credits” shall have the meaning given such term in Section 4.1(b).

     “Debit Balance” shall have the meaning given such term in Section 4.2(b).

     “Debit Balance Amount” shall have the meaning given such term in Section 4.2(b).

     “Debits” shall have the meaning given such term in Section 4.1(b).

     “Effective Time” shall mean 7:00 a.m., Central Time, on June 1, 2011.

     “Eligible Materials” shall mean Materials for which amounts in respect of the cost of
such Materials were properly debited to the Net Profits Account.

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     “Enduro Sponsor” shall have the meaning ascribed to it in the Preamble to this
Conveyance.

     “Environmental Laws” shall mean, as the same have been amended to the date hereof, the
Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et_seq.; the
Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et_seq.; the Federal Water Pollution
Control Act, 33 U.S.C. § 1251 et_seq.; the Clean Air Act, 42 U.S.C. § 7401 et_seq.; the Hazardous
Materials Transportation Act, 49 U.S.C. § 1471 et_seq.; the Toxic Substances Control Act, 15 U.S.C.
§§ 2601 through 2629; the Oil Pollution Act, 33 U.S.C. § 2701 et_seq.; the Emergency Planning and
Community Right-to-Know Act, 42 U.S.C. § 11001 et_seq.; and the Safe Drinking Water Act, 42 U.S.C.
§§ 300f through 300j; and all similar laws as of the date hereof of any governmental body having
jurisdiction over the property in question addressing pollution or protection of the environment
and all regulations implementing the foregoing that are applicable to the operation and maintenance
of the Subject Interests.

     “Excluded Deductions” shall mean deduction amounts related to any of the following
items: (a) any amount that has also been used to reduce or offset the amount of the Subject
Hydrocarbons (or proceeds of production thereof) or has otherwise not been included therein
(including proceeds attributable to royalties, overriding royalties, production payments and other
charges burdening the Subject Interests as of the Effective Time); (b) any overriding royalty,
production payment or other charge burdening the Subject Interests which was created by Grantor
after the Acquisition Date; (c) any general, administrative or overhead costs paid or incurred by
Grantor or its Affiliates, except for those expressly permitted hereunder; (d) any interest,
premiums, fees or similar charges arising out of borrowings or purchases of any goods, equipment or
other items on credit, whether or not used on or otherwise related to the Subject Interests; (e)
all Manufacturing Costs; (f) any amounts paid by Grantor (initial or a successor) to such Grantor’s
predecessor in interest with respect to part or all of the Subject Interests (including without
limitation any purchase price or other consideration paid by Grantor to such predecessor in
interest to acquire all or part of the Subject Interests); (g) any amount arising from any
condition, circumstance, activity, practice, incident, action, or plan that gives rise to any
material liability, or otherwise form the basis of any claim, action, suit, proceeding, hearing or
investigation, based on or related to the processing, distribution, use, treatment, storage,
disposal, transport, or handling, or the emission, discharge, Release or threatened Release into
the environment, of any pollutant, contaminant, or hazardous substance or other toxic material or
waste from or attributable to the use or operation of any of the Subject Interests which either
occurred prior to, on or after the Effective Time and are attributable to Grantor’s gross
negligence or willful misconduct; and (h) costs and expenses (not to exceed, in the aggregate,
$9,100,000) arising out of operations covered by the AFEs for the wells set forth on Exhibit
B.

     “Excluded Proceeds” shall mean the following proceeds and amounts:

          (a) any Offset Amounts, except that, for purposes of determining the proceeds and amounts that
constitute “Excluded Proceeds” for purposes hereof, (i) there shall not be any deductions to such
proceeds and amounts, in the cases of subsections (c), (h) and (j) of the definition for “Offset
Amounts,” for the actual costs of salvage or disposition or any Manufacturing Costs, as applicable,
(ii) cash payments received by Grantor as a result of any pooling or unitization of the Subject
Interests shall be considered Excluded Proceeds regardless

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of whether the costs giving rise to such payments were charged to the Net Profits Interest and
(iii) insurance proceeds received by Grantor shall be considered Excluded Proceeds regardless of
whether the cost of such insurance was charged to the Net Profits Account;

          (b) any proceeds that are withheld from Grantor for any reason (other than at the request of
Grantor), until such time that the proceeds are actually received by Grantor, provided that
proceeds that are received by Grantor and promptly deposited by it with an escrow agent in order to
resolve a dispute with respect thereto shall not be considered to be “received” by Grantor for
purposes of this definition until the time that such amounts are actually collected by Grantor;

          (c) if Grantor becomes an underproduced party under any Gas balancing or similar arrangement
affecting the Subject Interests, any amounts for any Gas attributable to the Subject Interests for
which Grantor is entitled to receive as “make-up” Gas that would otherwise be attributable to the
Subject Interests;

          (d) if Grantor becomes an overproduced party under any Gas balancing or similar arrangement
affecting the Subject Interests, any amounts for any Gas taken by an underproduced party as
“make-up” Gas that would otherwise be attributable to the Subject Interests;

          (e) any amount received by Grantor in respect of any production of Subject Hydrocarbons prior
to the Effective Time;

          (f) any amount to which Grantor is entitled by virtue of a judgment of a court of competent
jurisdiction resolving a dispute hereunder between Grantee and Grantor in favor of Grantor, or any
amount paid to Grantor in settlement of such dispute;

          (g) except as set forth in Section 6.2, any amounts or compensation received by Grantor in
connection with any Prior Reversionary Interest; and

          (h) any additional proceeds (i.e., proceeds attributable to the non-participating party) from
the sale of Hydrocarbons related to any Subject Well with respect to which Grantor elects to be a
participating party (whether such rights are available pursuant to an operating agreement or other
agreement or arrangement) with respect to any operation with respect to such Subject Well for which
another party or parties have elected not to participate in such operation (or have elected to
abandon such Subject Well) and Grantor elects to pay the costs of such nonparticipating or
abandoning party and as a result of which Grantor becomes entitled to receive, either temporarily
(i.e., through a period of recoupment) or permanently such additional proceeds from the sale of
Hydrocarbons related to such Subject Well.

     “Execution Date” shall have the meaning ascribed to it in the Preamble to this
Conveyance.

     “Existing Hedges” shall mean the Hedges entered into by Grantor and described on
Exhibit C.

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     “Fair Value” shall mean an amount equal to the excess, if any, of (a) the proceeds
which could reasonably be expected to be obtained from the sale of such portion of the Net Profits
Interest to a party which is not an Affiliate of either Grantor or the Grantee on an arms-length
negotiated basis, taking into account relevant market conditions and factors existing at the time
of any such proposed sale or release, over (b) Grantee’s proportionate share of any sales costs,
commissions and brokerage fees related to such sales.

     “GAAP” shall mean U.S. generally accepted accounting principles.

     “Gas” shall mean natural gas and other gaseous hydrocarbons or minerals, including
helium, but excluding any Gas Liquids.

     “Gas Liquids” shall mean those natural gas liquids and other liquid hydrocarbons,
including ethane, propane, butane and natural gasoline, and mixtures thereof, that are removed from
a Gas stream by the liquids extraction process of any field facility or gas processing plant and
delivered by the facility or plant as natural gas liquids.

     “Grantee” shall have the meaning ascribed to it in the Preamble to this Conveyance.

     “Grantee Merger” shall have the meaning ascribed to it in the Preamble to this
Conveyance.

     “Grantor” shall have the meaning ascribed to it in the Preamble to this Conveyance.

     “Gross Deductions” shall mean the following costs and expenses (and, where applicable,
losses, liabilities and damages), to the extent that the same (x) are properly allocable to the
Subject Interests (and any related equipment or property used in connection therewith) and the
production and marketing of Subject Hydrocarbons therefrom and (y) have been incurred or accrued by
Grantor, from and after 7:00 a.m., Central Time, on July 1, 2011, but that are not attributable to
a production month that occurs prior to 7:00 a.m., Central Time, on June 1, 2011 (excluding, in all
instances, the Excluded Deductions):

          (a) all costs paid by Grantor (i) for drilling, development, production and abandonment
operations (including activities necessary to gain access to and prepare well locations for
drilling; operations and activities related to drilling and equipping Subject Wells and service
wells; operations constituting or associated with workovers; the plugging and abandoning of any
well or facility on the Subject Interests; and secondary recovery, pressure maintenance,
repressuring, recycling and other operations conducted for the purpose of enhancing production from
the Subject Interests), (ii) for all direct labor (including employee and fringe benefits) and
other services necessary for drilling, operating, producing and maintaining the Subject Interests
and workovers of any Subject Well, (iii) for treatment, dehydration, compression, separation and
transportation of the Subject Hydrocarbons (including activities related to the acquisition,
construction and installation of production and injection facilities), (iv) for all Materials
purchased for use on, or in connection with, any of the Subject Interests and (v) for any other
operations with respect to the exploration, development or operation of Subject Hydrocarbons
(including costs for the maintenance of any Subject Well or facility on the Leases; replacement of
any facilities; the restoration or remediation of the surface or subsurface sites associated with
the Subject Interests or lands pooled or unitized therewith; and any marketing

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fees paid to non-Affiliates of Grantor); provided, however, that (A) the costs charged to the
Net Profits Account for such items shall be made (1) on the same basis as such costs are charged
under the operating agreement associated with the applicable portion of the Subject Interests at
the time the transaction giving rise to such costs occurred, or (2) in the absence of such
operating agreement, on the same basis as Grantor is charged under existing third party
arrangements; and (B) if Grantor elects to pay the costs of a nonconsenting party or
nonparticipating party with respect to which the gross proceeds derived from such costs are not
credited to the Net Profits Account, Grantor shall be solely responsible for such costs;

          (b) (i) all losses, costs, expenses, liabilities and damages (including outside legal,
accounting and engineering services) attributable to, or incident to the operation or maintenance
of, the Subject Interests associated with (A) defending, prosecuting, handling, investigating or
settling litigation, administrative proceedings, claims (including lien claims other than liens for
borrowed funds), damages, judgments, fines, penalties and other liabilities, (B) the payment of
judgments, penalties and other liabilities (including interest thereon), paid by Grantor and not
reimbursed under insurance maintained by Grantor or others (including all losses, costs, expenses,
liabilities and damages arising from third-party claims, lawsuits or causes of action for personal
injury or death or damage to personal or real property (both surface and subsurface), including
those losses, costs, expenses, liabilities and damages arising under Environmental Laws with
respect to the Subject Interests or in any way from the environmental condition of the Subject
Interests), (C) the payment or restitution of any proceeds of Subject Hydrocarbons, (D) complying
with applicable local, state and federal statutes, ordinances, rules and regulations, and (E) tax
or royalty audits, and (ii) any other loss, cost, expense, liability or damage (including
settlement costs and reasonable attorneys’ fees) incurred by Grantor in relation to the Subject
Interests not paid or reimbursed under insurance; excluding, in each instance, any expenses
incurred by Grantor in litigation of any claim or dispute arising hereunder between the Parties or
amounts paid by Grantor to Grantee pursuant to a final order entered by a court of competent
jurisdiction resolving any such claim or dispute or amounts paid by Grantor to Grantee in
connection with the settlement of any such claim or dispute;

          (c) all taxes, charges and assessments (excluding federal and state income, transfer,
mortgage, inheritance, estate, franchise and like taxes) incurred, accrued or paid by Grantor with
respect to the ownership of the Subject Interests or the extraction of the Subject Hydrocarbons,
including production, severance or excise and other similar taxes, charges and assessments assessed
against, or measured by, the production of (or the proceeds or value of production of) Subject
Hydrocarbons, occupation taxes, gathering, pipeline, excise, sales, use and other taxes, and ad
valorem and property taxes, charges and assessments assessed against or attributable to the Subject
Interests or any equipment used in connection with production from any of the Subject Interests and
any extraordinary or windfall profits taxes, charges and assessments that may be assessed in the
future based upon profits realized or prices received from the sale of Subject Hydrocarbons;

          (d) all insurance premiums attributable to the ownership or operation of the Subject Interests
paid by Grantor for insurance actually carried for periods after the Effective Time with respect to
the Subject Interests, or any equipment located on any of the Subject Interests, or incident to the
operation or maintenance of the Subject Interests;

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          (e) all amounts and other consideration paid by Grantor for (i) rent and the use of or damage
to the surface, (ii) delay rentals, shut-in well payments, minimum royalties and similar payments,
and (iii) fees for renewal, extension, modification, amendment, replacement or supplementation of
the Leases included in the Subject Interests;

          (f) all amounts charged by the relevant operator as overhead, administrative or indirect
charges specified in the applicable operating agreements or other arrangements now or hereafter
covering the Subject Interests or operations with respect thereto;

          (g) to the extent Grantor is the operator of certain of the Subject Interests and there is no
operating agreement covering such portion of the Subject Interests, those overhead, all
administrative or indirect charges that are allocated by Grantor to such portion of the Subject
Interests, to the extent that such charges are allocated in the same manner that Grantor allocates
to other similarly owned and operated properties;

          (h) if, as a result of the occurrence of the bankruptcy or insolvency or similar occurrence of
the purchaser of Subject Hydrocarbons, any and all amounts previously credited to the Net Profits
Account are reclaimed from Grantor or its representative, then the amounts reclaimed as promptly as
practicable following Grantor’s payment thereof;

          (i) all costs and expenses paid by Grantor for recording this Conveyance and, immediately
prior to the last Payment Period, costs estimated in good faith to record the termination or
release of this Conveyance;

          (j) all Administrative Hedge Costs paid by Grantor;

          (k) all Hedge Settlement Costs paid by Grantor;

          (l) all amounts previously included, or otherwise accounted for, in the calculation of Gross
Profits but subsequently paid by Grantor as a refund, interest or penalty; and

          (m) at the option of Grantor, all amounts reserved for approved development expenditure
projects, including amounts for drilling, recompletion and workover costs, provided that, such
amounts, (i) to the extent not already spent or incurred by Grantor, will at no time exceed two
million dollars ($2,000,000) in the aggregate, and (ii) shall not be included as part of the Gross
Deductions in subsequent Payment Periods.

     “Gross Fair Value” means an amount equal to the Fair Value divided by eighty percent
(80%).

     “Gross Profits” shall mean, for each Payment Period following the Effective Time, an
amount equal to the sum of (excluding, in all instances, the Excluded Proceeds) the gross proceeds
received by Grantor during the applicable Payment Period (and that are not attributable to a
production month that occurs prior to the Effective Time) from the sale of all Subject
Hydrocarbons, including the following proceeds and amounts: (a) all proceeds and consideration
received, directly or indirectly, for advance payments and payments under take-or-pay and similar
provisions of Production Sales Contracts when credited against the price for delivery of
production; and (b) all proceeds and amounts received by Grantor (i) from any “make up” Gas

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taken by Grantor as a result of its position as an underproduced party under any Gas balancing
or similar arrangement affecting the Subject Interests, (ii) received as a balancing of accounts
under a Gas balancing or other similar arrangement affecting the Subject Interests either as an
interim balancing or at the depletion of the reservoir, and (iii) for any Gas taken by Grantor
attributable to the Subject Interests in excess of its entitlement share of such Gas; provided,
however, that Gross Profits (A) shall not include any Manufacturing Proceeds and (B) in the event
that Subject Hydrocarbons are Processed prior to sale, shall only include the Payment Value of such
Subject Hydrocarbons before any such Processing.

     “Gross Reversionary Compensation” means an amount equal to (a) that portion of the
Reversionary Compensation that is attributable to the Net Profits Interest released pursuant to
Section 6.2 divided by (b) eighty percent (80%).

     “Hedge” shall mean any commodity hedging transaction pertaining to Hydrocarbons,
whether in the form of (a) forward sales and options to acquire or dispose of a futures contract
solely on an organized commodities exchange, (b) derivative agreements for a swap, cap, collar or
floor of the commodity price, or (c) similar types of financial transactions classified as
“notional principal contracts” pursuant to Treasury Regulation § 1.988-1(a)(2)(iii)(B)(2).

     “Hedge Settlement Costs” shall mean any and all payments required to be made by
Grantor after June 30, 2011 to the counterparties in connection with the settlement or
mark-to-market of trades made under any Existing Hedge and all payments made by Grantor for any
early termination of any Existing Hedge.

     “Hedge Settlement Revenues” shall mean any and all payments received by Grantor after
June 30, 2011 from the counterparties in connection with the settlement or mark-to-market of trades
made under any Existing Hedge and all payments received by Grantor for any early termination of any
Existing Hedge.

     “Hydrocarbons” shall mean Oil, Gas and Gas Liquids.

     “Lease” shall mean, subject to the depth limitations and other restrictions that may
be set forth therein, (a) the oil and gas leases, oil, gas and mineral leases, subleases and other
leaseholds, contractual rights, and other rights to hydrocarbons set forth on Exhibit A as
to all lands and depths described in such lease (or the applicable part or portion thereof, if
limited in depth or areal extent in Exhibit A) and any interest therein and any leasehold
interest in any other lease of Hydrocarbons derived from the pooling or unitization of each such
lease (or portion thereof, if limited in depth or areal extent in Exhibit A) with other leases,
together with any interest acquired or maintained in any and all renewals and extensions of such
lease, (b) any replacement lease taken upon or in anticipation of termination of such lease (if
executed and delivered during the term of or within one year after the expiration of the
predecessor lease), as to all lands and depths described in the predecessor lease and in which
Grantor had an interest under the predecessor lease (unless the extended or predecessor lease is
specifically limited in depth or areal extent in Exhibit A, in which event only the
corresponding portion of such lease shall be considered a renewal or extension or a replacement
lease subject to this Conveyance), and (c) any other leasehold, royalty, overriding royalty or fee
interest described on Exhibit A.

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     “Manufacturing Costs” shall mean the costs of Processing that generate Manufacturing
Proceeds received by Grantor.

     “Manufacturing Proceeds” shall mean the excess, if any, of (a) proceeds received by
Grantor from the sale of Subject Hydrocarbons that are the result of any Processing over (b) the
part of such proceeds that represents the Payment Value of such Subject Hydrocarbons before any
Processing.

     “Materials” shall mean materials, supplies, equipment and other personal property or
fixtures located on or used in connection with the Subject Interests.

     “Mcf” shall mean one thousand cubic feet.

     “Monthly Statement” shall have the meaning given such term in Section 4.5.

     “Net Deductions” shall mean, for each Payment Period following the Effective Time, an
amount equal to the excess, if any, of (a) the sum of the Gross Deductions over (b) the sum of the
Offset Amounts.

     “Net Profits” shall have the meaning given such term in Section 4.2(a).

     “Net Profits Account” shall mean the account maintained in accordance with the
provisions of Section 4.1.

     “Net Profits Interest” shall mean an overriding royalty calculated as a variable
undivided percentage interest in and to the Subject Hydrocarbons entitling Grantee to receive a sum
equal to the Proceeds Percentage of the Net Profits for each Payment Period for the term of this
Conveyance.

     “NPI Calculation” shall have the meaning given such term in Section 4.2(a).

     “NPI Payout” shall have the meaning given such term in Section 4.2(a).

     “Offset Amounts” shall mean the following amounts (net of any applicable taxes):

          (a) any amounts received by Grantor as delay rentals, bonus, royalty or other similar
payments;

          (b) any amounts received by Grantor in connection with, or for dry hole, bottom hole or other
similar contributions related to, the Subject Interests;

          (c) upon salvage or other disposition, the applicable actual salvage value (determined in
accordance with the applicable operating agreement then in effect and binding upon Grantor or, in
the absence of such agreement, based on the fair market value of such items in the region in which
they are located) of any Eligible Materials, less, in each instance, the actual costs of salvage or
other disposition paid or incurred by Grantor in connection with such sale;

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          (d) any cash payments received by Grantor as a result of any pooling or unitization of the
Subject Interests if the costs giving rise to such payments were charged to the Net Profits
Account, directly or indirectly;

          (e) any insurance proceeds received by Grantor as a result of any loss, liability or damage
relating to the Subject Interests, Eligible Materials or Subject Hydrocarbons if the cost of such
insurance was charged to the Net Profits Account;

          (f) any amounts received by Grantor from third parties as rental or use fees for Eligible
Materials;

          (g) the gross proceeds of any judgments or claims received by Grantor for damages occurring on
or after the Effective Time to (i) the Subject Interests, (ii) any Eligible Materials and (iii) any
Subject Hydrocarbons;

          (h) to the extent not covered under subsection (c) above, any proceeds received by Grantor
from the sale of Eligible Materials less the actual costs paid or incurred by Grantor in connection
with such sale;

          (i) any payments made to Grantor in connection with the drilling or deferring of drilling of
any Subject Well;

          (j) for any Subject Hydrocarbons that are Processed before sale, the excess, if any, of the
Manufacturing Proceeds arising therefrom (that are received by Grantor) over the Manufacturing
Costs of such Processing (that are paid or incurred by Grantor);

          (k) any interest, penalty or other amount not derived from the sale of the Subject
Hydrocarbons that is paid to Grantor by the purchaser of production or escrow agent in connection
with proceeds withheld or deposited with an escrow agent;

          (l) any Hedge Settlement Revenues;

          (m) in the event that any such Transfers occur, the Gross Fair Value of the Net Profits
Interest released during the relevant Payment Period in connection with the Transfers described in
Section 6.1(a)(ii); and

          (n) any amounts of Gross Reversionary Compensation associated with a conveyance of all or any
portion of the Subject Interests, or cessation of production from any Subject Well, in connection
with a Prior Reversionary Interest pursuant to Section 6.2.

     “Oil” shall mean crude oil, condensate and other liquid hydrocarbons recovered by
field equipment or facilities, excluding Gas Liquids.

     “Party” or “Parties” shall have the meaning ascribed to it in the Preamble to
this Conveyance.

     “Payment Period” shall mean a calendar month, provided that for purposes of the Net
Profits Interest, (a) the first Payment Period shall mean the period from and after the Effective

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Time until September 30, 2011, and (b) the last Payment Period shall mean any portion of the
calendar month during which the expiration of the term of this Agreement occurs from the beginning
of such calendar month until and including the date of such expiration.

     “Payment Value” of any Subject Hydrocarbons shall mean:

          (a) With respect to Oil and Gas Liquids, (i) the highest price available to Grantor for such
Oil and Gas Liquids at the Lease on the date of delivery pursuant to a bona fide offer, posted
price or other generally available marketing arrangement from or with a non-Affiliate purchaser, or
(ii) if no such offer, posted price or arrangement is available, the fair market value of such Oil
or Gas Liquids, on the date of delivery at the Lease, determined in accordance with generally
accepted and usual industry practices; and

          (b) With respect to Gas, (i) the price specified in any Production Sales Contract for the sale
of such Gas, or (ii) if such Gas cannot be sold pursuant to a Production Sales Contract, (A) the
average of the three highest prices (adjusted for all material differences in quality) being paid
at the time of production for Gas produced from the same field in sales between non-affiliated
Persons (or, if there are not three such prices within such field, within a 50-mile radius of such
field) but, for any Gas subject to price restrictions established, prescribed or otherwise imposed
by any governmental authority having jurisdiction over the sale of such Gas, no more than the
highest price permitted for such category or type of Gas after all applicable adjustments
(including tax reimbursement, dehydration, compression and gathering allowances, inflation and
other permitted escalations), or (B) if subsection (b)(ii)(A) above is not applicable, the fair
market value of such Gas, on the date of delivery, at the Lease, determined in accordance with
generally accepted and usual industry practices.

          “Permitted Encumbrances” shall mean the following insofar as they cover, describe or
relate to the Subject Interests or the lands described in any Lease:

          (a) the terms, conditions, restrictions, exceptions, reservations, limitations and other
matters contained in the agreements, instruments and documents that create or reserve to Grantor
its interests in any of the Leases, including any Prior Reversionary Interest;

          (b) any (i) undetermined or inchoate liens or charges constituting or securing the payment of
expenses that were incurred incidental to maintenance, development, production or operation of the
Leases or for the purpose of developing, producing or processing Hydrocarbons therefrom or therein,
and (ii) materialman’s, mechanics’, repairman’s, employees’, contractors’, operators’ or other
similar liens or charges for liquidated amounts, in each case, arising in the ordinary course of
business that Grantor has agreed to pay or is contesting in good faith in the ordinary course of
business;

          (c) any liens for taxes and assessments not yet delinquent or, if delinquent, that are being
contested in good faith by Grantor in the ordinary course of business;

          (d) any liens or security interests created by law or reserved in any Lease for the payment of
royalty, bonus or rental, or created to secure compliance with the terms of the agreements,
instruments and documents that create or reserve to Grantor its interests in the Leases;

12

 

          (e) any obligations or duties affecting the Leases to any municipality or public authority
with respect to any franchise, grant, license or permit, and all applicable laws, rules,
regulations and orders of any governmental authority;

          (f) any (i) easements, rights-of-way, servitudes, permits, surface leases and other rights in
respect of surface operations, pipelines, grazing, hunting, lodging, canals, ditches, reservoirs or
the like, and (ii) easements for streets, alleys, highways, pipelines, telephone lines, power
lines, railways and other similar rights-of-way, on, over or in respect of the lands described in
the Leases;

          (g) all lessors’ royalties, overriding royalties, net profits interests, carried interests,
production payments, reversionary interests and other burdens on the Subject Interests or
deductions from the proceeds of production attributable to the Subject Interests created or in
existence as of the Acquisition Date;

          (h) preferential rights to purchase or similar agreements and required third party consents to
assignments or similar agreements created or in existence as of the Acquisition Date;

          (i) all rights to consent by, required notices to, filings with, or other actions by any
Person in connection with the Transfer of the Leases or interests therein;

          (j) production sales contracts; division orders; contracts for sale, purchase, exchange,
refining or processing of Hydrocarbons; unitization and pooling designations, declarations, orders
and agreements; operating agreements; agreements for development; area of mutual interest
agreements; gas balancing or deferred production agreements; processing agreements; plant
agreements; pipeline, gathering and transportation agreements; injection, repressuring and
recycling agreements; salt water or other disposal agreements; seismic or geophysical permits or
agreements; and any and all other agreements entered into by Grantor or its Affiliates in
connection with the exploration or development of the Leases or the extraction, processing or
marketing of production therefrom or to which any of the Leases were subject as of the Acquisition
Date; and

          (k) conventional rights of reassignment that obligate Grantor to reassign all or part of a
property to a third party if Grantor intends to release or abandon such property, including any
Prior Reversionary Interest.

     “Person” shall mean any individual, partnership, limited liability company,
corporation, trust, unincorporated association, governmental agency, subdivision, instrumentality,
or other entity or association.

     “Prime Rate” means the rate of interest published from time to time as the “Prime
Rate” in the “Money Rates” section of The Wall Street Journal.

     “Prior Reversionary Interest” shall mean any contract, agreement, lease, deed,
conveyance or operating agreement that exists as of the Effective Time or that burdened the Subject
Interests at the Acquisition Date, that by the terms thereof requires a Person to convey a part of
the Subject Interests (or the Net Profits Interest with respect to any part of the Subject

13

 

Interests) to another Person or to permanently cease production of any Subject Well, including
obligations arising pursuant to any operating agreements, Leases, and other similar agreements or
instruments affecting or burdening the Subject Interests.

     “Proceeds Percentage” shall mean eighty percent (80%).

     “Processing” or “Processed” shall mean to manufacture, fractionate or refine
Subject Hydrocarbons, but such terms do not mean or include activities involving the use of normal
lease or well equipment (such as dehydrators, gas treating facilities, mechanical separators,
heater-treaters, lease compression facilities, injection or recycling equipment, tank batteries,
field gathering systems, pipelines and equipment and similar items) to treat or condition
Hydrocarbons or other normal operations on any of the Subject Interests.

     “Production Sales Contracts” shall mean all contracts, agreements and arrangements for
the sale or disposition of Hydrocarbons.

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

     “Reversionary Compensation” shall have the meaning given such term in Section 6.2.

     “Subject Hydrocarbons” shall mean all Hydrocarbons in and under and that may be
produced, saved, and sold from, and are attributable to, the Subject Interests from and after the
Effective Time, after deducting the appropriate share of all royalties and any overriding
royalties, production payments, net profits interests and other similar charges (except the Net
Profits Interest) burdening the Subject Interests as of the Acquisition Date to the extent such
burdens were still in force and effect at the Effective Time, provided that, (a) there shall not be
included in the Subject Hydrocarbons (i) any Hydrocarbons attributable to non-consent operations
conducted with respect to the Subject Interests (or any portion thereof) as to which Grantor shall
be a non-consenting party as of the Effective Time that are dedicated to the recoupment or
reimbursement of costs and expenses of the consenting party or parties by the terms of the relevant
operating agreement, unit agreement, contract for development, or other instrument providing for
such non-consent operations (including any interest, penalty or other amounts related thereto), or
(ii) any Hydrocarbons lost in production or marketing or used by Grantor for drilling, production
or plant operations (including fuel, secondary or tertiary recovery) conducted solely for the
purpose of producing Subject Hydrocarbons from the Subject Interests, and (b) there shall be
included in the Subject Hydrocarbons any Hydrocarbons attributable to non-consent operations
conducted with respect to the Subject Interests (or any portion thereof) as to which Grantor shall
be a non-consenting party as of the Effective Time that are produced, saved, and sold from, and are
attributable to the Subject Interests after the Effective Time from and after the recoupment or
reimbursement of costs and expenses (including any interest, penalty or other amounts related
thereto) of the consenting party or parties by the terms of the relevant operating agreement, unit
agreement, contract agreement, contract development, or other instruments providing for such
non-consent operations.

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     “Subject Interests” shall mean each kind and character of right, title, claim, or
interest (solely for purposes of this definition, collectively “rights”) that Grantor has or owns
in the Leases and the Subject Wells, whether such rights be under or by virtue of a lease, a
unitization or pooling order or agreement, an operating agreement, a division order, or a transfer
order or be under or by virtue of any other type of claim or title, legal or equitable, recorded or
unrecorded, even though Grantor’s interest be incorrectly or incompletely described in, or a
description thereof omitted from, Exhibit A, all as such rights shall be (a) enlarged or
diminished by virtue of the provisions of Section 5.2, and (b) enlarged by the discharge of any
obligations for payments out of production or by the removal of any charges or encumbrances to
which any of such rights are subject at the Effective Time (provided that such discharge or removal
is pursuant to the express terms of the instrument that created such charge, obligation or
encumbrance) and any and all renewals, extensions and replacements of the right occurring within
one year after the expiration of such rights.

     “Subject Well” shall mean each well (whether now existing or hereinafter drilled) on
the Leases in respect of which Grantor owns any interest or is entitled to any of the Hydrocarbons
production or the proceeds therefrom (including directly or indirectly by virtue of the effect of
any farmout or farmin provisions or other provisions).

     “Transfer” shall mean any assignment, sale, transfer, conveyance, exchange, or
disposition of any property (and shall include any derivative variants of each such term);
provided, however, that, as used herein, the term “Transfer” shall not include the granting of a
security interest, pledge, or mortgage in or of Grantor’s interest in any property, including the
Subject Interests or the Subject Hydrocarbons.

ARTICLE III

SPECIAL WARRANTY OF TITLE

     Grantor warrants title to the Net Profits Interest, subject to the Permitted Encumbrances,
unto Grantee, its successors and assigns, against all persons whomsoever claiming or to claim the
same, or any part thereof, by, through or under Grantor, but not otherwise. Grantor transfers to
Grantee by way of substitution and subrogation (to the fullest extent that same may be
transferred), all rights or actions over and against all of Grantor’s predecessors, covenantors or
warrantors of title (other than Affiliates of Grantor). Grantor’s special warranty of title set
forth in this Article III is understood to include, in regard to Subject Interests located in
Louisiana, an express exclusion of the warranty against eviction as provided in Article 2503 of the
Louisiana Civil Code, including any obligation on the part of Grantor for return of the price or
other consideration given.

ARTICLE IV

ESTABLISHMENT OF NET PROFITS ACCOUNT

     Section 4.1 Net Profits Account.

          (a) In order to account for, track and make the payments associated with the Net Profits
Interest, Grantor shall establish and maintain true and correct books and records in order to
determine the credits and debits to a Net Profits Account to be maintained by Grantor at

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all times during the term hereof. The Net Profits Account will be maintained in accordance
with the terms of this Conveyance and prudent and accepted accounting principles.

          (b) From and after the Execution Date with respect to each Payment Period, (i) the Net Profits
Account shall be credited with an amount equal to the sum of the Gross Profits (subject to the
deduction described in Section 4.4(a)) received by Grantor from the sale of all Subject
Hydrocarbons during the applicable Payment Period (the “Credits”), and (ii) the Net Profits
Account shall be debited with an amount equal to the sum of the Net Deductions during the
applicable Payment Period (subject to the following sentence) (the “Debits”). If, in
calculating the amount of Net Deductions for any Payment Period, the Offset Amounts exceed the
Gross Deductions, then the Net Deductions for that Payment Period shall be zero, and such excess,
plus interest on such excess amount at the Prime Rate for the period between the last day of the
preceding Payment Period and the date the excess amount has been used to reduce the Net Deductions
in succeeding Payment Periods, shall be applied to reduce the Net Deductions in each succeeding
Payment Period until exhausted. Under no circumstances shall the amount paid in respect of any
Payment Period exceed eighty percent (80)% of Gross Profits for such Payment Period.

          (c) The Credits and Debits to the Net Profits Account shall not be interpreted or applied in
any manner that (i) results in any duplication of all or any part of any such Credit or Debit (or
reduction thereto) under this Conveyance, or (ii) ever results in the inclusion of any charge to
the Net Profits Account that is reimbursed to Grantor by any Person.

          (d) GRANTEE ACKNOWLEDGES AND AGREES THAT THE PROVISIONS ESTABLISHING AND MAINTAINING THE NET
PROFITS ACCOUNT AND THE DEBITING OF ITEMS THERETO SHALL BE APPLICABLE REGARDLESS OF WHETHER THE
LOSSES, COSTS, EXPENSES, LIABILITIES AND DAMAGES THAT MAY BE DEBITED IN ACCORDANCE WITH THIS
CONVEYANCE AROSE SOLELY OR IN PART FROM THE ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT
LIABILITY OR OTHER FAULT OF GRANTOR OR ANY OF ITS AFFILIATES, OTHER THAN LOSSES, COSTS, EXPENSES,
LIABILITIES AND DAMAGES THAT AROSE FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF GRANTOR OR
ANY OF ITS AFFILIATES, WHICH SHALL NOT BE DEBITED TO THE NET PROFITS ACCOUNT. NOTWITHSTANDING THE
FOREGOING, NOTHING IN THIS CONVEYANCE SHALL BE CONSTRUED AS A WAIVER OR RELEASE OF GRANTOR FROM ANY
CLAIM, ACTION OR LIABILITY ARISING UNDER SECTION 5.1(a).

     Section 4.2 Accounting and Payment.

          (a) Following the conclusion of each Payment Period, a calculation (the “NPI
Calculation”) shall be made by Grantor by deducting (i) (A) the total Debits for such Payment
Period and (B) the absolute value of the Debit Balance Amount, if any, carried forward in the Net
Profits Account at the beginning of such Payment Period from (ii) the total Credits for such
Payment Period. If the NPI Calculation results in a positive amount with respect to the Payment
Period (the “Net Profits”), then (i) that positive amount shall be subtracted from the
balance of the Net Profits Account to cause the Net Profits Account to have a zero balance
immediately following the end of such Payment Period, (ii) that positive amount shall be multiplied
by the

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Proceeds Percentage, and (iii) the resulting product thereof (the “NPI Payout”) shall
be payable to Grantee as specified in Section 4.3.

          (b) If the NPI Calculation results in a negative amount with respect to a Payment Period, the
negative sum shall be deemed the “Debit Balance” for purposes hereof; and no payments
shall be made to Grantee in respect of the Net Profits Interest nor shall Grantee ever be liable to
make any payment to Grantor in respect of the Debit Balance. Any Debit Balance, plus interest on
such amount at the Prime Rate for the period between the last day of the Payment Period that
resulted in such Debit Balance and the last day of the next Payment Period, (the “Debit Balance
Amount”) shall be carried forward in the Net Profits Account for the following Payment Period.

          (c) All amounts received by Grantor from the sale of the Subject Hydrocarbons for any Payment
Period shall be held by Grantor in one of its general bank accounts and Grantor shall not be
required to maintain a segregated account for such funds.

     Section 4.3 Payment of NPI Payout. For each Payment Period, Grantor shall transfer or cause to be transferred to Grantee an
amount equal to the NPI Payout, if any, with respect to the Payment Period on or before the last
day of the month that follows such period. All funds payable to Grantee on account of the Net
Profits Interest shall be calculated and paid entirely and exclusively out of the Net Profits.

     Section 4.4 Overpayment; Past Due Payments.

          (a) If Grantor ever pays Grantee more than the amount of money then due and payable to Grantee
under this Conveyance, Grantee shall not be obligated to return the overpayment, but Grantor may at
any time thereafter reduce the NPI Payout by, and retain for its own account, an amount equal to
the overpayment, plus interest at the Prime Rate on such amount for the period between the
fifteenth (15th) day from the date of the overpayment and the date such amount is recovered by
Grantor. In order to exercise its rights under this Section 4.4(a), Grantor must give Grantee
written notice with respect to any such overpayment, together with supporting information and data.

          (b) Any amount not paid by Grantor to Grantee with respect to the Net Profits Interest when
due shall bear, and Grantor hereby agrees to pay, interest at the Prime Rate from the due date
until such amount has been paid. Grantor shall give Grantee written notice with respect to any
such past due payment, together with supporting information and data.

     Section 4.5 Statements. For each Payment Period, Grantor shall deliver to Grantee a statement (“Monthly
Statement”) showing the NPI Calculation with respect to the Payment Period on or before the
last day of the month that follows such period. Additionally, the Monthly Statement delivered in
July shall also show the computation of the NPI Calculation for the preceding calendar year. If
Grantee takes exception to any item or items included in any Monthly Statement, Grantee must
notify Grantor in writing within one hundred and twenty (120) days after the end of the
calendar year with respect to which such Monthly Statement relates. Such notice must set forth in
reasonable detail the specific Debits or Credits to which exception is taken. Adjustments shall be
made for all exceptions that are agreed to by the Parties. All

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matters contained in Monthly
Statements that are not objected to by Grantee in the manner provided by this Section 4.5 shall be
conclusively deemed correct.

     Section 4.6 Information; Access. Grantor shall maintain true and correct books, records and accounts of (a) all transactions
required or permitted by this Conveyance (including all financial information necessary to reflect
such transactions), and (b) the financial information necessary to make the NPI Calculation with
respect to any Payment Period. Grantee or its representative, at the Grantee’s expense and upon
reasonable prior written notice, may inspect and copy such books, records, and accounts, and such
other documents, contracts and information as may be reasonably requested by the Grantee, in
Grantor’s office during normal business hours. At Grantee’s request, subject to applicable
restrictions on disclosure and transfer of information, Grantor shall give Grantee and its
designated representatives reasonable access in Grantor’s office during normal business hours to
(i) all production data in Grantor’s possession or Grantor’s Affiliates’ possession, relating to
operations on the Subject Interests, and (ii) all reserve reports and reserve studies in the
possession of Grantor or of Grantor’s Affiliates, relating to the Subject Interests, whether
prepared by Grantor, by Grantor’s Affiliates, or by consulting engineers. GRANTOR MAKES NO
REPRESENTATIONS OR WARRANTIES ABOUT THE ACCURACY OR COMPLETENESS OF ANY SUCH DATA, REPORTS, OR
STUDIES REFERRED TO IN THIS SECTION 4.6 AND SHALL HAVE NO LIABILITY TO GRANTEE OR ANY OTHER PERSON
RESULTING FROM SUCH DATA, STUDIES, OR REPORTS OR THE USE THEREOF.

ARTICLE V

OPERATION OF THE SUBJECT INTERESTS

     Section 5.1 Operations.

          (a) To the extent that it has the right to do so under the terms of any lease, operating
agreement or similar instrument affecting or pertaining to the Subject Interests, Grantor shall
conduct and carry on, or use commercially reasonable efforts to cause the operator thereof to
conduct and carry on, the operation and maintenance of the Subject Interests in the same manner as
a reasonably prudent operator in the State in which the applicable portion of the Subject Interests
is located would under the same or similar circumstances acting with respect to its own properties
(without regard to the existence of the Net Profits Interest).

          (b) As to any third Person, the acts of Grantor shall be binding on Grantee, and it shall not
be necessary for Grantee to join with the Grantor in the execution or ratification of any operating
agreement, unit operating agreement, contract for development, or similar instrument affecting or
pertaining to any of the Subject Interests.

          (c) Grantee acknowledges that Grantor is not the only undivided interest owner in the
properties underlying the Subject Interests. As such, Grantee agrees that the acts or omissions of
Grantor’s co-owners shall not be deemed to constitute a violation of the provisions of Section
5.1(a), nor shall any action required by a vote of co-owners be deemed to constitute such a
violation so long as Grantor has voted its interest in a manner designed to comply with Section
5.1(a).

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          (d) WITHOUT LIMITING THE FOREGOING, (i) THE PARTIES ACKNOWLEDGE THAT GRANTEE HAS NO RIGHT OR
POWER TO PROPOSE THE DRILLING OF A WELL OR ANY OTHER OPERATIONS, TO DETERMINE THE TIMING OR
SEQUENCE OF ANY OPERATIONS, TO COMMENCE OR SHUT DOWN PRODUCTION, TO TAKE OVER OPERATIONS, OR TO
SHARE IN ANY OPERATING DECISION WHATSOEVER OR IN ANY DECISION PERTAINING TO THE MARKETING AND SALE
OF PRODUCTION WHATSOEVER AND, (ii) THE PARTIES HEREBY EXPRESSLY NEGATE ANY INTENT TO CREATE (AND
THIS CONVEYANCE SHALL NEVER BE CONSTRUED AS CREATING) A MINING OR OTHER PARTNERSHIP OR JOINT
VENTURE OR OTHER RELATIONSHIP SUBJECTING GRANTOR AND GRANTEE TO JOINT LIABILITY OR ANY OTHER DUTIES
BETWEEN GRANTOR AND GRANTEE (EXCEPT THOSE EXPRESSLY SET FORTH HEREIN).

     Section 5.2 Pooling and Unitization

          (a) Certain of the Subject Interests may have been heretofore pooled or unitized for the
production of Hydrocarbons. Such Subject Interests are and shall be subject to the terms and
provisions of such pooling or unitization agreements, and this Conveyance shall apply to and affect
only the production of Hydrocarbons from such units which accrues to such Subject Interests under
and by virtue of the applicable pooling and unitization agreements.

          (b) Grantor shall have the right to pool or unitize all or any of the Subject Interests (and
the Net Profits Interest) and to alter, change, amend or terminate any pooling or unitization
agreements heretofore or hereafter entered into, as to all or any part of the lands covered by the
Leases, as to one or more of the formations or horizons thereunder, when, in the reasonable
judgment of Grantor, it is necessary or advisable to do so in order to facilitate the orderly
development of the Subject Interests or to comply with the requirements of any law or governmental
order or regulation relating to the spacing of wells or proration of the production therefrom. For
purposes of computing Net Profits, there shall be allocated to the Subject Interests included in
such unit a pro rata portion of the Hydrocarbons produced from the pooled unit on the same basis
that production from the pool or unit is allocated to other working interests in such pool or unit
by virtue of the applicable pooling or unitization agreement. The interest in any such unit
allocable to the Subject Interests included therein shall become a part of the Subject Interests
and shall be subject to the Net Profits Interest.

     Section 5.3 Non-Consent. Grantor shall have the right to elect not to participate in any operations that are to be
conducted under the terms of any operating agreement, unit operating agreement, contract for
development, or similar instrument affecting or pertaining to any of the Subject Interests. If
Grantor elects to be a non-participating party under any such arrangement with respect to any
operation on any portion of the Subject Interests or elects to be an abandoning party with respect
to a Subject Well, the consequence of which election is that Grantor’s interest in such Subject
Well is temporarily (i.e., during a recoupment period) or permanently relinquished to the parties
participating in such operations, or electing not to abandon such Subject Well, then the costs and
proceeds attributable to such relinquished interest shall not, for the period of such
relinquishment (which may be a continuous and permanent period), be debited or credited to the Net
Profits Account and such relinquished interest shall not, for the period of such relinquishment, be
considered to be subject to the Net Profits Interest.

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Notwithstanding the foregoing, Grantor shall
not elect, as to any portion of the Subject Interests, to be a non-participating party with respect
to any operation contemplated in this Section 5.3 in the event any Affiliate of Grantor will also
be a participating party in such operation.

     Section 5.4 Marketing. Grantor shall have exclusive charge and control of the marketing of all Subject
Hydrocarbons. Grantor shall market or cause to be marketed all commercial quantities of the
Subject Hydrocarbons in accordance with Section 5.1(a), and shall not be entitled to deduct from
the calculation of the Net Profits any fee for marketing the Subject Hydrocarbons allocable to the
Net Profits Interest other than fees for marketing paid to non-Affiliates. Grantor shall not enter
into any Hedges (other than the Existing Hedges) with respect to the Subject Hydrocarbons from and
after the Effective Time or modify or terminate the Existing Hedges. Grantee shall have no right
to take in kind any Subject Hydrocarbons.

     Section 5.5 Leases. Grantor shall have the right to renew, extend, modify, amend or supplement the Leases with
respect to any of the lands covered thereby without the consent of Grantee. The Net Profits
Interest shall apply to all such renewals, extensions, modifications, amendments and supplements of
the Leases (as to all lands and depths described in the predecessor lease and in which Grantor had
an interest under the predecessor lease), and no renewal, extension, modification, amendment, or
supplement shall adversely affect any of Grantee’s rights hereunder. Any fees payable with respect
to such renewal, extension, modification, amendment or supplement shall be considered Gross
Deductions for purposes hereof. Grantor shall promptly furnish Grantee with written notice of any
renewal, extension, modification, amendment, or supplementation that materially affects the Net
Profits Interest identifying the location and the acreage covered thereby.

     Section 5.6 Abandonment. Grantor shall have the right to release, surrender or abandon its interest in any portion
of the Subject Interests that Grantor reasonably believes, in accordance with the standard set
forth in Section 5.1(a), will no longer produce (or be capable of producing) Subject Hydrocarbons
in paying quantities. The effect of such release, surrender or abandonment will be to release,
surrender or abandon the Net Profits Interest insofar as the Net Profits Interest covers the
applicable portion of the Subject Interests so released, surrendered or abandoned by Grantor.
Following any such release, surrender or abandonment, Grantor will promptly notify Grantee in
writing of the portion of the Subject Interests that has been released, surrendered or
abandoned, and the date on which such release, surrender or abandonment has occurred. Further,
Grantor shall have the right to abandon any portion of the Subject Interests if (a) such
abandonment is necessary for health, safety or environmental reasons, or (b) the Subject
Hydrocarbons that would have been produced from the abandoned portion of the Subject Interests
would reasonably be expected to be produced from Subject Wells located on the remaining portion of
the Subject Interests.

     Section 5.7 Contracts with Affiliates. Grantor and its Affiliates may perform services and furnish supplies or equipment with
respect to the Subject Interests that are required to operate the Subject Interests and treat the
costs of such services or furnishing of such supplies or equipment as Gross Deductions for purposes
hereof. The terms of the provision of such services or furnishing of supplies or equipment shall be
substantially similar to those terms available from non-Affiliates in the same area as the
applicable portion of the Subject Interests that are engaged in the business of rendering
comparable services or furnishing comparable equipment and

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supplies, taking into consideration all
such terms, including the price, term, condition of supplies or equipment, and availability of
supplies or equipment.

     Section 5.8 No Personal Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS CONVEYANCE, GRANTEE SHALL NEVER
BE PERSONALLY RESPONSIBLE FOR THE PAYMENT OF ANY PART OF THE LOSSES, COSTS, EXPENSES, LIABILITIES
OR DAMAGES INCURRED IN CONNECTION WITH THE EXPLORING, DEVELOPING, OPERATING AND MAINTAINING OF THE
SUBJECT INTERESTS, AND, SUBJECT TO SECTION 4.1(d), ALL SUCH LOSSES, COSTS, EXPENSES, LIABILITIES OR
DAMAGES SHALL, TO THE EXTENT THE SAME RELATE TO ACTS, OMISSIONS, EVENTS, CONDITIONS OR
CIRCUMSTANCES OCCURRING FROM AND AFTER 7:00 A.M., CENTRAL TIME, ON JULY 1, 2011, BE TREATED AS
GROSS DEDUCTIONS FOR PURPOSES HEREOF.

     Section 5.9 Real Property Interest. IT IS THE EXPRESS INTENT OF THE PARTIES THAT, AS TO SUBJECT INTERESTS LOCATED IN TEXAS AND
NEW MEXICO, THE NET PROFITS INTEREST SHALL FOR ALL PURPOSES CONSTITUTE (AND THIS CONVEYANCE SHALL
CONCLUSIVELY BE CONSTRUED FOR ALL PURPOSES AS CREATING) A SINGLE AND SEPARATE NON-POSSESSORY,
NON-OPERATING, ROYALTY INTEREST IN AND TO THE SUBJECT INTERESTS AND A FULLY VESTED AND FULLY
CONVEYED INTEREST IN REAL PROPERTY RUNNING WITH THE SUBJECT INTERESTS.

     Section 5.10 Incorporeal Immovable and Real Right. IT IS THE EXPRESS INTENT OF THE PARTIES THAT, AS TO SUBJECT INTERESTS LOCATED IN LOUISIANA,
THE NET PROFITS INTEREST SHALL FOR ALL PURPOSES CONSTITUTE (AND THIS CONVEYANCE SHALL CONCLUSIVELY
BE
CONSTRUED FOR ALL PURPOSES AS CREATING) A SINGLE AND SEPARATE NON-POSSESSORY, NON-OPERATING,
ROYALTY INTEREST IN AND TO THE SUBJECT INTERESTS AND A FULLY VESTED AND FULLY CONVEYED INCORPOREAL
IMMOVABLE AND A REAL RIGHT IN THE SUBJECT INTERESTS.

ARTICLE VI

TRANSFERS AND CHARGES

     Section 6.1 Assignment by Grantor Subject to Net Profits Interest.

          (a) Right to Sell.

          (i) Grantor may from time to time Transfer its interest in the Subject Interests, or
any part thereof or undivided interest therein, subject to the Net Profits Interest and this
Conveyance. Grantor shall cause the assignee, purchaser, transferee or grantee of any such
transaction to take the affected Subject Interests subject to the Net Profits Interest and
this Conveyance and, from and after the actual date of any such Transfer, to assume
Grantor’s obligations under this Conveyance with respect to such Subject Interests.

21

 

          (ii) Notwithstanding the foregoing, Grantor may from time to time Transfer to
non-Affiliates of Grantor, free and clear of the Net Profits Interest and this Conveyance,
any of the Subject Interests that accounts for less than or equal to 0.25% of the total
production of Subject Hydrocarbons from the Subject Interests in the preceding twelve (12)
month period. The aggregate Fair Value of all portions of the Net Profits Interest released
in connection with such Transfers shall not exceed an aggregate Fair Value of five hundred
thousand dollars ($500,000) during any consecutive twelve (12) month period. In the event
of any such Transfer, (A) the Gross Fair Value of the released portion of the Net Profits
Interest shall be considered an Offset Amount for purposes hereof during the Payment Period
in which the Transfer occurs, and (B) Grantee shall, upon receiving a written request from
Grantor, immediately prior to any such Transfer, execute, acknowledge, and deliver to
Grantor a recordable instrument (reasonably acceptable to Grantor) that terminates and
releases the Net Profits Interest with respect to the Subject Interests being Transferred.

          (b) Effect of Sale. From and after the actual date of any of the Transfers described
in Section 6.1(a) by Grantor, Grantor (and in the case of Section 6.1(a)(ii) only, any grantee,
purchaser, transferee or grantee of the Subject Interests) shall be relieved of all obligations,
requirements, and responsibilities arising under this Conveyance with respect to the Subject
Interests Transferred, except for those that accrued prior to such date.

          (c) Allocation of Consideration. Grantee is not entitled to receive any share of the
sales proceeds received by Grantor in any transaction permitted by this Section 6.1.

          (d) Separate Interest. Effective on the effective date of any Transfer of any Subject
Interest pursuant to this Section 6.1, Gross Profits, Excluded Proceeds, Net Deductions, Gross
Deductions, Offset Amounts and Net Profits shall thereafter be calculated and determined separately
(by the assignee, purchaser, transferee or grantee) with respect to such Subject
Interests; and Debits and Credits during each Payment Period in respect of the Subject
Interests Transferred shall reflect items received or incurred by the assignee, purchaser,
transferee or grantee, and shall be calculated in accordance with Article IV hereof.

     Section 6.2 Release of Other Properties. Notwithstanding anything herein to the contrary, in the event that any Person notifies
Grantor that, pursuant to a Prior Reversionary Interest, Grantor is required to convey all or any
portion of the Subject Interests (or the Net Profits Interest with respect to all or any portion of
the Subject Interests) to such Person or cease production from any Subject Well, Grantor shall have
the right to provide such conveyance with respect to such portion of the Subject Interests (or the
Net Profits Interest with respect to such portion of the Subject Interests) or permanently cease
production from any such Subject Well. If in connection with any such conveyance or permanent
cessation of production pursuant to any Prior Reversionary Interest, Grantor receives compensation
attributable to all or any portion of the Net Profits Interest (“Reversionary
Compensation”), an amount equal to the Gross Reversionary Compensation shall be considered an
Offset Amount for purposes hereof during the Payment Period in which Grantor receives the
Reversionary Compensation. In connection with any such conveyance or permanent cessation of
production, Grantee shall, on request, immediately prior to such event, execute, acknowledge, and
deliver to Grantor a recordable instrument (reasonably acceptable to Grantor) that terminates and
releases the Net Profits Interest

22

 

with respect to any such portion of the Subject Interests or
Subject Well, as applicable, to Grantor. From and after the actual date of any such conveyance or
permanent cessation of production, Grantor and any grantee, purchaser, transferee or grantee of
such Subject Interest (or the Net Profits Interest with respect to such Subject Interest) shall be
relieved of all obligations, requirements, and responsibilities arising under the Net Profits
Interest or this Conveyance with respect to such portion of the Subject Interests, except for those
that accrued prior to such date.

     Section 6.3 Mortgages and Security Interests. Nothing herein shall prevent Grantor from granting a lien, mortgage, security interest or
other charge in Grantor’s interest in any property, including the Subject Interests and the Subject
Hydrocarbons. Grantor agrees that it shall cause each agreement, indenture, bond, deed of trust,
filing, application or other instrument that creates or purports to create a lien, mortgage,
security interest or other charge secured by the Subject Interests, the Subject Hydrocarbons or the
proceeds from the sale of the Subject Hydrocarbons to include an express agreement and
acknowledgement by the parties thereto that the Net Profits Interest is senior in right of payment
and collection to any and all obligations created thereby in respect of the Subject Interests, the
Subject Hydrocarbons or the proceeds from the sale of the Subject Hydrocarbons. The preceding
sentence shall not apply to any agreement, indenture, bond, deed of trust, filing, application or
other instrument that creates a lien, mortgage, security interest or other charge secured by not
more than Grantor’s residual interest in the Subject Interests, the Subject Hydrocarbons or the
proceeds from the sale of the Subject Hydrocarbons.

     Section 6.4 Rights of Mortgagee, Pledgee or Trustee. If Grantee shall at any time execute a mortgage, pledge or deed of trust covering all or
part of the Net Profits Interest, the mortgagee(s), pledge(s) or trustee(s) therein named or the
holder of any obligation secured thereby shall be entitled, to the extent such mortgage, pledge or
deed of trust so provides, to exercise all the rights, remedies, powers, and privileges conferred
upon Grantee by the terms of this Conveyance and to give or withhold all consents required to be
obtained hereunder by Grantee, but the provisions of this Section 6.4 shall in no way be deemed or
construed to impose upon Grantor any obligation or liability undertaken by Grantee under such
mortgage, pledge or deed of trust or under any obligation secured thereby.

     Section 6.5 Assignment or Mortgage by Grantee. Grantee shall provide Grantor with written notice of any Transfer, mortgage or pledge of
all or any portion of the Net Profits Interest. No such Transfer, mortgage or pledge will affect
the method of computing Gross Profits, Excluded Proceeds, Net Deductions, Gross Deductions, Offset
Amounts or Net Profits, or impose any additional obligation or liability on Grantor. Grantor shall
never be obligated to pay the NPI Payout (or portions thereof) to more than one Person. If more
than one Person is ever entitled to receive payment of any part of the NPI Payout, Grantor may
suspend payments of the NPI Payout until the concurrent owners or claimants of the Net Profits
Interest or the right to receive payment of the NPI Payout appoint one Person in writing to receive
all payments of the Net Profits on their behalf. Grantor may thereafter conclusively rely upon the
authority of that Person to receive payments of the NPI Payout and shall be under no further duty
to inquire into the authority or performance of such Person.

23

 

ARTICLE VII

MISCELLANEOUS

     Section 7.1 Notices. All notices and other communications which are required or may be given pursuant to this
Conveyance must be given in writing, in English and delivered personally, by courier, by telecopy
or by registered or certified mail, postage prepaid, as follows:

     If to Grantor:

Enduro Operating LLC

777 Main Street, Suite 800

Fort Worth, Texas 76102

Attention: Jon S. Brumley

Facsimile No.: [________________]

     If to Grantee:

Enduro Texas LLC

777 Main Street, Suite 800

Fort Worth, Texas 76102

Attention: Jon S. Brumley

Facsimile No.: [________________]

Either Party may change its address for notice by notice to the other Party in the manner set forth
above. All notices shall be deemed to have been duly given at the time of receipt by the Party to
which such notice is addressed.

     Section 7.2 Ownership of Certain Property. The Net Profits Interest does not include any right, title, or interest in and to any
personal property, fixtures, or equipment and is exclusively an interest in and to the Subject
Interests and the Subject Hydrocarbons.

     Section 7.3 Non-Recourse. Grantee shall look solely to the Net Profits for the
satisfaction and discharge of the Net Profits Interest and, except in the event of Grantor’s
failure to pay as required by Section 4.3, Grantor shall not be liable for such satisfaction or
discharge. Grantor shall not have any liability (and Grantee shall have no recourse or remedy
against Grantor) in the event that the Subject Interests terminate without having generated the
Subject Hydrocarbons, Net Profits or NPI Payouts that are expected to be generated during the term
of the Net Profits Interest.

     Section 7.4 Payments. Grantor shall transfer or cause to be transferred all monies to which Grantee is entitled
hereunder by Federal funds wire transfer not later than the date when due, to Grantee at the bank
account specified by Grantee in writing to Grantor.

     Section 7.5 Amendments. This Conveyance may not be amended, altered or modified except pursuant to a written
instrument executed by the Parties.

     Section 7.6 Further Assurances. The Parties shall from time to time do and perform such further acts and execute and
deliver such further instruments, conveyances, and documents as may be required or reasonably
requested by the other Party to establish, maintain, or protect

24

 

the respective rights and remedies
of the Parties and to carry out and effectuate the intentions and purposes of this Conveyance.

     Section 7.7 Waivers. Any failure by either Party to comply with any of its obligations, agreements or conditions
herein contained may be waived by the Party to whom such compliance is owed by an instrument signed
by such Party and expressly identified as a waiver, but not in any other manner. No waiver of, or
consent to a change in, any of the provisions of this Conveyance shall be deemed or shall
constitute a waiver of, or consent to a change in, other provisions hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

     Section 7.8 Severability. The invalidity or unenforceability of any term or provision of this Conveyance in any
situation or jurisdiction shall not affect the validity or enforceability of the other terms or
provisions hereof or the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction and the remaining terms and provisions shall remain in full
force and effect, unless doing so would result in an interpretation of this Conveyance which is
manifestly unjust.

     Section 7.9 No Partition. The Parties acknowledge that Grantee has no right or interest that would permit Grantee to
partition any portion of the Subject Interests, and Grantee hereby waives any such right.

     Section 7.10 Governing Law. EXCEPT WHERE PROHIBITED BY THE LAW OF THE STATE IN WHICH THE RELEVANT SUBJECT INTERESTS ARE
LOCATED, THIS CONVEYANCE AND THE LEGAL RELATIONS BETWEEN THE PARTIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REFERENCE TO CONFLICTS OF LAW
RULES OR PRINCIPLES THAT MAY REQUIRE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.

     Section 7.11 Rule Against Perpetuities. It is not the intent of the Parties that any provision herein violate any applicable law
regarding the rule against perpetuities or other rules regarding the vesting or duration of
estates, and this Conveyance shall be construed as not violating any such rule to the extent the
same can be so construed consistent with the expressed intent of the Parties as set forth herein.
In the event, however, that any provision hereof is determined to violate any such rule, then such
provision shall nevertheless be effective for the maximum period (but not longer than the maximum
period) permitted by such rule that will result in no violation. To extent that the maximum period
is permitted to be determined by reference to “lives in being,” the Parties agree that “lives in
being” shall refer to the lifetime of the last survivor of the descendents of the late Joseph P.
Kennedy (the father of the late John F. Kennedy, the 35th President of the United States of
America) living as of the Effective Time.

     Section 7.12 Tax Matters. Without limiting the disclaimer in Section 5.1(d)(ii), nothing herein contained shall be
construed to constitute a partnership or to cause either Party (under state law or for tax
purposes) to be treated as being the agent of, or in partnership with, the other party. Grantor
may cause to be withheld from any payment hereunder any tax withholding required by law or
regulations, including, in the case of any withholding obligation arising from

25

 

income that does not
give rise to any cash or property from which any applicable withholding tax could be satisfied, by
way of set off against any subsequent payment of cash or property hereunder.

     Section 7.13 Counterparts. This Conveyance may be executed in counterparts, each of which shall be deemed an original
instrument, but all such counterparts together shall constitute but one instrument. No Party shall
be bound until such time as all of the Parties have executed counterparts of this Conveyance. To
facilitate recordation, there may be omitted from the Exhibits to this Conveyance in certain
counterparts descriptions of property located in recording jurisdictions other than the
jurisdiction in which the particular counterpart is to be filed or recorded.

     Section 7.14 Conspicuous. GRANTOR AND GRANTEE AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE OR
ENFORCEABLE, THE PROVISIONS IN THIS CONVEYANCE IN ALL CAPS FONT ARE “CONSPICUOUS” FOR THE PURPOSE
OF ANY APPLICABLE LAW.

     Section 7.15 Binding Effect. All the covenants, restrictions and agreements of Grantor herein contained shall be deemed
to be covenants running with the Subject Interests and the lands affected thereby. All of the
provisions hereof shall inure to the benefit of Grantee and its successors and assigns and shall be
binding upon Grantor and its successors and assigns and all other owners of the Subject Interests
or any part thereof or any interest therein.

     Section 7.16 Limitation on Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY, NONE OF GRANTOR, GRANTEE OR ANY OF THEIR
RESPECTIVE AFFILIATES SHALL BE ENTITLED TO SPECIAL, INDIRECT, PUNITIVE OR EXEMPLARY DAMAGES IN
CONNECTION WITH THIS CONVEYANCE, AND EACH PARTY, FOR ITSELF AND ON BEHALF OF ITS AFFILIATES, HEREBY
EXPRESSLY WAIVES ANY RIGHT TO SPECIAL, INDIRECT, PUNITIVE OR EXEMPLARY DAMAGES IN CONNECTION WITH
THIS CONVEYANCE AND THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 7.17 Term. The Net Profits Interest shall remain in full force and effect as long as any portion of
the Subject Interests is in full force and effect. At any time after the termination of the Net
Profits Interest, Grantee shall, upon the request of Grantor, execute and deliver such instruments
as may be necessary to evidence the termination of the Net Profits Interest.

     Section 7.18 No Third Party Beneficiaries. Nothing in this Conveyance shall entitle any Person other than the Parties to any claims,
cause of action, remedy or right of any kind.

     Section 7.19 Construction. The Parties acknowledge that (a) Grantor and Grantee have had the opportunity to exercise
business discretion in relation to the negotiation of the details of the transaction
contemplated hereby, (b) this Conveyance is the result of arms-length negotiations from equal
bargaining positions, and (c) Grantor and Grantee and their respective counsel participated in the
preparation and negotiation of this Conveyance. Any rule of

26

 

construction that a document be
construed against the drafter shall not apply to the interpretation or construction of this
Conveyance.

     Section 7.20 Merger Clause. This Conveyance constitutes the entire agreement between the Parties pertaining to the
subject matter hereof, and supersedes all prior agreements, understandings, negotiations and
discussions, whether oral or written, of the Parties pertaining to the subject matter hereof.

     Section 7.21 Reliance by Third Parties. No third party (including operators, production purchasers and disbursing parties) is
responsible for calculating or separately reporting and paying to Grantee any sums that are
potentially attributable to the Net Profits Interest; and such third parties may include the
interest of Grantee within the interest credited to Grantor for all purposes. Grantor shall
attend to the actual distribution of the NPI Payout to Grantee as provided in this Conveyance. To
the extent that any provision of a state oil and gas proceeds payment statute requires an operator,
production purchaser or disbursing party to account for and separately pay proceeds of production
attributable to the Net Profits Interest, Grantor and Grantee specifically (a) authorize such third
parties to include the Net Profits Interest within the interest credited to Grantor, and (b) waive
the application of such statute, to the extent possible, and such payment shall be made to Grantor
directly. No third party shall be under any obligation to inquire as to, or to see to, the
application by Grantor of the proceeds received by it from any sale of production attributable to
the Net Profits Interest.

[Signature Page Follows]

27

 

     IN WITNESS WHEREOF, this Conveyance has been signed by each of the Parties on the Execution
Date and duly acknowledged before the undersigned competent witnesses and Notary Public.

	 	 	 	 	 	 	 

	WITNESSES:	 	 	 	GRANTOR:
	 
	 	 	 	 	 	 
	 	 	 	 	Enduro Operating LLC
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Printed Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Printed Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	WITNESSES:	 	 	 	GRANTEE:
	 
	 	 	 	 	 	 
	 	 	 	 	Enduro Texas LLC
	By:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	Printed Name:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Printed Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

[Signature Page — Conveyance]

 

 

	 	 	 	 	 

	STATE OF ___________

	 	§
	 	 
	 

	 	§	 	 
	COUNTY OF ___________

	 	§	 	 

     BE IT KNOWN, that on this ___ day of ______, 2011, before me, the undersigned authority,
personally came and appeared ___________________ appearing herein in ___ capacity as
___________________ of Enduro Operating LLC, to me personally known to be the identical person
whose name is subscribed to the foregoing instrument as the said officer of said company, and
declared and acknowledged to me, Notary, that ___________________ executed the same on behalf of
said company with full authority of its ___________________, and that the said instrument is the
free act and deed of the said company and was executed for the uses, purposes and benefits therein
expressed.

	 	 	 	 	 

	 
	 	 	 
	 
	 

	 	Printed Name: 	 	 
	 

	 	 	 
	 
	 	 	 	 
	 

	 	Notary Public for the State of  	 
	 

	 	 	 	 
	 

	 	County of	 	 
	 

	 	 	 

My commission expires: ___________

	 	 	 	 	 

	STATE OF ___________

	 	§
	 	 
	 

	 	§	 	 
	COUNTY OF ___________

	 	§	 	 

     BE IT KNOWN, that on this ___ day of ______, 2011, before me, the undersigned authority,
personally came and appeared ___________________ appearing herein in ___ capacity as
___________________ of Enduro Texas LLC, to me personally known to be the identical person whose
name is subscribed to the foregoing instrument as the said officer of said company, and declared
and acknowledged to me, Notary, that ___________________ executed the same on behalf of said
company with full authority of its ___________________, and that the said instrument is the free
act and deed of the said company and was executed for the uses, purposes and benefits therein
expressed.

	 	 	 	 	 

	 
	 	 	 
	 
	 

	 	Printed Name: 	 	 
	 

	 	 	 
	 
	 	 	 	 
	 

	 	Notary Public for the State of  	 
	 

	 	 	 	 
	 

	 	County of	 	 
	 

	 	 	 

My commission expires:_________ __

[Acknowledgement Page — Conveyance]

 

 

EXHIBIT A

ATTACHED TO AND MADE A PART OF THAT

CERTAIN CONVEYANCE OF NET PROFITS INTEREST

DATED AS OF [_________ __], 2011

LEASES

[To be provided]

Exhibit A

 

 

EXHIBIT B

ATTACHED TO AND MADE A PART OF THAT

CERTAIN CONVEYANCE OF NET PROFITS INTEREST

DATED AS OF [_________ __], 2011

WELLS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operator	 	Well Name	 	API #	 	Enduro Well ID	 	Field	 	Parish	 	State
	CHK
	 	HA RA SU113;FRANKS 16-16-12H #1	 	1701524728	 	70195.001.00	 	ELM GROVE	 	DESOTO	 	LA
	QEP
	 	Long-Dehan 7H #1	 	1701524737	 	70195.000.00	 	ELM GROVE	 	DESOTO	 	LA
	QEP
	 	McDowell 7H #1	 	1701524746	 	70192.000.00	 	ELM GROVE	 	DESOTO	 	LA
	QEP
	 	McDowell 7H #2	 	1701524747	 	70193.000.00	 	ELM GROVE	 	DESOTO	 	LA
	QEP
	 	McDowell 7H #3	 	1701524748	 	70194.000.00	 	ELM GROVE	 	DESOTO	 	LA
	EL PASO
	 	HA RA SUN;STEPHENSON ETAL 10H #1-ALT	 	1703125794	 	70090.004.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUE;CARWILE 12 #2-ALT	 	1703125588	 	70079.017.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUE;SAMMO PARTNERSHIP 12 #3-ALT	 	1703125525	 	70079.015.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	CARWILE 12 #3 ALT	 	1703125597	 	70079.014.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUE;SABINE UPLIFT MIN 12 #2-ALT	 	1703125644	 	70079.018.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUE;WADZECK 12 #3-ALT	 	1703125556	 	70079.020.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUE;SAMMO PARTNERSHIP 12 #4-ALT	 	1703125526	 	70079.019.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUE;SABINE UPLIFT MIN 12 #3-ALT	 	1703125645	 	70079.021.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUD;BRENNER 11 #2-ALT	 	1703125672	 	70168.003.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUD;ROE 11 #1-ALT	 	1703125652	 	70082.006.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUD;ROE 11 #3-ALT	 	1703125677	 	70082.009.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUD;ROE 11 #5-ALT	 	1703125679	 	70082.010.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUD;ROE 11 #2-ALT	 	1703125653	 	70082.007.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUD;BRENNER 11 #3-ALT	 	1703125673	 	70168.002.00	 	KINGSTON	 	DESOTO	 	LA
	XCO
	 	HA RA SUD;ROE 11 #4-ALT	 	1703125678	 	70082.008.00	 	KINGSTON	 	DESOTO	 	LA

Exhibit B

 

 

EXHIBIT C

EXISTING HEDGES

Exhibit CExhibit 10.25

Exhibit 10.25

THE TTM TECHNOLOGIES, INC.

EXECUTIVE AND DIRECTOR

DEFERRED COMPENSATION PLAN

Effective as of October 1, 2011

 

 

 

TTM TECHNOLOGIES, INC.

EXECUTIVE AND DIRECTOR DEFERRED COMPENSATION PLAN

ARTICLE I — PURPOSE; EFFECTIVE DATE

	1.1.	 	Purpose. The purpose of this TTM Technologies, Inc. Executive and Director Deferred
Compensation Plan (hereinafter, the “Plan”) is to permit a select group of highly
compensated employees and nonemployee directors of TTM Technologies, Inc. and its
selected subsidiaries and/or affiliates to defer the receipt of income which would otherwise
become payable to them. It is intended that this Plan, by providing these eligible
individuals an opportunity to defer the receipt of income, will assist in retaining and
attracting individuals of exceptional ability.

	1.2.	 	Effective Date. This Plan shall be effective as of October 1, 2011.

	1.3.	 	Plan Type. For purposes of Section 409A of Code (as defined in Article II below),
the portion of the amounts deferred by the Participants and benefits attributable thereto
shall be considered an elective account balance plan as defined in Treas. Reg. §1.409A
-1(c)(2)(i)(A).

ARTICLE II — DEFINITIONS

For the purpose of this Plan, the following terms shall have the meanings indicated, unless
the context clearly indicates otherwise:

	2.1.	 	Account(s). “Account(s)” means the account or accounts maintained on the books of
the Company used solely to calculate the amount payable to each Participant (or his or her
Beneficiary) under this Plan and shall not constitute a separate fund of assets. Account(s)
shall be deemed to exist from the time amounts are first credited to such Account(s) until
such time that the entire Account Balance has been distributed in accordance with the terms
and provisions of this Plan. The Accounts available for each Participant shall be identified
as follows:

	 	a)	 	Retirement Account; and

	 
	 	b)	 	In-Service Account.

Each Participant may maintain up to two (2) In-Service Accounts based on selecting different
times and/or form of payments as provided under Article V of this Plan.

	2.2.	 	Base Salary. “Base Salary” means the regular or base salary or wages received in
respect of services rendered during the applicable period by a Participant from the Company.

 

 

 

	2.3.	 	Beneficiary. “Beneficiary” means the person, persons or entity designated by the
Participant, pursuant to and in accordance with the provisions of Article VI hereof, to
receive any benefits payable under this Plan to the Participant after the Participant’s death.

	2.4.	 	Board. “Board” means the Board of Directors of TTM Technologies, Inc. and/or it
successors.

	2.5.	 	Board Fees. “Board Fees” means the annual retainer paid to a Director in cash, any
cash fees paid to a Director for attending meetings of the Board or of the board of directors
or other governing body of any Company, and any cash fees paid to a Director for serving as on
a committee of the Board or the board of directors or other governing body of any committee
thereof.

	2.6.	 	Bonus. “Bonus” means a cash bonus earned by and payable to a Participant by the
Company for personal services, which shall include Performance-Based Compensation (as defined
below).

	2.7.	 	Change in Control. A “Change in Control” shall mean the occurrence of any one of the
following events:

	 	a)	 	any one person (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or more than one person acting as a
group (as determined under Treasury regulations), acquires ownership of stock of the
Company that, together with stock held by such person or group, constitutes more than 50%
of either the total fair market value or total voting power of the stock of the Company
(except that the acquisition of additional control of the Company by the same person or
persons during such 12-month period is not considered to cause a change in control of the
Company); or

	 	b)	 	any one person (as such term is used in the Exchange Act), or more than one person
acting as a group (as determined under Treasury regulations), acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such
person or persons) ownership of stock of the Company possessing 35% or more of the total
voting power of the Company (except that the acquisition of additional control of the
Company by the same person or persons during such 12-month period is not considered to
cause a change in control of the Company); or

	 	c)	 	a majority of members of the Board is replaced during any 12-month period by
directors whose appointment or election is not recommended by a majority of the members of
the Board prior to the date of the appointment or election; or

	 	d)	 	any one person (as such term is used in the Exchange Act), or more than one person
acting as a group (as determined under Treasury regulations), acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such
person or persons) assets from the Company that have a total gross fair market value equal
to or more than 40% of the total gross fair market value of all of the assets of the
Company immediately prior to such acquisition or acquisitions.

	2.8.	 	Code. “Code” means the Internal Revenue Code of 1986, as may be amended from time to
time. Any reference in this Plan to “applicable guidance”, “further guidance” or other
similar term shall
include any proposed, temporary or final regulations, or any other guidance, promulgated with
respect to or in connection with Section 409A of the Code by the U.S. Department of Treasury or
the Internal Revenue Service.

 

 

 

	2.9.	 	Committee. “Committee” means the Committee appointed by the Board to administer the
Plan pursuant to Article VII hereof.

	2.10.	 	Company. “Company” means TTM Technologies, Inc., a Delaware corporation (or any
successor thereto) and any subsidiary corporation and/or any other affiliate designated by the
Board to participate in this Plan.

	2.11.	 	Compensation. “Compensation” means the total of all amounts paid to a Participant
by the Company as Base Salary and/or Board Fees, and the amount of Bonuses earned and payable,
whichever applicable, for personal services for the Plan Year, but shall exclude any expense
reimbursement or similar item. For purposes of this Plan only, Compensation shall be
calculated before reduction for any amounts deferred by the Participant pursuant to the
Company’s tax qualified plans which may be maintained under Section 401(k) or Section 125 of
the Code, or pursuant to this Plan or any other non-qualified plan which permits the voluntary
deferral of compensation.

	2.12.	 	Deferral Commitment. “Deferral Commitment” means a commitment made by a Participant
to defer a portion of Compensation as set forth in Article III, and as permitted by the
Committee in its sole discretion. The Deferral Commitment shall apply to each payment of
Compensation payable to a Participant, and the Committee is empowered to group the various
types of Compensation together for purposes of effecting the election to defer. By way of
example: the Committee may apply the election to defer “Base Salary” to salary, commissions,
and any other regularly occurring form of compensation; or the Committee may apply the
election to defer “Bonus” to annual bonuses, short-term bonus, long term bonus arrangements
and other forms of incentive based compensation. The Deferral Commitment shall specify the
Account or Accounts to which the Compensation deferred shall be credited. Such designation
shall be made in the form of a stated dollar amount, a whole percentage, or, in the case of a
deferral of bonus Compensation only, a whole percentage in excess of a stated dollar amount.
Except as set forth in Section 3.1(c) of this Plan, a Deferral Commitment with respect to any
Bonus which is determined by the Committee to be Performance Based Compensation shall be made
as provided by the Committee, but no later than six (6) months prior to the end of such
performance period. Any Deferral Commitment shall be made in a form and at a time deemed
acceptable to the Committee.

	2.13.	 	Deferral Period. “Deferral Period” means each calendar year, except that if a
Participant first becomes eligible after the beginning of a calendar year, the initial
Deferral Period shall be the date the Participant first becomes eligible to participate in
this Plan through and including December 31st of that calendar year.

	2.14.	 	Determination Date. “Determination Date” means each business day.

	2.15.	 	Director. “Director” means a member of the Board or a member of the board of
directors or other governing body of any Company.

 

 

 

	2.16.	 	Disability. “Disability” means a physical or mental condition whereby the
Participant: (i) is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death
or can be expected to last for a continuous period of not less than twelve (12) months, or
(ii) is, by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less
than twelve (12) months, receiving income replacement benefits for a period of not less than
three (3) months under an accident and health plan covering employees of the Company.

	2.17.	 	Distribution Election. “Distribution Election” means the form prescribed by the
Committee and completed by the Participant, indicating the chosen form of payment for benefits
payable from each Account under this Plan, as elected by the Participant.

	2.18.	 	Interest. “Interest” means the amount credited to or charged against a
Participant’s Account(s) on each Determination Date, which shall be based on the Valuation
Funds chosen by the Participant as provided in Section 2.27 of this Plan and in a manner
consistent with Section 4.3 hereof. Such credits or charges to a Participant’s Account may be
either positive or negative to reflect the increase or decrease in value of the Account in
accordance with the provisions of this Plan.

	2.19.	 	Participant. “Participant” means any individual who is eligible, pursuant to
Section 3.1, below, to participate in this Plan and who has elected to defer Compensation
under this Plan in accordance with Article III below. Such individual shall remain a
Participant in this Plan for the period of deferral, or credit, and until such time as all
benefits payable under this Plan have been paid in accordance with the provisions hereof.

	2.20.	 	Performance Based Compensation. “Performance Based Compensation” means the portion
of Compensation determined by the Committee to satisfy the requirements set forth in Treas.
Reg.§1.409A-1(e), and such Performance Based Compensation may be determined on a fiscal or
calendar year basis.

	2.21.	 	Plan. “Plan” means this TTM Technologies, Inc. Executive and Director Deferred
Compensation Plan, as may be amended from time to time.

	2.22.	 	Plan Year. “Plan Year” means the calendar year.

	2.23.	 	Retirement. “Retirement” means the Participant’s Separation from Service with the
Company, for reasons other than death or Disability, on or after attainment of age sixty-two
(62) with at least five (5) years of continuous service with the Company.

	2.24.	 	Separation from Service. “Separation from Service” means a separation from service
within the meaning of Section 409A(a)(2) of the Code and Treas. Reg. §1.409A-1(h).

	2.25.	 	Specified Employees. “Specified Employees” means a Participant who is determined by
the Committee to be a “specified employee” under the provisions of Treas. Reg. §1.409A-1(i)
and other applicable guidance, provided that the Company (or a member of the same group of
controlled entities as the Company) is publicly traded on an established stock exchange.

 

 

 

	2.26.	 	Termination. “Termination”, “terminates employment” or any other similar such
phrase means a Participant’s Separation from Service with the Company for any reason.

	2.27.	 	Valuation Funds. “Valuation Funds” means one or more of the independently
established funds or indices that are identified and listed by the Committee. These Valuation
Funds are used solely to calculate the Interest that is credited to each Participant’s
Account(s) in accordance with Article IV of this Plan, and does not represent, nor should it
be interpreted to convey any beneficial interest on the part of the Participant in any asset
or other property of the Company. The determination of the increase or decrease in the
performance of each Valuation Fund shall be made by the Committee in its reasonable
discretion. The Committee shall select the various Valuation Funds available to the
Participants with respect to this Plan and shall set forth a list of these Valuation Funds
attached hereto as Exhibit A, which may be amended from time to time in the discretion of the
Committee.

ARTICLE III — ELIGIBILITY AND PARTICIPATION

	3.1.	 	Eligibility and Participation.

	 	a)	 	Eligibility. Eligibility to participate in the Plan shall be limited to those
select key employees of Company who are included in Tier 5 and above (as set forth in the
Company’s annual incentive compensation program) and who are designated by the Committee
from time to time to participate in this Plan. In addition, Directors shall be eligible
to participate in this Plan upon their election to the board of directors of the Company.

	 	b)	 	Participation. An individual’s participation in the Plan shall be effective
upon the individual first becoming eligible to participate and the completion and
submission of a Deferral Commitment, a Distribution Election and an Allocation Form (as
defined in Section 3.2(c) of this Plan) to the Committee at a time and in a manner
determined by the Committee.

	 	c)	 	First-Year Participation. When an individual first becomes eligible to
participate in this Plan, and is not a Participant in another plan sponsored by the
Company which is considered to be of a similar type as defined in Treas. Reg. §1.409A
-1(c)(2)(i)(A) or (B), or as otherwise provided by the Code and which would be aggregated
for purposes of Section 409A of the Code, a Deferral Commitment may be submitted to the
Committee within thirty (30) days after of the individual becoming eligible to
participate. Such Deferral Commitment will be effective only with regard to Compensation
earned and payable with respect to services performed following submission of the Deferral
Commitment to the Committee in accordance with Treas. Reg. §1.409A-2(a)(7)(i).
Notwithstanding the foregoing, with respect to services performed during 2011, a
Participant shall only be eligible to make a Deferral Commitment with respect to Bonuses
that may be earned and payable for 2011(not with respect to Base Salary), and solely in
accordance with the rules and restrictions set forth in this Section 3.1(c).

 

 

 

	3.2.	 	Form of Deferral Commitment. A Participant may elect to make a Deferral Commitment
at
such other time and in such form as determined by the Committee, but in no event later than the
date on which the election is required to become irrevocable as set forth in this Article III
or otherwise required by Section 409A of the Code and applicable guidance. The Deferral
Commitment shall specify the following:

	 	a)	 	Timing of Deferral Election. The Participant shall make an election to defer
Compensation by filing a Deferral Commitment with the Committee, and such election shall
become irrevocable at the time designated by the Committee, but in no event no later than
the date such election is required to become irrevocable under Section 409A of the Code
prior to the commencement of the Deferral Period, except as provided in Section 3.1(c) of
this Plan. Except as set forth in Section 3.1(c) of the Plan, notwithstanding anything to
the contrary, a Deferral Commitment with respect to Performance Based Compensation may be
filed with the Committee and such election shall become irrevocable no later than six (6)
months before the end of the performance period on which such Performance Based
Compensation is based, provided such Participant has been continuously employed with the
Company from the later of the beginning of the performance period or the date on which the
performance criteria for such Performance Based Compensation was established.

	 	b)	 	Deferral Amounts; Accounts. A Deferral Commitment shall be made with
respect to each payment and/or type of Compensation payable by the Company to a
Participant during the Deferral Period, and shall designate the portion of each deferral
that shall be allocated among the various Retirement or In-Service Accounts. In addition,
no amounts shall be deferred into an In-Service Account during a Deferral Period when
amounts are scheduled to be made from such Account and until such time as that entire
Account Balance has been completely distributed. Notwithstanding anything to the
contrary, solely for purposes of this Plan, Base Salary payable after the last day of the
Plan Year solely for services performed during the final payroll period as described in
Section 3401(b) of the Code shall be treated as compensation for services performed in the
subsequent Plan Year in which the payment is made. The Participant shall set forth the
amount to be deferred in the manner provided by the Committee.

	 	c)	 	Allocation to Valuation Funds. The Participant shall specify in a separate
form (known as the “Allocation Form”) filed with the Committee, the Participant’s
initial allocation of the amounts deferred into each Account among the various available
Valuation Funds.

	 	d)	 	Minimum and Maximum Deferral. Each Participant, so long as he or she remains
a Participant, may elect, pursuant to a Deferral Commitment and in accordance with
Committee rules, to defer receipt of a portion of his or her Compensation pursuant to this
Plan, consisting of (i) a minimum of 5% and a maximum of 50% (in whole percentages) of the
Participant’s Base Salary earned during the Plan Year, and (ii) a minimum of 0% and a
maximum of 100% (in whole percentages) of any Bonuses earned by the Participant during the
Plan Year, and (iii) a minimum of 5% and a maximum of 100% (in whole percentages) of any
Board Fees earned by the Participant during the Plan Year.

 

 

 

	3.3.	 	Period of Commitment. A Participant, so long as he or she remains a Participant,
shall have an opportunity to make a separate Deferral Commitment with respect to Compensation
to be earned for a subsequent Plan Year (during an open enrollment period at such time and in
such manner prescribed by the Committee); provided, however, in the event the Participant
fails to make such separate Deferral Commitment, any Deferral Commitment made by a Participant
with respect to Compensation shall remain in effect for the next succeeding Deferral Period,
and shall remain in effect for all future Deferral Periods unless revoked or amended in
writing by the Participant and delivered to the Committee prior to the time determined by the
Committee but in no event later than the date on which the election is required to become
irrevocable as set forth in this Article or otherwise required by Section 409A of the Code and
applicable guidance, except that if a Participant suffers a Disability or incurs a Separation
from Service with Company prior to the end of the Deferral Period, the Deferral Period shall
end as of the date of Disability or Separation from Service.

	3.4.	 	Irrevocability of Deferral Commitment. Except as provided in Sections 3.3 of this
Plan, a Deferral Commitment shall become irrevocable by the Participant as of the last day on
which an election may be made under the terms of this Plan and during the following Deferral
Period.

	3.5.	 	Change in Status. If the Committee determines that a Participant’s employment
performance is no longer at a level that warrants reward through participation in this Plan,
but does not terminate the Participant’s employment with Company, the Participant’s existing
Deferral Commitment shall terminate at the end of the Deferral Period, and no new Deferral
Commitment may be made by such Participant after notice of such determination is given by the
Committee, unless the Participant later satisfies the requirements of Section 3.1 of this
Plan.

	3.6.	 	Defaults in Event of Incomplete or Inaccurate Deferral Documentation. In the event
that a Participant submits a Deferral Commitment, Allocation Form or Distribution Election to
the Committee that contains information necessary to the efficient operation of this Plan
which, in the sole discretion of the Committee, is missing, incomplete or inaccurate, the
Committee shall be authorized to treat such form as if the following elections had been made
by the Participant, and such information shall be communicated to the Participant:

	 	a)	 	If no Account is listed — treat as if the Retirement Account was elected;

	 
	 	b)	 	If Accounts listed equal less than 100% — treat as if the balance was deferred into
Retirement Account;

	 
	 	c)	 	If Accounts listed equal more than 100% — proportionately reduce each Account to
equal 100%;

	 
	 	d)	 	If In-Service Account is listed, but no deferrals can be made into that Account as
provided in Section 3.2(b) of this Plan due to the fact that benefits are scheduled to be
paid or are being paid from that In-Service Account, then the amounts elected to be
deferred shall be credited to another In-Service Account, if such other In-Service Account
is available for deferral, and if not, then to the Retirement Account;

	 
	 	e)	 	If no Valuation Fund is selected — treat as if the Money Market Fund was elected;

	 
	 	f)	 	If Valuation Fund(s) selected equal less than 100% — treat as if the Money Market
Fund was
elected for remaining balance;

 

 

 

	 	g)	 	If Valuation Fund(s) selected equal more than 100% — proportionately reduce each
Valuation Fund to equal 100%;

	 	h)	 	If no Distribution Election is chosen — treat as if lump sum was elected for
In-Service Account and treat as if three (3) years was elected for Retirement Account; and

	 	i)	 	If no time of payment is chosen for In-Service Account — treat as if the earliest
possible date available under the provisions of Section 5.2 of this Plan was elected.

ARTICLE IV — DEFERRED COMPENSATION ACCOUNT

	4.1.	 	Accounts. The Compensation deferred by a Participant under the Plan and Interest
shall be credited to the Participant’s Account(s) as selected by the Participant, or as
otherwise provided in this Article IV. Separate accounts shall be maintained by the Company
to reflect the different Accounts chosen by the Participant, and the Participant shall
designate the portion of each deferral that will be credited to each Account as set forth in
Section 3.2 of this Plan. These Accounts shall be used solely to calculate the amount payable
to each Participant under this Plan and shall not constitute a separate fund of assets.

	4.2.	 	Timing of Credits; Withholding. A Participant’s deferred Compensation shall be
credited to each Account designated by the Participant as soon as practical after the date the
Compensation deferred would have otherwise been payable to the Participant. Any withholding
of taxes or other amounts with respect to deferred Compensation or other amounts credited
under this Plan that is required by local, state or federal law shall be withheld from the
Participant’s corresponding non-deferred portion of the Compensation to the maximum extent
possible, and any remaining amount shall reduce the amount credited to the Participant’s
Account in a manner specified by the Committee, or as may otherwise be provided by the
Committee.

	4.3.	 	Valuation Funds. A Participant shall designate, at a time and in a manner acceptable
to the Committee, one or more Valuation Funds for each Account for the sole purpose of
determining the amount of Interest to be credited or debited to such Account. Such election
shall designate the portion of each deferral of Compensation made into each Account that shall
be allocated among the available Valuation Fund(s), and such election shall apply to each
succeeding deferral of Compensation until such time as the Participant shall file a new
election with the Committee. Upon notice to the Committee, Participants shall also be
permitted to reallocate the balance in each Valuation Fund among the other available Valuation
Funds as determined by the Committee. The manner in which such elections shall be made and the
frequency with which such elections may be changed and the manner in which such elections
shall become effective shall be determined in accordance with the procedures to be adopted by
the Committee or its delegates from time to time. As of the Effective Date, such elections
may be made electronically as permitted by the Committee; and such elections shall become
effective on the next available Determination Date or as otherwise determined by the
Committee.

 

 

 

	4.4.	 	Determination of Accounts. Each Participant’s Account as of each Determination Date
shall consist of the balance of the Account as of the immediately preceding Determination
Date, adjusted as follows:

	 	a)	 	New Deferrals. Each Account shall be increased by any deferred Compensation
credited since such prior Determination Date in the proportion chosen by the Participant,
except that no amount of new deferrals shall be credited to an Account during a Deferral
Period in which a distribution is to be made from that Account.

	 	b)	 	Distributions. Each Account shall be reduced by the amount of each benefit
payment made from that Account since the prior Determination Date. Distributions shall be
deemed to have been made proportionally from each of the Valuation Funds maintained within
such Account based on the proportion that such Valuation Fund bears to the sum of all
Valuation Funds maintained within such Account for that Participant as of the
Determination Date immediately preceding the date of payment.

	 	c)	 	Interest. Each Account shall be increased or decreased by the Interest
credited to such Account since such Determination Date as though the balance of that
Account as of the beginning of the current month had been invested in the applicable
Valuation Funds chosen by the Participant, or at such other times as determined by the
Committee in its discretion.

	4.5.	 	Vesting of Accounts. Each Participant shall be one hundred percent (100%) vested at
all times in the amount of Compensation elected to be deferred under this Plan, including any
Interest thereon.

	4.6.	 	Forfeitures; Prohibited Activities.

	 	a)	 	Prohibited Activities Defined. For purposes of this Plan, “Prohibited
Activity” shall mean (i) an act or acts of personal dishonesty taken by the
Participant and intended to result in substantial personal enrichment of the Participant
at the expense of the Company including but not limited to embezzlement, fraud, theft,
larceny or conversion; or (ii) the conviction of the Participant of a felony involving
moral turpitude which involves or is related to the Company or to the services provided by
the Participant. The determination of whether a prohibited activity has occurred shall be
made by the Committee in its sole discretion, and shall be binding on all parties.

	 	b)	 	Forfeiture of Benefits. If at any time during employment or service with the
Company, and any time after Separation from Service, the Participant is determined by the
Committee to have engaged in a Prohibited Activity, any benefit payable to such
Participant under this Plan shall be immediately forfeited and the Participant shall no
longer have any right thereto. In addition, the Company shall have the right to seek the
return of any amounts that have been paid under this Plan in the event that the Committee
determines that the Participant engaged or is engaging in a Prohibited Activity,
regardless of whether the benefits due under this Plan have not yet commenced, have
commenced but have not yet been completed, or have been completed.

 

 

 

	 	c)	 	Additional Clawback Provisions. Notwithstanding any other provisions in this
Plan to the contrary, any incentive-based or other compensation payable to a Participant
and deferred pursuant to this Plan, which compensation is subject to recovery under any
Company plan or agreement or under any law, government regulation or stock exchange
listing requirement, will be subject to such deductions and clawback as may be required to
be made pursuant to such plan, agreement, law, government regulation or stock exchange
listing requirement (or any policy adopted by the Company pursuant to any such plan, law,
government regulation or stock exchange listing requirement), including by reason of any
restatement of the Company’s financial statements that reflects a change in the Company’s
results of operations that were the basis of any such incentive-based or other
compensation.

	4.7.	 	Statement of Accounts. To the extent that the Company does not arrange for Account
balances to be accessible online by the Participant, the Committee shall provide to each
Participant a statement showing the balances in the Participant’s Account no less frequently
than annually.

ARTICLE V — PLAN BENEFITS

	5.1.	 	Retirement Account. The vested portion of a Participant’s Retirement Account shall
be distributed to the Participant upon Separation from Service with the Company.

	 	a)	 	Timing of Payment. Subject to Section 5.5 of this Plan, benefits payable
from the Retirement Account shall commence within sixty (60) days following the first of
the January next following the Participant’s Separation from Service.

	 	b)	 	Form of Payment. The form of benefit payment shall be that form selected by
the Participant in the applicable Deferral Commitment which designated a portion of the
Compensation deferred be allocated to the Retirement Account, and as permitted pursuant to
Section 5.6 of the Plan, except that if the Participant’s Separation from Service is prior
to Retirement, the Retirement Account shall be paid in the form of a lump sum payment. If
the Form of Payment selected provides for subsequent payments, subsequent payments shall
be made on or about the first payroll date in each succeeding January following the
initial payment.

	5.2.	 	In-Service Account. The vested portion of a Participant’s In-Service Account shall
generally be distributed to the Participant upon the date specified by the Participant on the
Distribution Election form.

	 	a)	 	Timing of Payment. Subject to Section 5.5 of this Plan, benefits payable
from the In-Service Account shall commence within sixty (60) days following the first of
each January of the year specified in the first Deferral Commitment which designated a
portion of the Compensation
deferred be allocated to the In-Service Account. In no event shall the date selected be
earlier than the first day of the fourth calendar year following the initial filing of the
Deferral Commitment with respect to that In-Service Account. In the event that the
Participant’s Separation from Service with the Company occurs prior to the date so
specified, the benefits under this section shall commence within sixty (60) days following
the first of the January next following the Participant’s Separation from Service.

 

 

 

	 	b)	 	Form of Payment. The form of benefit payment from the In-Service Account
shall be that form selected by the Participant pursuant to Section 5.6 of the Plan, except
that if the Participant’s Separation from Service with the Company occurs prior to the
date so specified, then the In-Service Account shall be paid in the same form applicable
to the payment of the Retirement Account. If the Form of Payment selected provides for
subsequent payments, subsequent payments shall be made within sixty (60) days following
the first of each succeeding January following the initial payment. In addition, if a
Participant’s Separation from Service occurs after the date specified for the commencement
of payment from an In-Service Account and such Separation from Service does not otherwise
qualify as a Retirement, then any remaining amounts from that In-Service Account will be
paid out in a lump sum within sixty (60) days following the first of the January next
following the Participant’s Separation from Service, subject to Section 5.5 of the
Plan.

	 	c)	 	Change of Time and/or Form of Payment. The Participant may subsequently
amend the form of payment or the intended date of payment to a date later than that date
of payment in force immediately prior to the filing of such request, by filing such
amendment with the Committee no later than twelve (12) months prior to the current date of
payment. The Participant may file this amendment, provided that each amendment must
provide for a payout as otherwise permitted under this paragraph at a date no earlier than
five (5) years after the date of payment in force immediately prior to the filing of such
request, and the amendment may not take effect for twelve (12) months after the request is
made. For purposes of this Article V, a payment of amounts under this Plan, including the
payment of annual installments over a number of years, shall be treated as a single
payment, as provided in Treas. Reg. §1-409A-2(b)(2)(iii).

	5.3.	 	Death Benefit. Upon the death of a Participant prior to the commencement of benefits
under this Plan from any particular Account, Company shall pay to the Participant’s
Beneficiary an amount equal to the vested Account balance in that Account in the form of a
lump sum payment as soon as administratively possible. In the event of the death of the
Participant after the commencement of benefits under this Plan from any Account, the benefits
from that Account(s) shall be paid to the Participant’s designated Beneficiary from that
Account at the same time and in the same manner as if the Participant had survived.

	5.4.	 	Disability Distributions. Upon a finding that a Participant has suffered a
Disability, the Committee shall make a distribution of all of the Participant’s Accounts. The
amount of such distribution shall be made in the form of a lump sum and shall commence as soon
as administratively practical after the determination of such Disability.

 

 

 

	5.5.	 	Delay of Payment. Notwithstanding the foregoing, in no event shall any distributions
be made under the Plan on account of the Separation from Service of any Participant that is a
Specified Employee before the date that is 6 months after the date of the Participant’s
Separation from Service or, if earlier, the date of the Participant’s death, or as otherwise
permitted without violating the requirements of Section 409(A)(a)(2) of the Code. The delay
of payment provided under this Section 5.5 shall also apply to the first payment made after a
Separation from Service following the commencement of payments from an In-Service Account as
provided in Section 5.2 of this Plan.

	5.6.	 	Form of Payment. Unless otherwise specified in this Article V, the benefits payable
from any Account under this Plan shall be paid in the form of benefit as provided below, and
specified by the Participant in the Distribution Election applicable to that Account at the
time of the initial deferral or credit to that Account. The permitted forms of benefit
payments are:

	 	a)	 	A lump sum amount which is equal to the Account balance; and

	 	b)	 	Annual installments for a period of up to ten (10) years (or in the event of payment
of the In-Service Account, a maximum of five (5) years) where the annual payment shall be
equal to the balance of the Account immediately prior to the payment, multiplied by a
fraction, the numerator of which is one (1) and the denominator of which commences at the
number of annual payment initially chosen and is reduced by one (1) in each succeeding
year. Interest on the unpaid balance shall be based on the most recent allocation among
the available Valuation Funds chosen by the Participant, made in accordance with Section
4.3 of the Plan.

	5.7.	 	Small Account. If the Participant’s unpaid portion of any Account as of the time the
payments are to commence from an Account is less than $25,000, the remaining unpaid Account
shall be paid in a lump sum, notwithstanding any election by the Participant to the contrary.

	5.8.	 	Withholding; Payroll Taxes. The Company shall withhold from any payment made
pursuant to this Plan any taxes required to be withheld from such payments under local, state
or federal law.

	5.9.	 	Payments in Connection with a Domestic Relations Order. Notwithstanding anything to
the contrary, the Company may make distributions to someone other than the Participant if such
payment is necessary to comply with a domestic relations order, as defined in Section
414(p)(1)(B), involving the Participant. Where the domestic relations order permits discretion
on the part of the non-Participant spouse and such discretion has not been exercised, the
Company shall distribute to the non-Participant spouse the amounts subject to the order as
soon as practical.

	5.10.	 	Payment to Guardian. If a Plan benefit is payable to a minor or a person declared
incompetent or to a person incapable of handling the disposition of the property, the
Committee may direct payment to the guardian, legal representative or person having the care
and custody of such minor, incompetent or person. The Committee may require proof of
incompetency, minority,
incapacity or guardianship as it may deem appropriate prior to distribution. Such distribution
shall completely discharge the Committee and Company from all liability with respect to such
benefit.

 

 

 

	5.11.	 	Effect of Payment. The full payment of the any benefit required to be paid to a
Participant (or Beneficiary) under this Article V shall completely discharge all obligations
on the part of the Company to the Participant (and the Participant’s Beneficiary) with respect
to the operation of this Plan, and the Participant’s (and Participant’s Beneficiary’s) rights
under this Plan shall terminate.

	5.12.	 	No Acceleration of Payments. In no event shall the acceleration of the time or
schedule of any payment under the Plan be permitted, except to the extent that such
acceleration would not violate Section 409A of the Code and the Treasury Regulations and other
applicable guidance thereunder.

ARTICLE VI — BENEFICIARY DESIGNATION

	6.1.	 	Beneficiary Designation. Each Participant shall have the right, at any time, to
designate one (1) or more persons or entity as Beneficiary (both primary as well as secondary)
to whom benefits under this Plan shall be paid in the event of Participant’s death prior to
complete distribution of the Participant’s vested Account balance. Each Beneficiary
designation shall be in a written form prescribed by the Committee and shall be effective only
when filed with the Committee during the Participant’s lifetime.

	6.2.	 	Changing Beneficiary. Any Beneficiary designation may be changed by a Participant
without the consent of the previously named Beneficiary by the filing of a new Beneficiary
designation with the Committee.

	6.3.	 	No Beneficiary Designation. If any Participant fails to designate a Beneficiary in
the manner provided above, if the designation is void, or if the Beneficiary designated by a
deceased Participant dies before the Participant or before complete distribution of the
Participant’s benefits, the Participant’s Beneficiary shall be the person in the first of the
following classes in which there is a survivor:

	 	a)	 	The Participant’s surviving spouse;

	 	b)	 	The Participant’s children in equal shares, except that if any of the children
predeceases the Participant but leaves surviving issue, then such issue shall take by
right of representation the share the deceased child would have taken if living; and

	 	c)	 	The Participant’s estate.

	6.4.	 	Effect of Payment. Payment to the Beneficiary shall completely discharge the
Company’s obligations to a Participant and his or her Beneficiary under this Plan.

 

 

 

ARTICLE VII — ADMINISTRATION

	7.1.	 	Committee; Duties. This Plan shall be administered by the Committee, which shall
consist of those individuals named by the Board, except in the event of a Change in Control as
provided in Section 7.6 of the Plan. The Committee shall have the authority to make, amend,
interpret and enforce all appropriate rules and regulations for the administration of the Plan
and decide or resolve any and all questions, including interpretations of the Plan, as they
may arise in such administration. A majority vote of the Committee members shall control any
decision. Members of the Committee may be Participants under this Plan.

	7.2.	 	Compliance with Section 409A of the Code. It is intended that the Plan comply with
the provisions of Section 409A of the Code, so as to prevent the inclusion in gross income of
any amounts deferred hereunder in a taxable year that is prior to the taxable year or years in
which such amounts would otherwise actually be paid or made available to Participants or
Beneficiaries. This Plan shall be construed, administered, and governed in a manner that gives
effect to such intent, and the Committee shall not take any action that would be inconsistent
with such intent. Although the Committee shall use its best efforts to avoid the imposition
of taxation, interest and penalties under Section 409A of the Code, the tax treatment of
deferrals under this Plan is not warranted or guaranteed. Neither the Company, the Board, any
director, officer, employee and advisor, nor the Committee (nor its designee) shall be held
liable for any taxes, interest, penalties or other monetary amounts owed by any Participant,
Beneficiary or other taxpayer as a result of the Plan. For purposes of the Plan, the phrase
“permitted by Section 409A of the Code,” or words or phrases of similar import, shall mean
that the event or circumstance shall only be permitted to the extent it would not cause an
amount deferred or payable under the Plan to be includible in the gross income of a
Participant or Beneficiary under Section 409A(a)(1) of the Code.

	7.3.	 	Agents. The Committee may, from time to time, employ agents and delegate to them
such administrative duties as it sees fit, and may from time to time consult with counsel who
may be counsel to the Company.

	7.4.	 	Binding Effect of Decisions. The decision or action of the Committee with respect
to any question arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations promulgated hereunder shall be final,
conclusive and binding upon all persons having any interest in the Plan.

	7.5.	 	Indemnity of Committee. The Company shall indemnify and hold harmless the members
of the Committee against any and all claims, loss, damage, expense or liability arising from
any action or failure to act with respect to this Plan on account of such member’s service on
the Committee, except in the case of gross negligence or willful misconduct.

 

 

 

	7.6.	 	Election of Committee After Change in Control. After a Change in Control, vacancies
on the
Committee shall be filled by majority vote of the remaining Committee members and Committee
members may be removed only by such a vote. If no Committee members remain, a new Committee
shall be elected by majority vote of the Participants in the Plan immediately preceding such
Change in Control. After a Change in Control, no amendment shall be made to Article VII or
other Plan provisions regarding Committee authority with respect to the Plan without prior
approval by the Committee.

ARTICLE VIII — CLAIMS PROCEDURE

	8.1.	 	Claim. Any person or entity claiming a benefit, requesting an interpretation or
ruling under the Plan (hereinafter referred to as “Claimant”), or requesting
information under the Plan shall present the request in writing to the Committee, which shall
respond in writing as soon as practical, but in no event later than ninety (90) days after
receiving the initial claim (or no later than forty-five (45) days after receiving the initial
claim regarding a Disability under this Plan).

	8.2.	 	Denial of Claim. If the claim or request is denied, the written notice of denial
shall state:

	 	a)	 	The reasons for denial, with specific reference to the Plan provisions on which the
denial is based;

	 	b)	 	A description of any additional material or information required and an explanation
of why it is necessary, in which event the time frames listed in Section 8.1 of this Plan
shall be one hundred and eighty (180) and seventy-five (75) days from the date of the
initial claim respectively; and

	 	c)	 	An explanation of the Plan’s claim review procedure.

	8.3.	 	Review of Claim. Any Claimant whose claim or request is denied or who has not
received a response within sixty (60) days (or one hundred and eighty (180) days in the event
of a claim regarding a Disability) may request a review by notice given in writing to the
Committee. Such request must be made within sixty (60) days (or one hundred and eighty (180)
days in the event of a claim regarding a Disability) after receipt by the Claimant of the
written notice of denial, or in the event Claimant has not received a response sixty (60) days
(or one hundred and eighty (180) days in the event of a claim regarding a Disability) after
receipt by the Committee of Claimant’s claim or request. The claim or request shall be
reviewed by the Committee which may, but shall not be required to, grant the Claimant a
hearing. On review, the claimant may have representation, examine pertinent documents, and
submit issues and comments in writing.

	8.4.	 	Final Decision. The decision on review shall normally be made within sixty (60) days
(or forty-five (45) days in the event of a claim regarding a Disability) after the Committee’s
receipt of claimant’s claim or request. If an extension of time is required for a hearing or
other special circumstances, the Claimant shall be notified and the time limit shall be one
hundred twenty (120)
days (or ninety (90) days in the event of a claim regarding a Disability). The decision shall
be in writing and shall state the reasons and the relevant Plan provisions. All decisions on
review shall be final and bind all parties concerned.

 

 

 

ARTICLE IX — AMENDMENT AND TERMINATION OF PLAN

	9.1.	 	Amendment. The Board may at any time amend the Plan by written instrument, notice
of which is given to all Participants and to Beneficiaries receiving installment payments,
except that no amendment shall reduce the amount accrued in any Account as of the date the
amendment is adopted. In addition, any amendment which adds a distribution event to the Plan
shall not be effective with respect to Accounts already established as of the time of such
amendment.

	9.2.	 	Company’s Right to Terminate Upon a Change in Control. Within thirty (30) days prior
to a Change in Control of TTM Technologies, Inc. or within twelve (12) months thereafter, the
Committee may, in its sole discretion and upon unanimous vote, terminate the entire Plan and
require distribution of all benefits due under the Plan or portion thereof, as provided in
Treas. Reg. §1.409A-3(j)(4)(ix)(B).

	9.3.	 	Company’s Right to Terminate. The Board may, in its sole discretion, terminate the
entire Plan and require distribution of all benefits due under the Plan or portion thereof,
provided that:

	 	a)	 	The termination of the Plan does not occur proximate to a downturn in the financial
health, as determined by the Committee, of the Company;

	 	b)	 	The Company also terminates all other plans or arrangements which are considered to
be of a similar type as defined in Treas. Reg. §1.409A -1(c)(2)(i), or as otherwise
provided by the Code, as the portion of the Plan which has been terminated;

	 	c)	 	No payments made in connection with the termination of the Plan occur earlier than 12
months following the Plan termination date other than payments the Plan would have made
irrespective of Plan termination;

	 	d)	 	All payments made in connection with the termination of the Plan are completed within
24 months following the Plan termination date;

	 	e)	 	The Company does not establish a new plan of a similar type as defined in Treas. Reg.
§1.409A -1(c)(2)(i), within 3 years following the Plan termination date of the portion of
the Plan which has been terminated; and,

	 	f)	 	The Company meets any other requirements deemed necessary to comply with provisions
of the Code and applicable regulations which permit the acceleration of the time and form
of payment made in connection with plan terminations and liquidations.

 

 

 

ARTICLE X — MISCELLANEOUS

	10.1.	 	Unfunded Plan. This plan is an unfunded plan maintained primarily to provide
deferred compensation benefits for a select group of “management or highly-compensated
employees” within the meaning of Sections 201, 301, and 401 of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), and therefore is exempt from the provisions of
Parts 2, 3 and 4 of Title I of ERISA.

	10.2.	 	Unsecured General Creditor. Notwithstanding any other provision of this Plan,
Participants and Participants’ Beneficiaries shall be unsecured general creditors, with no
secured or preferential rights to any assets of Company or any other party for payment of
benefits under this Plan. Any property held by Company for the purpose of generating the cash
flow for benefit payments shall remain its general, unpledged and unrestricted assets.
Company’s obligation under the Plan shall be an unfunded and unsecured promise to pay money in
the future.

	10.3.	 	Trust Fund. Company shall be responsible for the payment of all benefits provided
under the Plan. At its discretion, Company may establish one (1) or more trusts, with such
trustees as the Board may approve, for the purpose of assisting in the payment of such
benefits. The assets of any such trust shall be held for payment of all Company’s general
creditors in the event of insolvency. To the extent any benefits provided under the Plan are
paid from any such trust, Company shall have no further obligation to pay them. If not paid
from the trust, such benefits shall remain the obligation of Company.

	10.4.	 	Nonassignability. Neither a Participant, a Beneficiary nor any other person shall
have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise
encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any,
payable hereunder, or any part thereof, which are, and all rights to which are, expressly
declared to be unassignable and non-transferable. No part of the amounts payable shall, prior
to actual payment, be subject to seizure or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant, a Beneficiary or any other
person, nor be transferable by operation of law in the event of a Participant’s, a
Beneficiary’s or any other person’s bankruptcy or insolvency.

	10.5.	 	Not a Contract of Employment or Service. This Plan shall not constitute a contract
of employment or service between Company and the Participant. Nothing in this Plan shall give
a Participant the right to be retained in the service of Company or to interfere with the
right of the Company to discipline or discharge a Participant at any time.

	10.6.	 	Protective Provisions. A Participant will cooperate with Company by furnishing any
and all information requested by Company, in order to facilitate the payment of benefits
hereunder, and by taking such physical examinations as Company may deem necessary and taking
such other action as may be requested by Company.

 

 

 

	10.7.	 	Governing Law. The provisions of this Plan shall be construed and interpreted
according to the laws of the State of California except as preempted by federal law.

	10.8.	 	Validity. If any provision of this Plan shall be held illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Plan shall be construed and enforced as if such illegal and invalid provision had never been
inserted herein.

	10.9.	 	Notice. Any notice required or permitted under the Plan shall be sufficient if in
writing and hand delivered or sent by registered or certified mail. Such notice shall be
deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown
on the postmark on the receipt for registration or certification. Mailed notice to the
Committee shall be directed to the company’s address. Mailed notice to a Participant or
Beneficiary shall be directed to the individual’s last known address in company’s records.

	10.10.	 	Successors. The provisions of this Plan shall bind and inure to the benefit of
Company and its successors and assigns. The term successors as used herein shall include any
corporate or other business entity which shall, whether by merger, consolidation, purchase or
otherwise acquire all or substantially all of the business and assets of Company, and
successors of any such corporation or other business entity.

	 	 	 	 	 
	 	TTM Technologies, Inc.

 	 
	 	BY:  	/s/ Kenton K. Alder,
 	 
	 	 	NAME: Kenton K. Alder

TITLE: Chief Executive Officer 	 
	 
	 	DATED: September 15, 2011

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