Document:

Blueprint

  Exhibit 10.1

STOCK PURCHASE AGREEMENT

 

This
Stock Purchase Agreement (the “Agreement”) is entered into as of
December 15, 2016, by and among Carlos Carrillo, an individual
(“Purchaser”),
Control Engineering, Inc., a Delaware corporation
(“CEI”), and
Greenhouse Holdings, Inc., a Nevada corporation
(“Seller”).

 

RECITALS:

 

A.

Seller owns all of the issued and outstanding
capital stock of CEI (the “Stock”).

 

B. Purchaser
is the Senior Vice President of Engineering and Operations of CEI
and is responsible for running the day-to-day business of
CEI.

 

C. Purchaser
desires to purchase from Seller, and Seller desires to sell to
Purchaser, the Stock, on the terms and conditions set forth
below.

 

D. All
annexes, schedules, exhibits and other attachments hereto are
incorporated herein by reference, and, taken together with this
Agreement, shall constitute a single Agreement.

 

AGREEMENT:

 

Now,
therefore, in consideration of the Recitals and of the agreements
and covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

 

1.            
PURCHASE AND SALE OF
STOCK                                                                                                

 

1.1           Purchase
and Sale of Shares.

 

(A)           Subject
to the terms and conditions of this Agreement, and on the basis of
the representations, warranties, covenants and agreements contained
herein, Seller shall sell to Purchaser, and Purchaser shall
purchase from Seller, the Stock, free and clear of all liens (other
than those created by this Agreement), for a purchase price equal
to the Accounts Receivable Balance, less the Accounts Payable
Balance, less $60,000.00 (the “Purchase Price”). The
“Accounts Receivable
Balance” shall be equal to the amount of all accounts
receivable of CEI outstanding on December 31, 2016 (the
“Closing Date”)
(the “Accounts
Receivable”), determined in accordance with GAAP, and
identified as “Accounts Receivable” on Schedule I hereto, which
Schedule shall be updated as of the Closing Date, less the Bad Debt Allowance. The
“Bad Debt
Allowance” shall be equal to the amount of those
certain accounts receivable of CEI outstanding on the Closing Date,
determined in accordance with GAAP, and identified as “Bad
Debt” on Schedule
I hereto (the “Bad
Debt”), which Schedule shall be updated as of the
Closing Date. The “Accounts
Payable Balance” shall be equal to the amount of all
accounts payable of CEI outstanding on the Closing Date (the
“Accounts
Payable”), determined in accordance with GAAP, and
identified as “Accounts Payable” on Schedule I hereto, which
Schedule shall be updated as of the Closing Date.

 

 

1

 

(B)           Form
of Payment. In the event that the Purchase Price is
positive, the Purchase Price shall be payable by Purchaser to
Seller by the execution and delivery by Purchaser of a promissory
note in the original principal amount equal to such Purchase Price,
substantially in the form attached hereto as Exhibit A (the
“Note”). In the
event that the Purchase Price is negative, Seller shall pay the
absolute value of the Purchase Price in cash or immediately
available funds to the Purchaser not later than January 31, 2017;
provided, that in
the event that the absolute value of the Purchase Price exceeds
$60,000, any amount in excess of $60,000 shall be paid by Seller
directly to certain creditors to which the Accounts Payable relate,
instead of to Purchaser.

 

(C)           Reimbursement.
In the event that CEI collects any funds with respect to the Bad
Debt on or prior to December 31, 2017, CEI shall, within three (3)
business days of such collection, pay the amount of such collection
in full in cash or immediately available funds to
Seller.

 

1.2           Fair
Market Value. The
parties hereby acknowledge and agree that the Purchase Price has
been negotiated on an arm’s length basis, and the parties
believe that the Purchase Price reflects the fair market value of
the Stock; provided, however, that neither
the Seller nor CEI is making any representation as to the fair
market value of the Stock.

 

1.3           Closing.
Subject to the terms and conditions of this Agreement, the closing
of the sale and purchase of the Stock (the “Closing”) shall take place on the
Closing Date at the office of Purchaser or such other place as the
parties may mutually agree at such time and date as the parties may
mutually select.

 

(A) Deliveries by
Seller.

 

a.

Stock Certificates. At the
Closing, Seller shall deliver to Purchaser stock certificates evidencing the Stock, free and clear
of all claims, liens and encumbrances (other than those created by
this Agreement and securities laws), duly endorsed in blank or
accompanied by duly executed instruments of transfer duly endorsed
in blank.

 

b.

Consents.
Seller and CEI shall have obtained all consents required for the
consummation of the transactions contemplated
hereby.

 

(B) Deliveries
by Purchaser.

 

a.

Note.
In the event that the Purchase Price is positive, at the Closing,
Purchaser shall deliver the executed Note in accordance with
Section 1.1 above.

 

(C) Deliveries
by CEI.

 

a.

Continuing
Guaranty. In the event that the
Purchase Price is positive, at the Closing, CEI shall deliver the
executed Continuing Guaranty, substantially in the form attached
hereto as Exhibit B
(“Guaranty”).

 

 

2

 

b.

Security
Agreement. In the event that
the Purchase Price is positive, at the Closing, CEI shall deliver
the executed Security Agreement, substantially in the form attached
hereto as Exhibit C
(“Security
Agreement”).

 

(D) Other
Closing Deliveries. At the
Closing, each party will deliver to the other party such other
documents as may be reasonably requested by the other
party.

 

(E) Stock
Power. Each of the parties agrees that this Agreement shall
constitute a stock power or other necessary authorization to
transfer, as the case may be, authorizing CEI to record on its
books and records the transfer of the Stock from the Seller to the
Purchaser.

 

2. 

REPRESENTATIONS AND WARRANTIES BY SELLER.

 

Seller hereby represents and
warrants to Purchaser, as follows:

 

2.1               Seller
has good and marketable title to the Stock, free and clear of all claims,
liens, and encumbrances, other than those imposed by this Agreement
or securities laws.

2.2               Seller
has the requisite power and authority to execute and deliver this
Agreement and to perform its obligations hereunder and to
consummate the transactions contemplated hereby. Seller has taken
all action necessary for the authorization, execution and delivery
of this Agreement. This Agreement has been duly and validly
executed and delivered by Seller and constitutes the legal and
binding obligation of Seller, enforceable against Seller in
accordance with its terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors’
rights generally, and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief, or other
equitable remedies.

2.3               The
execution and delivery of this Agreement by Seller, the performance
by Seller of its obligations pursuant to this Agreement, and the
consummation of the transactions contemplated hereby will not
result in a breach by Seller of, violate the terms or conditions
of, or constitute a default by Seller under, any agreement,
instrument, decree, law, judgment or order to which Seller is a
party, to which the properties of Seller may be subject, or by
which Seller may be bound, result in the creation of any claims,
liens or encumbrances on the Stock, other than those that have been
created by Purchaser or restrictions imposed by securities
laws.

3.            

REPRESENTATIONS AND WARRANTIES BY PURCHASER.4.REPRESENTATIONS AND WARRANTIES BY
PURCHASER

 

Purchaser hereby
represents and warrants to Seller and CEI as follows:

 

3.1           It
has the requisite power and authority to execute, deliver and
perform this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly and validly
executed and delivered by Purchaser and constitutes the legal and
binding obligation of Purchaser, enforceable against Purchaser in
accordance with its terms, except (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws
of general application affecting enforcement of creditors’
rights generally, and (ii) as limited by laws relating to the
availability of specific performance, injunctive relief, or other
equitable remedies.

 

3

 

3.2           It
is acquiring the Stock for its own account for investment purposes
only and not with a view to, or for the resale in connection with,
any “distribution” thereof for purposes of the
Securities Act of 1933, as amended (the “Securities
Act”), in violation of securities laws. Purchaser has
no present intention of selling or otherwise disposing of all or
any portion of the Stock.

3.3           It
is fully aware of: (i) the highly speculative nature of an
investment in the Stock; (ii) the potential financial hazards
involved; and (iii) the lack of liquidity of the Stock and the
restrictions on transferability of the Stock (e.g., that Purchaser
may not be able to sell or dispose of the Stock or use them as
collateral for loans).

3.4           Neither
CEI, nor the Seller, nor any of their respective officers or
directors have made any representations to Purchaser regarding the
advisability of the transaction described herein.

 

3.5           He
understands that the shares of Stock he is purchasing are
characterized as “restricted securities” under the
federal securities laws and that under such laws and applicable
regulations such securities may be resold without registration
under the Securities Act, only in certain limited circumstances. It
understands that the Stock must be held indefinitely unless
subsequently registered under the Securities Act or unless an
exemption from registration is otherwise available. In this
connection, the Purchaser represents that it is familiar with
Securities and Exchange Commission Rule 144, as presently in
effect, and understands the resale limitations imposed thereby and
by the Securities Act. In addition, Purchaser understands that the
certificate evidencing the Stock, as applicable, will be imprinted
with a legend which prohibits the transfer of the Stock unless
registered or such registration is not required in an opinion of
counsel reasonably acceptable to CEI.

3.6           At
no time was it presented with or solicited by any publicly issued
or circulated newspaper, mail, radio, television or other form of
general advertising or solicitation in connection with the
Stock.

3.7           By
reason of its business or financial experience, he is capable of
evaluating the merits and risks of this purchase, has the ability
to protect Purchaser’s own interests in this transaction and
is financially capable of bearing a total loss of the Stock. He is
an “accredited investor” as such term is defined in
Regulation D promulgated under the Securities Act.

3.8           Purchaser
has been given the opportunity to consult with independent legal
counsel regarding its rights and obligations under this Agreement
and has consulted with such independent legal counsel regarding the
foregoing, fully understands the terms and conditions contained
herein, and intends for such terms to be binding upon and
enforceable against Purchaser.

4.            

INTERIM OPERATING COVENANTS.

 

4

 

4.1           
Conduct
of Business of CEI.
Purchaser, in his capacity as an officer of CEI, shall cause CEI,
during the period from the date of this Agreement until the Closing
Date, except as expressly contemplated by this Agreement or as
required by applicable law or with the written consent of Seller,
to conduct its business in the ordinary course consistent with past
practice. Without limiting the generality of the foregoing, between
the date of this Agreement and the Closing Date, except as
otherwise expressly contemplated by this Agreement or as required
by applicable law, Purchaser, in his capacity as an officer of CEI,
shall not permit CEI to, without the prior written consent of the
Seller:

(A)           

Incur any financial
obligation, except in the ordinary course of business consistent
with past practice;

(B)           

Incur any financial
obligation of more than $5,000;

(C)           

Fail to satisfy any
outstanding financial obligation as required under the agreement
relating to that particular financial obligation and in the
ordinary course of business;

(D)           

Make any material
change in any method of financial accounting principles or
practices, in each case except for any such change required by a
change in GAAP or applicable law;

(E)           

Except as required
by applicable law or by any CEI employee benefit plan or other
contract in effect as of the date of this Agreement, (i) increase
the compensation payable or that could become payable by CEI to
directors, officers or employees (including without limitation any
promises of severance payments in the event that such
employees’ employment with CEI is terminated), other than
increases in compensation made to non-officer employees in the
ordinary course of business consistent with past practice, or (ii)
terminate any CEI employees, except in the ordinary course of
business consistent with past practice; or

(F)           

Agree or commit to
do any of the foregoing.

4.2           

Other
Actions. From the
date of this Agreement until the Closing, Seller shall not, and
Purchaser shall not permit CEI to, take, or agree or commit to
take, any action (except as otherwise expressly permitted by this
Agreement) that would reasonably be expected to, individually or in
the aggregate, prevent, materially delay or materially impede the
consummation of the transactions contemplated by this
Agreement.

4.2           

Accounts
Receivable. From the
date of this Agreement until the Closing, Purchaser shall use his
best efforts and shall cause CEI and its employees to use their
best efforts to collect all outstanding Accounts Receivable,
including without limitation, the Bad Debt.

5.            
POST-CLOSING
COVENANTS.                                                                         

 

Purchaser and
Seller agree as follows with respect to the period following the
Closing Date:

5.1           Further
Cooperation. In case
at any time after the Closing Date any further actions are
necessary to carry out the purposes of this Agreement, each of the
parties will take such further actions (including the execution and
delivery of such further instruments and documents) as the other
party reasonably may request, all at the sole cost and expense of
the requesting party (unless the requesting party is entitled to
indemnification therefor under Section 6 below).

 

5

 

5.2           Confidentiality.
Seller agrees that for a period of two
(2) years from the Closing Date, it will not (a) divulge any
Confidential Information to third parties or (b) use or permit to
be used any Confidential Information for its own benefit. For this
purpose, “Confidential
Information” shall mean
all confidential and proprietary information relating to CEI, this
Agreement, and the transactions contemplated hereby.
“Confidential Information” shall not include any
information that: (y) is now
available to third parties who are not under a duty of
confidentiality or, through no fault of Seller, subsequently
becomes available to third parties who are not under a duty of
confidentiality; or (z) is released or approved for release by
Purchaser without restriction. Notwithstanding the foregoing, Seller may disclose
Confidential Information (i) to the extent required by a court of
competent jurisdiction or other governmental authority or otherwise
as required by applicable law, rule or regulation, (ii) on a
“need-to-know” basis under an obligation of
confidentiality to its legal counsel, accountants, banks and other
financing sources and their advisors, or (iii) in any legal
proceedings that arise in connection with this Agreement or
the transactions contemplated
herein and
therein.

5.3
Employees.

 

(A) Effective
as of the Closing Date, Purchaser shall assume the employment of
all employees of CEI, subject to any employment agreements, if
applicable. Purchaser shall assume and perform, pay or otherwise
discharge all liabilities and benefit obligations accruing or
occurring from and after the Closing Date with respect to all CEI
employees. With respect to CEI employees and in connection with
administering Purchaser’s employee benefits plans, Purchaser
shall recognize all service with CEI for purposes of vesting and
eligibility, as applicable under such employee benefit plans, and
for purposes of paid time off, vacation, sick and leave
entitlements and seniority.

 

(B) Purchaser
shall be responsible for any legally mandated continuation of
health care coverage for such employees and/or their dependents who
have a loss of health care coverage due to a qualifying event after
the Closing Date, and for satisfaction of any related notice
requirements with respect to such employees and other dependents
who have a loss of coverage due to a qualifying event after the
Closing Date.

 

5.4           Bad
Debt.
From the Closing until December 31, 2017, Purchaser shall use his
best efforts and shall cause CEI and its employees to use their
best efforts to collect the Bad Debt.

 

6.            
INDEMNIFICATION.

 

6.1           Indemnification.

 

(A)           Purchaser
shall indemnify, defend and hold Seller harmless from and against
any and all damages, liabilities, losses, claims, obligations,
liens, assessments, judgments, taxes, fines, penalties, reasonable
costs and expenses (including without limitation reasonable fees of
counsel) (collectively, “Losses”) suffered or incurred by
Seller, or its successors and assigns (i) proximately caused by any
breach of any representation, warranty, covenant or other
undertaking made by the Purchaser in this Agreement, and (ii) the
ownership or operation of CEI by the Purchaser. Seller shall notify
the Purchaser promptly of any written actions, claims or demands
against Seller of which the Purchaser is responsible hereunder
specifying the basis and amount thereof in reasonable
detail.

 

 

6

 

(B)           Seller
shall indemnify, defend and hold Purchaser harmless from and
against any and all Losses suffered or incurred by Purchaser, or
its successors and assigns, proximately caused by any breach of any
representation, warranty, covenant or other undertaking made by the
Seller in this Agreement. Purchaser shall notify the Seller
promptly of any written actions, claims or demands against
Purchaser of which the Seller is responsible hereunder specifying
the basis and amount thereof in reasonable detail; provided, however, that the
aggregate amount of all Losses for which Seller shall be liable
pursuant to this Section 6.1(B) shall not exceed the Purchase
Price.

 

(C)           If
any third party notifies any party (the “Indemnified Party”) with respect
to any matter (a “Third-Party
Claim”) that may give rise to a claim for
indemnification against the other party (the “Indemnifying Party”) under this
Section 6, then the Indemnified Party shall promptly (and in any
event within ten (10) business days after receiving notice of the
Third-Party Claim) notify the Indemnifying Party thereof in writing
specifying the claimed basis and amount thereof in reasonable
detail. Failure to so notify shall not be deemed a waiver of, or
otherwise affect, the Indemnifying Party’s obligations unless
the Indemnifying Party is materially harmed or prejudiced by such
failure to notify.

 

The
Indemnifying Party will have the right at any time to assume and
thereafter conduct the defense of the Third-Party Claim with
counsel of its choice; provided, however, that the Indemnifying
Party will not consent to the entry of any judgment on or enter
into any settlement with respect to the Third-Party Claim without
the prior written consent of the Indemnified Party (not to be
unreasonably withheld) unless the judgment or proposed settlement
involves only the payment of money damages and does not impose an
injunction or other equitable relief upon the Indemnified
Party.

 

Unless
and until the Indemnifying Party assumes the defense of the
Third-Party Claim as provided in above, however, the Indemnified
Party may defend against the Third-Party Claim in any manner it may
reasonably deem appropriate. In no event will the Indemnified Party
consent to the entry of any judgment on or enter into any
settlement with respect to the Third-Party Claim without the prior
written consent of the Indemnifying Party (not to be unreasonably
withheld).

 

(D)           Notwithstanding
anything in this Agreement to the contrary, the amount of any
Losses for which indemnification is provided under this Section 6
shall be reduced by (i) any amounts actually recovered by an
Indemnified Party pursuant to any indemnification by or
indemnification agreement with any third party (net of any costs
incurred to obtain such recovered amounts) and (ii) any insurance
proceeds or other cash receipts or sources of reimbursement
actually received as an offset against such Losses (net of any
costs incurred to obtain such proceeds or reimbursement and all
related deductions and adjustments to premiums); and no right of
subrogation shall accrue to any insurer or third-party indemnitor
hereunder. If the amount of the reduction contemplated above is
determined or paid to an Indemnified Party after payment by any
Indemnifying Party of any amount otherwise required to be paid to
an Indemnified Party pursuant to this Section 6, the Indemnified
Party shall either repay the Indemnifying Party, promptly after
such determination or payment, any amount that should not have been
paid pursuant to this Section 6 had such determination or payment
been made at the time of such payment by the Indemnifying Party or
permit the Indemnifying Party to reduce any other payment then
required to be made by such Indemnifying Party, if
any.

 

 

7

 

(E)           For
the avoidance of doubt, all indemnification and similar payments
made pursuant to this Agreement shall be treated for tax purposes
as an adjustment to the Purchase Price, and each party will report
such payments consistently with such treatment for all Tax
purposes.

 

(F)           Parties
shall be able to make claims under more than one provision of this
Agreement, but no party shall be entitled to recover more than once
in respect of the same Losses. For purposes of illustration only,
if there is a $100 fine levied for noncompliance with law and such
noncompliance is covered by two sections of this Agreement, then
Purchaser may make a claim under both sections but shall only be
permitted to recover once even if Purchaser prevails under both
sections.

 

(G)           For
all purposes hereunder, the Indemnifying Parties shall not be
liable for any incidental, special, punitive or consequential
(including lost profits) Losses, unless such Losses relate to a
Third-Party Claim.

 

(H)           The
parties acknowledge and agree that, other than with respect to any
breach by Purchaser of its agreements or obligations under the Note
or any breach by CEI of its agreements or obligations under the
Guaranty or Security Agreement, the parties’ sole and
exclusive remedy with respect to any and all claims for any breach
of any representation, warranty, covenant, agreement or
obligation set forth herein or otherwise relating to the subject
matter of this Agreement, shall be pursuant to the
indemnification provisions set forth in this Section 6. In furtherance of the foregoing,
each party hereby waives, to the fullest extent permitted under
law, any and all rights, claims and causes of action for any breach
of any representation, warranty, covenant, agreement or
obligation set forth herein or otherwise relating to the subject
matter of this Agreement (other than with respect to any
breach by Purchaser of its agreements or obligations under the Note
or any breach by CEI of its agreements or obligations under the
Guaranty or Security Agreement) it may have against the other
parties hereto and their affiliates and each of their respective
representatives arising under or based upon any law, except
pursuant to the indemnification provisions set forth in this
Section 6.

 

7.            

CONDITIONS TO CLOSING; FAILURE TO CLOSE.

 

7.1 Conditions
to Purchaser’s Obligations at Closing. All of
the obligations of the Purchaser under this Agreement are subject
to the fulfillment at or before the Closing of each of the
following conditions, any of which may be waived in writing by
Purchaser:

 

(A)           Representations
and Warranties. The
representations and warranties of Seller contained herein shall be
true and correct on and as of the Closing Date.

 

 

8

 

(B)           Performance.
Seller shall have performed or fulfilled all agreements,
obligations and conditions contained herein and shall have obtained
all consents, waivers and approvals necessary to transfer the
Stock.

 

(C)           Closing
Deliverables. The closing
deliverables identified in Section 1.3(A) shall have been delivered
by Seller, and the closing deliverables identified in Section
1.3(C) shall have been delivered by CEI.

 

In the
event this Agreement is executed but the transactions described in
this Section 7.1 are not either consummated or waived in writing by
Purchaser on or prior to the Closing Date, Purchaser may terminate
this Agreement effective immediately upon written notice to
Seller.

 

7.2           Conditions
to Seller’s
Obligations at Closing. The obligations of Seller under this Agreement are
subject to the fulfillment at or before the Closing of each of the
following conditions, any of which may be waived in writing by
Seller:

 

(A) Representations
and Warranties. The
representations and warranties of the Purchaser contained herein
shall be true and correct on and as of the Closing Date with the
same effect as if made on and as of the Closing
Date.

 

(B) Performance.
The Purchaser shall have performed or fulfilled all agreements,
obligations and conditions contained herein and shall have obtained
all consents, waivers and approvals necessary to acquire the Stock
from Seller.

 

(C)           Closing
Deliverables. The closing
deliverables identified in Section 1.3(B) shall have been delivered
by Purchaser, and the closing deliverables identified in Section
1.3(C) shall have been delivered by CEI.

 

In the
event this Agreement is executed but the transactions described in
this Section 7.2 are not either consummated or waived in writing by
Shareholders on or prior to the Closing Date, Seller may terminate
this Agreement effective immediately upon written notice to
Purchaser.

 

8.           GENERAL
PROVISIONS8.                                                           

 

8.1           
No
Waivers. None of the
parties shall be deemed to waive any of its rights, powers or
remedies hereunder unless such waiver is in writing and signed by
said party. No delay or omission by any party in exercising any of
said rights, powers or remedies shall operate as a waiver thereof,
nor shall a waiver signed by any party of any breach of the
covenants, conditions or agreements binding on the other parties on
one occasion be construed as a waiver or consent to such breach on
any future occasion or a waiver of any other covenant, condition,
or agreement herein contained.

 

8.2           Expenses. None
of the parties hereto shall have any obligation to pay any of the
fees and expenses of any other party incident to the negotiation,
preparation and execution of this Agreement, including, but not
limited to, the fees and expenses of legal counsel, accountants,
investment bankers, consultants and other experts.

 

 

9

 

8.3           Publicity.
A party must obtain the other party’s written consent prior
to any publication, presentation, public announcement or press
release concerning the relationship between the parties or the
existence or terms of this Agreement, except as may
otherwise be required by law. In addition, the parties agree not to
make any disparaging or derogatory comments regarding the other
parties to any third party.

 

8.4           Assignment.
No party may assign any portion of this Agreement, voluntarily or
involuntarily, including without limitation by operation of law,
without the prior written consent of the other party, which shall
not be unreasonably withheld, conditioned or delayed. Any
attempt to otherwise assign this Agreement
shall be null and void. No
person or entity not a party hereto shall have any interest herein
or be deemed a third party beneficiary hereof, and nothing
contained herein shall be construed to create any rights
enforceable by any other person or third party.

 

8.5           Partnership.
Nothing herein contained shall be construed as creating a
partnership or joint venture by or between the
parties.

 

8.6           Binding
Agreement. This
Agreement shall be binding upon and inure to the benefit of the
parties and their respective permitted successors and
assigns.

 

8.7           Severability.
Any provision of this Agreement held or determined by a court (or
other legal authority) of competent jurisdiction to be illegal,
invalid, or unenforceable in any jurisdiction shall be deemed
separate, distinct and independent, and shall be ineffective to the
extent of such holding or determination without (i) invalidating
the remaining provisions of this Agreement in that jurisdiction or
(ii) affecting the legality, validity or enforceability of such
provision in any other jurisdiction.

 

8.8           Captions
Headings. Captions
and paragraph headings used in this Agreement are for convenience
only and shall not be used to interpret any provision
hereof.

 

8.9           Entire
Agreement. This
Agreement, together with the Exhibits and Schedules, which
documents are incorporated herein by reference, constitutes the
entire agreement and understanding of the parties with respect to
the subject matter hereof, and is intended as the parties’
final expression and complete and exclusive statement of the terms
thereof, superseding all prior or contemporaneous agreements,
representations, promises and understandings, whether written or
oral, between the parties, and may be amended or modified only by
an instrument in writing signed by all parties.

 

8.10           Notices.
Any notice required or permitted to be given hereunder shall be (a)
in writing, (b) effective on the first business day following the
date of receipt, and (c) delivered by one of the following means:
(i) by personal delivery; (ii) by prepaid, overnight package
delivery or courier service; or (iii) by the United States Postal
Service, first class, certified mail, return receipt requested,
postage prepaid.

 

All
notices given under this Agreement shall be addressed, in the case
of Seller, to:

 

Greenhouse
Holdings, Inc.

_____________________

_____________________

 

All
notices given under this Agreement shall be addressed, in the case
of Purchaser, as follows:

 

Carlos
Carrillo

_____________________

_____________________

 

 

10

 

 

or to
such other addresses of which the parties have been advised in
writing by any of the above-described means. Personal delivery to a
party or to any officer, partner, agent, or employee of such party
at its address herein shall constitute receipt. The following shall
also constitute receipt: (i) a party’s rejection or other
refusal to accept notice, and (ii) the inability to deliver to a
party because of a changed address of which no notice has been
received by the other party. Notwithstanding the foregoing, no
notice of change of address shall be effective until ten (10) days
after the date of receipt thereof. This Section shall not be
construed in any way to affect or impair any waiver of notice or
demand herein provided.

 

8.11           Governing
Law. This Agreement
shall be governed by and construed in accordance with the laws of
the State of Delaware, without giving effect to any principles of
conflicts of law. With respect to any litigation arising out of or
relating to this Agreement, the parties agree that it shall be
exclusively filed in and heard by the state or federal courts with
jurisdiction to hear such suits located in the State of Delaware,
and each party hereby submits to the exclusive jurisdiction of such
courts.

 

8.12           Counterparts.
This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original and all of which taken together
shall constitute one and the same Agreement. Execution and delivery
of this Agreement by exchange of facsimile copies bearing the
facsimile signature of a party hereto shall constitute a valid and
binding execution and delivery of this Agreement by such party.
Such facsimile copies shall constitute enforceable original
documents.

 

8.13           Specific
Performance. Without
limiting or waiving in any respect any rights or remedies of the
parties to this Agreement now or hereinafter existing at law or
equity or by statute, each of the parties hereto shall be entitled
to seek specific performance of the obligations to be performed by
the other in accordance with the provisions of this
Agreement.

 

8.14           Professional
Fees. In the event of
any litigation involving this Agreement or any of the ancillary
documents, the prevailing party in such litigation shall be
entitled to recover reasonable attorney fees and costs in addition
to any other remedy to which it is entitled.

 

 

[SIGNATURES
ON FOLLOWING PAGE]

 

11

 

 

IN WITNESS WHEREOF, each party has
executed or caused its duly authorized officer to execute this
Agreement the day and year first above written.

 

 

“PURCHASER”:

 

 

/s/ Carlos
Carrillo                                               
Date: 12/13/2016

Carlos
Carrillo

 

 

“CEI”:

 

Control
Engineering, Inc.

 

By:/s/Dan
Wachtler                                               
Date: 12/14/16

Name:
Dan Wachtler

Its:
President & COO

 

 

“SELLER”:

 

Greenhouse
Holdings, Inc.

 

By:/s/ Brian
King                                               
Date: 12/14/16

Name:
Brian King

Its:

 

 

 

 

Schedule I

 

On file
with the Greenhouse Holdings, Inc.

 

 

 

 

 

 

Exhibit A

 

(see
attached)

 

 

 

 

 

 

 

PROMISSORY NOTE

 

	

$_____________  

	
 Costa Mesa,
California

December 31,
2016

 

FOR
VALUE RECEIVED, Carlos Carrillo (the “Maker”) promises
to pay to Greenhouse Holdings, Inc., a Nevada corporation (the
“Holder”), the principal sum of [___________________
($________)]together with interest thereon at the rate of 1.00% per
annum, compounded annually, upon the following terms and
conditions. Interest on this Note shall be computed on the basis of
a year of 365 days for the actual number of days
elapsed.

Unless
there shall occur an Event of Default (as defined below), the
principal amount of this Note and all accrued but unpaid interest
thereon shall be due and payable as follows:

(a) On April 1, 2017,
an amount equal to the cash receipts collected by Control
Engineering, Inc. (“CEI”) between January 1, 2017 and
March 30, 2017 in respect of accounts receivable of CEI outstanding
on December 31, 2016 (the “Accounts Receivable”) in
excess of $60,000.00 shall be due and payable by Maker to the
Holder; and

(b) On the first day of
each calendar month thereafter until the earlier of the Maturity
Date or the date on which all principal and accrued but unpaid
interest under this Note has been repaid in full, an amount equal
to the cash receipts collected by CEI in respect of the Accounts
Receivable during the month immediately preceding the applicable
payment date shall be due and payable by Maker to the Holder;
and

(c) Any remaining
unpaid principal hereunder together with all accrued but unpaid
interest thereon shall be due and payable on the twelve (12) month
anniversary of the date of this Note (the “Maturity
Date”), unless such Maturity Date is extended by the Holder
in the Holder’s sole and absolute discretion.

For
purposes of clarity, no payments shall be due under this Note prior
to April 1, 2017.

All
payments by Maker under this Note shall be in immediately available
funds. Principal and accrued interest on this Note may be prepaid
at any time by Maker without notice, premium or penalty and without
the written consent of Holder.

This
Note shall be guaranteed by CEI pursuant to that certain Continuing
Guaranty of even date herewith issued by CEI in favor of the
Holder, and the obligations pursuant to such Continuing Guaranty
shall be secured by a blanket lien on all assets of CEI pursuant to
that certain Security Agreement of even date herewith issued by CEI
in favor of the Holder.

This
Note shall become immediately due and payable without notice or
demand upon the occurrence at any time of any of the following
events of default (individually, “an Event of Default”
and collectively, “Events of Default”): (1) the
liquidation, termination of existence, dissolution, winding down,
cessation of business or insolvency of CEI, or the appointment of a
receiver or custodian for Maker or any part of its property, as
applicable; (2) the institution by or against Maker of any
proceedings under the United States Bankruptcy Code or any other
federal or state bankruptcy, reorganization, receivership,
insolvency or other similar law affecting the rights of creditors
generally; or (3) the failure by Maker to pay any principal or
accrued interest when due hereunder. Upon the occurrence of an
Event of Default, the Holder shall have then, or at any time
thereafter, all of the rights and remedies afforded by the Uniform
Commercial Code as from time to time in effect in the State of
[California] or afforded by other applicable law. All rights and
remedies of the Holder shall be cumulative, and the Holder shall be
entitled to all the rights of a holder in due course of a
negotiable instrument.

 

1

 

All
payments by Maker under this Note shall be applied first to the
cost of collection, if any, second to accrued but unpaid interest,
and third to unpaid principal. All payments by Maker under this
Note shall be made without set-off or counterclaim and be free and
clear and without any deduction or withholding for any taxes or
fees of any nature whatever, unless the obligation to make such
deduction or withholding is imposed by law. If this Note is not
paid in accordance with its terms, Maker shall pay to the Holder,
in addition to principal and accrued interest thereon, all costs of
collection of the principal and accrued interest, including, but
not limited to, reasonable attorneys’ fees, court costs and
other costs for the enforcement of payment of this Note. No delay
or omission on the part of the Holder in exercising any right under
this Note shall operate as a waiver of such right or of any other
right of the Holder, nor shall any delay, omission or waiver on any
one occasion be deemed a bar to or waiver of the same or any other
right on any future occasion. None of the terms or provisions of
this Note may be excluded, modified or amended except by a written
instrument duly executed on behalf of the Holder expressly
referring to this Note and setting forth the provision so excluded,
modified or amended.

In the
event any one or more of the provisions of this Note shall for any
reason be held to be invalid, illegal or unenforceable, in whole or
in part or in any respect, or in the event that any one or more of
the provisions of this Note operate or would prospectively operate
to invalidate this Note, then and in any such event, such
provision(s) only shall be deemed null and void and shall not
affect any other provision of this Note and the remaining
provisions of this Note shall remain operative and in full force
and effect and in no way shall be affected, prejudiced, or
disturbed thereby.

In the
event any interest is paid on this Note that is deemed to be in
excess of the then legal maximum rate, then that portion of the
interest payment representing an
amount in excess of the then legal maximum rate shall be deemed a
payment of principal and applied against the principal of this
Note.

Maker
and any others who may become liable for the payment hereof jointly
and severally:

a. waive presentment
for payment, demand, notice of demand, notice of non-payment or
dishonor, protest and notice of protest of this Note and all other
notices in connection with the delivery, acceptance, performance,
default, or enforcement of the payment of this Note;

b. consent to all
extensions of time, renewals, postponements of time of payment of
this Note or other modifications hereof from time to time, whether
by acceleration or in due course, without notice, consent or
consideration to any of the foregoing;

c. agree to any
addition or release of any party or person primarily or secondarily
liable hereon;

d. agree that the
Holder shall not be required first to institute any suit, or to
exhaust its remedies, against Maker or any other person or party
liable hereunder in order to enforce the payment of this Note;
and

e. agree that,
notwithstanding the occurrence of any of the foregoing (except by
the express written release by the Holder of any such person),
Maker shall be and remain directly and primarily liable for all
sums due under this Note.

All
rights and obligations hereunder shall be governed by the laws of
the State of [California], without regard to the conflicts of law
provisions of the State of [California] or any other
state.

 

2

 

 

MAKER:

 

 

___________________________

Carlos
Carrillo

 

 

 

 

Acknowledged and agreed:

 

GREENHOUSE HOLDINGS, INC.

 

___________________________

By:
________________________

Its:
________________________

 

3

 

 

Exhibit B

 

(see
attached)

 

 

 

 

CONTINUING GUARANTY

TO:
Greenhouse Holdings, Inc.

1. For valuable
consideration, the undersigned (hereinafter the
“Guarantor”), jointly and severally with all other
guarantors, unconditionally guarantees and promises to pay to
Greenhouse Holdings, Inc. (hereinafter the “Lender”),
or order, on demand, in lawful money of the United States, any and
all indebtedness and other obligations of Carlos Carillo
(hereinafter the “Borrower”) to Lender under that
certain Secured Promissory Note in the principal amount of
[___________________ ($________)]1 (the “Note”) dated on or
about December 31, 2016, as may be amended (such indebtedness
referred to hereinafter as the “Obligations”).
Guarantor is a related and affiliated entity of the Borrower and
will derive substantial and direct benefit from the extension and
availability of the loan evidenced by the Note. The terms and
conditions of each Note are hereby incorporated herein. Should
there be any conflict between the terms hereof and the terms of the
Note, the terms hereof shall control.

2. This is a
continuing guaranty relating to the Obligations, including that
arising under any renewal, modification, or extension of the
Note.

3. The obligations of
the Guarantor hereunder are independent of the Obligations of the
Borrower, and a separate action or actions may be brought and
prosecuted against Guarantor, whether action is brought against the
Borrower, or whether the Borrower be joined in any such action or
actions; and Guarantor expressly waives any rights which Guarantor
may have under California Civil Code sections 2809, 2810, 2819,
2839, 2845 through 2847, 2849, 2850, 2899 and 3433, and California
Code of Civil Procedure Sections 580(a), 580(b), 580(d) and 726.
Guarantor expressly waives the benefit of any statute of
limitations affecting his liability hereunder or the enforcement
thereof. Lender’s rights hereunder shall not be exhausted by
its exercise of any one of its rights or remedies or by any such
action or by any number of successive actions until and unless all
indebtedness and Obligations have been paid and fully
performed.

4. Guarantor
authorizes Lender, without notice or demand and without affecting
their liability hereunder, from time to time to (a) renew,
compromise, extend, accelerate or otherwise change the time for
payment of, or otherwise change the terms of the Obligations or any
part thereof, including increase or decrease of the rate of
interest thereon; (b) take and hold additional security for the
payment of this Guaranty or the Obligations guaranteed, and
exchange, enforce, waive, subordinate and release any such
security; (c) apply such security and direct the order or manner of
sale thereof as Lender in its discretion may determine; and (d)
release or substitute any one or more of any other Guarantor, or
add one or more Guarantor or endorsers. Lender may without notice
assign this Guaranty in whole or in part.

5. Guarantor waives
any right to require Lender to (a) proceed against the Borrower;
(b) proceed against or exhaust any security held from the Borrower;
or, (c) pursue any other remedy in Lender’s power whatsoever.
Guarantor waives any defense arising by reason of any disability or
other defense of the Borrower or by reason of the cessation from
any cause whatsoever of the liability of the Borrower. Until all of
the Obligations of the Borrower to Lender shall have been paid in
full, Guarantor shall have no right of subrogation, and waives any
right to enforce any remedy which Lender now has or may hereafter
have against the Borrower, and waives any benefit of, and any right
to participate in any security now or hereafter held by Lender.
Guarantor waives all presentments, demands for performance, notices
of nonperformance, protests, notices of protest, notices of
dishonor, and notices of acceptance of this Guaranty and of the
existence, creation, or incurring of new or additional
indebtedness.

 1NTD: to be equal to
purchase price under stock purchase agreement.

 

1

 

6. Guarantor waives
and agrees not to assert any duty on the part of Lender to disclose
to Guarantor any facts that Lender may now or hereafter know about
the Borrower. Guarantor is fully responsible for being and keeping
informed of the financial condition of the Borrower and all
circumstances bearing on the risk of non-payment of the Obligations
guaranteed hereby.

7. Guarantor will file
all claims against the Borrower in any bankruptcy or other
proceeding in which the filing of claims is required by law upon
any indebtedness of the Borrower to Guarantor and shall
concurrently assign to Lender all of Guarantor’s rights
thereunder. If Guarantor does not file any such claim, Lender, as
Guarantor’s attorney in fact, is hereby authorized to do so
in Guarantor’s name or, in Lender’s discretion, to
assign the claim and to cause proof of claim to be filed in the
name of Lender’s nominee. In all such cases, whether in
administration, bankruptcy or otherwise, the person or persons
authorized to pay such claim shall pay to Lender the full amount
thereof and, to the full extent necessary, Guarantor hereby assigns
to Lender all of Guarantor’s rights to any and all such
payments or distributions to which Guarantor would otherwise be
entitled. If the amount so paid is greater than the Obligations
then outstanding, Lender will pay the amount of the excess to the
person entitled thereto.

8. The amount of
Guarantor’s liability and all rights, powers, and remedies of
Lender hereunder and under the Loan Documents and any other
agreement now or at any time hereafter in force between Lender and
Guarantor shall be cumulative and not alternative, and such rights,
powers, and remedies shall be in addition to all rights, powers,
and remedies given to Lender by law.

9. This Guaranty shall
benefit Lender, its successors and assigns, including the assignees
of any indebtedness hereby guaranteed, and binds Guarantor’s
successors and assigns. This Guaranty is assignable by Lender with
respect to all or any portion of the indebtedness and obligations
guaranteed hereunder, and when so assigned Guarantor shall be
liable to the assignees under this Guaranty without in any manner
affecting Guarantor’s liability hereunder with respect to any
indebtedness or obligations retained by Lender. No delegation or
assignment of this Guaranty by any Guarantor shall be of any force
or effect or release Guarantor from any obligations
hereunder.

11. Except as provided
in any other written agreement now or at any time hereafter in
force between Lender and Guarantor, this Guaranty shall constitute
the entire agreement of Guarantor with Lender with respect to the
subject matter hereof and supersedes all prior representations,
understandings, promises, and agreements.

12. No provision of
this Guaranty or right of Lender hereunder can be waived nor can
Guarantor be released from his obligations hereunder except by a
writing duly executed by an authorized officer of
Lender.

13. Lender shall have a
lien upon and a right of set-off against all money, securities and
other property of Guarantor now or hereafter in the possession of
or on deposit with Lender, and every such lien and right of set-off
may be exercised without demand upon or notice to Guarantor. No
lien or right of set-off shall be deemed to have been waived by any
act of Lender or any failure to exercise such right of set-off, and
every right of set-off and lien shall continue in full force and
effect until such right of set-off or lien is specifically waived
or released by an instrument in writing executed by
Lender.

14. Any indebtedness of
the Borrower now or hereafter held by Guarantor is hereby
subordinated to the indebtedness of the Borrower to Lender; and
such indebtedness of the Borrower to Guarantor if Lender so
requests shall be collected, enforced and received by Guarantor as
trustee for Lender and be paid over to Lender on account of the
Obligations of the Borrower to Lender but without reducing or
affecting in any manner the liability of Guarantor under the other
provisions of this Guaranty.

 

2

 

15. Guarantor agrees to
pay to Lender without demand reasonable attorneys’ fees and
accountants’ fees and all other costs and expenses which may
be incurred by Lender in the enforcement of this Guaranty or in
collecting or compromising the Obligations; whether or not suit is
filed. Time is of the essence of each term and condition
hereof.

16. Except where
preempted by the laws of the United States or the rules or
regulations of any agency or instrumentality thereof, this Guaranty
is to be governed by the laws of the State of [California], and the
parties agree that this Guaranty is, except where preempted by the
laws, rules or regulations of the United States to be interpreted,
construed and governed by the laws of the State of [California].
Guarantor irrevocably and unconditionally submits to the
jurisdiction of the Superior Court of the State of [California] in
connection with any legal action or proceeding arising out of or
relating to this Guaranty and Guarantor waives any objection
relating to the basis for personal or in rem jurisdiction or to venue
which they may now or hereafter have in any such suit, action or
proceeding. If any paragraph, clause or provision hereof is
construed or interpreted by a court of competent jurisdiction to be
void, invalid, or unenforceable, such decision shall affect only
those paragraphs, clauses or provisions and shall not affect the
remainder hereof.

17. PDF or facsimile
signatures hereunder shall be deemed originals.

18. This Guaranty
(including all of Guarantor’s Obligations hereunder) is
secured by a lien and security interest granted to Lender in, to
and upon all of Guarantor’s right title and interest in to
all of Guarantor’s property as set forth in that certain
Security Agreement made by Guarantor in favor of Lender and dated
as of the date of this Guaranty.

[NO
FURTHER TEXT ON THIS PAGE]

 

 

3

 

IN WITNESS WHEREOF, the undersigned
Guarantor has executed this Continuing Guaranty this 31st day of December,
2016.

	
 

	

CONTROL
ENGINGEERING, INC., a Delaware corporation

 

 

By:                                                      

Name:
________________________

Its:
___________________________

 

 

 

 

 

 

Exhibit C

 

(see
attached)

 

 

 

 

 

 

SECURITY AGREEMENT

 

THIS SECURITY AGREEMENT (hereinafter
called “Agreement”) is made and entered into as of
December 31, 2016 by Control Engineering, Inc., a Delaware
corporation (hereinafter, collectively, called
“Debtor”), in favor of Greenhouse Holdings, Inc., a
Nevada corporation, whose address is ____________________
(hereinafter called “Secured Party”).

1. RECITALS.

1.1           On
December 31, 2016, Carlos Carillo, an individual (the
“Borrower”) issued that certain Promissory Note in
favor of Secured Party in the principal amount of
[___________________ ($________)] (the “Note”);
and

1.2           Debtor
is a related and affiliated entity of the Borrower and will derive
substantial and direct benefit from the extension and availability
of the loan evidenced by the Note, and, in connection therewith,
has issued that certain Continuing Guaranty in favor of Secured
Party of even date herewith guaranteeing the obligations of the
Borrower under the Note (the “Guaranty”).

2. SECURITY
INTEREST.

2.1           In
consideration of the loan evidenced by the Note, Debtor hereby
grants to Secured Party a lien and security interest (hereinafter
called the “Security Interest”) in and to all of right,
title and interest in and to Debtor’s assets, including
without limitation, Debtor’s intellectual property (the
“Collateral”).

2.2           This
Security Interest is given for the purpose of securing the
Obligations, in such order of priority as Lender may
elect:

(a) Payment and
performance of all obligations under the Guaranty including,
without limitation, any and all interest thereon, extension and
other fees, late charges, prepayment premiums and attorneys’
fees;

(b) Payment,
performance and observance by Debtor of each agreement, term,
provision and condition contained herein and of all moneys expended
or advanced by Secured Party pursuant to the terms hereof, or to
preserve any right of Secured Party hereunder, or to protect or
preserve the Collateral or any part thereof; and

(c) Payment and
performance of any and all other indebtedness, obligations and
liabilities of Debtor to Secured Party of every kind and character,
direct or indirect, absolute or contingent, due or to become due,
not existing or hereafter incurred, whether such indebtedness is
from time to time reduced and thereafter increased or entirely
extinguished and thereafter re-incurred.

All of
the indebtedness and obligations secured by this Agreement are
hereinafter collectively called the
“Obligation”.

 

1

 

3.            

WARRANTIES,
COVENANTS AND AGREEMENTS OF DEBTOR. Debtor hereby warrants, covenants
and agrees that:

3.1            

Debtor represents
and warrants that:

(a) Debtor is the true
and lawful owner of the Collateral and has full power, right and
authority to deliver the Collateral to Secured Party and to execute
and deliver this Agreement;

(b) No defense, setoff,
claim or counterclaim exists against Debtor that could be asserted
against Secured Party, whether in any proceeding to enforce Secured
Party’s interest in the Collateral or otherwise:

(c) Debtor has not
conveyed, transferred or assigned the Collateral or any of its
rights or interest therein and has not executed any other document
or instrument that might prevent or limit Secured Party from
operating under the terms and conditions of this Agreement;
and

(d) Debtor has not made
any pledge or assignment or of the Collateral and there are no
other liens, encumbrances or claims made, placed upon or filed or
recorded against the Collateral, and Debtor will make no other
assignment (and will allow no other assignment to be made) of the
Collateral or of any right or interest therein.

3.2           Debtor
does hereby make, constitute and appoint Secured Party, its
successors and assigns, Debtor’s true and lawful attorney in
fact, in Debtor’s name, place and stead, or
otherwise:

(a) To do all acts,
including taking possession of the Collateral, the filing of any
UCC Financing Statement (including continuation statements and
amendments) with the appropriate filing office, and upon the
occurrence of an Event of Default to execute, acknowledge, obtain
and deliver any and all instruments, documents, items or things
necessary, proper or required as a term, condition or provision of
the Collateral or in order to exercise any rights of Debtor under
the Collateral or to receive and enforce any performance due Debtor
under the Collateral;

(b) Upon the occurrence
of an Event of Default to give any notices, instructions, or other
communications to any other parties related to the Collateral or to
any person or entity in connection therewith;

(c) Upon the occurrence
of an Event of Default to demand and receive all performances due
under or with respect to the Collateral and to take all lawful ways
and means for the enforcement thereof and to compromise and settle
any claim or cause of action in Debtor arising from or related to
the Collateral and give acquittances and other sufficient
discharges relating thereto; and

 

2

 

(d) To file any claim
or to take any other action or proceeding, either in its own name
or in that of its nominee, or in the name of Debtor or otherwise,
to enforce performances due under or related to the Collateral or
to protect and preserve the right, title and interest of Secured
Party hereunder.

The
power of attorney given herein is a power coupled with an interest
and shall be irrevocable so long as any part of the Obligation
remains unpaid or unperformed. Secured Party shall have no
obligation to exercise any of the foregoing rights and powers in
any event.

3.3           No
change, amendment or modification shall be made to the Collateral
or to the instructions of Debtor contained herein without the prior
written approval of Secured Party.

3.4.           Debtor
shall provide any and all documentation and take any and all action
as may be necessary to perfect Secured Party’s lien and
security interest in, to and upon the Collateral.

3.5           Debtor
shall promptly notify Secured Party of any default or breach of or
under the Agreement or of any failure of performance or other
condition that with the giving of notice or the passage of time, or
both, could become a default or breach under the
Agreement.

3.6           Debtor
shall pay all taxes, assessments and other charges that may be
levied or assessed against the Collateral.

3.7           Debtor
shall immediately give Secured Party written notice of any change
in Debtor’s location.

3.8           Debtor,
at its cost and expense, shall protect and defend this Agreement,
all of the rights of Secured Party hereunder and the Collateral
against all claims and demands of other parties. Debtor shall pay
all claims and charges that in the reasonable opinion of Secured
Party might prejudice, imperil or otherwise affect the Collateral
or the Security Interest. Debtor shall promptly notify Secured
Party of any levy, distraint or other seizure by legal process or
otherwise of any part of the Collateral and of any threatened or
filed claims or proceedings that might in any way affect or impair
the terms of this Agreement.

3.9           The
Security Interest, at all times, shall be perfected and shall be
prior to any other interest in the Collateral. Debtor, on demand,
shall promptly pay all costs and expenses of filing and recording,
including the costs of any searches, reasonably deemed necessary by
Secured Party from time to time to establish and determine the
validity and the continuing priority of the Security
Interest.

3.10           If
Debtor shall fail to pay any expenses or charges to keep all of the
Collateral free from other security interests, encumbrances or
claims, or to perform otherwise as required herein, Secured Party
may advance the moneys necessary to pay the same.

3.11           All
rights, powers and remedies granted Secured Party herein, or
otherwise available to Secured Party, are for the sole benefit and
protection of Secured Party, and Secured Party may exercise any
such right, power or remedy at its option and in its sole and
absolute discretion without any obligation to do so. In addition,
if under the terms hereof, Secured Party is given two or more
alternative courses of action, Secured Party may elect any
alternative or combination of alternatives at its option and in its
sole and absolute discretion. All monies advanced by Secured Party
under the terms hereof and all amounts paid, suffered or incurred
by Secured Party in exercising any authority granted herein,
including reasonable attorneys’ fees, shall be added to the
Obligation, shall be secured by the Security Interest, shall bear
interest at the highest rate payable on any of the Obligation until
paid, and shall be due and payable by Debtor to Secured Party
immediately upon written demand by Secured Party, and upon failure
of Debtor to do so, Secured Party may declare all sums secured
hereby immediately due and payable.

 

3

 

3.12           Debtor
shall furnish to Secured Party or any assignee thereof within
fifteen (15) days after request therefor, a written statement in
form satisfactory to Secured Party, duly acknowledged, certifying
the amount of the principal and interest then owing under the Note,
and whether any claims, offsets or defenses exist against this
Agreement or any of the terms and provisions of any other agreement
securing the Obligation.

4.            

EVENTS OF DEFAULT; REMEDIES.

4.1           The
occurrence of any of the following events or conditions shall
constitute and is hereby defined to be an “Event of
Default”:

(a) Any Event of
Default under the Note or the Guaranty;

(b) Any warranty,
representation or statement contained in this Agreement or any
other document or instrument executed or delivered in connection
with the Obligation, or made or furnished to Secured Party by or on
behalf of Debtor, that shall be or shall prove to have been
materially false when made or furnished;

(c) The filing by
Debtor (or against Debtor) in which Debtor acquiesces or which is
not dismissed within ninety (90) days after the filing thereof of
any proceeding under the federal bankruptcy laws now or hereafter
existing or any other similar statute now or hereafter in effect;
the entry of an order for relief under such laws with respect to
Debtor or the appointment of a receiver, trustee, custodian or
conservator of all or any part of the assets of
Debtor;

(d) The insolvency of
Debtor, or the execution by Debtor, of an assignment for the
benefit of creditors; or the convening by Debtor of a meeting of
its creditors, or any class thereof, for purposes of effecting a
moratorium upon or extension or composition of its debts; or the
failure of Debtor to pay its debts as they mature; or if Debtor is
generally not paying its debts as they mature;

(e) The admission in
writing by Debtor that it is unable to pay its debts as they mature
or that it is generally not paying its debts as they
mature;

(f) The liquidation,
termination or dissolution of Debtor, if a corporation, limited
liability company, partnership or joint venture, if Secured Party
is not reasonably reassured of timely payment and performance
hereunder and under the Note and the Guaranty;

(g) Any attachment,
garnishment, levy or execution upon, or judicial seizure of, any
portion of the Collateral;

 

4

 

(h) The existence or
the filing of any lien or encumbrance against any portion of the
Collateral which may impair the first lien position of Secured
Party;

(i) The institution of
any legal action or proceedings to enforce a lien or security
interest in any portion of the Collateral;

(j) The occurrence of
any event of default under any other document or instrument
executed or delivered in connection with the
Obligation;

(k) The occurrence of
any event of default under any document or instrument given by
Debtor in connection with any other indebtedness of Debtor to
Secured Party.

4.2           Upon
the occurrence of any Event of Default and at any time and from
time to time thereafter while such Event of Default is continuing,
Secured Party shall have the following rights and remedies and may
do one or more of the following:

(a) Declare all or any
part of the Obligation immediately due and payable, and the same,
with all costs and charges, shall be collectible thereupon by
action at law.

(b) Pursue any legal
remedy available to collect the Obligation, to enforce its title in
and right to possession of the Collateral and to enforce any and
all other rights or remedies available to it.

(c) Apply any funds in
any impound accounts held by Secured Party for the benefit of
Debtor to the Obligation in any manner as Secured Party
elects.

(d) Apply all or any
portion of the Collateral funds to the Obligation in any manner as
Secured Party elects.

4.3           Secured
Party shall give Debtor reasonable notice of any sale or other
disposition of all or any part of the Collateral made under the UCC
or otherwise. Debtor agrees that notice and demand shall be deemed
to be commercially reasonable and effective if such notice is given
to Debtor at least ten (10) days prior to such sale or other
disposition in the manner provided herein for the giving of
notices.

4.4           Debtor
shall and does hereby indemnify and hold Secured Party harmless
from any and all damages and losses arising as a result of or
related to the Collateral, this Agreement or the exercise by
Secured Party of any of its rights under this Agreement, including,
without limitation, any judgment, amounts paid in settlement, and
all costs and expenses, including reasonable attorneys’ fees,
incurred in defending or settling any action, suit or proceeding in
connection with the foregoing.

4.5           All
sums advanced or paid by Secured Party under the terms hereof, all
amounts paid, suffered or incurred by Secured Party in exercising
any authority granted herein, including reasonable attorneys’
fees, and all other amounts due Secured Party from Debtor in
connection with this Agreement shall be added to the Obligation,
shall be secured by all deeds of trust and other lien and security
documents securing the Obligation, shall bear interest at the
highest rate payable on any of the Obligation until paid, and shall
be due and payable by Debtor to Secured Party immediately upon
written demand by Secured Party, and upon failure of Debtor to do
so, Secured Party may declare all sums secured hereby immediately
due and payable.

 

5

 

4.6           Debtor
shall pay all costs and expenses, including without limitation
costs of Uniform Commercial Code searches, court costs and
reasonable attorneys’ fees, incurred in enforcing payment and
performance of the Obligation or in exercising the right and
remedies of Secured Party hereunder whether in civil, probate,
bankruptcy or appellate courts. Such court costs and
attorneys’ fees shall be set by the court and not by jury,
shall be included in any judgment obtained by Secured Party, shall
be added to the Obligation and shall be secured by this
Agreement.

4.7           In
addition to the remedies provided herein for an Event of Default,
Secured Party shall have all the rights and remedies afforded a
secured party under the Uniform Commercial Code and all other legal
and equitable remedies allowed under applicable law. No failure on
the part of Secured Party to exercise any of its rights hereunder
arising upon any Event of Default shall be construed to prejudice
its rights upon the occurrence of any other or subsequent Event of
Default. No delay on the part of Secured Party in exercising any
such rights shall be construed to preclude it from the exercise
thereof any time during the continuance of that Event of Default.
Secured Party may enforce any one or more remedies or rights
hereunder successively or concurrently. By accepting payment or
performance of any of the Obligation after its due date, Secured
Party shall not thereby waive the agreement contained herein that
time is of the essence, nor shall Secured Party waive either its
right to require prompt payment or performance when due of the
remainder of the Obligation or its right to consider the failure to
so pay or perform an Event of Default.

5.           

MISCELLANEOUS PROVISIONS.

5.1           The
acceptance of this Agreement by Secured Party shall not be
considered a waiver of, or in any way to affect or impair any other
security that Secured Party may have, acquire simultaneously
herewith, or hereafter acquire for the payment or performance of
the Obligation, nor shall the taking by Secured Party at any time
of any such additional security be construed as a waiver of, or in
any way to affect or impair, the Security Interest; Secured Party
may resort, for the payment or performance of the Obligation, to
its various securities therefor in such order and manner as it may
determine.

5.2           Secured
Party, by accepting this Agreement, shall not be subject to any
obligation or liability under this Agreement or with respect to any
of the Collateral, including without limitation, any duty to
perform any of the terms, conditions, provisions or agreements
thereof, and any and all such obligations and liabilities shall
continue to remain with Debtor as though this Agreement had not
been made; Secured Party may hold the Collateral in any account
including its general account and may commingle the Collateral with
other funds.

5.3           Without
notice or demand, without affecting the obligations of Debtor
hereunder or the personal liability of any person for payment or
performance of the Obligation, and without affecting the Security
Interest or the priority thereof, Secured Party, from time to time,
may: (i) extend the time for payment of all or any part of the
Obligation, accept a renewal note therefor, reduce the payments
thereon, release any person liable for all or any part thereof, or
otherwise change the terms of all or any part of the Obligation;
(ii) take and hold other security for the payment or performance of
the Obligation and enforce, exchange, substitute, subordinate,
waive or release any such security; (iii) join in any extension or
subordination agreement; or (iv) release any part of the Collateral
from the Security Interest.

 

6

 

5.4           Debtor
waives and agrees not to assert: (i) any right to require Secured
Party to proceed against the Borrower or guarantor, to proceed
against or exhaust any other security for the Obligation, to pursue
any other remedy available to Secured Party, or to pursue any
remedy in any particular order or manner; (ii) the benefits of any
statute of limitations affecting the enforcement hereof; (iii)
demand, diligence, presentment for payment, protest and demand, and
notice of extension, dishonor, protest, demand and nonpayment,
relating to the Obligation; and (iv) any benefit of, and any right
to participate in, any other security or hereafter held by Secured
Party except as otherwise provided in any Continuing Guaranty or
this Agreement.

5.5           No
failure or delay on the part of Secured Party in exercising any
right, power, or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right,
power, or privilege hereunder preclude any other or further
exercise or the exercise of any other right, power, or privilege.
The rights, powers and remedies hereunder are cumulative and may be
exercised by Secured Party either independently of or concurrently
with any other right, power, or remedy contained herein or in any
instrument executed in connection with the Obligation.

5.6           The
terms herein shall have the meanings in and be construed under the
Uniform Commercial Code. This Agreement shall be governed by and
construed in accordance with the laws of the State of [California].
Each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable law, but if
any provision of this Agreement is held to be void or invalid, the
same shall not affect the remainder hereof which shall be effective
as though the void or invalid provision had not been contained
herein.

5.7           No
modification, rescission, waiver, release or amendment of any
provision of this Agreement shall be made except by a written
agreement executed by Debtor and a duly authorized officer of
Secured Party.

5.8           This
Agreement shall remain in full force and effect until all of the
Obligation shall have been paid and performed in full.

5.9           No
offset or claim that Debtor now has or may in the future have
against Secured Party shall relieve Debtor from paying or
performing the Obligation.

5.10           Time
is of the essence hereof. This Agreement applies to, inures to the
benefit of, and binds all parties hereto, their heirs, personal and
legal representatives, successors and assigns. The term
“Secured Party” shall include not only the original
Secured Party hereunder but also any future owner and holder,
including pledgees, of the Note. The provisions hereof shall apply
to the parties according to the context thereof and without regard
to the number or gender of words or expressions used.

5.11           All
notices required or permitted to be given hereunder shall be in
writing, and shall be delivered and become effective on delivery.
The address for any notices required or permitted to be given to
Debtor hereunder shall be the same notice address as set forth in
the Continuing Guaranty executed by such Debtor, as
applicable.

 

7

 

5.12           A
carbon, photographic or other reproduced copy of this Agreement
and/or any financing statement relating hereto shall be sufficient
for filing and/or recording as a financing statement.

[NO
FURTHER TEXT ON THIS PAGE]

 

 

8

 

IN WITNESS WHEREOF, this Security
Agreement has been executed and delivered on behalf of and in the
name of Debtor on the date indicated above.

	
 

	
 

DEBTOR:

 

CONTROL
ENGINGEERING, INC., a Delaware corporation

 

By:                                                       

Name:
________________________

Its:
___________________________

 

 

 

9EX-4.1

 Exhibit 4.1 

Execution Version 

SHAREHOLDERS’ AND REGISTRATION RIGHTS AGREEMENT 

THIS SHAREHOLDERS’ AND REGISTRATION RIGHTS AGREEMENT (as it may be amended from time to time in accordance with the terms hereof, this
“Agreement”), dated as of December 20, 2016, is made by and among Tema Oil and Gas Company, a Maryland corporation (“Tema”), KLR Energy Sponsor, LLC, a Delaware limited liability company
(“KLRE Sponsor”), KLR Energy Acquisition Corp., a Delaware corporation (the “Company”) and Anchorage (as defined below). 

RECITALS 
 WHEREAS, on the
date hereof, the Company has entered into that certain Business Combination Agreement (the “Business Combination Agreement”), dated as of December 20, 2016, by and between the Company and Tema, pursuant to which the Company
will acquire membership interests in Rosehill Operating Company, LLC, a Delaware limited liability company and wholly owned subsidiary of Tema (“Rosehill Operating”), as more particularly set forth in the Business Combination
Agreement (such transaction, the “Business Combination”); 
 WHEREAS, on the date hereof, the Company entered into
an agreement to sell certain equity interests to Anchorage in a private placement; and 
 WHEREAS, on the date hereof, the parties hereto
desire to set forth their agreement with respect to governance of the Company, registration rights with respect to the Company Shares (as defined below) and certain other matters. 

NOW, THEREFORE, in consideration of the foregoing and the mutual promises, covenants and agreements of the parties hereto, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I

 DEFINITIONS 

Section 1.1    Definitions. As used in this Agreement, the following terms shall have the following meanings:

 “Accelerated Buyer” has the meaning set forth in Section 6.1(f). 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled
by, or is under common control with, such Person. For these purposes, “control” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise, and specifically (without limiting the generality of the foregoing) with respect to a corporation, partnership or limited liability company, means direct or indirect ownership of more than
fifty percent (50%) of the voting securities in such corporation or of the voting interest in a partnership or limited liability company; provided that no Shareholder shall be deemed an Affiliate of the Company or any of its subsidiaries for
purposes of this Agreement or vice versa. 

 “Affiliated Officer” means an officer of the Company affiliated with any
of Tema, KLRE Sponsor or Anchorage. 
 “Agreement” has the meaning set forth in the preamble. 

“Anchorage” means, collectively, Anchorage Illiquid Opportunities V, L.P., a Delaware limited partnership and AIO V
AIV 3 Holdings, L.P., a Delaware limited partnership, and each of their Affiliates that is or becomes a Shareholder hereunder, and each such Person is referred to individually as a “Anchorage Group Member”. 

“Anchorage Director” has the meaning set forth in Section 3.2(b). 

“Anchorage Representative” has the meaning set forth in Section 7.13. 

“As Converted Company Shares” means all Common Stock outstanding as of the applicable measurement date together with
all Common Stock then issuable upon (i) the conversion of Convertible Securities at the then applicable conversion rate, provided, that, for purposes of this definition, all conditions to the convertibility and/or exercisability of Convertible
Securities shall be deemed to have been satisfied. 
 “Board of Directors” means the board of directors of the
Company. 
 “Business Combination” has the meaning set forth in the recitals. 

“Business Combination Agreement” has the meaning set forth in the recitals. 

“Business Combination Proposal” has the meaning given to such term in the Business Combination Agreement. 

“Business Day” means any day other than a Saturday, Sunday or any day on which bank institutions located in the State
of New York or Texas are authorized or obligated to close. 
 “Certificate of Incorporation” means the Amended and
Restated Certificate of Incorporation of the Company. 
 “Closing” has the meaning given to such term in the
Business Combination Agreement. 
 “Closing Date” has the meaning given to such term in the Business Combination
Agreement. 
 “Common Stock” means the shares of common stock of the Company, including any shares of such common
stock of the Company issued upon the exercise of any warrant or other right to acquire shares of such common stock of the Company. 

“Company” has the meaning set forth in the preamble. 

“Company Shares” means the shares of common stock or other equity securities of the Company and any securities into
which such shares of common stock or other equity securities shall have been changed or any securities resulting from any reclassification or recapitalization of such shares of common stock or other equity securities. 

“Confidential Information” has the meaning set forth in
Section 3.4.      

  
 2 

 “Convertible Securities” means any securities (directly or indirectly)
convertible into or exchangeable for Common Shares, including 8.000% Series A Cumulative Perpetual Convertible Preferred Stock of the Company. 

“Effective Time” has the meaning given to such term in the Business Combination Agreement. 

“Equity Financing” shall have the meaning given to such term in the Business Combination Agreement. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder. 
 “Filing Date” has the meaning set forth in Section 4.1(a). 

“FINRA” means the Financial Industry Regulatory Authority. 

“Holder” means any holder of Registrable Securities who is a party hereto or who succeeds to rights hereunder pursuant
to Article VI. For the avoidance of doubt, Anchorage is a “Holder” pursuant to this Agreement. 

“Indemnification Agreement” means an Indemnification Agreement in a form mutually acceptable to KLRE Sponsor, Tema and
Anchorage. 
 “Indemnitee” has the meaning set forth in Section 3.2(l). 

“Initial Share Ownership” means, with respect to each Sponsor or Anchorage, the number of Company Shares held by such
Sponsor or Anchorage immediately following the Business Combination. 
 “Issuer Free Writing Prospectus” means an
issuer free writing prospectus, as defined in Rule 433 under the Securities Act, relating to an offer of the Registrable Securities. 

“Issuer Public Sale” has the meaning set forth in Section 4.2(a). 

“KLRE Sponsor” has the meaning set forth in the preamble. 

“KLRE Sponsor Director” has the meaning set forth in Section 3.2(b). 

“Loss” has the meaning set forth in Section 4.8(a). 

“Major Transaction” means any (a) issuance or commitment to issue preferred stock of the Company or any
securities convertible into preferred stock of the Company, (b) sale, exchange, transfer, lease, disposition, surrender or abandonment of any assets of the Company in a single transaction or in one (1) or more related transactions in any six
(6) month period having a fair market value of more than twenty five million dollars ($25,000,000), (c) acquisition of the business or assets of any company in a single transaction or in one (1) or more related

  
 3 

 
transactions in any six (6) month period having a fair market value of more than twenty five million dollars ($25,000,000), (d) acquisition of an equity interest in any other Person (by
merger, purchase of equity interests or otherwise) in a single transaction or in one (1) or more related transaction in any six (6) month period with such equity interest having a fair market value of more than twenty five million dollars
($25,000,000) or (e) approval of any investment or expenditure or execution of any agreement reasonably likely to result in costs and expenses in a single transaction or contract or in one (1) or more related transactions or contracts having a
fair market value of more than twenty five million dollars ($25,000,000), and entrance into any agreement to do any of the foregoing. 

“Midrange Price” has the meaning set forth in Section 6.1(c). 

“Necessary Action” means, with respect to any party and a specified result, all actions (to the extent such actions
are permitted by law, within such party’s control and do not directly conflict with any rights expressly granted to such party in this Agreement or other organizational documents of the Company) reasonably necessary to cause such result,
including (a) voting or providing a written consent or proxy with respect to the Company Shares, (b) causing the adoption of stockholders’ resolutions and amendments to the organizational documents of the Company, (c) executing
agreements and instruments, (d) causing members of the Board of Directors (to the extent such members were elected, nominated or designated by the Person obligated to undertake such action) to act (subject to any applicable fiduciary duties) in a
certain manner or causing them to be removed in the event they do not act in such a manner and (e) making, or causing to be made, with governmental, administrative or regulatory authorities, all filings, registrations or similar actions that
are required to achieve such result. 
 “New Securities” means any capital stock of the Company or its subsidiaries,
whether now authorized or not, and rights, options or warrants to purchase such capital stock, and securities of any type whatsoever (including convertible debt securities) that are, or may become, convertible into or exchangeable or exercisable for
capital stock of the Company; provided that the term “New Securities” does not include (a) capital stock or rights, options or warrants to acquire capital stock of the Company issued to employees, consultants, officers or
directors of the Company or any subsidiary of the Company, or which have been reserved for issuance, pursuant to employee stock option, stock purchase, stock bonus plan, or other similar compensation plan or arrangement approved by the Board of
Directors of the Company, (b) securities of the Company issued to all then-existing stockholders in connection with any stock split, stock dividend, reclassification or recapitalization of the Company, (c) securities of the Company issued upon
the conversion, exchange or exercise of securities of the Company, (d) securities of the Company issued in connection with a bona fide acquisition of the business or assets of another Person, including a transaction of the type described in
Rule 145 under the Securities Act, (e) securities of any subsidiary of the Company issued by such subsidiary (i) in connection with any bona fide joint venture transaction with a third party or (ii) to the Company or any of its direct or
indirect wholly owned subsidiaries and (f) securities of the Company issued to banks or other financial institutions pursuant to a debt financing or similar transaction approved by the Board of Directors for other than primarily equity financing
purposes. 
 “Notice of Issuance” has the meaning set forth in Section 6.1(b). 

  
 4 

 “Offering Size” has the meaning set forth in
Section 6.1(c). 
 “Overallotment Shares” has the meaning set forth in
Section 6.1(d). 
 “Permitted Transferee” means, with respect to any Person, (a) the
direct or indirect partners, members, equity holders or other Affiliates of such Person, (b) any of such Person’s related investment funds or vehicles controlled or managed by such Person or Affiliate of such Person, or (c) if such
Person is a Sponsor, another Sponsor or Affiliate thereof. 
 “Person” means any individual, partnership, limited
liability company, corporation, trust, association, estate, unincorporated organization or a government or any agency or political subdivision thereof. 

“Piggyback Notice” has the meaning set forth in Section 4.2(a). 

“Piggyback Request” has the meaning set forth in Section 4.2(a). 

“Potential Takedown Participant” has the meaning set forth in Section 4.1(g)(ii). 

“Price Range” has the meaning set forth in Section 6.1(c). 

“Prior Agreement” means the Registration Rights Agreement, dated as of March 10, 2016, by and among the Company, KLRE
Sponsor and the other parties named therein. 
 “Pro Rata Number” has the meaning set forth in
Section 6.1(a). 
 “Proposed Charter Amendments” has the meaning set forth in
Section 3.2(a). 
 “Prospectus” means the prospectus included in any Registration
Statement, all amendments and supplements to such prospectus, including post-effective amendments, and all other material incorporated by reference in such prospectus. 

“Proxy Statement” has the meaning given to such term in the Business Combination Agreement. 

“Registrable Securities” means any Company Shares held by any Holder and any securities held by any Holder that may be
issued or distributed or be issuable in respect of Company Shares by way of conversion, dividend, stock split or other distribution, merger, consolidation, exchange, recapitalization or reclassification or similar transaction, in each case, whether
now owned or acquired after the date of this Agreement; provided, however, that any such Registrable Securities shall cease to be Registrable Securities to the extent (a) a Registration Statement with respect to the sale of such
Registrable Securities has become effective under the Securities Act and such Registrable Securities have been disposed of in accordance with the plan of distribution set forth in such Registration Statement, (b) such Registrable Securities
have been sold to the public pursuant to Rule 144 (or any similar provisions then in force) under the Securities Act or (c) such Registrable Securities shall have been otherwise Transferred and new certificates for them not bearing a legend
restricting Transfer under the Securities Act shall have been delivered by the Company and such securities may be publicly resold without Registration under the Securities Act without volume limitations or any other restrictions. 

  
 5 

 “Registration” means a registration with the SEC of any Company Shares
for offer and sale to the public under a Registration Statement. The terms “Register” and “Registering” shall have correlative meanings. 

“Registration Expenses” has the meaning set forth in Section 4.7. 

“Registration Statement” means any registration statement of the Company filed with, or to be filed with, the SEC
under the rules and regulations promulgated under the Securities Act, including the related Prospectus, amendments and supplements to such registration statement, including pre- and post-effective amendments, and all exhibits and all material
incorporated by reference in such registration statement other than a registration statement (and related Prospectus) filed on Form S-8 or any successor form thereto. 

“Representatives” means, with respect to any Person, any of such Person’s officers, directors, employees,
accountants, consultants, agents, legal counsel and other representatives of such Person. 
 “Rosehill Operating”
has the meaning set forth in the recitals. 
 “SEC” means the Securities and Exchange Commission or any successor
agency having jurisdiction under the Securities Act. 
 “Securities Act” means the Securities Act of 1933, as
amended and the rules and regulations promulgated thereunder. 
 “Shareholder” means any holder of Company Shares
that is or becomes a party to this Agreement from time to time in accordance with the provisions hereof. 
 “Shelf
Registration” means a Registration effected pursuant to Section 4.1. 
 “Shelf
Registration Statement” means a Registration Statement of the Company filed with the SEC on either (a) Form S-3 (or any successor form or other appropriate form under the Securities Act) or (b) if the Company is not permitted
to file a Registration Statement on Form S-3, an evergreen Registration Statement on Form S-1 (or any successor form or other appropriate form under the Securities Act), in each case for an offering to be made on a continuous basis pursuant to Rule
415 under the Securities Act (or any similar rule that may be adopted by the SEC) covering the Registrable Securities, as applicable. 

“Shelf Suspension” has the meaning set forth in Section 4.1(d)(ii). 

“Shelf Takedown Notice” has the meaning set forth in Section 4.1(g)(ii). 

“Shelf Takedown Request” has the meaning set forth in Section 4.1(g)(i). 

  
 6 

 “Sponsors” means (i) Tema and KLRE Sponsor and (ii) for the purposes of
Article IV only, Anchorage. 
 “Sponsor Director” means any director designated for nomination by Tema, KLRE
Sponsor or Anchorage. 
 “Sponsor Indemnitors” has the meaning set forth in
Section 3.2(l). 
 “Sponsor Shelf Period” has the meaning set forth in
Section 4.1(b)(ii). 
 “Sponsor Shelf Registration Statement” has the meaning set forth in
Section 4.1(a). 
 “Staggered Board Amendment” has the meaning set forth in
Section 3.2(b)(iv). 
 “Subsequent Shelf Registration” has the meaning set forth in
Section 4.1(c). 
 “Tema” has the meaning set forth in the preamble. 

“Tema Director” has the meaning set forth in Section 3.2(b). 

“Transfer” means the (a) sale of, offer to sell, contract or agreement to sell, hypothecation, pledge, grant of any
option to purchase or other disposition of or agreement to dispose of, directly or indirectly, whether voluntarily, involuntarily or by operation of law, or establishment or increase of a put equivalent position or liquidation with respect to or
decrease of a call equivalent position within the meaning of Section 16 of the Exchange Act and the rules and regulations of the SEC promulgated thereunder with respect to, any security, (b) entry into any swap, hedging, short sale or other
arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any security, whether any such transaction is to be settled by delivery of such securities, in cash or otherwise or (c) public announcement
of any intention to effect any transaction specified in clauses (a) or (b); and “Transferred,” “Transferee” and “Transferability” shall each have a correlative meaning. 

“Unaffiliated Director” means a director that meets the independence criteria set forth in Rule 10A-3 under the
Exchange Act. 
 “Underwritten Offering” means a Registration in which securities of the Company is sold to an
underwriter or underwriters on a firm commitment basis for reoffering to the public, including any block sale to a financial institution conducted as an underwritten public offering. 

“Underwritten Shelf Takedown” has the meaning set forth in Section 4.1(e). 

“Warrants” has the meaning set forth in Section 5.1(b). 

Section 1.2    Other Interpretive Provisions. 

(a)    The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms. 

  
 7 

 (b)    The words “hereof,” “herein,”
“hereunder” and similar words refer to this Agreement as a whole and not to any particular provision of this Agreement; and any subsection and section references are to this Agreement unless otherwise specified. 

(c)    The term “including” is not limiting and means “including without limitation.”

 (d)    The captions and headings of this Agreement are for convenience of reference only and shall not affect the
interpretation of this Agreement. 
 (e)    Whenever the context requires, any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms. 
 (f)    All references to “days” shall mean calendar days
unless otherwise specified. 
 (g)    Unless expressly stated herein to the contrary, reference to a document means such
document as amended or modified and as in effect from time to time in accordance with the terms thereof. 
 ARTICLE II 

REPRESENTATIONS AND WARRANTIES 

Except as otherwise set forth in the Business Combination Agreement (including the disclosure schedules thereto), each of the parties to this
Agreement hereby represents and warrants to each other party to this Agreement that as of the date such party executes this Agreement: 

Section 2.1    Existence; Authority; Enforceability. Such party has the power and authority to enter into this
Agreement and to perform its obligations hereunder. Such party is duly organized and validly existing under the laws of its respective jurisdiction of organization, and the execution of this Agreement, and the performance of its obligations
hereunder, have been authorized by all necessary action, and no other act or proceeding on its part is necessary to authorize the execution of this Agreement or the performance of its obligations hereunder. This Agreement has been duly executed by
it and constitutes its legal, valid and binding obligations, enforceable against it in accordance with its terms, subject, as to enforceability, to bankruptcy, insolvency, reorganization, moratorium and other Laws of general applicability relating
to or affecting creditors’ rights and to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

Section 2.2    Absence of Conflicts. The execution and delivery by such party of this Agreement and the
performance of its obligations hereunder does not and will not (a) conflict with, or result in the breach of any provision of the constitutive documents of such party; (b) result in any material violation, breach, conflict, default or
event of default (or an event which with notice, lapse of time, or both, would constitute a default or event of default), or give rise to any right of acceleration or termination or any additional material payment obligation, under the

  
 8 

 
terms of any material contract, agreement or permit to which such party is a party or by which such party’s assets or operations are bound or affected; or (c) violate any law applicable
to such party, except, in the case of each of (b) and (c) with respect to the Shareholders, for any such violation, breach, conflict or default that would not impair in any material respect the ability of such Shareholder to perform its respective
obligations hereunder. 
 Section 2.3    Consents. Other than any consents which have already been obtained,
no material consent, waiver, approval, authorization, exemption, registration, license or declaration is required to be made or obtained by such party in connection with (a) the execution, delivery or performance of this Agreement or
(b) the consummation of any of the transactions contemplated herein. 
 ARTICLE III 

GOVERNANCE 

Section 3.1    Stockholder Support. KLRE Sponsor shall vote, and shall cause each of its Affiliates to vote,
all of their Company Shares in favor of the Business Combination Proposal. 
 Section 3.2    Board of
Directors. 
 (a)    Charter Amendments. It is the intention of the Sponsors and the Company that the
Company be obligated to cooperate with the Sponsors to cause certain amendments to the Certificate of Incorporation, as amended, to be effected in connection with the Business Combination. Accordingly, in the event that the Business Combination is
approved but any of the proposed amendments in the Form of Second Amended and Restated Certificate of Incorporation of the Company set forth as Exhibit E to the Business Combination Agreement and individually set forth as a voting item in the
Proxy Statement (the “Proposed Charter Amendments”) are not, the Company shall, upon the written request of either Sponsor, cooperate with respect to the calling and holding of any additional meetings of the stockholders
of the Company, and the preparation, filing and mailing of any additional proxy materials, to seek the approval of the holders of Common Stock necessary to effect any of the Proposed Charter Amendments; provided, however that in no event
shall the obligation of the Company set forth in this Section 3.2(a) require the Company to cooperate with respect to the calling and holding of more than two special meetings of the Company’s stockholders to effect
the Proposed Charter Amendments. The Sponsors shall vote, and shall cause each of their Affiliates to vote, all of their Company Shares in favor of any such proposal or action in furtherance of any Proposed Charter Amendments. 

(b)    Composition of the Board of Directors. 

(i)    Following the Closing, for so long as a Sponsor is entitled to appoint directors pursuant to clauses (c) or (d)
below, and subject to Section 3.2(g), the Sponsors and the Company shall take all Necessary Action to cause the Board of Directors to be comprised of seven (7) directors, (A) four (4) of whom have initially been
designated by Tema (Frank Rosenberg, Paul Ebner, J. A. (Alan) Townsend, and one more individual to be designated by Tema within two weeks following the execution of this Agreement) and shall thereafter be

  
 9 

 
designated pursuant to Section 3.2(c) (each, a “Tema Director”), provided that (i) Frank Rosenberg shall initially serve as Lead
Director of the Board of Directors and Tema shall have the right to designate his replacement as Lead Director (provided that any such replacement shall be independent under the rules of the national securities exchange on which the
Company’s Class A Common Stock is then listed), (ii) one (1) of the Tema Directors shall be J. A. (Alan) Townsend for so long as he remains a director, and (iii) two (2) of whom shall be Unaffiliated Directors and (B) two (2) of
whom have initially been designated by KLRE Sponsor (Gary C. Hanna and Edward Kovalik) and shall thereafter be designated pursuant to Section 3.2(d) of this Agreement (each, a “KLRE Sponsor
Director”), provided that Gary C. Hanna shall serve as Chairman of the Board of Directors for so long as he remains a director. 

(ii)    Following the Closing, for so long as Anchorage is entitled to appoint directors pursuant to clause (e) below,
and subject to Section 3.2(g), Anchorage and the Company shall take all Necessary Action to cause the Board of Directors to include one (1) individual reasonably acceptable to the Company to be designated by Anchorage
within two weeks following the execution of this Agreement, and shall thereafter be designated pursuant to Section 3.2(e) of this Agreement (an “Anchorage Director”), who shall be an
Unaffiliated Director. 
 (iii)    If as a result of the provisions of Section 3.2(c),
Section 3.2(d), or Section 3.2(e) there are seats on the Board of Directors for which none of Tema, KLRE Sponsor or Anchorage has the right to designate a director, the selection of such director shall be conducted
in accordance with applicable law and with the Company’s Certificate of Incorporation, bylaws and other corporate governance documents. 

(iv)    In the event that the Proposed Charter Amendment to divide the Board of Directors into three classes is not
approved in connection with the Business Combination (the “Staggered Board Amendment”), then following the Closing, the Sponsors and the Company shall take all Necessary Action to cause the foregoing directors to be
divided into the two (2) existing classes of directors, each of which directors shall serve for staggered two (2) year terms as follows: 

(A)    the class I directors shall include: two (2) Tema Directors (including the Unaffiliated Director designated by
Tema) and one (1) KLRE Sponsor Director; and 
 (B)    the class II directors shall include: two (2) Tema Directors,
and one (1) KLRE Sponsor Director and an Unaffiliated Director. 
 (v)    In the event that the Staggered Board
Amendment is approved in connection with the Business Combination or at a subsequent shareholder meeting called in accordance with Section 3.2(a), upon the effectiveness of the Staggered Board Amendment and following the
Closing, the Sponsors and the Company shall take all Necessary Action to cause the foregoing directors to be divided into three classes of directors, each of which directors shall serve for staggered three (3) year-terms as follows: 

  
 10 

 (A)    the class I directors shall include: one (1) KLRE Sponsor Director
and one (1) Tema Director; 
 (B)    the class II directors shall include: one (1) Tema Director and an
Unaffiliated Director; and 
 (C)    the class III directors shall include: two (2) Tema Directors (including the
Unaffiliated Director designated by TEMA) and one (1) KLRE Sponsor Director. 
 The initial term of the class I directors shall expire immediately following
the Company’s 2018 annual meeting of stockholders at which directors are elected. The initial term of the class II directors shall expire immediately following the Company’s 2019 annual meeting of stockholders at which directors are
elected. The initial term of the class III directors, if any, shall expire immediately following the Company’s 2020 annual meeting at which directors are elected. 

(c)    Tema Representation. Following the Closing, for so long as Tema holds a number of Company Shares
representing at least the percentage of its Initial Share Ownership shown below, the Company shall, and the Sponsors shall take all Necessary Action to, include in the slate of nominees recommended by the Board of Directors for election as directors
at each applicable annual or special meeting of shareholders at which directors are to be elected that number of individuals designated by Tema that, if elected, will result in Tema designating the number of directors serving on the Board of
Directors that is shown below. In the event that Tema shall be entitled to designate only one director, such director may, but shall not be required to, meet the independence criteria set forth in Rule 10A-3 under the Exchange Act. 

 

					
	 Percent of Initial Share Ownership
	  	Number of
Directors	 
	 50% or greater
	  	 	4	  
	 Less than 50% but greater than or equal to 40%
	  	 	3	  
	 Less than 40% but greater than or equal to 30%
	  	 	2	  
	 Less than 30% but greater than or equal to 10%
	  	 	1	  

 (d)    KLRE Sponsor Representation. Following the Closing, for so long as KLRE
Sponsor holds a number of Company Shares representing at least the percentage of its Initial Shares Ownership shown below, the Company shall, and the Sponsors shall take all Necessary Action to, include in the slate of nominees recommended by the
Board of Directors for election as directors at each applicable annual or special meeting of shareholders at which directors are to be elected that number of individuals designated by KLRE Sponsor that, if elected, will result in KLRE Sponsor
designating the number of directors serving on the Board of Directors that is shown below. In the event that KLRE Sponsor shall be entitled to designate only one director, such director may, but shall not be required to, meet the independence
criteria set forth in Rule 10A-3 under the Exchange Act. 

  
 11 

					
	 Percent of Initial Share Ownership
	  	Number of
Directors	 
	 Greater than or equal to 30%
	  	 	2	  
	 Less than 30% but greater than or equal to 10%
	  	 	1	  

 (e)    Anchorage Representation. Following the Closing, for so long as
Anchorage holds a number of As Converted Company Shares representing at least the percentage of its Initial Shares Ownership (on an As Converted basis) shown below, the Company shall, and Anchorage shall take all Necessary Action to, include in the
slate of nominees recommended by the Board of Directors for election as directors at each applicable annual or special meeting of shareholders at which directors are to be elected that number of individuals designated by Anchorage that, if elected,
will result in Anchorage designating the number of directors serving on the Board of Directors that is shown below. In the event that Anchorage shall be entitled to designate a director, such director may, but shall not be required to, meet the
independence criteria set forth in Rule 10A-3 under the Exchange Act. 
  

					
	 Percent of Initial Share Ownership
	  	Number of
Directors	 
	 10% or greater
	  	 	1	  

 (f)    Unaffiliated Directors. Following the Closing and subject to the designation
rights set forth in Section 3.2(b), the nomination of Unaffiliated Directors at subsequent annual meetings will be the responsibility of the Nominating and Governance Committee of the Board of Directors. 

(g)    Decrease in Directors. 

(i)    Upon any decrease in the number of directors that a Sponsor is entitled to designate for nomination to the Board
of Directors, such Sponsor shall take all Necessary Action to cause the appropriate number of Sponsor Directors to offer to tender their resignation, effective as of the Company’s next annual meeting. If such resignation is then accepted
by the Board of Directors, the Company and the Sponsors shall take all Necessary Action to cause the authorized size of the Board of Directors to be reduced accordingly; provided that the authorized size of the Board of Directors shall not be
reduced below three (3) directors as a result of the foregoing. For the avoidance of doubt, any Sponsor Director resigning pursuant to this Section 3.2(g) shall be permitted to continue serving as a Sponsor Director
until the Company’s next annual meeting. 
 (ii)    Upon any decrease in the number of directors that Anchorage is
entitled to designate for nomination to the Board of Directors, Anchorage shall take all Necessary Action to cause the appropriate number of Anchorage Directors to offer to tender their resignation, effective as of the Company’s next annual
meeting. If such resignation is then accepted by the Board of Directors, the Company and Anchorage shall take all Necessary Action to cause the authorized size of the Board of Directors to be reduced accordingly; provided that the
authorized size of the Board of Directors shall not be reduced below three (3) directors as a 

  
 12 

 
result of the foregoing. For the avoidance of doubt, any Anchorage Director resigning pursuant to this Section 3.2(g) shall be permitted to continue serving as an
Anchorage Director until the Company’s next annual meeting. 
 (h)    Removal; Vacancies. 

(i)    Except as provided in Section 3.2(g), and subject to the Certificate of Incorporation,
(ii) each Sponsor shall have the exclusive right to remove its designees from the Board of Directors, and the Company and the Sponsors shall take all Necessary Action to cause the removal of any such designee at the request of the designating
Sponsor and (iii) each Sponsor shall have the exclusive right to designate directors for election to the Board of Directors to fill vacancies created by reason of death, removal or resignation of its designees to the Board of Directors, and the
Company and the Sponsors shall take all Necessary Action to cause any such vacancies to be filled by replacement directors designated by such designating Sponsor as promptly as reasonably practicable. For the avoidance of doubt and notwithstanding
anything to the contrary in this paragraph, no Sponsor shall have the right to designate a replacement director, and the Company and the Sponsors shall not be required to take any action to cause any vacancy to be filled by any such designee, to the
extent that election or appointment of such designee to the Board of Directors would result in a number of directors designated by such Sponsor in excess of the number of directors that such Sponsor is then entitled to designate for membership on
the Board of Directors pursuant to this Agreement.
 (ii)    Except as provided in
Section 3.2(g), and subject to the Certificate of Incorporation, (A) Anchorage shall have the exclusive right to remove its designee from the Board of Directors, and the Company and Anchorage shall take all Necessary Action
to cause the removal of any such designee at the request of Anchorage and (B) Anchorage shall have the exclusive right to designate directors for election to the Board of Directors to fill vacancies created by reason of death, removal or
resignation of its designees to the Board of Directors, and the Company and Anchorage shall take all Necessary Action to cause any such vacancies to be filled by replacement directors designated by such designating Anchorage as promptly as
reasonably practicable. For the avoidance of doubt and notwithstanding anything to the contrary in this paragraph, Anchorage shall not have the right to designate a replacement director, and the Company and Anchorage shall not be required to take
any action to cause any vacancy to be filled by any such designee, to the extent that election or appointment of such designee to the Board of Directors would result in a number of directors designated by Anchorage in excess of the number of
directors that Anchorage is then entitled to designate for membership on the Board of Directors pursuant to this Agreement.

(i)    Additional Unaffiliated Directors. 

(i)    For so long as any Sponsor has the right to designate at least one (1) director for nomination under this
Agreement, the Company will take all Necessary Action to ensure that the number of directors serving on the Board of Directors shall not exceed seven (7); provided that the number of directors may be increased if necessary to satisfy the
requirements of applicable laws and stock exchange regulations or the rights of holders of the Company’s preferred stock. 

  
 13 

 (ii)    For so long as Anchorage has the right to designate at least one (1)
director for nomination under this Agreement, the Company will take all Necessary Action to ensure that the number of directors serving on the Board of Directors shall not exceed seven (7); provided that the number of directors may be
increased if necessary to satisfy the requirements of applicable laws and stock exchange regulations or the rights of holders of the Company’s preferred stock. 

(j)    Committees. Subject to applicable laws and stock exchange regulations, each of Tema and KLRE Sponsor shall
have the right to have a representative appointed to serve on each committee of the Board of Directors other than the audit committee for so long as such Sponsor has the right to designate at least one (1) director for election to the Board of
Directors. The Sponsors and the Company shall take all Necessary Action to cause the initial composition of certain committees of the Board of Directors to be agreed between KLRE Sponsor, the Company and Tema prior to the Closing, subject to
the prior written consent of Anchorage; provided, however, that Anchorage shall be deemed to have consented if it has not provided written notice of objection within five (5) days of its being provided notice of the proposed composition of such
committees. Subject to applicable laws and stock exchange regulations and applicable listing requirements, each Sponsor and Anchorage shall also have the right to have one of the directors such Sponsor or Anchorage designates for nomination
under this Agreement appointed as an observer (a “Board Observer”) to any committee of the Board of Directors to which such Sponsor or Anchorage (i) does not elect to have one of the directors such Sponsor designates for
nomination under this Agreement serve as a member or (ii) is prohibited by applicable laws or stock exchange regulations or applicable listing requirements from having one of the directors such Sponsor or Anchorage designates for nomination under
this Agreement serve as a member, in each case for so long as such Sponsor or Anchorage has the right to designate at least one director for nomination under this Agreement. Any committee of the Board of Directors may exclude a Board Observer
from access to any committee materials or information or meeting or portion thereof or written consent if such committee determines, in good faith, that such access would reasonable be expected to result in a conflict of interest with the
Company; provided that such exclusion shall be limited to the portion of the committee materials or information or meeting or written consent that is the basis for such exclusion and shall not extend to any portion of the committee material
or information or meeting or written consent that does not involve or pertain to such exclusion. 

(k)    Reimbursement of Expenses. The Company shall reimburse the directors for all reasonable out-of-pocket
expenses incurred in connection with their attendance at meetings of the Board of Directors and any committees thereof, including reasonable travel, lodging and meal expenses. 

(l)    Indemnification Agreements; D&O Insurance; Indemnification Priority. On or prior to the date of this
Agreement the Company shall, and shall cause each KLRE Company (to be defined in the Indemnification Agreement) to, execute and deliver to each Sponsor Director serving as a director of the Company as of the date hereof, an Indemnification
Agreement. From and after the date hereof, simultaneously with any person becoming a Sponsor Director, the Company shall, and shall cause each KLRE Company to, execute and deliver to 

  
 14 

 
each such Sponsor Director an Indemnification Agreement dated the date such Sponsor Director becomes a director of the Company. The Company shall obtain, on commercially reasonable terms and
following consultation with Tema, director and officer indemnity insurance that is customary for similarly-situated companies and sufficient, in each case to Tema’s reasonable satisfaction. The Company hereby acknowledges that any
director, officer or other indemnified person covered by any such indemnity insurance policy (any such Person, an “Indemnitee”) may have certain rights to indemnification, advancement of expenses and/or insurance provided by
any of the Sponsors and Anchorage and certain of their respective Affiliates (collectively, the “Sponsor Indemnitors”). The Company hereby agrees (i) that the Company and its subsidiaries shall be the indemnitors of
first resort (i.e., their respective obligations to an Indemnitee shall be primary and any obligation of any Sponsor Indemnitor to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee shall be
secondary) and the obligation of the Company and its subsidiaries to indemnify and advance expenses to an Indemnitee shall be joint and several, and (ii) the Company irrevocably waives, relinquishes and releases the Sponsor Indemnitors from any
and all claims against the Sponsor Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Sponsor Indemnitors on behalf of an Indemnitee with
respect to any claim for which such Indemnitee has sought indemnification from the Company or any of its subsidiaries, as the case may be, shall affect the foregoing and the Sponsor Indemnitors shall have a right of contribution and/or be subrogated
to the extent of such advancement or payment to all of the rights of recovery of such Indemnitee against the Company or any of its subsidiaries, as the case may be. 

Section 3.3    Voting Agreement. Each of the Company and the Sponsors agrees not to take any actions that
would affect the provisions of this Agreement and the intention of the parties with respect to the composition of the Board of Directors as herein stated. Each Sponsor agrees to cast all votes to which such Sponsor is entitled in respect of its
Company Shares, whether at any annual or special meeting, by written consent or otherwise, so as to cause to be elected to the Board of Directors those individuals designated in accordance with Section 3.2(b)(i) and to otherwise effect the
intent of Sections 3.1, 3.2(a), 3.2(b)(iv), 3.2(b)(v), 3.2(c), 3.2(d), 3.2(g)(i), 3.2(h)(i) and 3.2(i)(i). Each Sponsor agrees not to take action to remove each other’s director
nominees from office pursuant to Section 5.4 of the Certificate of Incorporation unless such removal is for cause. 

Section 3.4    Sharing of Information. To the extent permitted by antitrust, competition or any other
applicable law, each Shareholder agrees and acknowledges that the directors designated by Tema, KLRE Sponsor and Anchorage may share confidential, non-public information (“Confidential Information”) about the Company and its
subsidiaries with Tema, KLRE Sponsor and Anchorage, respectively. Each Shareholder recognizes that it, or its Affiliates and Representatives, has acquired or will acquire Confidential Information the use or disclosure of which could cause the
Company substantial loss and damages that could not be readily calculated and for which no remedy at law would be adequate. Accordingly, each Shareholder covenants and agrees with the Company that it will not (and will cause its respective
Affiliates and Representatives not to) at any time, except with the prior written consent of the Company, directly or indirectly, disclose any Confidential Information known to it, unless (i)

  
 15 

 
such information becomes known to the public through no fault of such Shareholder, (ii) disclosure is required by applicable law or court of competent jurisdiction or requested by a
governmental, regulatory or self-regulatory agency; provided that, to the extent legally permitted, such Shareholder promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required
disclosure, (iii) such information was available or becomes available to such Shareholder before, on or after the date hereof, without restriction, from a source (other than the Company) without any known breach of duty to the Company or
(iv) such information was independently developed by the Shareholder or its representatives without the use of the Confidential Information. Notwithstanding anything herein to the contrary, nothing in this Agreement shall prohibit a Shareholder
from disclosing Confidential Information to any Affiliate, Representative, limited partner, member or shareholder of such Shareholder; provided that such Shareholder shall be responsible for any breach of this
Section 3.4 by any such person. 
 Section 3.5    Major Transactions. During
the period beginning on the Closing Date and ending on the two year anniversary thereof, the Board of Directors may not approve, or cause Rosehill Operating to approve, a Major Transaction by the Company or Rosehill Operating without the affirmative
vote of at least seventy percent (70%) of the directors then serving on the Board of Directors, rounding up in each case. 
 ARTICLE IV

 REGISTRATION RIGHTS 

Section 4.1    Shelf Registration. 

(a)    Filing. As promptly as practicable following the Closing, but in any event within seven (7) days following
the Closing (the “Filing Date”), the Company shall file with the SEC a Shelf Registration Statement relating to the offer and sale of all Registrable Securities owned by any Sponsor and any Permitted Transferees of any
Sponsor who are Holders of Registrable Securities within three (3) days following the Business Combination (the “Sponsor Shelf Registration Statement”). Any Sponsor and any Permitted Transferee with Registrable Securities to
be included in the Shelf Registration Statement shall furnish to the Company such information in writing as the Company may reasonably request for inclusion in the Sponsor Shelf Registration Statement. For the avoidance of doubt, inclusion of
Registrable Securities in a registration statement pursuant to this Section 4.1 shall not violate the restrictions set forth in Article V. 

(b)    Continued Effectiveness. 

(i)    The Company shall use its commercially reasonable efforts to have the Sponsor Shelf Registration Statement
declared effective as soon as practicable after the filing thereof, but in no event later than thirty (30) days after the Filing Date (or one hundred twenty (120) days after the Filing Date if the SEC notifies the Company that it will
“review” the Sponsor Shelf Registration Statement). 

  
 16 

 (ii)    The Company shall use its commercially reasonable efforts to
maintain the effectiveness of the Sponsor Shelf Registration Statement or any Subsequent Shelf Registration (as defined below) until such time as all Registrable Securities have been sold pursuant to the Sponsor Shelf Registration Statement or a
Subsequent Shelf Registration (but in no event for a shorter period than the applicable period referred to in Section 4(a)(3) of the Securities Act and Rule 174 thereunder) (such required period(s) of effectiveness, collectively, the
“Sponsor Shelf Period”). Subject to Section 4.4(d), the Company shall not be deemed to have used commercially reasonable efforts to keep the Sponsor Shelf Registration Statement effective during the
Sponsor Shelf Period if the Company voluntarily takes any action or omits to take any action that would result in Holders of Registrable Securities covered thereby not being able to offer and sell any Registrable Securities pursuant to such Sponsor
Shelf Registration Statement during the Sponsor Shelf Period, unless such action or omission is required by applicable law. 

(c)    Subsequent Shelf Registration. If any Shelf Registration Statement ceases to be effective under the
Securities Act for any reason at any time during the Sponsor Shelf Period, the Company shall use its reasonable best efforts to as promptly as is reasonably practicable cause such Shelf Registration Statement to again become effective under the
Securities Act (including obtaining the prompt withdrawal of any order suspending the effectiveness of such Shelf Registration Statement), and shall use its reasonable best efforts to as promptly as is reasonably practicable amend such Shelf
Registration Statement in a manner reasonably expected to result in the withdrawal of any order suspending the effectiveness of such Shelf Registration Statement or file an additional registration statement (a “Subsequent Shelf
Registration”) for an offering to be made on a delayed or continuous basis pursuant to Rule 415 of the Securities Act registering the resale from time to time by the Holders thereof of all securities that are Registrable Securities as
of the time of such filing. If a Subsequent Shelf Registration is filed, the Company shall use its reasonable best efforts to (x) cause such Subsequent Shelf Registration to become effective under the Securities Act as promptly as is reasonably
practicable after the filing thereof and (y) keep such Subsequent Shelf Registration continuously effective and usable until the end of the Sponsor Shelf Period. Any such Subsequent Shelf Registration shall be a registration statement on Form S-3 or
Form S-1 to the extent that the Company is eligible to use such form. Otherwise, such Subsequent Shelf Registration shall be on another appropriate form and shall provide for the registration of such Registrable Securities for resale by the Holders
in accordance with any reasonable method of distribution elected by the Sponsors or for sale by the Company, as the case may be. 

(d)    Delay Rights; Suspension Rights.

(i)    The Company shall not be required to file a Shelf Registration Statement (or any amendment thereto) or, if the
Shelf Registration Statement has been filed but not declared effective by the SEC, request effectiveness of such Registration Statement, for a period of up to forty five (45) days, if (A) the Company determines in good faith that a postponement is
in the best interest of the Company and its stockholders generally due to a pending transaction involving the Company (including a pending securities offering by the Company, or any proposed financing, acquisition, merger, tender offer, business
combination, 

  
 17 

 
corporate reorganization, consolidation or other significant transaction involving the Company), (B) the Company determines such registration would render the Company unable to comply with
applicable securities laws or (C) the Company determines such registration would require disclosure of material information that the Company has a bona fide business purpose for preserving as confidential, provided, however, that (i)
in no event shall any period, when aggregated with any period following a Shelf Suspension pursuant to Section 4.1(d)(ii), exceed an aggregate of ninety (90) days in any three hundred sixty five (365) day period and (ii) this right, together with
the right to suspend use of a Shelf Registration Statement pursuant to Section 4.1(d)(ii), may not be exercised more than two times in any three hundred sixty five (365) day period. 

(ii)    the Company may, upon written notice to each Holder, suspend use of any prospectus which is a part of the Shelf
Registration Statement or other registration statement (in which event each Holder shall discontinue sales of securities pursuant to the Shelf Registration Statement or other registration statement but may settle any previously made sales of
securities) (a “Shelf Suspension”) if (A) the Company determines that it would be required to disclose material information in the Registration Statement that the Company has a bona fide business purpose for preserving
as confidential or (B) the Company has experienced some other material non-public event the disclosure of which at such time, in the good faith judgment of the Company, would adversely affect the Company; provided, however, that (i) in
no event shall the Holders be suspended from selling Registrable Securities pursuant to the Shelf Registration Statement or other registration statement for a period that exceeds an aggregate of forty five (45) days in any ninety (90) day period or
an aggregate of ninety (90) days, when aggregated with any period following a delay period pursuant to Section 4.1(d)(i), in any three hundred sixty five (365) day period and (ii) this right, together with the right to delay filing or
effectiveness of a Shelf Registration Statement pursuant to Section 4.1(d)(i), may not be exercised more than two times in any three hundred sixty five (365) day period. Upon disclosure of such information or the
termination of the condition described above, the Company shall provide prompt notice to each Holder and shall promptly terminate any suspension of sales it has put into effect and shall take such other reasonable actions to permit registered sales
of the acquired shares as contemplated in this Agreement. 
 (e)    Underwritten Offering. Subject to the
restrictions set forth Article V, if any Sponsor, in consultation with each other Sponsor, so elects, an offering of Registrable Securities solely comprised of Common Stock under a Shelf Registration Statement shall be in the form of an
Underwritten Offering (each such offering of Common Stock, an “Underwritten Shelf Takedown”), and the Company shall amend or supplement the Shelf Registration Statement for such purpose. The participating Sponsors shall have
the right to select the managing underwriter or underwriters to administer such offering; provided that such managing underwriter or underwriters shall be reasonably acceptable to the Company and each Sponsor. 

(f)    Limits on Underwritten Shelf Takedowns. Subject to the other limitations contained in this Agreement, each
Sponsor is entitled to initiate a total of two (2) Underwritten Shelf Takedowns with respect to its Registrable Securities in any twelve (12)-month period for which such Sponsor submits a Shelf Takedown Request (as defined below); provided
that no Underwritten Shelf Takedown may be initiated unless the aggregate anticipated net proceeds to be received for the Registrable Securities to be offered in such offering is at least $30 million. 

  
 18 

 (g)    Shelf Takedowns. 

(i)    Subject to the restrictions set forth Article V, at any time during which the Company has an effective
Shelf Registration Statement with respect to a Sponsor’s Registrable Securities, by notice to the Company specifying the intended method or methods of disposition thereof, such Sponsor may make a written request (a “Shelf Takedown
Request”) to the Company to effect an offering of such Registrable Securities, including an Underwritten Shelf Takedown, of all or a portion of such Sponsor’s Registrable Securities that are covered by such Shelf Registration
Statement, and as soon as practicable the Company shall amend or supplement the Shelf Registration Statement for such purpose. 

(ii)    Promptly upon receipt of a Shelf Takedown Request (but in no event more than two (2) Business Days thereafter)
for any Underwritten Shelf Takedown, the Company shall deliver a notice (a “Shelf Takedown Notice”) to each other Holder with Registrable Securities covered by the applicable Registration Statement, or to all other Holders if
such Registration Statement is undesignated (each a “Potential Takedown Participant”). The Shelf Takedown Notice shall offer each such Potential Takedown Participant the opportunity to include in any Underwritten Shelf
Takedown that number of shares of Common Stock that are Registrable Securities as each such Holder may request in writing. The Company shall include in the Underwritten Shelf Takedown all such shares of Common Stock that are Registrable Securities
with respect to which the Company has received written requests for inclusion therein within three (3) Business Days after the date that the Shelf Takedown Notice has been delivered. Each such Holder’s request to participate in an Underwritten
Shelf Takedown shall be binding on such Holder; provided that each such Potential Takedown Participant that elects to participate may condition its participation on the Underwritten Shelf Takedown being completed within ten (10) Business Days
of its acceptance at a price per share (after giving effect to any underwriters’ discounts or commissions) to such Holder of not less than ninety percent (90%) (or such lesser percentage specified by such Potential Takedown Participant in
writing) of the closing price for the shares of Common Stock on their principal trading market on the Business Day immediately prior to such Holder’s election to participate. 

(iii)    The Company shall not be obligated to take any action to effect any Underwritten Shelf Takedown if an
Underwritten Shelf Takedown was consummated within the preceding forty five (45) days (unless otherwise consented to by the Company’s Board of Directors). 

(h)    Priority of Securities Sold Pursuant to Shelf Registrations. If the managing underwriter or underwriters of
a proposed Underwritten Offering of the Registrable Securities that are Common Stock included in a Shelf Registration advise the Company or its Board of Directors in writing that, in its or their opinion, the aggregate number of securities requested
to be included in a proposed Underwritten Shelf Takedown exceeds the number which can be sold in such Underwritten Shelf Takedown without being likely to have a significant adverse effect on the price, timing or distribution of the securities
offered, or the market for the securities offered, 

  
 19 

 
the number of shares of Common Stock to be included in such Underwritten Shelf Takedown shall be allocated pro rata among the Holders seeking to participate in such Underwritten Shelf Takedown
(based on the relative number of Registrable Securities requested to be included in such Underwritten Shelf Takedown), to the extent necessary to reduce the total number of shares of Common Stock to be included in such Underwritten Shelf Takedown to
the number recommended by the managing underwriter or underwriters. 
 (i)    In the event that a Holder requests to
participate in a Registration pursuant to this Section 4.1 in connection with a distribution of Registrable Securities to its partners or members, the Registration shall provide for resale by such partners or members, if
requested by the Holder. 
 Section 4.2    Piggyback Rights. 

(a)    Participation. If the Company at any time proposes to conduct an Underwritten Offering of Common Stock for
its own account or for the account of any other Persons (other than an offering and sale to employees or directors of the Company pursuant to any employee stock plan or other employee benefit plan arrangement) (an “Issuer Public
Sale”), then, as soon as practicable (but in no event less than fifteen (15) days prior to the proposed date of such Issuer Public Sale), the Company shall give written notice (a “Piggyback Notice”) of such
proposed Issuer Public Sale to all the Holders of Registrable Securities. The Piggyback Notice shall offer Holders of Registrable Securities the opportunity to include in such Issuer Public Sale the number of Registrable Securities as they may
request in writing, subject to the restrictions set forth in Article V. The Company shall use commercially reasonable efforts to include in each such Issuer Public Sale such Registrable Securities for which the Company has received written
requests for inclusions therein (“Piggyback Request”) within three (3) Business Days after sending the Piggyback Notice. Each Holder of Registrable Securities shall be permitted to withdraw all or part of such
Holder’s Registrable Securities from an Issuer Public Sale, and such Holder shall continue to have the right to include any Registrable Securities in any subsequent Issuer Public Sale, all upon the terms and conditions set forth herein;
provided that such withdrawal request must be made in writing prior to the initial offer of securities in the Issuer Public Sale. 

(b)    Priority of Piggyback. If the managing underwriter or underwriters of any Issuer Public Sale informs the
Company and the participating Holders of Registrable Securities in writing that, in its or their opinion, the number of shares of Common Stock which such Holders and any other Persons intend to include in such offering exceeds the number which
can be sold in such offering without being likely to have a significant adverse effect on the price, timing or distribution of the securities offered or the market for the securities offered, then the securities to be included in such Registration
shall be (i) first, one hundred percent (100%) of the securities that the Company, proposes to sell, and (ii) second, and only if all of the securities referred to in clause (i) have been included, the number of
Registrable Securities that are Common Stock that, in the opinion of such managing underwriter or underwriters, can be sold without having such adverse effect, with such number to be allocated pro rata among the Holders that have requested to
participate in such Registration based on the relative number of Registrable Securities requested to be included therein then held by each such Holder and (iii) 

  
 20 

 
third, and only if all of the Registrable Securities referred to in clauses (i) and (ii) have been included in such Registration, any other securities eligible
for inclusion in such Issuer Public Sale. 
 Section 4.3    Black-out Periods. 

(a)    Black-out Periods for Issuer Public Sales. In the event of an Issuer Public Sale of the Company’s
equity securities in an Underwritten Offering, the Holders of Registrable Securities agree, if requested by the managing underwriter or underwriters in such Underwritten Offering, not to effect any public sale or distribution of any securities
(except, in each case, as part of the applicable Underwritten Offering, if permitted) that are the same as or similar to those being offered in such Issuer Public Sale, or any securities convertible into or exchangeable or exercisable for such
securities, and agree to become bound by and execute and deliver a lock-up agreement with respect to such restrictions, during the period beginning seven (7) days before and ending ninety (90) days (or such lesser periods as may be permitted by the
Company or such managing underwriter or underwriters) after, the date of the final Prospectus relating to such Underwritten Offering, to the extent timely notified in writing by the Company or the managing underwriter or underwriters;
provided that such restrictions shall not apply to (i) securities acquired in the public market subsequent to the Underwritten Offering, (ii) distributions-in-kind to a Holder’s partners or members or (iii) Transfers to
Affiliates, but only if such Affiliates agree to be bound by the restrictions herein. 
 (b)    Black-out Period for
Shelf Registrations. In the case of a Registration of Registrable Securities pursuant to Section 4.1 for an Underwritten Offering, the Company and each Holder of Registrable Securities shall, if requested by the Holders
holding a majority of the Registrable Securities to be included in such Registration or the managing underwriter or underwriters, not effect any public sale or distribution of any securities which are the same as or similar to those being
registered, or any securities convertible into or exchangeable or exercisable for such securities, and, in the case of each such Holder, agree to become bound by and execute and deliver a lock-up agreement with respect to such restrictions, during
the period beginning seven (7) days before, and ending ninety (90) days (or such lesser periods as may be permitted by such Holders or such managing underwriter or underwriters) after, the date of the final Prospectus relating to such Underwritten
Offering, to the extent timely notified in writing by a Holder of Registrable Securities covered by such Registration Statement or the managing underwriter or underwriters. Notwithstanding the foregoing, the Company may effect a public sale or
distribution of securities of the type described above and during the periods described above if such sale or distribution is made pursuant to Registrations on Form S-4 or S-8 or any successor form to such Forms or as part of any Registration of
securities for offering and sale to employees or directors of the Company pursuant to any employee stock plan or other employee benefit plan arrangement. If requested by such Holders or such managing underwriter or underwriters, the Company shall
use its reasonable best efforts to obtain from each Holder of restricted securities of the Company which securities are the same as or similar to the Registrable Securities being registered, or any restricted securities convertible into or
exchangeable or exercisable for any of such securities, an agreement not to effect any public sale or distribution of such securities during any such period referred to in this paragraph, except as part of any such

  
 21 

 
Registration, if permitted. Notwithstanding the foregoing, with respect to Holders of Registrable Securities, the restrictions set forth in this Section 4.3(b) shall not
apply to (i) securities acquired in the public market subsequent to the Underwritten Offering, (ii) distributions-in-kind to a Holder’s partners or members or (iii) Transfers to Affiliates, but only if such Affiliates agree to be
bound by the restrictions herein. Without limiting the foregoing (but subject to Section 4.6), if after the date hereof the Company grants any Person (other than a Holder of Registrable Securities) any rights to demand or
participate in a Registration, the Company agrees that the agreement with respect thereto shall include such Person’s agreement to comply with any black-out period required by this Section 4.3 as if it were a Holder
hereunder). 
 Section 4.4    Registration Procedures. 

(a)    In connection with the Company’s Registration obligations under Section 4.1(a) and
Section 4.1(b), the Company shall use its reasonable best efforts to effect such Registration to permit the sale of such Registrable Securities in accordance with the intended method or methods of distribution thereof as
expeditiously as reasonably practicable, and in connection therewith the Company shall: 
 (i)    prepare the required
Registration Statement including all exhibits and financial statements required under the Securities Act to be filed therewith, and before filing a Registration Statement, Prospectus or any Issuer Free Writing Prospectus, or any amendments or
supplements thereto, (A) furnish to the underwriters, if any, and to the Holders of the Registrable Securities covered by any Sponsor Registration Statement, copies of all documents prepared to be filed, which documents shall be subject to the
review of such underwriters and such Holders and their respective counsel, (B) subject to applicable law, except in the case of a Registration under Section 4.1 or Section 4.2, not file any
Registration Statement, Prospectus or any Issuer Free Writing Prospectus or amendments or supplements thereto to which the Holders of a majority of Registrable Securities, or any Sponsor with Registrable Securities, covered by such Registration
Statement or the underwriters, if any, shall reasonably object and (C) subject to applicable law, make such changes in such documents concerning the Holders prior to the filing thereof as such Holders, or their counsel, may reasonably request; 

(ii)    as soon as reasonably practicable file with the SEC a Sponsor Shelf Registration Statement relating to the
Registrable Securities, including all exhibits and financial statements required by the SEC to be filed therewith, and use its reasonable best efforts to cause such Registration Statement to become effective under the Securities Act as soon as
practicable; 
 (iii)    prepare and file with the SEC such amendments and post-effective amendments to such
Registration Statement and supplements to the Prospectus or any Issuer Free Writing Prospectus as may be (A) necessary to permit Permitted Transferees to make sales pursuant to the Registration Statement, (B) reasonably requested by the
Holders of a majority of participating Registrable Securities or by any Sponsor with Registrable Securities covered by such Registration Statement, (C) reasonably requested by any participating Holder (to the extent such request relates to
information relating to such Holder), or (D) necessary to keep such Registration effective for the period of time required by this Agreement, and comply with 

  
 22 

 
provisions of the applicable securities laws with respect to the sale or other disposition of all securities covered by such Registration Statement during such period in accordance with the
intended method or methods of disposition by the sellers thereof set forth in such Registration Statement; 

(iv)    notify the participating Holders of Registrable Securities and the managing underwriter or underwriters, if any,
and (if requested) confirm such notice in writing and provide copies of the relevant documents, as soon as reasonably practicable after notice thereof is received by the Company (A) when the applicable Registration Statement or any amendment
thereto has been filed or becomes effective, and when the applicable Prospectus, any amendment or supplement to such Prospectus, any Issuer Free Writing Prospectus or any amendment or supplement to such Issuer Free Writing Prospectus has been filed,
(B) of any written comments by the SEC or any request by the SEC or any other federal or state governmental authority for amendments or supplements to such Registration Statement, such Prospectus, such Issuer Free Writing Prospectus or for
additional information (whether before or after the effective date of the Registration Statement) or any other correspondence with the SEC relating to, or which may affect, the Registration, (C) of the issuance by the SEC of any stop order
suspending the effectiveness of such Registration Statement or any order by the SEC or any other regulatory authority preventing or suspending the use of any preliminary or final Prospectus or the initiation or threatening of any proceedings for
such purposes, (D) if, at any time, the representations and warranties of the Company in any applicable underwriting agreement cease to be true and correct in all material respects and (E) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Registrable Securities for offering or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; 

(v)    promptly notify the selling Holder of Registrable Securities and the managing underwriter or underwriters, if
any, when the Company becomes aware of the happening of any event as a result of which the applicable Registration Statement or the Prospectus included in such Registration Statement (as then in effect) or any Issuer Free Writing Prospectus contains
any untrue statement of a material fact or omits to state a material fact necessary to make the statements therein (in the case of such Prospectus, any preliminary Prospectus or Issuer Free Writing Prospectus, in light of the circumstances under
which they were made) not misleading, when any Issuer Free Writing Prospectus includes information that may conflict with the information contained in the Registration Statement, or, if for any other reason it shall be necessary during such time
period to amend or supplement such Registration Statement, Prospectus or Issuer Free Writing Prospectus in order to comply with the Securities Act and, in either case as promptly as reasonably practicable thereafter, prepare and file with the SEC,
and furnish without charge to the selling Holders and the managing underwriter or underwriters, if any, an amendment or supplement to such Registration Statement, Prospectus or Issuer Free Writing Prospectus which shall correct such misstatement or
omission or effect such compliance; 

  
 23 

 (vi)    use its reasonable best efforts to prevent, or obtain the withdrawal
of, any stop order or other order or notice preventing or suspending the use of any preliminary or final Prospectus or any Issuer Free Writing Prospectus; 

(vii)    promptly incorporate in a Prospectus supplement, Issuer Free Writing Prospectus or post-effective amendment such
information as the managing underwriter or underwriters or the Holders of a majority of Registrable Securities being sold agree should be included therein relating to the plan of distribution with respect to such Registrable Securities; and make all
required filings of such Prospectus supplement, Issuer Free Writing Prospectus or post-effective amendment as soon as reasonably practicable after being notified of the matters to be incorporated in such Prospectus supplement, Issuer Free Writing
Prospectus or post-effective amendment; 
 (viii)    furnish to each selling Holder of Registrable Securities and each
underwriter, if any, without charge, as many conformed copies as such Holder or underwriter may reasonably request of the applicable Registration Statement and any amendment or post- effective amendment thereto, including financial statements and
schedules, all documents incorporated therein by reference and all exhibits (including those incorporated by reference); 

(ix)    deliver to each selling Holder of Registrable Securities and each underwriter, if any, without charge, as many
copies of the applicable Prospectus (including each preliminary Prospectus) and any amendment or supplement thereto, each Issuer Free Writing Prospectus and such other documents as such Holder or underwriter may reasonably request in order to or
facilitate the disposition of the Registrable Securities by such Holder or underwriter (it being understood that the Company shall consent to the use of such Prospectus or any Issuer Free Writing Prospectus or any amendment or supplement thereto by
each of the selling Holders of Registrable Securities and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such Prospectus or any amendment or supplement thereto or Issuer Free Writing
Prospectus); 
 (x)    on or prior to the date on which the applicable Registration Statement becomes effective, use
its reasonable best efforts to register or qualify, and cooperate with the selling Holders of Registrable Securities, the managing underwriter or underwriters, if any, and their respective counsel, in connection with the registration or
qualification of such Registrable Securities for offer and sale under the securities or “Blue Sky” laws of each state and other jurisdiction of the United States as any such selling Holder or managing underwriter or underwriters, if any,
or their respective counsel reasonably request in writing and do any and all other acts or things reasonably necessary or advisable to keep such registration or qualification in effect for such period as required by
Section 4.1, as applicable, provided that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or to take any action which would subject it to
taxation or general service of process in any such jurisdiction where it is not then so subject; 
 (xi)    cooperate
with the selling Holders of Registrable Securities and the managing underwriter or underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive
legends; 

  
 24 

 
and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters may request at least two (2) Business Days prior to any sale of
Registrable Securities to the underwriters; 
 (xii)    use its reasonable best efforts to cause the Registrable
Securities covered by the applicable Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the seller or sellers thereof or the underwriter or underwriters, if any,
to consummate the disposition of such Registrable Securities; 
 (xiii)    not later than the effective date of the
applicable Registration Statement, provide a CUSIP number for all Registrable Securities, and provide the applicable transfer agent with printed certificates for the Registrable Securities which are in a form eligible for deposit with The Depository
Trust Company; 
 (xiv)    make such representations and warranties to the Holders of Registrable Securities being
registered, and the underwriters or agents, if any, in form, substance and scope as are customarily made by issuers in underwritten public offerings similar to the offering then being undertaken; 

(xv)    enter into such customary agreements (including underwriting and indemnification agreements) and take all such
other actions as the Holders of at least a majority of any Registrable Securities being sold, any participating Sponsor or the managing underwriter or underwriters, if any, reasonably request in order to expedite or facilitate the registration
and disposition of such Registrable Securities; 
 (xvi)    obtain for delivery to the Holders of Registrable
Securities being registered and to the underwriter or underwriters, if any, an opinion or opinions from counsel for the Company, including any customary negative assurances letters, dated the pricing or closing date of the applicable offering or
sale (in the case of an offering with the assistance of a broker, placement agent or other agent of the Holder) or, in the event of an Underwritten Offering, the date the Registrable Securities are delivered to the Underwriters for sale, in
customary form, scope and substance, which opinions shall be reasonably satisfactory to such Holders or underwriters, as the case may be, and their respective counsel; 

(xvii)    obtain for delivery to the Company and the managing underwriter or underwriters, if any, or a broker, placement
agent or other agent of the Holder, if any, with copies to the Holders of Registrable Securities included in such Registration, a cold comfort letter from the Company’s independent certified public accountants (and, if necessary, any other
independent certified public accountants of any subsidiary of the Company or any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement) in customary form
and covering such matters of the type customarily covered by cold comfort letters as the managing underwriter or underwriters, if any, or a broker, placement agent or other agent of the Holder, if any, reasonably request, dated (A) the date of
execution of the underwriting agreement and brought down to the closing under the underwriting agreement in the case of an Underwritten Offering of Common Stock and (B) the pricing or closing date of the applicable offering or sale in the case
of a broker, placement agent or other agent of the Holder, if any; 

  
 25 

 (xviii)    cooperate with each seller of Registrable Securities and each
underwriter, if any, participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with FINRA; 

(xix)    use its reasonable best efforts to comply with all applicable securities laws and make available to its security
holders, as soon as reasonably practicable, an earnings statement satisfying the provisions of Section 11(a) of the Securities Act and the rules and regulations promulgated thereunder; 

(xx)    provide and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by the
applicable Registration Statement from and after a date not later than the effective date of such Registration Statement; 

(xxi)    use its reasonable best efforts to cause all Registrable Securities covered by the applicable Registration
Statement to be listed on each securities exchange on which any of the Company’s equity securities are then listed or quoted and on each inter-dealer quotation system on which any of the Company’s equity securities are then quoted; 

(xxii)    make available upon reasonable notice at reasonable times and for reasonable periods for inspection by a
representative appointed by the majority of the Holders of Registrable Securities covered by the applicable Registration Statement, by any underwriter participating in any disposition to be effected pursuant to such Registration Statement and by any
attorney, accountant, broker, placement agent or other agent retained by such Holders or any such underwriter, all pertinent financial and other records, pertinent corporate documents and properties of the Company, and cause all of the
Company’s officers, directors and employees and the independent public accountants who have certified its financial statements to make themselves available to discuss the business of the Company and to supply all information reasonably
requested by any such Person in connection with such Registration Statement as shall be necessary to enable them to exercise their due diligence responsibility; provided, however, that any such Person gaining access to information
regarding the Company pursuant to this Section 4.4(a)(xii) shall agree to hold in strict confidence and shall not make any disclosure or use any information regarding the Company which the Company determines in good faith
to be confidential, and of which determination such Person is notified, unless (A) the release of such information is requested or required (by deposition, interrogatory, requests for information or documents by a governmental entity, subpoena
or similar process), (B) disclosure of such information, in the opinion of counsel to such Person, is otherwise required by law, (C) such information is or becomes publicly known other than through a breach of this or any other agreement
of which such Person has knowledge, (D) such information is or becomes available to such Person on a non-confidential basis from a source other than the Company or (E) such information is independently developed by such Person; 

(xxiii)    in the case of a marketed Underwritten Offering of Common Stock, cause the senior executive officers of the
Company to participate in the customary “road 

  
 26 

 
show” presentations that may be reasonably requested by the managing underwriter or underwriters in any such Underwritten Offering and otherwise to facilitate, cooperate with, and
participate in each proposed offering contemplated herein and customary selling efforts related thereto; 

(xxiv)    take no direct or indirect action prohibited by Regulation M under the Exchange Act; 

(xxv)    take all reasonable action to ensure that any Issuer Free Writing Prospectus utilized in connection with any
registration covered by Section 4.1 or Section 4.2 complies in all material respects with the Securities Act, is filed in accordance with the Securities Act to the extent required thereby, is
retained in accordance with the Securities Act to the extent required thereby and, when taken together with the related Prospectus, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading; and 
 (xxvi)    take all
such other commercially reasonable actions as are necessary or advisable in order to expedite or facilitate the disposition of such Registrable Securities. 

(b)    To the extent the Company is eligible under the relevant provisions of Rule 430B under the Securities Act, if the
Company files any Shelf Registration Statement, the Company shall include in such Shelf Registration Statement such disclosures as may be required by Rule 430B under the Securities Act (referring to the unnamed selling security holders in a generic
manner by identifying the initial offering of the securities to the Holders) in order to ensure that the Holders may be added to such Shelf Registration Statement at a later time through the filing of a Prospectus supplement rather than a
post-effective amendment. 
 (c)    The Company may require each seller of Registrable Securities as to which any
Registration is being effected to furnish to the Company such information regarding the distribution of such securities and such other information relating to such Holder and its ownership of Registrable Securities as the Company may from time to
time reasonably request in writing and the Company may exclude from such registration the Registrable Securities of any such Holder who unreasonably fails to furnish such information within a reasonable time after receiving such request. Each Holder
of Registrable Securities agrees to furnish such information to the Company and to cooperate with the Company as reasonably necessary to enable the Company to comply with the provisions of this Agreement. 

(d)    Each Holder of Registrable Securities agrees that, upon receipt of any notice from the Company of the happening of
any event of the kind described in Section 4.4(a)(v), such holder will forthwith discontinue disposition of Registrable Securities pursuant to such Registration Statement until such Holder’s receipt of the copies of
the supplemented or amended Prospectus or Issuer Free Writing Prospectus, as the case may be, contemplated by Section 4.4(a)(v), or until such Holder is advised in writing by the Company that the use of the Prospectus or
Issuer Free Writing Prospectus, as the case may be, may be 

  
 27 

 
resumed, and has received copies of any additional or supplemental filings that are incorporated by reference in the Prospectus or such Issuer Free Writing Prospectus or any amendments or
supplements thereto and if so directed by the Company, such Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus or any Issuer Free
Writing Prospectus covering such Registrable Securities current at the time of receipt of such notice. In the event the Company shall give any such notice, the period during which the applicable Registration Statement is required to be maintained
effective shall be extended by the number of days during the period from and including the date of the giving of such notice to and including the date when each seller of Registrable Securities covered by such Registration Statement either receives
the copies of the supplemented or amended Prospectus or such Issuer Free Writing Prospectus contemplated by Section 4.4(a)(v) or is advised in writing by the Company that the use of the Prospectus may be resumed. 

(e)    If any Registration Statement or comparable statement under the “Blue Sky” laws refers to any Holder by
name or otherwise as the Holder of any securities of the Company, then such Holder shall have the right to require (i) the insertion therein of language, in form and substance satisfactory to such Holder and the Company, to the effect that the
holding by such Holder of such securities is not to be construed as a recommendation by such Holder of the investment quality of the Company’s securities covered thereby and that such holding does not imply that such Holder will assist in
meeting any future financial requirements of the Company, or (ii) in the event that such reference to such Holder by name or otherwise is not in the judgment of the Company, as advised by counsel, required by the Securities Act or any similar
federal statute or any “Blue Sky” or securities law then in force, the deletion of the reference to such Holder. 

(f)    Holders may seek to register different types of Registrable Securities simultaneously and the Company shall use its
reasonable best efforts to effect such Registration and sale in accordance with the intended method or methods of disposition specified by such Holders. 

Section 4.5    Underwritten Offerings. 

(a)    Shelf Offering. If requested by the underwriters for any Underwritten Offering of Common Stock requested by
Holders of Registrable Securities pursuant to a Shelf Registration under Section 4.1, the Company shall enter into an underwriting agreement with such underwriters for such offering, such agreement to be reasonably
satisfactory in substance and form to the Company, and, if applicable, participating Holders and the underwriters, and to contain such representations and warranties by the Company and such other terms as are generally prevailing in agreements of
that type, including indemnities no less favorable to the recipient thereof than those provided in Section 4.8. If such Underwritten Offering of Common Stock includes Registrable Securities, the Holders of the Registrable
Securities proposed to be distributed by such underwriters shall cooperate with the Company in the negotiation of the underwriting agreement and shall give consideration to the reasonable suggestions of the Company regarding the form thereof. Such
Holders of Registrable Securities to be distributed by such underwriters shall be parties to such underwriting agreement, which underwriting 

  
 28 

 
agreement shall (i) contain such representations and warranties by, and the other agreements on the part of, the Company to and for the benefit of such Holders of Registrable Securities as
are customarily made by issuers to selling stockholders in underwritten public offerings similar to the applicable Underwritten Offering and (ii) provide that any or all of the conditions precedent to the obligations of such underwriters under
such underwriting agreement also shall be conditions precedent to the obligations of such Holders of Registrable Securities. Any such Holder of Registrable Securities shall not be required to make any representations or warranties to or agreements
with the Company or the underwriters other than representations, warranties or agreements regarding the power and authority of such Holder to enter into the transaction, such Holder’s title to the Registrable Securities, such Holder’s
intended method of distribution and any other representations required to be made by the Holder under applicable law, and the aggregate amount of the liability of such Holder shall not exceed such Holder’s net proceeds from such Underwritten
Offering. 
 (b)    Piggyback Offering. If the Company proposes to register any of its securities under the
Securities Act as contemplated by Section 4.3 and such securities are to be distributed in an Underwritten Offering of Common Stock through one or more underwriters, the Company shall, if requested by any Holder of
Registrable Securities pursuant to Section 4.2 and subject to the provisions of Section 4.2(b), use its reasonable best efforts to arrange for such underwriters to include on the same terms and
conditions that apply to the other sellers in such Registration all the Registrable Securities to be offered and sold by such Holder among the securities of the Company to be distributed by such underwriters in such Registration. The Holders of
Registrable Securities to be distributed by such underwriters shall be parties to the underwriting agreement between the Company and such underwriters, which underwriting agreement shall (i) contain such representations and warranties by, and
the other agreements on the part of, the Company to and for the benefit of such Holders of Registrable Securities as are customarily made by issuers to selling stockholders in secondary underwritten public offerings and (ii) provide that any or
all of the conditions precedent to the obligations of such underwriters under such underwriting agreement also shall be conditions precedent to the obligations of such Holders of Registrable Securities. Any such Holder of Registrable Securities
shall not be required to make any representations or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such Holder, such Holder’s title to the Registrable
Securities and such Holder’s intended method of distribution or any other representations required to be made by the Holder under applicable law, and the aggregate amount of the liability of such Holder shall not exceed such Holder’s net
proceeds from such Underwritten Offering. 
 (c)    Participation in Underwritten Registrations. Subject to the
provisions of Section 4.5(a) and Section 4.5(b) above, no Person may participate in any Underwritten Offering hereunder unless such Person (i) agrees to sell such Person’s securities on
the basis provided in any underwriting arrangements approved by the Persons entitled to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such underwriting arrangements. 

  
 29 

 (d)    Price and Underwriting Discounts. In the case of an
Underwritten Offering of Common Stock under Section 4.1, the price, underwriting discount and other financial terms for the Registrable Securities shall be determined by the participating Holders. In addition, in the case
of any Underwritten Offering of Common Stock, subject to Section 4.1(g)(ii), each of the Holders may withdraw their request to participate in the Registration pursuant to Section 4.1 or
Section 4.2 after being advised of such price, discount and other terms and shall not be required to enter into any agreements or documentation that would require otherwise. 

Section 4.6    No Inconsistent Agreements; Additional Rights. The Company and KLRE Sponsor hereby acknowledge
and agree that, with respect to any party hereto, (i) the Prior Agreement shall be terminated and cancelled and (ii) the rights and privileges set forth in this Article IV shall be effective, as of the Closing. For avoidance of
doubt, upon effectiveness, the rights and privileges set forth in this Article IV shall be in lieu of, and not in addition to, those set forth in the Prior Agreement. The Company shall not hereafter enter into, and is not currently a party
to, any agreement with respect to its securities which is inconsistent with the rights granted to the Holders of Registrable Securities by this Agreement. Without the prior consent of the Sponsors, the Company shall not enter into any agreement
granting registration or similar rights to any Person, and hereby represents and warrants that, as of the date hereof, no registration or similar rights have been granted to any other Person other than pursuant to this
Agreement. Notwithstanding the foregoing, the Company may grant customary registration rights in connection with the Equity Financing. Such registration rights may provide for the filing of a resale shelf registration statement covering
all shares of common stock issued in the Equity Financing within seven (7) days following the consummation of the Business Combination, which registration statement may be combined with the Sponsor Shelf Registration Statement. Notwithstanding the
foregoing, the Company shall not grant registration or similar rights to any Person that would be inconsistent with the priority provisions of this Article IV. 

Section 4.7    Registration Expenses. All expenses incident to the Company’s performance of or compliance
with this Agreement shall be paid by the Company, including (i) all registration and filing fees, and any other fees and expenses associated with filings required to be made with the SEC or FINRA, (ii) all fees and expenses in connection
with compliance with any securities or “Blue Sky” laws, (iii) all printing, duplicating, word processing, messenger, telephone, facsimile and delivery expenses (including expenses of printing certificates for the Registrable
Securities in a form eligible for deposit with The Depository Trust Company and of printing Prospectuses and Issuer Free Writing Prospectuses), (iv) all fees and disbursements of counsel for the Company and of all independent certified public
accountants of the Company (including the expenses of any special audit and cold comfort letters required by or incident to such performance), (v) Securities Act liability insurance or similar insurance if the Company so desires or the
underwriters so require in accordance with then-customary underwriting practice, (vi) all fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange or quotation of the Registrable
Securities on any inter-dealer quotation system, (vii) all applicable rating agency fees with respect to the Registrable Securities, (viii) all reasonable fees and disbursements of legal counsel for each Sponsor participating in such
Registration, (ix) all fees and expenses of accountants selected by the Holders of a majority of the Registrable Securities being registered, (x) any reasonable fees 

  
 30 

 
and disbursements of underwriters customarily paid by issuers or sellers of securities, (xi) all fees and expenses of any special experts or other Persons retained by the Company in
connection with any Registration, (xii) all of the Company’s internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties) and (xiii) all expenses related to the
“road-show” for any Underwritten Offering, including all travel, meals and lodging. All such expenses are referred to herein as “Registration Expenses.” The Company shall not be required to pay any fees and
disbursements to underwriters not customarily paid by issuers, including underwriting discounts and commissions and transfer taxes, if any, attributable to the sale of Registrable Securities or any broker’s fees or other commissions of persons
retained by a Holder of Registrable Securities. 
 Section 4.8    Indemnification. 

(a)    Indemnification by the Company. The Company shall indemnify and hold harmless, to the fullest extent
permitted by law, each Holder of Registrable Securities, each shareholder, member, limited or general partner thereof, each shareholder, member, limited or general partner of each such shareholder, member, limited or general partner, each of their
respective Affiliates, officers, directors, shareholders, employees, advisors, and agents and each Person who controls (within the meaning of the Securities Act or the Exchange Act) such Persons and each of their respective Representatives from and
against any and all losses, penalties, judgments, suits, costs, claims, damages, liabilities and expenses, joint or several (including reasonable costs of investigation and legal expenses) (each, a “Loss” and collectively
“Losses”), as incurred, arising out of or based upon (i) any untrue or alleged untrue statement of a material fact contained in any Registration Statement under which such Registrable Securities were registered under the
Securities Act (including any final, preliminary or summary Prospectus contained therein or any amendment thereof or supplement thereto or any documents incorporated by reference therein), or any other disclosure document produced by or on behalf of
the Company or any of its subsidiaries including reports and other documents filed under the Exchange Act or any Issuer Free Writing Prospectus or amendment thereof or supplement thereto, (ii) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, preliminary Prospectus or any Issuer Free Writing Prospectus in light of the circumstances under which they were made) not
misleading or (iii) any actions or inactions or proceedings in respect of the foregoing whether or not such indemnified party is a party thereto. This indemnity shall be in addition to any liability the Company may otherwise have. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Holder or any indemnified party and shall survive the Transfer of such securities by such Holder. The Company shall also indemnify
underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers and directors and each Person who controls such Persons (within the meaning of the Securities Act and the
Exchange Act) to the same extent as provided above with respect to the indemnification of the indemnified parties. 

(b)    Indemnification by the Selling Holder of Registrable Securities. Each selling Holder of Registrable
Securities agrees (severally and not jointly) to indemnify and hold 

  
 31 

 
harmless, to the fullest extent permitted by law, the Company, its directors and officers and each Person who controls the Company (within the meaning of the Securities Act or the
Exchange Act) from and against any Losses resulting from (i) any untrue statement of a material fact contained in any Registration Statement under which such Registrable Securities were registered under the Securities Act (including any
final, preliminary or summary Prospectus contained therein or any amendment thereof or supplement thereto or any documents incorporated by reference therein or any Issuer Free Writing Prospectus or amendment thereof or supplement thereto), or
(ii) any omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a Prospectus, preliminary Prospectus or any Issuer Free Writing Prospectus, in light of the
circumstances under which they were made) not misleading, to the extent, but only to the extent, that such untrue statement or omission is contained in any information furnished in writing by such selling Holder to the Company specifically for
inclusion in such Registration Statement and has not been corrected in a subsequent writing prior to or concurrently with the sale of the Registrable Securities to the Person asserting the claim. In no event shall the liability of any selling Holder
of Registrable Securities hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder under the sale of Registrable Securities giving rise to such indemnification obligation less any amounts paid by such Holder
pursuant to Section 4.8(d). The Company shall be entitled to receive indemnities from underwriters, selling brokers, dealer managers and similar securities industry professionals participating in the distribution, to the
same extent as provided above (with appropriate modification) with respect to information furnished in writing by such Persons specifically for inclusion in any Prospectus or Registration Statement. 

(c)    Conduct of Indemnification Proceedings. Any Person entitled to indemnification hereunder shall (i) give
prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that any delay or failure to so notify the indemnifying party shall relieve the indemnifying party of its obligations
hereunder only to the extent, if at all, that it is actually and materially prejudiced by reason of such delay or failure) and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party; provided, however, that any Person entitled to indemnification hereunder shall have the right to select and employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such
counsel shall be at the expense of such Person unless (A) the indemnifying party has agreed in writing to pay such fees or expenses, (B) the indemnifying party shall have failed to assume the defense of such claim within a reasonable time
after receipt of notice of such claim from the Person entitled to indemnification hereunder and employ counsel reasonably satisfactory to such Person, (C) the indemnified party has reasonably concluded (based upon advice of its counsel) that
there may be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the indemnifying party, or (D) in the reasonable judgment of any such Person (based upon advice of its
counsel) a conflict of interest may exist between such Person and the indemnifying party with respect to such claims (in which case, if the Person notifies the indemnifying party in writing that such Person elects to employ separate counsel at the
expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such Person). If the indemnifying party assumes the defense, the indemnifying party shall not have the right to
settle such action without the prior consent of the 

  
 32 

 
indemnified party. No indemnifying party shall consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or
plaintiff to such indemnified party of an unconditional release from all liability in respect to such claim or litigation without the prior written consent of such indemnified party. If such defense is not assumed by the indemnifying party, the
indemnifying party will not be subject to any liability for any settlement made without its prior written consent, but such consent may not be unreasonably withheld or delayed. It is understood that the indemnifying party or parties shall not,
except as specifically set forth in this Section 4.8(c), in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees, disbursements or other charges of more than one
counsel (in addition to any local counsel) at any one time unless (1) the employment of more than one counsel has been authorized in writing by the indemnifying party or parties, (2) an indemnified party has reasonably concluded (based on
the advice of counsel) that there may be legal defenses available to it that are different from or in addition to those available to the other indemnified parties or (3) a conflict or potential conflict exists or may exist (based upon advice of
counsel to an indemnified party) between such indemnified party and the other indemnified parties, in each of which cases the indemnifying party shall be obligated to pay the reasonable fees and expenses of such additional counsel or counsels. 

(d)    Contribution. If for any reason the indemnification provided for in Section 4.8(a)
and Section 4.8(b) is unavailable to an indemnified party (other than as a result of exceptions contained in Section 4.8(a) and Section 4.8(b)) or insufficient in respect
of any Losses referred to therein, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such Loss in such proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and the indemnified party or parties on the other hand in connection with the acts, statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations. In connection with any
Registration Statement filed with the SEC by the Company, the relative fault of the indemnifying party on the one hand and the indemnified party on the other hand shall be determined by reference to, among other things, whether any untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just or equitable if contribution pursuant to this Section 4.8(d) were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable considerations referred to in this Section 4.8(d). No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. The amount paid or payable by an indemnified party as a result of the Losses referred to in
Section 4.8(a) and Section 4.8(b) shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 4.8(d), in connection with any Registration Statement filed by the Company, a selling Holder of Registrable Securities
shall not be required to contribute any amount in excess of the dollar amount of the net proceeds received by such holder under the sale of Registrable 

  
 33 

 
Securities giving rise to such contribution obligation less any amounts paid by such Holder pursuant to Section 4.8(b). If indemnification is available under this
Section 4.8, the indemnifying parties shall indemnify each indemnified party to the full extent provided in Section 4.8(a) and Section 4.8(b) hereof without regard to the
provisions of this Section 4.8(d). The remedies provided for in this Section 4.8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified
party at law or in equity. 
 Section 4.9    Rules 144 and 144A and Regulation S. The Company shall file the
reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder (or, if the Company is not required to file such reports, it will, upon the request of any Holder of
Registrable Securities, make publicly available such necessary information for so long as necessary to permit sales that would otherwise be permitted by this Agreement pursuant to Rule 144, Rule 144A or Regulation S under the Securities Act, as such
Rules may be amended from time to time or any similar rule or regulation hereafter adopted by the SEC), and it will take such further action as any Holder of Registrable Securities may reasonably request, all to the extent required from time to time
to enable such Holder to sell Registrable Securities without Registration under the Securities Act in transactions that would otherwise be permitted by this Agreement and within the limitation of the exemptions provided by (a) Rules 144, 144A
or Regulation S under the Securities Act, as such Rules may be amended from time to time or (b) any similar rule or regulation hereafter adopted by the SEC. Upon the request of any Holder of Registrable Securities, the Company will deliver to
such Holder a written statement as to whether it has complied with such requirements and, if not, the specifics thereof. 

Section 4.10    Termination. The registration rights provided for in this Article IV shall terminate
upon the expiration of the Sponsor Shelf Period, except for the provisions of Section 4.8 and Section 4.9, which shall survive any such termination. 

Section 4.11    Existing Registration Statements. Notwithstanding anything herein to the contrary and subject
to applicable law and regulation, the Company may satisfy any obligation hereunder to file a Registration Statement or to have a Registration Statement become effective by a specified date by designating, by notice to the Holders, a registration
statement that previously has been filed with the SEC or become effective, as the case may be, as the relevant Registration Statement for purposes of satisfying such obligation, and all references to any such obligation shall be construed
accordingly; provided that such previously filed registration statement may be amended to add the number of Registrable Securities, and, to the extent necessary, to identify as selling stockholders those Holders demanding the filing of a
Registration Statement pursuant to the terms of this Agreement. To the extent this Agreement refers to the filing or effectiveness of other registration statements by or at a specified time and the Company has, in lieu of then filing such
registration statements or having such registration statements become effective, designated a previously filed or effective registration statement as the relevant registration statement for such purposes in accordance with the preceding sentence,
such references shall be construed to refer to such designated registration statement. 

Section 4.12    Registration of Warrant Shares. Without limiting the other provisions of this Article
IV, the Company acknowledges and agrees that following the Closing, the Company 

  
 34 

 
shall take all commercially reasonable efforts to file a registration statement for the shares of its Class A Common Stock issuable pursuant to any outstanding warrants (including the Warrants)
and to keep such registration statement effective until the expiration of such Warrants in accordance with their terms. The other parties to this Agreement agree to take or cause to be taken all commercially reasonable action in support of the
foregoing obligation. This provision is intended to be in support of, and not in addition to, the Company’s existing obligations to file a registration statement in connection with such warrants. 

ARTICLE V 
 TRANSFER OF
SHARES 
 Section 5.1    Limitations on Transfer. 

(a)    Each Sponsor (which, for the avoidance of doubt, does not include Anchorage for purposes of this Article V) agrees
that it shall not Transfer (i) thirty-three percent (33%) of the Common Stock held by such Sponsor as of the Business Day immediately following the Closing Date until the first anniversary of the Closing Date and (ii) the remaining sixty-seven
percent (67%) of the Common Stock held by such Sponsor as of the Business Day immediately following the Closing Date until the second anniversary of the Closing Date; provided that following the first date after the first anniversary of the
Closing Date, each Sponsor shall be permitted to sell shares of Common Stock otherwise subject to restrictions on Transfer pursuant to the foregoing at a price equal to or in excess of $18.00 per share (as adjusted for stock splits, stock dividends,
reorganizations, recapitalizations and the like) (the “Minimum Price Threshold”); provided further, that in connection with any Sponsor’s sale of Common Stock in an underwritten offering, the Minimum Price
Threshold shall be deemed satisfied if (A) prior to any public announcement of such offering, the managing underwriter notifies such Sponsor in writing that it reasonably believes that the price at which shares of Common Stock to be sold in the
proposed offering will be offered for sale will equal to or exceed $18.00 per share and (B) the actual price at which shares of Common Stock are sold in such offering equals or exceeds $16.00 per share; provided further, that following any
sale by a Sponsor pursuant to the foregoing provisos, such selling Sponsor shall promptly deliver written notice thereof to the Company and the other Sponsors. If, subsequent to the Closing Date, the Company consummates a subsequent liquidation,
merger, stock exchange or other similar transaction which results in all of the Company’s stockholders having the right to exchange their Common Stock for cash, securities or other property, the foregoing limitations shall not apply. 

(b)    KLRE Sponsor agrees that it shall not Transfer warrants to purchase shares of Class A Common Stock
(“Warrants”) of the Company held as of the Business Day immediately following the Closing Date until thirty (30) days after the Closing Date. 

(c)    Notwithstanding the provisions set forth in Section 5.1(a) and
Section 5.1(b), Transfers of Common Stock, Warrants and shares of Class A Common Stock issued or issuable upon the exercise of the Warrants are permitted (i) to Permitted Transferees, (ii) to any employee of a Permitted
Transferee, (iii) to the Company’s executive officers or directors, any affiliates or family members of any of the Company’s executive officers or directors, any members of KLRE Sponsor or Tema or any affiliates or family members of

  
 35 

 
members of KLRE Sponsor or Tema, respectively, or any affiliates (or their employees) of KLRE Sponsor or Tema, (iv) in the case of an individual, by gift to a member of the individual’s
immediate family or to a trust, the beneficiary of which is a member of the individual’s immediate family, an affiliate of such person or to a charitable organization; (v) in the case of an individual, by virtue of laws of descent and
distribution upon death of the individual; (vi) in the case of an individual, pursuant to a qualified domestic relations order; (vii) in the case of an entity, as a distribution to its partners, shareholders or members upon its liquidation; (viii)
to the Company for no value for cancellation; (ix) by virtue of the laws of Delaware or KLRE Sponsor’s or Tema’s organizational documents upon dissolution of the KLRE Sponsor or Tema or any holder; or (x) to the extent that such Transfers
are explicitly contemplated as part of the Equity Financing; provided, however, that in the case of clauses (i) through (vii) and (ix), such permitted transferees must enter into a written agreement agreeing to be bound by the transfer
restrictions set forth herein. 
 (d)    Any Transfer made in contravention of this
Section 5.1 shall be null and void. 
 ARTICLE VI 

PREEMPTIVE RIGHTS 

Section 6.1    Rights to Purchase New Securities. 

(a)    From and after the Closing Date, in the event that the Company proposes to issue New Securities, Anchorage shall
have the right to purchase, in lieu of the person to whom the Company proposed to issue such New Securities, in accordance with paragraph (b) below, a number of New Securities equal to the product of (i) the total number or amount of New
Securities which the Company proposes to issue at such time and (ii) a fraction, the numerator of which shall be the total number of shares of Common Stock which Anchorage beneficially owns (excluding, for the avoidance of doubt, unexercised
warrants for Common Stock) at the relevant measurement point on an as converted basis, and the denominator of which shall be the aggregate number of shares of Common Stock then outstanding (the number referred to in clause (ii), the “Pro
Rata Number”). 
 (b)    Subject to the provisions of Section 6.1(c), in the
event that the Company proposes to undertake an issuance of New Securities, it shall give written notice (a “Notice of Issuance”) of its intention to Anchorage indicating the exact price per New Security and the exact number
of New Securities to be issued by the Company, and describing the material terms of the New Securities and the material terms upon which the Company proposes to issue such New Securities. Anchorage shall have five (5) Business Days from the date of
receipt of the Notice of Issuance to agree to purchase all or a portion of Anchorage’s pro rata share of such number of New Securities (as determined pursuant to paragraph (a) above) for the same consideration and otherwise upon the terms
specified in the Notice of Issuance (unless better terms are provided to any other purchaser) by giving written notice to the Company and stating therein the quantity of New Securities to be purchased by Anchorage. Notwithstanding the preceding
sentence, the number of New Securities that Anchorage is entitled to purchase shall not exceed an amount that would require stockholder approval under, or would result in a 

  
 36 

 
violation of, the rules and regulations of the Nasdaq Capital Market or any other principal stock exchange or market upon which the New Securities trade. If Anchorage exercises its right to
purchase New Securities pursuant to this Section 6.1(b), the purchase and sale of such New Securities shall close at the same time as the issuance of New Securities to the other purchaser or purchasers and, subject to the
preceding sentence, shall be issued on the same terms and subject to the same conditions as applicable to the other purchaser or purchasers. The rights given by the Company under this Section 6.1(b) shall terminate if
unexercised within five (5) Business Days after receipt of the Notice of Issuance referred to in this Section 6.1(b). Notwithstanding anything to the contrary contained herein, if (i) the price or any other material
terms upon which the Company proposes to issue such New Securities are amended by the Company following the delivery to Anchorage of the Notice of Issuance or (ii) the offering of New Securities to which a Notice of Issuance relates is not
completed within 60 days from the delivery of such notice to the Anchorage, Anchorage’s election with respect to the purchase of New Securities covered by such Notice of Issuance shall be void and the Company shall be obligated to deliver
a new Notice of Issuance to Anchorage, and Anchorage shall be entitled to make a new election with respect to the purchase by it of New Securities covered by such notice within the 5-Business Day period from the date of delivery of the new Notice of
Issuance and otherwise in accordance with the procedure specified in the second sentence of this Section 6.1(b). 

(c)    Notwithstanding anything to the contrary contained in Section 6.1(b), if the Company
proposes to issue New Securities in an aggregate amount of at least $25,000,000, in an Underwritten Offering, the Notice of Issuance may, (i) in lieu of providing the price at which the Company proposes to issue New Securities as a fixed dollar
amount, provide an estimated range of prices within which the underwriter for such offering reasonably estimates the shares will ultimately be priced and (ii) in lieu of providing an exact number of New Securities to be issued by the Company in
such offering, provide an estimated number the underwriter for such offering reasonably estimates will ultimately be issued in such offering (the “Offering Size”). If Anchorage desires to exercise its rights under this
Section 6.1 with respect to such Underwritten Offering, Anchorage shall be required to make an election with respect to the purchase of up to a number of New Securities being offered equal to its pro rata portion of the
Offering Size no later than five (5) Business Days from the date of receipt of the Notice of Issuance; provided that Anchorage’s obligation to purchase the number of New Securities subject to its election shall be conditioned upon
(A) the issuance by the Company of a number of shares of Common Stock at least equal to the Offering Size and (B) the New Securities so issued being priced not higher than 10% above the closing price of the Common Stock on the Nasdaq
Capital Market or the principal securities exchange on which the Common Stock is then listed on the date immediately prior to the date on which the Notice of Issuance is delivered to Anchorage pursuant to this Section 6.1(c) (the
“Midrange Price”) and not lower than 10% below the Midrange Price (the “Price Range”). 

(d)    Any Notice of Issuance provided by the Company to Anchorage in connection with an Underwritten Offering may specify
a number of shares, not to exceed 15% of the Offering Size, that the underwriters or agents in such offering shall be entitled to purchase upon exercise of an overallotment option, if any (the “Overallotment Shares”). If
Anchorage desires to exercise its rights under this Section 6.1 with respect to Overallotment Shares, 

  
 37 

 
Anchorage shall be required to make an election with respect to the purchase of up to its pro rata portion of the Overallotment Shares at the same time Anchorage makes an election pursuant to
Section 6.1(c); provided that Anchorage’s obligation to purchase Overallotment Shares in accordance with its election shall be conditioned upon the Overallotment Shares being priced within the Price Range. 

(e)    Anchorage shall retain the right to make an election in accordance with Section 6.1(b) following the final
determination of the offering price and the number of New Securities, and, if applicable, the underwriters’ determination with respect to their exercise of their overallotment option, in any such Underwritten Offering with respect to
(i) all New Securities in excess of the Offering Size and, if applicable, any overallotment option in excess of the number of Overallotment Shares specified in the Notice of Issuance provided by the Company in connection with such Underwritten
Offering, (ii) all New Securities priced outside the Price Range and (iii) all New Securities in any offering where the Offering Size is not met. If an offering contemplated by Section 6.1(c) is not completed
within 60 days following the Notice of Issuance with respect thereto, then the Company will be required to comply again with the provisions of Sections 6.1(b) and 6.1(c) in order to avail itself of the benefits
of this Section 6.1(c). In case an offering contemplated by this Section 6.1(c) is consummated, Anchorage shall be obligated to purchase its shares hereunder at the closing of such offering if and
to the extent the conditions to Anchorage’s obligations hereunder are met, and if such conditions are not met and to the extent Anchorage exercises its right under this Section 6.1, Anchorage shall purchase such shares
as promptly as reasonably practicable thereafter, and on the same terms and subject to the same conditions that would be applicable to the underwriters in such offering; provided, however that (i) such terms
and conditions applicable to Anchorage shall not include any restrictions on the transferability of such New Securities or any standstill, voting or other restrictions, it being understood that all restrictions of such nature are contained in this
Agreement, (ii) Anchorage shall not be required to make any representations and warranties except those that relate solely to Anchorage and (iii) Anchorage shall not be required to undertake any indemnity obligations. 

(f)    Nothing in this Section 6.1 shall prevent the Company or its subsidiaries from issuing or selling to any
Person (the “Accelerated Buyer”) any New Securities without first complying with the provisions of this Section 6.1; provided that in connection with such issuance or sale (i) the Company gives reasonably prompt
notice to Anchorage of such issuance (after such issuance has occurred), which notice shall describe in reasonable detail the New Securities purchased by the Accelerated Buyer and the purchase price thereof and (ii) the Accelerated Buyer and the
Company enable Anchorage to effectively exercise its rights under this Section 6.1 with respect to their purchase of all or any portion of its pro rata share of the New Securities issued to the Accelerated Buyer within fifteen (15) Business
Days after receipt of the notice by Anchorage of such issuance to the Accelerated Buyer on the terms specified in this Section 6.1. The date of the Notice of Issuance for such issuance shall be the date such New Securities are issued to the
Accelerated Buyer. 
 (g)    The provisions of this Section 6.1 shall terminate upon the
earlier to occur of the fifth anniversary of the Closing Date and the date on which Anchorage beneficially owns less than 10% of the aggregate number of As Converted Company Shares representing its Initial Share Ownership. 

  
 38 

 ARTICLE VII 

GENERAL PROVISIONS 

Section 7.1    Assignment; Benefit. 

(a)    This Agreement and the rights and obligations hereunder shall not be assignable without the prior written consent
of the other parties hereto, except that Anchorage may assign this Agreement or any rights and obligations hereunder to one or more affiliates of Anchorage, provided that no such assignment shall relieve Anchorage of its obligations hereunder if
such assignee does not perform such obligations. Any such assignee may not again assign those rights, other than in accordance with this Article VII. Any attempted assignment of rights or obligations in violation of this Article VII
shall be null and void. Notwithstanding anything in the foregoing to the contrary, the rights of a Holder pursuant to Article IV of this Agreement with respect to all or any portion of its Registrable Securities may be assigned without
such consent (but only with all related obligations) with respect to such Registrable Securities (and any Registrable Securities issued as a dividend or other distribution with respect to, in exchange for or in replacement of such Registrable
Securities) by such Holder to a transferee of such Registrable Securities; provided that (i) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee or
assignee and the Registrable Securities with respect to which such registration rights are being assigned and (ii) such transferee or assignee shall be bound by and subject to the terms set forth in this Agreement. 

(b)    This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their respective
successors and permitted assigns, and there shall be no third-party beneficiaries to this Agreement other than the indemnitees under Section 4.8 and Sponsor Directors under the first sentence of
Section 3.2(l). 
 Section 7.2    Freedom to Pursue Opportunities. The parties
expressly acknowledge and agree that: (a) each Shareholder (and its Affiliates), Sponsor Director and Affiliated Officer of the Company has the right to, and shall have no duty (contractual or otherwise) not to, (i) directly or indirectly
engage in the same or similar business activities or lines of business as the Company or any of its subsidiaries, including those deemed to be competing with the Company or any of their subsidiaries, or (ii) directly or indirectly do business
with any client or customer of the Company or any of its subsidiaries and (b) in the event that a Shareholder (or its Affiliates), Sponsor Director or Affiliated Officer of the Company acquires knowledge of a potential transaction or matter
that may be a corporate opportunity for the Company or any of its subsidiaries and such Shareholder (or its Affiliates) or any other Person, the Shareholder, Sponsor Director and Affiliated Officer of the Company shall have no duty (contractual or
otherwise) to communicate or present such corporate opportunity to the Company or any of their subsidiaries, as the case may be, and, notwithstanding any provision of this Agreement to the contrary, shall not be liable to the Company, its
subsidiaries or their respective Affiliates or Shareholders for breach of any duty (contractual or otherwise) by reason of the fact that such 

  
 39 

 
Shareholder (or its Affiliates), Sponsor Director or Affiliated Officer, directly or indirectly, pursues or acquires such opportunity for itself, directs such opportunity to another Person, or
does not present such opportunity to the Company or any of its subsidiaries. Notwithstanding the foregoing, for so long as Mr. Kovalik or another KLRE Sponsor Director (other than an Unaffiliated Director) continues to serve as a director, such
KLRE Sponsor Director agrees to take commercially reasonably efforts to notify the other directors (including the Tema directors) in writing as to potential opportunities in the Delaware Basin for the Company to acquire or sell oil & gas leases,
assets, working interests, royalty interests or to acquire companies being marketed for sale or potentially becoming available for purchase that may have appeal to the Company, to the extent that KLR Group, LLC or any such director is actually aware
of such opportunities and is not bound by a confidentiality agreement covering such opportunities. Upon receipt of such notice, any such KLRE Sponsor Director and the other directors shall meet within a commercially reasonable amount of time
under the circumstances to determine whether or not the Company wishes to pursue a particular opportunity, and if so, whether the opportunity represents a conflict of interest for any such KLRE Sponsor Director such that he or she should recuse
himself or herself from all further Board discussions and votes regarding such opportunity or whether the board chooses to waive any potential conflict of interest for any such KLRE Sponsor Director. 

Section 7.3    Termination. 

(a)    Following the Closing, (a) Article III shall terminate automatically (without any action by any party
hereto) at the time at which no Shareholder has the right to designate an individual for nomination to the Board of Directors under this Agreement; provided that the provisions in Section 3.2(l) and
Section 3.4 shall survive such termination, (b) Article IV of this Agreement shall terminate as set forth in Section 4.10, and (c) the remainder of this Agreement shall terminate
automatically (without any action by any party hereto) as to each Shareholder when such Shareholder ceases to hold any Company Shares. 

(b)    Upon the termination of the Business Combination Agreement prior to the Closing in accordance with its terms, this
Agreement shall terminate, become void and of no further force and effect without any liability or obligation on the part of any party hereto. 

Section 7.4    Severability. In the event that any provision of this Agreement shall be invalid, illegal or
unenforceable such provision shall be construed by limiting it so as to be valid, legal and enforceable to the maximum extent provided by law and the validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby. 
 Section 7.5    Entire Agreement; Amendment. 

(a)    This Agreement sets forth the entire understanding and agreement between the parties with respect to the
transactions contemplated herein and supersedes and replaces any prior understanding, agreement or statement of intent, in each case written or oral, of any kind and every nature with respect hereto. No provision of this Agreement may be amended,
modified or waived in whole or in part at any time without the express written consent of the Company and the Shareholders holding in aggregate more than eighty percent (80%) of 

  
 40 

 
the Company Shares held by the Shareholders; provided that any such amendment, modification or waiver that (i) would be materially adverse in any respect to any Sponsor or Anchorage
shall require the prior written consent of such Sponsor or Anchorage or (ii) would be disproportionately adverse to any Sponsor or Anchorage shall require the prior written consent of such disproportionately adversely affected Sponsor or
Anchorage. Notwithstanding the foregoing, none of (A) the first two sentences of Section 3.2(l) relating to Indemnification Agreements for Sponsor Directors, (B) the definition of Indemnification Agreement and
(C) the form of Indemnification Agreement shall be amended in any manner adverse to a Sponsor Director without the express prior written consent of each Sponsor, Anchorage and the Company. Except as set forth above, there are no other
agreements with respect to the governance of the Company between any Shareholders or any of their Affiliates. 

(b)    No waiver of any breach of any of the terms of this Agreement shall be effective unless such waiver is expressly
made in writing and executed and delivered by the party against whom such waiver is claimed. The waiver by any party hereto of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such
breach or as a waiver of any other or subsequent breach. Except as otherwise expressly provided herein, no failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in
respect hereof at law or in equity, shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or
remedy. 
 Section 7.6    Counterparts. This Agreement may be executed in any number of separate
counterparts each of which when so executed shall be deemed to be an original and all of which together shall constitute one and the same agreement. 

Section 7.7    Notices. Unless otherwise specified herein, all notices, consents, approvals, reports,
designations, requests, waivers, elections and other communications authorized or required to be given pursuant to this Agreement shall be in writing and shall be given, made or delivered by personal hand-delivery, by facsimile transmission, by
electronic mail, by mailing the same in a sealed envelope, registered first-class mail, postage prepaid, return receipt requested, or by air courier guaranteeing overnight delivery (and such notice shall be deemed to have been duly given, made or
delivered (a) on the date received, if delivered by personal hand delivery, (b) upon receipt of an appropriate electronic answerback or confirmation, if delivered by facsimile transmission or by electronic mail, (c) five (5) Business
Days after the date of mailing by registered first-class mail, and (d) two (2) Business Days after being sent by air courier guaranteeing overnight delivery), addressed to the Shareholder at the following addresses (or at such other address for
a Shareholder as shall be specified by like notice): 
 if to Tema, to: 

Tema Oil and Gas Company 
 c/o
Rosemore, Inc. 
 1 North Charles Street, 22nd Floor 

Baltimore, MD 21201 
 Facsimile:
(410) 347-7081 
 Attention: General Counsel 

  
 41 

 with a copy (which shall not constitute notice) to: 

Norton Rose Fulbright US LLP 

1301 McKinney, Suite 5100 

Houston, TX 77010 
 Facsimile:
(713) 651-5246 
 Attention: Charles D. Powell 

if to KLRE Sponsor, to: 
 KLR
Energy Sponsor LLC 
 811 Main Street, 18th Floor 

Houston, TX 77002 
 Facsimile:
(713) 654-8080 
 Attention: Edward Kovalik 

with a copy (which shall not constitute notice) to: 

KLR Energy Sponsor LLC 
 135 E.
57th Street, 6th Floor 
 New York,
NY 10022 
 Facsimile: (646) 576-8640 

Attention: Gregory R. Dow 
 if to
Anchorage, to: 
 Anchorage Capital Group, L.L.C. 

610 Broadway, 6th Floor 

New York, New York 10012 

Facsimile: 212-432-4651 

Attention: General Counsel 
 with
a copy (which shall not constitute notice) to: 
 Milbank, Tweed, Hadley & McCloy LLP 

28 Liberty Street 
 New York, NY
10005 
 Facsimile: 212-822-5181 

Attention: Scott W. Golenbock, Esq. 

if to the Company to: 
 KLR
Energy Acquisition Corp. 
 811 Main Street, 18th Floor 

Houston, TX 77002 
 Facsimile:
(713) 654-8080 
 Attention: Gary C. Hanna 

with a copy (which shall not constitute notice) to: 

KLR Energy Acquisition Corp. 

135 E. 57th Street, 6th Floor 

  
 42 

 
New York, NY 10022 
 Facsimile: (646) 576-8640 

Attention: Gregory R. Dow 
 with
a copy (which shall not constitute notice) to: 
 Vinson & Elkins L.L.P. 

1001 Fannin St., Suite 2500 

Houston, TX 77002 
 Facsimile:
(713) 758-4588 
 Attention: W. Matthew Strock; Sarah K. Morgan 

Section 7.8    Governing Law. THIS AGREEMENT AND ANY RELATED DISPUTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. 
 Section 7.9    Jurisdiction. ANY ACTION OR PROCEEDING
AGAINST THE PARTIES RELATING IN ANY WAY TO THIS AGREEMENT MAY BE BROUGHT EXCLUSIVELY IN THE COURTS OF THE STATE OF DELAWARE OR (TO THE EXTENT SUBJECT MATTER JURISDICTION EXISTS THEREFORE) THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
DELAWARE, AND THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF BOTH SUCH COURTS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING. ANY ACTIONS OR PROCEEDINGS TO ENFORCE A JUDGMENT ISSUED BY ONE OF THE FOREGOING COURTS MAY BE ENFORCED IN ANY
JURISDICTION. 
 Section 7.10    Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT
CANNOT BE WAIVED, EACH SHAREHOLDER WAIVES, AND COVENANTS THAT SUCH PARTY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, CLAIM OR PROCEEDING ARISING OUT OF THIS
AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH THE DEALINGS OF ANY SHAREHOLDER OR THE COMPANY IN CONNECTION WITH ANY OF THE ABOVE, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN CONTRACT, TORT OR
OTHERWISE. The Company or any Shareholder may file an original counterpart or a copy of this Section 7.10 with any court as written evidence of the consent of the Shareholders to the waiver of their rights to trial by jury.

 Section 7.11    Remedies; Specific Performance. It is hereby agreed and acknowledged that it will be
impossible to measure in money the damages that would be suffered if the parties fail to comply with any of the obligations herein imposed on them by this Agreement and that, in the event of any such failure, an aggrieved party will be irreparably
damaged and will not have an adequate remedy at law. Any such party shall, therefore, be entitled (in addition to any other remedy to which such party may be entitled at law or in equity) to injunctive relief, including specific performance, to
enforce such obligations, without the posting of any bond, and if any 

  
 43 

 
action should be brought in equity to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law. For the
avoidance of doubt, it is understood and agreed that (x) only the Company and Anchorage shall have rights or obligations with respect to, and the right to enforce, Sections 3.2(b)(ii), 3(e), 3.2(g)(ii), 3.2(h)(ii) and
3.2(i)(ii), and (y) only the Company, KLRE Sponsor and Tema shall have rights or obligations with respect to, and the right to enforce, Sections 3.1, 3.2(a), 3.2(b)(i), 3.2(b)(iv), 3.2(b)(v), 3.2(c),
3.2(d), 3.2(g)(i), 3.2(h)(i), 3.2(i)(i) or 3.3.
 Section 7.12    Subsequent
Acquisition of Shares. Any equity securities of the Company acquired subsequent to the date hereof by a Shareholder shall be subject to the terms and conditions of this Agreement and such shares shall be considered to be “Company
Shares” as such term is used herein for purposes of this Agreement. 
 Section 7.13     Each Anchorage
Group Member, by executing and delivering this Agreement, hereby appoints Anchorage Capital Group, L.L.C., a Delaware limited liability company, as the representative to act on behalf of Anchorage for all purposes under this Agreement (the
“Anchorage Representative”), including the exercise of all rights of Anchorage hereunder and the making of all elections and decisions to be made by Anchorage pursuant to this Agreement. The Company hereby acknowledges and agrees
that the Anchorage Representative shall have the power and authority to act on behalf of Anchorage pursuant to this Agreement and that the act of the Anchorage Representative shall constitute the act of Anchorage and each Anchorage Group Member for
all purposes under this Agreement. The Anchorage Representative may assign the power and authority granted to the Anchorage Representative pursuant to this Section 7.13 to any Shareholder that is an Anchorage Group Member, who shall
thereafter serve as the Anchorage Representative. The Company shall be entitled to rely on any act or writing executed by the Anchorage Representative. 

[Signature Pages Follow] 

  
 44 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first
above written. 
  

			
	KLR ENERGY ACQUISITION CORP.
		
	By:	 	 /s/ Gary C. Hanna

	Name:	 	Gary C. Hanna
	Title:	 	Chief Executive Officer
	
	KLR ENERGY SPONSOR, LLC
		
	By:	 	 /s/ Edward Kovalik

	Name:	 	Edward Kovalik
	Title:	 	Manager

 SIGNATURE PAGE TO 

SHAREHOLDERS’ AND REGISTRATION RIGHTS AGREEMENT 

 
			
	TEMA OIL AND GAS COMPANY
		
	By:	 	 /s/ J. A. Townsend

	Name:	 	J. A. Townsend
	Title:	 	President

 SIGNATURE PAGE TO 

SHAREHOLDERS’ AND REGISTRATION RIGHTS AGREEMENT 

 
			
	 ANCHORAGE ILLIQUID OPPORTUNITIES V, L.P.

		
	By:	 	Anchorage Capital Group, L.L.C., its Investment Manager
		
	By:	 	 /s/ Jason Cohen

	Name:	 	Jason Cohen
	Title:	 	Secretary

 SIGNATURE PAGE TO 

SHAREHOLDERS’ AND REGISTRATION RIGHTS AGREEMENT 

 
			
	 AIO V AIV 3 HOLDINGS, L.P.

		
	By:	 	Anchorage Capital Group, L.L.C., its Investment Manager
		
	By:	 	 /s/ Jason Cohen

	Name:	 	Jason Cohen
	Title:	 	Secretary

 SIGNATURE PAGE TO 

SHAREHOLDERS’ AND REGISTRATION RIGHTS AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}]]