Document:

Exhibit 10.1

 

AMENDED AND RESTATED COOK INLET PARTICIPATION
AGREEMENT

 

This Amended and Restated Cook Inlet Participation Agreement
("Agreement") is entered into and made effective as of August 21, 2013 (the "Effective Date"), by and between
Buccaneer Alaska, LLC, a limited liability company duly formed under the laws of the state of Texas (hereinafter referred to as
"BUCCANEER"), whose mailing address is 952 Echo Lane, Suite 420, Houston, Texas 77024, Buccaneer Alaska Operations, LLC,
a limited liability company duly formed under the laws of the state of Alaska, ("OPERATIONS"), whose mailing address
is 952 Echo Lane, Suite 420, Houston, Texas 77024, and EOS Petro, Inc. a Delaware corporation, whose mailing address is 1999 Avenue
of the Stars, Suite 2520, Los Angeles, California 90067 (“EOS”). BUCCANEER, OPERATIONS, and EOS are sometimes referred
to herein collectively as "Parties" and individually as a "Party".

 

WITNESSETH

 

WHEREAS, the Parties are entering into this Agreement to set
forth the terms and conditions whereby BUCCANEER and EOS will jointly explore and develop the leases and the right to earn leases
described on EXHIBITS A and B attached hereto (collectively, the “Leases”);

 

WHEREAS, the working interest owned by BUCCANEER in the Southern
Cross Unit, Northwest Cook Inlet Unit and West Eagle Unit is as set forth in EXHIBIT A attached hereto (the “Working
Interest”);

 

WHEREAS, BUCCANEER is a party to the North Cook Inlet Deep Farmout
Agreement among ConocoPhillips Alaska, Inc. (“COP Alaska”), ConocoPhillips Company (together with COP Alaska, “COP”),
and BUCCANEER dated April 15, 2013 (as amended from time to time, the “Deep Rights Farmout Agreement”), covering the
Farmout Area as described therein (“North Cook Inlet Unit”) a copy of which is attached hereto as EXHIBIT B
(“Deep Rights Farmout Agreement”);

 

WHEREAS, EOS desires to (i) participate in a six (6) (or more
as set forth herein) well program on the Southern Cross Unit, North Cook Inlet Unit and West Eagle Unit and (ii) have the right
and option to participate in two (2) Commitment Wells that BUCCANEER may elect to drill in the Northwest Cook Inlet Unit, in each
case by paying one hundred per cent (100%) of the costs to drill, log, and plug and abandon or complete such wells, as applicable,
in exchange for the assignment by BUCCANEER of fifty per cent (50%) of BUCCANEER’S Working Interest in the Southern Cross
Unit, Northwest Cook Inlet Unit and West Eagle Unit and, in the case of any North Cook Inlet Unit Well, the assignment by BUCCANEER
of fifty per cent (50%) of any working interest to be assigned to BUCCANEER by COP pursuant to the Deep Rights Farmout Agreement;
and

 

WHEREAS, EOS and BUCCANEER desire to designate OPERATIONS as
operator of record for the Leases subject to the terms of an offshore operating agreement, in a form mutually satisfactory to EOS
and BUCCANEER, to be attached hereto and made a part hereof as EXHIBIT C (the “Cook Inlet Operating Agreement”).

 

    	5

    	 

    

 

AGREEMENT

 

NOW, THEREFORE, for a valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and confessed, together with the mutual covenants, conditions and obligations contained
herein, the Parties do hereby enter into this Agreement under the following terms and conditions:

 

1.           
Cook Inlet Operating Agreement

 

1.1         
OPERATIONS is hereby designated the Operator and OPERATIONS shall be the Operator for all operations within the AMI (as
defined in Section 7 hereto). OPERATIONS will operate all exploration and development operations conducted within the AMI pursuant
to the Cook Inlet Operating Agreement and shall use its best commercial efforts in accordance with the standards set forth in the
Cook Inlet Operating Agreement to conduct Operations to the mutual benefit of the Parties in good faith. Payment of the AFE amounts
will be billed and paid for under the terms of the Cook Inlet Operating Agreement.

 

1.2         
OPERATIONS will utilize the Endeavour-Spirit of Independence (the “Endeavour”) on the Southern Cross Unit, Northwest
Cook Inlet Unit and North Cook Inlet Unit and any additional drilling within the AMI pursuant to the Cook Inlet Operating Agreement.
Subject to the terms and conditions of this Agreement, any drilling agreement for the use of the Endeavour, and the Cook Inlet
Operating Agreement, EOS and BUCCANEER shall have the exclusive first right to hire and retain the Endeavour, subject to the terms
and conditions of the applicable drilling agreement and Cook Inlet Operating Agreement, for a period of three (3) years beginning
on the date of funding of the escrow for the first Commitment Well pursuant to Section 3.1 hereof (the “Exclusive Drilling
Period”). During the Exclusive Drilling Period and subject to the terms and conditions of the Deep Rights Farmout Agreement,
the consent of EOS and OPERATIONS shall be required for the Endeavour to contract with third parties, which consent shall not be
unreasonably withheld. EOS shall further have the exclusive right and option to extend the Exclusive Drilling Period for an additional
three (3) years if necessary to drill and complete, or plug and abandon, as appropriate, the wells, including all Commitment Wells,
in the Southern Cross Unit, Northwest Cook Inlet Unit and North Cook Inlet Unit, and the Parties shall otherwise have the exclusive
right and option to extend the Exclusive Drilling Period by mutual agreement. If the Endeavour is not available for operations
in the AMI when needed, other offshore rigs (if they are available and appropriate for operations on the Leases) may be utilized
by mutual agreement between the Parties, provided, however, where BUCCANEER becomes a Non-participating Party in a Non-consent
Operation, the provisions relating to a substitute Operator pursuant to the Cook Inlet Operating Agreement shall apply.

 

1.3         
Except as expressly set forth in this Agreement, OPERATIONS shall have all of the rights of the Operator provided for in
the Cook Inlet Operating Agreement.

 

1.4         
EOS and BUCCANEER shall have all of the rights and be subject to all of the obligations of a Non-operator provided for in
the Cook Inlet Operating Agreement.

 

1.5         
EOS or BUCCANEER may remove and replace OPERATIONS as Operator only in accordance with, and as provided in, the Cook Inlet
Operating Agreement.

 

2.           
Commitment Wells

 

2.1         
BUCCANEER and EOS shall drill, log, and plug and abandon or complete, as applicable, no fewer than two (2) wells on each
of BUCCANEER’s (a) Southern Cross Unit with operations in furtherance of drilling of the first well thereon to commence by
no later than September 15, 2013, (b) North Cook Inlet Unit with operations in furtherance of drilling of the first well thereon
to commence by no later than December 31, 2014, and (c) West Eagle Unit with operations in furtherance of drilling of the first
well thereon to commence by no later than October 1, 2013 (collectively, the “Commitment Wells”). Further, EOS shall
have the exclusive right and option (the “Northwest Cook Inlet Unit Wells Option”) to fund the drilling, and earn into
the Working Interest as set forth herein, of two (2) Commitment Wells that BUCCANEER and EOS may elect to drill in the Northwest
Cook Inlet Unit (the “Northwest Cook Inlet Unit Wells”).

 

    	6

    	 

    

 

2.2         
 

 

(a)         
The Parties agree that the terms and conditions of this Agreement as to any North Cook Inlet Unit Well shall be subject
to the terms and conditions of the Deep Rights Farmout Agreement. Therefore, in the event of a conflict between the terms of this
Agreement, any applicable operating agreement and the rights and obligations of BUCCANEER under the Deep Rights Farmout Agreement,
the terms and conditions governing the rights and obligations of BUCCANEER under the Deep Rights Farmout shall govern.

 

(b)         
It is currently anticipated that BUCCANEER will not make a decision as to whether to drill the Northwest Cook Inlet Unit
Wells prior to March 31, 2014; but the Parties acknowledge that this date may change and BUCCANEER may need to make a decision
on whether to drill the Northwest Cook Inlet Unit Wells prior to that date. In the event that BUCCANEER chooses to drill the Northwest
Unit Wells, it will provide EOS with as much advance notice as practicable, and in any event not less than thirty (30) days advance
notice of such decision, in order to allow EOS the opportunity to elect to participate in the funding of the drilling of any Northwest
Cook Inlet Unit Wells. Regardless of the length of the notice period, if EOS wishes to exercise the Northwest Cook Inlet Unit Wells
Option, EOS must give written notice of such election to BUCCANEER prior to BUCCANEER commencing drilling operations on the first
of the Northwest Cook Inlet Unit Wells. Once BUCCANEER commences drilling operations on the first of the Northwest Cook Inlet Unit
Wells, the Northwest Cook Inlet Unit Wells Option shall immediately terminate along with any right of EOS to participate in the
funding of a Northwest Cook Inlet Unit Well.

 

2.3         
The Commitment Wells shall be drilled to the objective depths specified in the AFEs (the “Objective Depths”).
Unless otherwise agreed between the Parties, the Commitment Wells shall be Special Credit Wells as defined in Section 5 hereof.
The Parties will conduct the operations of all Commitment Wells pursuant to the Cook Inlet Operating Agreement. All costs and expenses
associated with drilling, logging, evaluating, testing, completing, temporarily abandoning or plugging and abandoning, as the case
may be, each of the Commitment Wells shall be allocated one hundred per cent (100%) to EOS and zero per cent (0%) to BUCCANEER.

 

2.4         
Once the first two (2) Commitment Wells on a specified unit have been drilled and plugged and abandoned or completed, as
applicable, as specified by this Agreement, thereafter EOS shall pay fifty per cent (50%) and BUCCANEER shall pay fifty per cent
(50%) of all costs and expenses chargeable to the joint account or otherwise attributable to all further operations conducted in
connection with such Commitment Wells.

 

2.5         
Following consultation with EOS, including with respect to well locations, Objective Depths and formations, and the well
plan for the Commitment Wells, BUCCANEER shall propose the first Commitment Well and at least thirty (30) days prior to commencement
of actual drilling operations on the first Commitment Well, BUCCANEER shall finalize and deliver to EOS an AFE with the estimated
costs for the first Commitment Well as set forth in the Cook Inlet Operating Agreement, and subject to the terms and conditions
of the Deep Rights Farmout Agreement. EOS shall provide input and advice on well locations and target depths, and EOS and BUCCANEER
shall attempt in good faith to reach agreement on matters relating to such proposal, however, notwithstanding anything to the contrary,
EOS consent shall be required for all Commitment Wells with costs allocated 100% to EOS as set forth herein. The AFE for each Well
drilled hereunder will include the cost of (a) drilling to a total vertical depth that is through the Objective Depth, (b) acquiring
a full set of logs and modular formation dynamic testing results, (c) acquiring conventional cores, (d) testing, if warranted,
and (e) a reasonable and customary operating day rate for the Endeavour of no more than One Hundred and Seventy Five Thousand Dollars
($175,000.00) per day, adjusted only as described in Section 10.1 below. Except as expressly provided herein to the contrary, each
AFE shall be prepared in compliance with the terms of the Cook Inlet Operating Agreement.

 

    	7

    	 

    

 

2.6         
EOS and BUCCANEER agree that the approximate well location and the estimated target depth depicted on the well location
maps prepared by BUCCANEER and approved by EOS are the anticipated (approximate) location and depth for the Commitment Wells; provided,
however, EOS and BUCCANEER understand and agree that such preferences and judgments are subject to change and shall be continually
evaluated and compared to alternative locations and depths for such Commitment Wells.

 

2.7         
BUCCANEER shall: (i) conduct a title examination of the lands related to the Commitment Wells, in accord with reasonable
standards and practices in the industry; and (ii) together with the AFE applicable to the Commitment Wells, deliver to EOS a title
opinion with respect to such Commitment Well in a form reasonably acceptable to EOS. EOS shall reimburse BUCCANEER one hundred
per cent (100%) of the reasonable and necessary costs of such title examination and title opinion.

 

2.8         
Except as expressly provided for herein to the contrary: (i) both BUCCANEER and EOS shall be entitled to all of the rights
and shall be subject to all of the burdens and obligations provided for in the Cook Inlet Operating Agreement; and (ii) the Commitment
Wells shall be drilled and plugged and abandoned or completed, as applicable, in accordance with the terms of the Cook Inlet Operating
Agreement, in each case as though such Cook Inlet Operating Agreement had been executed and delivered by EOS and BUCCANEER and
was in full force and effect at the time of such operations.

 

2.9         
The Parties agree that the principles embodied by Sections 2.3 through 2.8 hereunder shall apply equally to any North Cook
Inlet Unit Well but shall also be subject in all such cases to the rights and obligations of BUCCANEER under the Deep Rights Farmout
Agreement, including but not limited to BUCCANEER’s obligation to consult, and otherwise agree, with COP as to various matters
in connection with the drilling of any North Cook Inlet Unit Well.

 

3.           
Earning Title to the Working Interests

 

3.1         
Upon payment by EOS of the agreed amounts into escrow for the first Commitment Well under this Agreement, as provided in
Section 4.1 hereunder, BUCCANEER shall execute and deliver to EOS a present assignment and conveyance, in a form mutually acceptable
to EOS and BUCCANEER, of an undivided fifty per cent (50%) of BUCCANEER’S Working Interest in and to the Southern Cross Unit
and West Eagle Unit, and (b) an undivided fifty per cent (50%) of any working interest earned by BUCCANEER in and to the North
Cook Inlet Unit under the Deep Rights Farmout Agreement. In no event shall the Working Interest assigned to EOS hereunder be less
than fifty per cent (50%) of BUCCANEER’S working interest listed in Exhibits A and B hereunder. If the Northwest
Cook Inlet Unit Wells Option is exercised by EOS, then upon payment by EOS of the agreed amount into escrow as provided in Section
4.1 hereunder for the first Northwest Cook Inlet Unit Well, BUCCANEER shall execute and deliver to EOS a present assignment and
conveyance, in a form mutually acceptable to EOS and BUCCANEER, of an undivided fifty per cent (50%) of BUCCANEER’S Working
Interest in and to the Northwest Cook Inlet Unit.

 

    	8

    	 

    

 

3.2         
In the event that EOS fails to pay into the escrow set forth in Section 4.1 hereunder the escrowed amounts associated with
drilling and completing any remaining Commitment Well(s), or Northwest Cook Inlet Unit Option Wells, after exercise of the Option
by EOS, as the case may be, then except in the event of material breach of this Agreement by BUCCANEER or OPERATIONS, or failure
to obtain any required consent of COP or COP Alaska, EOS shall immediately (within 5 days of written notice by BUCCANEER) assign
back to BUCCANEER all of the Working Interests and any interest in the North Cook Inlet Unit previously assigned to EOS; provided,
however, that EOS shall retain the Working Interest associated with any Commitment Wells or North Cook Inlet Unit that have been
previously drilled and completed and for which EOS has paid drilling and completion costs hereunder. The Working Interest and any
interest in the North Cook Inlet Unit transferred and assigned back to BUCCANEER shall not be reduced, diminished or burdened in
any way (including, without limitation, by any lien, royalty or other interest). In the event that such condition occurs and EOS
fails to execute and deliver all such assignment documents as set forth herein and requested within five (5) days of written request
from BUCCANEER, then the Parties expressly agree that BUCCANEER is hereby granted power of attorney by EOS and shall have all right,
power and authority to take all action on behalf of EOS (including, without limitation, executing and delivering assignments and
other documents) for the sole purpose of effectuating this transfer of the applicable Working Interest and North Cook Inlet Unit
back to BUCCANEER.

 

4.           
Escrow for Commitment Wells

 

4.1         
Within thirty (30) days following the delivery of an agreed-upon AFE (including any supplemental AFEs) for each Commitment
Well to be drilled and completed pursuant to this Agreement, EOS shall pay into escrow one hundred per cent (100%) of all of the
costs and expenses specified in that AFE. However, the AFE for the first Southern Cross Unit Commitment Well must be agreed and
funded within fifteen (15) days of delivery to EOS due to the existing drilling schedule.

 

4.2         
BUCCANEER and EOS shall work together in good faith to determine the amounts to be placed into escrow pursuant to Section
4.1. In the event that the Parties are unable to agree on the escrow amount, then BUCCANEER’s determination of these amounts
as set forth in a reasonable and customary AFE provided hereunder shall control and be applicable.

 

4.3         
The escrow account for the funds specified in Section 4.1 shall be held at Wells Fargo Bank (or other financial institution
reasonably acceptable to both BUCCANEER and EOS) pursuant to written escrow agreements in forms that are acceptable to both BUCCANEER
and EOS.

 

    	9

    	 

    

 

5.           
Special Credit Well(s)

 

5.1         
In the event that: (a) BUCCANEER and EOS agree to drill a “Pre-Tertiary Target” as specified in Alaska statute
43.55.025(l) on the Leases; (b) EOS and BUCCANEER agree that such well will reasonably qualify for a special credit or reimbursement
pursuant to Alaska Statue 43.55.025 (l); (c) EOS and BUCCANEER agree that such well will qualify as one of the Commitment Wells;
(d) the Endeavour is available to perform the drilling operations; and (e) BUCCANEER and EOS approve the AFE for such well, then:
(i) EOS will individually pay one hundred per cent (100%) of the costs for drilling the first such well; (ii) EOS will contract
with OPERATIONS to conduct the design and operation of such drilling activities using the Endeavour; (iii) upon evaluation of the
productive potential of any prospective geologic intervals encountered in the well, BUCCANEER and EOS will work in good faith to
reach a mutual agreement such that the well may be plugged and abandoned, temporarily abandoned, or suspended pending future utilization,
but if EOS and BUCCANEER cannot agree upon a course of action for the well, EOS, as payor, will have the final determination; (iv)
all reimbursements and credits from the State of Alaska will be retained one hundred per cent (100%) by EOS; and (v) EOS will have
the right to acquire up to a fifty per cent (50%) working interest in the well or each reservoir or pool discovered by the well
upon EOS satisfying the earning conditions of this Agreement.

 

5.2         
In the event that: (a) BUCCANEER and EOS agree to drill a second Pre-Tertiary Target on the Leases; (b) EOS and BUCCANEER
agree that such well will in all reasonable likelihood qualify for a special credit or reimbursement pursuant to Alaska Statute
43.55.025 or otherwise ; (c) EOS and BUCCANEER agree such well will qualify as a Commitment Well; (d) the Endeavour is available
to perform the drilling operations; and (d) BUCCANEER and EOS approve the AFE for such well, then: (i) BUCCANEER will individually
pay one hundred per cent (100%) of the costs for drilling the second such well; (ii) EOS will contract with OPERATIONS to conduct
the design and operation of such drilling activities using the Endeavour; (iii) upon evaluation of the productive potential of
any prospective geologic intervals encountered in the well, BUCCANEER and EOS will work in good faith to reach a mutual agreement
such that the well may be plugged and abandoned, temporarily abandoned, or suspended pending future utilization, but if EOS and
BUCCANEER cannot agree upon a course of action for the well, BUCCANEER, as payor, will have the final determination; (iv) EOS will
reimburse BUCCANEER for one hundred per cent (100%) of the difference between the total cost of drilling and completion of the
well and the amount of all reimbursements and credits from the State of Alaska for the ACES or other applicable credits; (v) BUCCANEER
shall assign EOS a fifty per cent (50%) working interest in the well or each reservoir or pool discovered by the well upon EOS
satisfying the earning conditions of this Agreement.

 

6.           
Representations and Warranties

 

6.1         
Generally.

 

(a)         
BUCCANEER represents and warrants that prior to and upon execution of this Agreement, BUCCANEER owns the Working
Interests in the Southern Cross Unit, Northwest Cook Inlet Unit and West Eagle Unit as specified in EXHIBIT A.

 

(b)         
Each Party represents and warrants that it has not incurred liability, contingent or otherwise, for brokers' or finders'
fees relating to the transactions contemplated by this Agreement for which any other Party shall have any.

 

    	10

    	 

    

 

6.2         
BUCCANEER hereby represents and warrants to EOS and OPERATIONS as follows:

 

(a)         
 It is a limited liability company organized, validly existing and in good standing under the laws of the State of
Texas.

 

(b)         
 It has full company power and authority to carry on its business as presently conducted, to enter into this Agreement
and the other documents referenced herein or otherwise executed in connection with the transactions contemplated hereby and thereby
to which it is a party and to perform its obligations under this Agreement. The execution and delivery of this Agreement has been,
and the performance of this Agreement and the transactions contemplated hereby shall be, at the time required to be performed hereunder,
duly and validly authorized by all requisite company action on the part of it.

 

(c)         
 This Agreement that has been duly executed and delivered on its behalf constitute its legal, valid and binding obligation
enforceable in accordance with the terms hereof, except as enforceability may be limited by applicable bankruptcy, reorganization
or moratorium statutes, or other similar laws affecting the rights of creditors generally or equitable principles (collectively,
"Equitable Limitations").

 

(d)         
The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this
Agreement shall not: (i) violate or be in conflict with, or require the consent, except as proved under the terms and conditions
of the Deep Rights Farmout Agreement, of any person or entity under, any provision of its organizational documents; (ii) conflict
with, result in a breach of, constitute a default (or an event that with the lapse of time or notice, or both would constitute
a default) under any agreement or instrument to which it is a party or it is bound; (iii) violate any provision of or require any
consent, authorization or approval under any judgment, decree, judicial or administrative order, award, writ, injunction, statute,
rule or regulation applicable to it; or (iv) result in the creation of any lien, charge or encumbrance on any of its property.

 

(e)         
Other than approvals that may be required of COP under the Deep Rights Farmout Agreement or the requirements set
forth in Section 14.16 hereof, there are no approvals, consents, filings or notifications required to be obtained, made or given
by it as a condition to or in connection with the performance by it of its obligations under this Agreement or the consummation
by it of the transactions contemplated by this Agreement. BUCCANEER and OPERATIONS represent and warrant that they presently possess,
and will undertake their best efforts in good faith to obtain and preserve all reasonable and customary and/or required certifications,
approvals, permits, and/or agreements with all applicable regulatory or governmental agencies, and their rules, regulations, and
requirements necessary to operate as contemplated herein, and to meet all requirements for a special credit or reimbursement pursuant
to Alaska Statue 43.55.025 for reimbursement of costs, to the reasonable satisfaction of EOS, and BUCCANEER acknowledges that such
satisfaction by EOS is a condition precedent to the obligations of EOS under this Agreement. 

 

(f)          
 There are no pending suits, actions, or other proceedings in which it is a party (or, to its knowledge, which have
been threatened to be instituted against it) which affect the execution and delivery by it of this Agreement to which it is a party,
the performance by it of its obligations under this Agreement to which it is a party or the consummation of the transactions contemplated
hereby or thereby.

 

    	11

    	 

    

 

(g)         
 BUCCANEER: (i) is represented by competent legal counsel; (ii) has knowledge and experience in financial and business
matters, including specifically oil and gas businesses; (iii) has the capability of evaluating the merits and risks of entering
into the transactions contemplated in this Agreement; and (iv) is not in a significantly disparate bargaining position with the
other Parties. BUCCANEER represents, warrants, acknowledges, and agrees that it and its representatives have been permitted full
and complete access to all materials, books, records, facilities, and other properties and assets related to the Leases that it
and its representatives have desired or requested to see and/or review, and that it and its representatives have had a full opportunity
to meet with the officers and employees of the other Parties to discuss the Leases and the transactions contemplated in this Agreement.
BUCCANEER acknowledges that none of the other Parties nor any other person has made any representation or warranty, expressed or
implied, as to the accuracy or completeness of any information regarding the other Parties, the Leases, or the transactions contemplated
in this Agreement that has been furnished or made available to BUCCANEER and its representatives, except as expressly set forth
in this Agreement, and, except as expressly set forth in this Agreement, none of the other Parties nor any other person shall have
or be subject to any liability to BUCCANEER or any other person resulting from the distribution to BUCCANEER, or BUCCANEER's use,
of any such information, and any information, documents or material made available to BUCCANEER in management presentations or
in any other form in expectation of the transactions contemplated hereby.

 

6.3         
EOS hereby represents and warrants to and OPERATIONS as follows:

 

(a)         
 It is a corporation duly organized, validly existing and in good standing under the laws of the Delaware.

 

(b)         
 It has full power and authority to carry on its business as presently conducted, to enter into this Agreement to
which it is a party and to perform its obligations under this Agreement. The execution and delivery of this Agreement has been,
and the performance of this Agreement and the transactions contemplated hereby shall be, at the time required to be performed hereunder,
duly and validly authorized by all requisite action on its part.

 

(c)         
 This Agreement has been duly executed and delivered on its behalf constitute its legal, valid and binding obligation
enforceable in accordance with the terms hereof, except as enforceability may be limited by Equitable Limitations.

 

(d)         
 Its execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by
this Agreement shall not: (i) violate or be in conflict with, or require the consent of any person or entity under, any provision
of its organizational documents; (ii) conflict with, result in a breach of, constitute a default (or an event that with the lapse
of time or notice, or both would constitute a default) under any agreement or instrument to which it is a party or it is bound;
(iii) violate any provision of or require any consent, authorization or approval under any judgment, decree, judicial or administrative
order, award, writ, injunction, statute, rule or regulation applicable to it; or (iv) result in the creation of any lien, charge
or encumbrance on any of its property.

 

(e)         
 As of the date of this Agreement, and subject to the terms and conditions of the Deep Rights Farmout Agreement,
it has cash available to it, and from and after the date of this Agreement it shall continuously through the drilling of the Commitment
Wells have available to it, cash in an amount sufficient to enable it to perform and discharge in full its obligations hereunder.

 

    	12

    	 

    

 

(f)          
There are no approvals, consents, filings or notifications required to be obtained, made or given by it as a condition
to or in connection with the performance by it of its obligations under this Agreement or the consummation by it of the transactions
contemplated by this Agreement, except as set forth in Section 14.16.

 

(g)         
 There are no pending suits, actions, or other proceedings in which it is a party (or, to its knowledge, which have
been threatened to be instituted against it) which affect the execution and delivery by it of this Agreement to which it is a party,
the performance by it of its obligations under this Agreement to which it is a party or the consummation of the transactions contemplated
hereby or thereby.

 

(h)         
 EOS: (i) is represented by competent legal counsel; (ii) has knowledge and experience in financial and business
matters, including specifically oil and gas businesses; (iii) has the capability of evaluating the merits and risks of entering
into the transactions contemplated in this Agreement; and (iv) is not in a significantly disparate bargaining position with the
other Parties. EOS acknowledges that none of the other Parties nor any other person has made any representation or warranty, expressed
or implied, as to the accuracy or completeness of any information regarding the other Parties, the Leases, or the transactions
contemplated in this Agreement that has been furnished or made available to the other Parties and its representatives, except as
expressly set forth in this Agreement, and, except as expressly set forth in this Agreement, none of the other Parties nor any
other person shall have or be subject to any liability to EOS or any other person resulting from the distribution to EOS, or EOS's
use, of any such information, and any information, documents or material made available to EOS in management presentations or in
any other form in expectation of the transactions contemplated hereby.

 

6.4         
OPERATIONS hereby represents and warrants to BUCCANEER and EOS as follows:

 

(a)         
It is a limited liability company organized, validly existing and in good standing under the laws of the State of Alaska.

 

(b)         
It has full company power and authority to carry on its business as presently conducted, to enter into this Agreement to
which it is a party and to perform its obligations under this Agreement. The execution and delivery of this Agreement has been,
and the performance of this Agreement and the transactions contemplated hereby shall be, at the time required to be performed hereunder,
duly and validly authorized by all requisite company action on the part of it.

 

(c)         
This Agreement has been duly executed and delivered on its behalf constitute its legal, valid and binding obligation enforceable
in accordance with the terms hereof, except as enforceability may be limited by Equitable Limitations.

 

(d)         
Its execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement
shall not: (i) violate or be in conflict with, or require the consent of any person or entity under, any provision of its organizational
documents; (ii) conflict with, result in a breach of, constitute a default (or an event that with the lapse of time or notice,
or both would constitute a default) under any agreement or instrument to which it is a party or it is bound; (iii) violate any
provision of or require any consent, authorization or approval under any judgment, decree, judicial or administrative order, award,
writ, injunction, statute, rule or regulation applicable to it; or (iv) result in the creation of any lien, charge or encumbrance
on any of its property.

 

    	13

    	 

    

 

(e)         
Other than as set for the herein, there are no approvals, consents, filings or notifications required to be obtained, made
or given by it as a condition to or in connection with the performance by it of its obligations under this Agreement or the consummation
by it of the transactions contemplated by this Agreement.

 

(f)          
There are no pending suits, actions, or other proceedings in which it is a party (or, to its knowledge, which have been
threatened to be instituted against it) which affect the execution and delivery by it of this to which it is a party, the performance
by it of its obligations under this Agreement to which it is a party or the consummation of the transactions contemplated hereby
or thereby.

 

7.           
AREAS OF MUTUAL INTEREST

 

7.1         
EOS and BUCCANEER hereby designate an area of mutual interest (the "AMI") pursuant to which EOS and BUCCANEER
shall each have a right to participate in the exploration for, development, and production of hydrocarbons pursuant to additional
non-producing oil and gas leases, which leases may be acquired by either Party. The AMI includes the area within the red border
line depicted on the map attached hereto as EXHIBIT D.

 

7.2         
If, during the duration of the AMI as hereafter set forth, either EOS or BUCCANEER should acquire ("Acquiring Party")
any oil and gas lease, leasehold interest or mineral interest by any means including, but not limited to, purchase, top lease,
farmins, farmouts, farmout options, or acreage contributions, within the AMI, then the Acquiring Party shall deliver, within five
(5) business days of such acquisition, a notice to the non-Acquiring Party, in writing, of such acquisition setting forth the nature
of the interest acquired, all terms, provisions and contracts related to the acquisition (along with copies of all documents relating
to the acquisition or rights to earn a leasehold or mineral interest) and the price paid therefor.

 

7.3         
The non-Acquiring Party shall have a period of twenty (20) days following the receipt of such notice to elect in writing
to purchase at the Acquiring Party's cost a proportionate share (as defined below) of such acquisition by:

 

(a)         
 delivering a notice, in writing, during such twenty (20) day period, to the Acquiring Party notifying the Acquiring Party
that such non-Acquiring Party elects to acquire its proportionate share of such acquisition; and

 

(b)         
 within twenty (20) days after the expiration of the twenty (20) day period applicable to the election notice described
in clause (a) above, remitting the required payment to the Acquiring Party.

 

7.4         
As used in this section, the term "proportionate share" means, in each case as adjusted pursuant to the last sentence
of Section 7.5 below, fifty per cent (50%) in the case of EOS, and fifty per cent (50%) in the case of BUCCANEER.

 

7.5         
The Acquiring Party shall assign, by form of assignment containing reasonable and customary terms and conditions, to be
mutually agreed by the Parties, to the Party electing to participate in the acquisition, its proportionate share of such acquired
interest, subject to a like proportionate share of the costs and obligations relating thereto; in each case such proportionate
share shall be equal to the proportionate share of such Party at the time of such election (as distinguished from the proportionate
share of such Party as of the Effective Date).

 

    	14

    	 

    

 

7.6         
If the interest is to be earned by drilling or shooting seismic, the non-Acquiring Party must ratify all appropriate agreements
within the twenty (20) day period described in Section 7.3(b) hereunder. If the non-Acquiring Party turns down any interest or
fails to pay for its proportionate share of such interest with respect to any given lease or prospect hereunder, the Acquiring
Party shall hold such interest free and clear of any further AMI obligations of this Agreement, and the non-Acquiring Party will
have no further AMI obligations of this Agreement with respect to such lease or prospect.

 

7.7         
The AMI and the agreements of the Parties with respect thereto for the Leases shall remain in effect until the Leases have
been abandoned in accordance with the terms of the Cook Inlet Operating Agreement or the Parties have otherwise agreed to terminate
the AMI.

 

7.8         
Notwithstanding the foregoing, EOS shall have an exclusive right and option to pay 100% of the costs associated with at
least one other offshore prospect identified or acquired by BUCCANEER, in addition to the Commitment Wells and North Cook Inlet
Option Wells as set forth herein, in order to earn into 50% of BUCCANEER’S Working Interest in such wells and leases, on
similar terms and conditions as set forth herein for the Commitments Wells. The exclusive right and option set forth herein applies
only to new non-producing acquisitions or mutually agreed acquisitions within the AMI. In connection with any other agreed exploration
and production activities undertaken by the Parties, BUCCANEER will provide all G&G evaluations within the AMI or with respect
to any and all Commitment Wells, prospects subject to an EOS option or earn in, or wells for which costs are paid by EOS hereunder,
at staff and office cost +15% to EOS, and EOS shall have the exclusive right of first refusal on all such leases or prospects evaluated
hereunder within the AMI. BUCCANEER will also discuss with EOS opportunities for additional exploration and development activities
and propose partnering relationships where applicable.

 

8.           
Seismic Data

 

8.1         
EOS and BUCCANEER shall have timely and comprehensive access in a reciprocal manner to all well data and seismic data, including
interpretive data, owned by or in possession of either EOS or BUCCANEER or any of their respective affiliates, within the AMI.
Such access shall be subject to the terms of any existing license agreements covering such data. EOS and BUCCANEER shall each have
the right to reprocess any seismic data owned or in the possession of the other within the AMI, provided that such reprocessing
is permitted under the governing license agreement, if any, covering such data.

 

8.2         
As consideration for a third party obtaining a working interest by mutual agreement of the Parties in any of the Leases
and becoming a party to this Agreement, BUCCANEER and EOS shall grant and deliver to such third party a license with respect to
all seismic data, including raw and unprocessed seismic data, and field magnetic tapes and associated support data, if available
and recoverable, within the AMI that is (i) owned or licensed by BUCCANEER or EOS, or (ii) that is generated or commissioned by
BUCCANEER or EOS pursuant to arrangements finalized after the Effective Date; provided, in each case, such grant will be delivered
only to the extent any such data is transferable under its applicable underlying license agreement, if any, and subject to any
Confidentiality or other agreements which may be applicable.

 

    	15

    	 

    

 

9.           
Contracts for Drilling Rigs

 

9.1         
OPERATIONS will utilize the Endeavour for the Commitment Wells, any Northwest Cook Inlet Unit Wells and any additional drilling
within the AMI, where possible. OPERATIONS shall lease the Endeavour pursuant to an Offshore Daywork Drilling Contract (the “Drilling
Contract”), the form of which is attached hereto as EXHIBIT E-1. Any land rigs, including the Glacier, shall be leased
or retained pursuant to an Onshore Daywork Drilling Contract, the form of which is attached hereto as EXHIBIT E-2. (the
“Onshore Drilling Contract”). If the Endeavour is not available for operations in the AMI when needed, other offshore
rigs (if they are available and appropriate for operations hereunder) may be utilized by mutual agreement between the Parties,
provided, however, where BUCCANEER becomes a Non-participating Party in a Non-consent Operation, the provisions relating to a substitute
Operator pursuant to the Cook Inlet Operating Agreement shall apply. The rates and fees for the Endeavour shall be as set forth
in the Drilling Contract, or for land rigs as set forth in the Onshore Drilling Contract, and shall be no greater than rates reasonable
and customarily charged at the time for arms-length transactions conducted in comparable locations; provided, however, that the
operating day rate for the Endeavour shall be no more than One Hundred and Seventy Five Thousand Dollars ($175,000.00) per day,
as adjusted in accordance with the provisions of the Drilling Contract.

 

9.2         
EOS will assume, and be responsible for, one hundred per cent (100%) of the financial obligations and commitments associated
with any and all AFE’s, as amended, and as set forth in the Drilling Contract, and the Onshore Drilling Contract, as applicable,
for operations to be conducted pursuant to the Cook Inlet Operating Agreement for the Commitment Wells, and BUCCANEER will assume
and be responsible for zero per cent (0%) of the obligations and commitments under the Drilling Contract and Onshore Drilling Contract,
as applicable, for the Commitment Wells.

 

10.         
Annual Budget

 

10.1      
The technical and management representatives of the Parties shall work together on a regular continuing basis to coordinate
plans for work and spending for each upcoming year. Based on the results of the jointly coordinated plans, BUCCANEER shall prepare
and deliver to EOS, on or prior to August 15 of each year an annual budget for the next fiscal year (the “Annual Budget”).
Such Annual Budget shall cover the period from September 1 of such year to September 1 of the following calendar year and will
involve all costs applicable to and payable by the Parties including, but limited to, capital, operating costs, and overhead. For
the avoidance of doubt, if BUCCANEER is required to deliver to EOS an Annual Budget for the period between September 1, 2013 and
September 1, 2014, such Annual Budget must be delivered on or prior to August 15, 2013. Subsequent twelve month periods follow
the same pattern. Other than the Commitment Wells, in the event that the Parties cannot agree on a budget and one Party wishes
to pay and bear the entire amount required for an individual well or project, the non-consent provisions of the Cook Inlet Operating
Agreement will apply. For the avoidance of doubt, the allocation and recoupment of costs of any Non-consent Operation between participating
and non-participating Parties shall be in accordance with the provisions of the Cook Inlet Operating Agreement.

 

10.2      
The Operating Committee shall review the proposed Annual Budget and the members of the Operating Committee appointed by
EOS and the members of the Operating Committee appointed by BUCCANEER shall have a meeting at a mutually agreeable time at which
the members of the Operating Committee will negotiate in good faith to attempt to agree on the final Annual Budget for the applicable
period, including such detail as is satisfactory to each member of the Operating Committee. The Operating Committee shall also
approve all specific operating parameters, including but not limited to all costs, facility and production support designs, well
locations and completions, water injection, safety and environmental issues, construction schedules, and personnel.

 

    	16

    	 

    

 

10.3      
In the event the Operating Committee reached an agreement with one another regarding such Annual Budget, the Annual Budget
shall be final; provided, however that BUCCANEER and EOS shall have the right to consent or non-consent all operations contemplated
in such Annual Budget as provided in the Cook Inlet Operating Agreement. In the event the Operating Committee was unable to agree
on such Annual Budget, the Operating Committee will meet to negotiate and attempt to resolve the disputes; provided, however, that
whether or not the Operating Committee resolves the disputes, the provisions in the Cook Inlet Operating Agreement regarding Participating
Parties and Non-Participating Parties and Non-consent Operations govern the timing and content of operations conducted, how they
are conducted and at whose expense. In the event that a disagreement on the Annual Budget cannot be reasonably resolved through
the non-consent provisions of the Cook Inlet Operating Agreement, final resolution will be reached through the Dispute Resolution
Procedures of the Cook Inlet Operating Agreement.

 

11.         
Insurance

 

11.1      
Subject to Section 13.2 below, at all times while this Agreement is in effect, OPERATIONS shall have and shall maintain
in place insurance coverage satisfactory to EOS and BUCCANEER and at least equal to the coverage requirements in Exhibit "B"
to the Cook Inlet Operating Agreement. Notwithstanding the foregoing, with respect to any North Cook Inlet Unit Well, OPERATIONS
shall have and shall maintain in place insurance coverage satisfactory to EOS and BUCCANEER and at least equal to the coverage
requirements set forth in the Deep Rights Farmout Agreement.

 

12.         
Default and Remedies

 

12.1      
The following items constitute events of default hereunder. The list in this Section 12.1 is not exclusive; other occurrences
and items may constitute events of default hereunder.

 

(a)         
 Any Party shall fail to pay when due any amounts payable under this Agreement.

 

(b)         
 Any representation or warranty made or deemed to be made by a Party shall prove to have been incorrect in any material
respect when made or deemed to be made.

 

(c)         
 Any Party shall fail to perform or observe any term or covenant set forth in this Agreement which is not covered by clause
(a) above, if such failure shall remain unremedied for fifteen (15) days after such Party receives notice from another Party of
the occurrence of such breach or failure.

 

12.2      
In the event of a default by any Party as to any of its obligations under this Agreement, in addition to those remedies
under the Cook Inlet Operating Agreement, a non-defaulting Party may pursue any remedies as may be available at law or in equity.

 

    	17

    	 

    

 

12.3      
A waiver or consent by a non-defaulting Party, express or implied, to or of any breach or default by the defaulting Party
in the performance of its obligations hereunder shall not be a consent or waiver by a non-defaulting Party to or of any other breach
or default by the defaulting Party in the performance of the same or any other obligations hereunder.

 

12.4      
A non-defaulting Party shall be entitled to recover its costs of investigation and court, together with reasonable attorneys’
fees, which are incurred by the non-defaulting Party as a result of a breach or default by the defaulting Party.

 

13.         
Agreements Regarding Other Matters

 

13.1      
Rights and Duties of Parties. The rights, duties, obligations and liabilities of the Parties shall be several, not joint
or collective. It is not the purpose or intention to create any mining partnership, joint venture, general partnership or other
partnership relation and none shall be inferred from the Agreements. If, for federal income tax purposes, the Agreements and operations
conducted thereunder are regarded as a partnership, each Party will each file an election to be excluded from the application of
Subchapter K of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, and all amendments thereto.

 

13.2      
Restrictions on Transfer and Delegation. Neither BUCCANEER nor EOS may transfer or assign any of its rights under this Agreement
except for transfers or assignments to a transferee made in connection with any conveyance, sale, assignment, novation, transfer,
farmout, exchange, or other disposition of all or part of a Party's Working Interest or rights or obligations under the Cook Inlet
Operating Agreement made to such transferee in accordance with the requirements of the Cook Inlet Operating Agreement. For the
avoidance of doubt, neither BUCCANEER nor EOS may transfer or assign any of its rights under this Agreement until this Agreement
shall have been executed by the assignee and taken effect and the requirements of Section 26.1 of the Cook Inlet Operating Agreement
and the terms and conditions of the Deep Rights Farmout Agreement have been met.

 

13.3      
Ancillary Documents. As necessary, the Parties shall execute any other ancillary documents including, but not limited to,
any documents, forms, etc. required by any governmental organization or authority necessary to effectuate the terms and provisions
of this Agreement and/or the Cook Inlet Operating Agreement, whichever is applicable including, but not limited to, designation
of operator forms and other similar matters.

 

13.4      
Transaction Expenses. Each Party will each pay its own expenses incurred in connection with the negotiation, execution and
delivery of the transactions contemplated thereby.

 

13.5      
Taxes and Recording Fees. Any sales taxes, transfer taxes, documentary taxes and recording fees relating to an assignment
hereunder shall be paid by the assignee. Subject to the terms of the Cook Inlet Operating Agreement, each Party shall be responsible
for its own local, state and federal income tax reporting, recognition of gain or loss, if any, and the taxes, if any, payable
with respect to the transaction.

 

13.6      
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas without
regard to the principles of conflicts of laws, except that matters arising out of the Deep Rights Farmout Agreement shall be subject
to the terms and conditions of the Deep Rights Farmout Agreement.

 

    	18

    	 

    

 

13.7      
Waiver of Consequential Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, THE PARTIES EXPRESSLY AGREE
THAT NO PARTY SHALL BE LIABLE FOR ANY EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE, OR SPECULATIVE DAMAGES SUFFERED
BY THE OTHER PARTY IN CONNECTION WITH THIS AGREEMENT.

 

13.8      
 Dispute Resolution. Disputes arising under this agreement shall be resolved in accordance with the Dispute Resolution Procedures
of Exhibit “G” to the Cook Inlet Operating Agreement or as otherwise agreed between the Parties.

 

13.9      
Further Assurances. Each Party shall execute, acknowledge and deliver to the other such further documents and take such
other action, as may be necessary in order to carry out the purposes of this Agreement.

 

13.10   
Inherent Risk. Each Party hereby acknowledges its understanding and acceptance of the inherent risks associated with the
exploration for oil and gas.

 

13.11   
Deceptive Trade Practices Act. The Parties certify that they are not “consumers” within the meaning of the Texas
Deceptive Trade Practices-Consumer Protection Act, Subchapter E of Chapter 17, Sections 17.41, et seq., of the Texas Business and
Commerce Code, as amended (“DTPA”). The Parties covenant, for themselves and for and on behalf of any successor or
assignee, that, if the DTPA is applicable to this Agreement, (i) the Parties are “business consumers” as that term
is defined in the DTPA, (ii) AFTER CONSULTATION WITH ATTORNEYS OF THEIR OWN SELECTION, EACH PARTY HEREBY VOLUNTARILY WAIVES AND
RELEASES ALL OF ITS RIGHTS AND REMEDIES UNDER THE DTPA AS APPLICABLE TO THE OTHER PARTY AND ITS SUCCESSORS AND ASSIGNS, EXCEPT
THOSE RIGHTS AND REMEDIES PROVIDED PURSUANT TO SECTION 17.555 OF THE TEXAS BUSINESS AND COMMERCE CODE, AND (iii) EACH PARTY SHALL
DEFEND AND INDEMNIFY THE OTHER PARTY FROM AND AGAINST ANY AND ALL CLAIMS OF OR BY THE INDEMNIFYING PARTY OR ANY OF ITS SUCCESSOR
AND ASSIGNS OR ANY OF ITS OR THEIR AFFILIATES BASED IN WHOLE OR IN PART ON THE DTPA ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

 

13.12   
Confidentiality. Except as expressly set forth herein and except as required by applicable laws, the Parties acknowledge
and agree that this Agreement, their negotiations in connection herewith and all information obtained by or provided to any of
them in connection with the matters contemplated herein or as it relates to the Subject Properties will be maintained as confidential,
except for disclosures to representatives of EOS and BUCCANEER and their respective legal and financial advisors. Notwithstanding
the above, the existence and contents of this Agreement are intended to be confidential and may not be disclosed to anyone other
than representatives of EOS and BUCCANEER and their respective legal advisors.

 

13.13   
Press release. The Parties shall jointly issue a press release with wording to be agreed between them. No Party or any of
their respective affiliates shall make any other public announcement or press release of information concerning or arising out
of this Agreement without the prior written approval of the other Parties, and subject to the terms and conditions of the Deep
Rights Farmout Agreement as to any North Cook Inlet Unit press releases. Press releases after the assignments of the Leases are
approved by the DNR and will be subject to the terms of the Cook Inlet Operating Agreement.

 

    	19

    	 

    

 

13.14   
General Survival. The termination of this Agreement shall not relieve any Party from any expense, liability, or other obligation,
or any remedy which has accrued or attached during or which is related to or attributable to the period prior to such termination.

 

13.15   
Notices. To be effective, any notice required or permitted to be delivered under this Agreement must be delivered in accordance
with (and shall be deemed effective pursuant to) the notice provisions set forth in Article 9 of the Cook Inlet Operating Agreement.

 

13.16   
Board of Directors Approval. The obligations of the Parties hereunder are subject to their respective Board of Directors’
approval, which approval shall be sought promptly and in good faith. Should any Party fail to obtain such approval within five
(5) days of execution hereof, this Agreement and all obligations hereunder shall be null and void.

 

14.         
Construction and Interpretation of this Agreement

 

14.1      
Headings for Convenience. All captions, numbering sequences, and headings used in this Agreement are inserted for convenience
only and shall in no way define, limit or describe the scope or intent of this Agreement or any part thereof, nor have any legal
effect other than to aid a reasonable interpretation of this Agreement.

 

14.2      
Gender and Number. The use of pronouns in whatever gender or number shall be deemed to be a proper reference to the Parties
to this Agreement though the Parties may be individuals, business entities, or groups thereof. Any necessary grammatical changes
required to make the provisions of this Agreement refer to the correct gender or number shall in all instances be assumed as though
each case was fully expressed.

 

14.3      
Independent Representation. Each Party has had the benefit of independent representation with respect to the subject matter
of this Agreement. This Agreement, though it may be drawn by one Party, shall be construed fairly and reasonably and not more strictly
against one Party than another.

 

14.4      
Amendment. No provision of this Agreement shall be modified or amended except by the written agreements for the Parties.

 

14.5      
Severance of Invalid Provisions. In case of a conflict between the provisions of this Agreement and the provisions of any
applicable laws or regulations, the provisions of the laws or regulations shall govern over the provisions of this Agreement. If,
for any reason and for so long as, any clause or provision of this Agreement is held by a court of competent jurisdiction to be
illegal, invalid, unenforceable or unconscionable under any present or future law (or interpretation thereof), the remainder of
this Agreement shall not be affected by such illegality or invalidity. Any such invalid provision shall be deemed severed from
this Agreement as if this Agreement had been executed with the invalid provisions eliminated. The surviving provisions of this
Agreement shall remain in full force and effect unless the removal of the invalid provisions destroys the legitimate purposes of
this Agreement; in which event this Agreement shall no longer be of any force or effect. The Parties shall negotiate in good faith
for any required modifications to this Agreement required as a result of this provision.

 

14.6      
Integrated Agreement. This Agreement, and the exhibits and schedules attached and incorporated herein, contain the final
and entire agreement of the Parties with respect to the subject matter of this Agreement. If there is a conflict between the body
of this Agreement and any exhibit attached to this Agreement, including but not limited to, the Cook Inlet Operating Agreement,
the provisions in the body of this Agreement shall prevail. There are no representations, warranties or promises, oral or written
between the Parties other than those included in this Agreement. This Agreement shall supersede and replace all previous agreements
(except for continuing confidentiality requirements as to third Parties) except as provided herein, including negotiations, understandings
or promises, whether written or oral, relative to the subject of this Agreement. Each of the Parties acknowledges that no other
Party has made any promise, representation or warranty that is not expressly stated in this Agreement.

 

    	20

    	 

    

 

14.7      
Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs,
successors and assigns and shall constitute a covenant running with the land and Leases included in Exhibits A and B
hereto.

 

14.8      
Counterparts; Facsimile Signature. The Parties may execute this Agreement in any number of duplicate originals, each of
which constitutes an original, and all of which, collectively, constitute only one agreement. The Parties may execute this Agreement
in counterparts, each of which constitutes an original, and all of which, collectively, constitute only one agreement. Delivery
of an executed counterpart signature page by facsimile is as effective as executing and delivering this Agreement in the presence
of the other Parties hereto. This Agreement is effective upon delivery of one executed counterpart from each Party to the other
Parties. In proving this Agreement, a Party must produce or account only for the executed counterpart of the Party to be charged.

 

14.9      
Capitalized terms used but not defined herein shall have the same meaning as ascribed to them in the Cook Inlet Operating
Agreement.

 

[signature page follows]

 

    	21

    	 

    

 

IN WITNESS WHEREOF, this Agreement is executed to be effective
as of the Effective Date.

 

	BUCCANEER ALASKA, LLC	 	EOS PETRO, INC.
	 	 	 
	/s/ Curtis Burton	 	/s/ Nikolas Konstant
	 	 	 
	By: Curtis Burton	 	By: Nikolas Konstant
	 	 	 
	Its: CEO	 	Its: Chairman
	 	 	 
	BUCCANEER ALASKA OPERATIONS, LLC	 	 
	 	 	 
	/s/ Curtis Burton	 	 
	 	 	 
	By: Curtis Burton	 	 
	 	 	 
	Its: CEO	 	 

 

Signature Page to Amended and Restated Cook Inlet Participation Agreement

 

    	 

    	 

    

 

EXHIBIT A

 

Attached to and made part of that certain Amended and Restated
Cook Inlet Participation Agreement dated August 21, 2013 by and between BUCCANEER, EOS and OPERATIONS. BUCCANEER’s WI and
NRI are represented herein below as of the Effective Date.

 

LEASES

 

	ADL Number	 	Effective Date	 	Gross/Net Acres	 	WI	 	NRI 
	 	 	 	 	 	 	 	 	 
	Northwest Cook Inlet Unit	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	ADL-380384*	 	10/1/2003	 	1280/1120	 	87.5%	 	63.5513%
	ADL-370742	 	10/1/2006 	 	1920/1920	 	100%	 	75.75%
	ADL-391270	 	6/1/2008	 	1848/1848	 	100%	 	75.75%
	ADL-391268	 	6/1/2008	 	1920/1920	 	100%	 	75.75%
	ADL-391269	 	6/1/2008	 	640/640	 	100%	 	75.75%
	ADL-391611	 	2/1/2011	 	1120/1120	 	100%	 	80.25%

 

*Subject to that certain Purchase Agreement
between Renaissance Resources (Alaska), LLC and Rutter and Wilbanks Corporation dated November 14, 2006.

 

Southern Cross Unit

 

	ADL-391107	 	10/1/2007	 	1280/1280	 	100%	 	76.5%
	ADL-391789	 	2/1/1962	 	2470/2470	 	100%	 	75.5%
	ADL-390379	 	10/1/2003	 	640/640	 	100%	 	75.5%
	ADL-391108	 	10/1/2007	 	1912/1912	 	100%	 	75.5%
	ADL-391788	 	10/1/2007	 	630/630	 	100%	 	75.5%

 

    	23

    	 

    

 

 

West Eagle Unit

 

	ADL-391144 (1)	 	10/1/2007	 	3100/3100	 	100%	 	75.75%
	ADL-391145 (1)	 	10/1/2007	 	3186.38/3186.38	 	100%	 	75.75%
	ADL-391625 (1)	 	03/1/2011	 	2556.60/2556.60	 	100%	 	75.75%
	ADL-392387 (Seg) (2)	 	10/1/2007	 	2534.77/2534.77	 	100%	 	75.75%
	ADL-392388 (Seg) (2)	 	10/1/2007	 	1911.12/1911.12	 	100%	 	75.75%
	ADL-392389 (Seg) (2)	 	03/1/2011	 	2534.77/2534.77	 	100%	 	75.75%

 

NOTES:

 

(1) Held by unit

 

(2) Expires 10/1/2014

 

    	24

    	 

    

 

EXHIBIT B

 

Attached to and made part of that certain Amended and Restated
Cook Inlet Participation Agreement dated August 21, 2013 by and between BUCCANEER, EOS and OPERATIONS.

 

DEEP RIGHTS FARMOUT AGREEMENT

 

That certain North Cook Inlet Deep Farmout
Agreement dated April 15, 2013 between ConocoPhillips Alaska, Inc., ConocoPhillips Company and Buccaneer Alaska, LLC covering deep
rights (defined in agreement) in ADL-17589, ADL-17590, ADL-18740, ADL18741 and ADL-37831 (the “North Cook Inlet Unit”).

 

    	25

    	 

    

 

EXHIBIT C

 

Attached to and made part of that certain Amended and Restated
Cook Inlet Participation Agreement dated August 21, 2013 by and between BUCCANEER, EOS and OPERATIONS.

 

COOK INLET OPERATING AGREEMENT

 

[to
come]

 

    	26

    	 

    

 

EXHIBIT D

 

Attached to and made part of that certain Amended and Restated
Cook Inlet Participation Agreement dated August 21, 2013 by and between BUCCANEER, EOS and OPERATIONS.

 

    	27

    	 

    

 

AREA OF MUTUAL INTEREST (AMI)

 

  

 

    	28

    	 

    

 

EXHIBIT E - 1

 

Attached to and made part of that certain Amended and Restated
Cook Inlet Participation Agreement dated August 21, 2013 by and between BUCCANEER, EOS and OPERATIONS.

 

FORM OFFSHORE DAYWORK DRILLING CONTRACT

 

[to
come]

 

    	29

    	 

    

 

EXHIBIT E - 2

 

Attached to and made part of that certain Amended and Restated
Cook Inlet Participation Agreement dated August 21, 2013 by and between BUCCANEER, EOS and OPERATIONS.

 

FORM ONSHORE DAYWORK DRILLING CONTRACT

 

[to
come]

 

    	30August 20, 2013

 

ThermoEnergy Corporation

10 New Bond Street

Worcester, Massachusetts 01606

 

Re:      Limitation on Beneficial Ownership

 

Reference is made to
that certain Letter Agreement by and between ThermoEnergy Corporation (the “Company”) and each of Empire Capital
Partners, L.P., Empire Capital Partners, LTD and Empire Capital Partners Enhanced Master Fund, LTD, Scott A. Fine and Peter J.
Richards and certain of their affiliates (each a “Holder” and collectively, the “Holders”)
dated as of June 6, 2011 regarding the subject captioned above (the “June 2011 Letter Agreement”), as supplemented
by that certain Letter Agreement by and between the Company and each Holder dated as of December 1, 2011 (the “December
2011 Letter Agreement” and the June 2011 Letter Agreement, as amended by the December 2011 Letter Agreement, the “2011
Letter Agreement”), and as further supplemented by that certain Letter Agreement by and between the Company and each
Holder dated as of November 28, 2012 (the “2012 Letter Agreement” and the 2011 Letter Agreement, as amended
by the 2012 Letter Agreement, the “Previous Letter Agreement”). This Letter Agreement supersedes and replaces
the Previous Letter Agreement.

 

This Letter Agreement
applies to and governs any shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”)
issued, to be issued or issuable currently or at any time in the future upon conversion, exchange, exercise or otherwise pursuant
to any rights, warrants or options to subscribe for or purchase shares of Common Stock or any stock or securities directly or indirectly
convertible into or exercisable or exchangeable for shares of Common Stock including, without limitation, (i) the Series B
Convertible Preferred Stock of the Company previously issued to the Holders, (ii) the Series B-1 Convertible Preferred Stock
of the Company previously issued or issuable to the Holders on or after the date hereof, (iii) the Series C Convertible Preferred
Stock of the Company previously issued or issuable to the Holders on or after the date hereof, (iv) any bridge notes or other
debt of the Company, including such notes or debt that are or become directly or indirectly convertible into or exchangeable for
Common Stock previously issued to the Holders or to be issued or issuable to the Holders on or after the date hereof, (v) any
other shares of the Company’s preferred stock that is or become directly or indirectly convertible into or exchangeable for
Common Stock to be issued or issuable to the Holders on or after the date hereof and (vi) any warrants or other options or
rights to purchase Common Stock or any of the foregoing securities to be issued or issuable to the Holders on or after the date
hereof. All of the securities referenced in this paragraph, including any securities issued in exchange, transfer or replacement
thereof, are referred to herein collectively as the “Applicable Securities.”

 

	 	CONNECTICUT:  One Gorham Island	Suite 201	Westport, CT 06880	T 203.454.1019
	 	CALIFORNIA:  2000 Avenue of the Stars	Suite 815N	Los Angeles, CA 90067	T 310.975.7600

 

    	 

    	 

    

 

For so long as the Common
Stock is registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, notwithstanding anything to
the contrary contained in the governing instruments for any of the Applicable Securities, the Company shall not effect any conversion,
exercise or exchange of any of the Applicable Securities, and no Holder shall have the right to convert, exercise or exchange any
of the Applicable Securities, and any such conversion, exercise or exchange shall be null and void and treated as if never made,
to the extent that after giving effect to such conversion, exercise or exchange, the Holder (together with the Holder’s affiliates)
would beneficially own in excess of 4.99% (the “Maximum Percentage”) of the number of shares of Common Stock
outstanding immediately after giving effect to such conversion, exercise or exchange. For purposes of the foregoing sentence, the
aggregate number of shares of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares
of Common Stock issuable upon conversion, exercise or exchange, as applicable, of the Applicable Securities with respect to which
the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon exercise,
conversion or exchange, as applicable, of the remaining, unexercised, unconverted or unexchanged portion of the Applicable Securities
beneficially owned by the Holder and its affiliates. For purposes of this paragraph, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended. For purposes of determining the number of
outstanding shares of Common Stock, the Holders may rely on the number of outstanding shares of Common Stock as reflected in (1) the
Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the
Company or (3) any other notice by the Company or the Company’s transfer agent setting forth the number of shares of
Common Stock outstanding. For any reason at any time, upon the written or oral request of a Holder, the Company shall within one
business day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the
number of outstanding shares of Common Stock shall be determined after giving effect to the conversion, exercise or exchange of
securities of the Company, including the Applicable Securities, held by each Holder and its affiliates since the date as of which
such number of outstanding shares of Common Stock was reported. By written notice to the Company, the Holders may from time to
time decrease (but not increase) the Maximum Percentage to any other percentage specified in such notice effective as of the date
such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this paragraph to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary
or desirable to properly give effect to such limitation.

 

This letter agreement
shall be binding on any successors and assigns of the parties hereto. This letter agreement shall be governed and construed in
accordance with the laws of the State of New York. This letter agreement may be executed in any number of counterparts, which together
shall constitute this letter agreement.

 

[Signature Page Follows]

 

    	2

    	 

    

 

	 	Very truly yours,
	 	 
	 	EMPIRE CAPITAL PARTNERS, L.P.
	 	 
	 	By: Empire GP, L.L.C., Its General Partner
	 	 
	 	EMPIRE CAPITAL PARTNERS, LTD
	 	EMPIRE CAPITAL PARTNERS
	 	ENHANCED MASTER FUND, LTD,
	 	CHARTER OAK PARTNERS, L.P.,
	 	CHARTER OAK PARTNERS II, L.P.
	 	AND CHARTER OAK MASTER FUND, L.P.
	 	 
	 	By: Empire Capital Management, L.L.C.,

 Its Investment Manager
	 	 
	 	By:	/s/ Peter Richards
	 	 	Name:  Peter Richards
	 	 	Title:  Managing Member
	 	 
	 	/s/ Peter Richards
	 	Peter J. Richards
	 	 
	 	
	 	Scott A. Fine

  

	Acknowledged and Agreed:	 
	 	 
	THERMOENERGY CORPORATION	 
	 	 
	By:	/s/ Gregory M. Landegger	 
	 	Name: Gregory M. Landegger	 
	 	
        Title: Chief Operating
Officer and Interim

Chief Financial Officer
	 

 

    	3

    	 

    

 

		Very truly yours,
	 	 
	 	EMPIRE CAPITAL PARTNERS, L.P.
	 	 
	 	By: Empire GP, L.L.C., Its General Partner
	 	 
	 	EMPIRE CAPITAL PARTNERS, LTD
	 	EMPIRE CAPITAL PARTNERS
	 	ENHANCED MASTER FUND, LTD,
	 	CHARTER OAK PARTNERS, L.P.,
	 	CHARTER OAK PARTNERS II, L.P.
	 	AND CHARTER OAK MASTER FUND, LP.
	 	 
	 	By: Empire Capital Management, L.L.C.,

 Its Investment Manager
	 	 
	 	By:	/s/ Scott A. Fine
	 	 	Name:  Scott A. Fine
	 	 	Title:  Managing Member
	 	 
	 	
	 	Peter J. Richards
	 	 
	 	/s/ Scott A. Fine
	 	Scott A. Fine

  

	Acknowledged and Agreed:	 
	 	 
	THERMOENERGY CORPORATION	 
	 	 
	By:	/s/ Gregory M. Landegger	 
	 	Name: Gregory M. Landegger	 
	 	
        Title: Chief Operating
Officer and Interim

Chief Financial Officer

 

    	4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]