Document:

Securities Purchase Agreement

 Exhibit 10.1 
 SECURITIES PURCHASE AGREEMENT 
 dated as of May 11, 2007 
 between 
 CONTANGO OIL &
GAS COMPANY 
 and 
 THE PURCHASERS NAMED IN THIS AGREEMENT 
 Up to 6,000 Shares of Series E Perpetual Cumulative Convertible Preferred Stock

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	1.	 	Agreement to Purchase Securities	  	1
			
	2.	 	Closing	  	1
			
	3.	 	Purchasers’ Representations and Warranties	  	1
				
		 	 3.1
	  	Investment Intent	  	1
		 	 3.2
	  	Access to Information	  	2
		 	 3.3
	  	Accredited Investor	  	2
		 	 3.4
	  	Knowledge and Experience	  	2
		 	 3.5
	  	Suitability	  	2
		 	 3.6
	  	Ability to Bear Risk of Loss	  	2
		 	 3.7
	  	Non-Registered Securities	  	2
		 	 3.8
	  	Truth and Accuracy	  	2
		 	 3.9
	  	Authority	  	3
		 	 3.10
	  	No Violation	  	3
		 	 3.11
	  	Enforceability	  	3
		 	 3.12
	  	Reliance on Own Advisers	  	3
		 	 3.13
	  	Scope of Business	  	3
		 	 3.14
	  	Brokers or Finders	  	3
		 	 3.15
	  	Short Sales	  	3
			
	4.	 	Issuer’s Representations and Warranties	  	4
				
		 	 4.1
	  	Corporate Existence; Authority	  	4
		 	 4.2
	  	Enforceability	  	4
		 	 4.3
	  	Capitalization	  	4
		 	 4.4
	  	No Conflicts	  	5
		 	 4.5
	  	SEC Documents	  	5
		 	 4.6
	  	Litigation	  	5
		 	 4.7
	  	No Material Adverse Change	  	5
		 	 4.8
	  	Environmental Matters	  	5
		 	 4.9
	  	Truth and Accuracy	  	6
		 	 4.10
	  	Compliance with Laws, Other Instruments	  	6
		 	 4.11
	  	Observance of Agreements, Statutes and Orders	  	6
		 	 4.12
	  	Brokers or Finders	  	6
			
	5.	 	Conditions of Purchasers’ Obligations at Closing	  	7
				
		 	 5.1
	  	Representations and Warranties	  	7
		 	 5.2
	  	Performance	  	7
		 	 5.3
	  	Proceedings and Documents	  	7
		 	 5.4
	  	Opinion of Issuer Counsel	  	7
		 	 5.5
	  	Reservation of Converted Shares	  	7
		 	 5.6
	  	Consents, Permits, and Waivers	  	7
		 	 5.7
	  	Secretary’s Certificate	  	7
			
	6.	 	Conditions of the Issuer’s Obligations at Closing	  	7

  

 i 

 TABLE OF CONTENTS (continued) 
  

							
	 	 	 	  	 	  	Page
		 	 6.1
	  	Representations and Warranties	  	8
		 	 6.2
	  	Payment of Purchase Price	  	8
		 	 6.3
	  	Qualifications	  	8
			
	7.	 	Restrictions on Transfer	  	8
				
		 	 7.1
	  	Resale Restrictions	  	8
		 	 7.2
	  	Restrictive Legend	  	8
		 	 7.3
	  	Illiquid Investment	  	8
			
	8.	 	Registration of the Converted Shares; Compliance with the Securities Act.	  	9
				
		 	 8.1
	  	Registration Procedures and Other Matters	  	9
		 	 8.2
	  	Transfer of Shares After Registration; Suspension.	  	10
		 	 8.3
	  	Indemnification	  	11
		 	 8.4
	  	Termination of Conditions and Obligations	  	15
			
	9.	 	Notices	  	15
			
	10.	 	Reliance	  	16
			
	11.	 	Miscellaneous	  	16
				
		 	 11.1
	  	Survival	  	16
		 	 11.2
	  	Assignment	  	16
		 	 11.3
	  	Execution and Delivery of Agreement	  	16
		 	 11.4
	  	Titles	  	16
		 	 11.5
	  	Severability	  	16
		 	 11.6
	  	Entire Agreement	  	16
		 	 11.7
	  	Waiver and Amendment	  	16
		 	 11.8
	  	Counterparts	  	17
		 	 11.9
	  	Governing Law	  	17
		 	 11.10
	  	Attorney’s Fees	  	17

  

 ii 

 TABLE OF CONTENTS (continued) 
  

					
	 	  	 	  	Page
	Schedules	  		  	
	1	  	List of Purchasers	  	
	4.3(d)	  	Outstanding Subscriptions, Options, Warrants, Convertible Securities, etc.	  	
	4.3(e)	  	Third Party Registration Rights	  	
			
	Exhibits	  		  	
	A	  	Accredited Investor Certificate	  	
	B	  	Certificate of Designations of Series E Perpetual Cumulative Convertible Preferred Stock	  	
	C	  	Opinion of Morgan, Lewis & Bockius LLP	  	

 SECURITIES PURCHASE AGREEMENT 
 This SECURITIES PURCHASE AGREEMENT (“Agreement”) is made and entered into as of May 11, 2007, by and between Contango Oil & Gas
Company, a Delaware corporation (the “Issuer”), and each of the persons listed on Schedule 1 attached to this Agreement (each a “Purchaser” and collectively the “Purchasers”). 
 WHEREAS, the Issuer desires to issue and to sell to the Purchasers, and the Purchasers desire to purchase from the Issuer, the Series E
Preferred Stock (as hereinafter defined), all in accordance with the terms and provisions of this Agreement; and 
 NOW, THEREFORE, in
consideration of the foregoing and the mutual representations, warranties and covenants herein contained, the parties hereto hereby agree as follows: 
  
 1. Agreement to Purchase Securities. Subject to the terms and conditions hereinafter set forth in this Agreement, each Purchaser hereby
agrees severally and not jointly to purchase at the Closing, and the issuer agrees to sell and issue to each Purchaser at the Closing at a price of $5,000 per share, the number of shares of the Issuer’s Series E Perpetual Cumulative Convertible
Preferred Stock, par value $0.04 per share (the “Series E Preferred Stock”), shown opposite such Purchaser’s name on Schedule 1, for an aggregate purchase price (the “Purchase Price”) to be paid by such Purchaser in
the amount shown opposite such Purchaser’s name on Schedule 1. The shares of the Issuer’s common stock, par value $0.04 per share (the “Common Stock”), that may be issued upon conversion of the Series E Preferred Stock as
contemplated by the Designations Certificate (as defined below) are referred to herein as the “Converted Shares”, and the Series E Preferred Stock and the Converted Shares are collectively referred to herein as the “Securities”.

 2. Closing. Subject to the satisfaction or waiver of the conditions in this Agreement, the purchase and sale of the Series E
Preferred Stock shall take place at the offices of the Issuer at 3700 Buffalo Speedway, Suite 960, Houston, Texas 77098, at 10:00 a.m. (local time), on May 17, 2007, or at such other time and place as the Issuer and the Purchasers acquiring, in the
aggregate, a majority of the shares of Series E Preferred Stock to be sold pursuant to this Agreement agree upon orally or in writing (which time and date are designated as the “Closing”). At the Closing, the Issuer shall deliver to each
Purchaser a certificate representing the shares of Series E Preferred Stock that such Purchaser is purchasing in the name and to the address specified by each Purchaser on Schedule 1 against payment of the Purchase Price therefor by wire
transfer of immediately available funds. 
 3. Purchasers’ Representations and Warranties. Each Purchaser hereby
represents and warrants to the Issuer that: 
 3.1 Investment Intent. Such Purchaser is acquiring the Securities solely for the
Purchaser’s own account for investment purposes, and not with a view to, or for offer or sale in connection with, any distribution of the Securities in violation of the Securities Act of 1933, as amended (the “Securities Act”). By
such representation, such Purchaser means that no other person has a beneficial interest in the Securities, and that no other person has furnished or will furnish directly or indirectly, any part of or guarantee the payment of any part of the
consideration to be paid by such Purchaser to the Issuer in connection therewith. Such Purchaser 

  

 1 

 
does not intend to dispose of all or any part of the Securities except in compliance with the provisions of the Securities Act and applicable state
securities laws, and understands that the Securities are being offered pursuant to a specific exemption under the provisions of the Securities Act, which exemption(s) depends, among other things, upon compliance with the provisions of the Securities
Act. 
 3.2 Access to Information. Such Purchaser has received a copy of the Issuer’s annual report on Form 10-K for the year
ended June 30, 2006 (the “Annual Report”) and quarterly report on Form 10-Q for the quarter ended March 31, 2007 (the “Quarterly Report”) and has reviewed them carefully, including the risk factors set forth therein. In
addition, the Purchaser has received and reviewed a copy of the Issuer’s proxy statement for its annual meeting of stockholders held on November 17, 2006 (the “Proxy Statement”). If desired, the Purchaser has also sought and
obtained from management of the Issuer such additional information concerning the business, management and financial affairs of the Issuer as the Purchaser has deemed necessary or appropriate in evaluating an investment in the Issuer and determining
whether or not to purchase the Securities. 
 3.3 Accredited Investor. By completing the Accredited Investor Certification attached as
Exhibit A, such Purchaser represents and warrants that it is an accredited investor, as defined by Rule 501(a) of Regulation D under the Securities Act. 
 3.4 Knowledge and Experience. Such Purchaser is experienced in evaluating and investing in the securities of businesses in the development stage, and has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of an investment in the Securities and of protecting its interests in connection with an acquisition of the Securities. 
 3.5 Suitability. Such Purchaser has carefully considered, and has, to the extent the Purchaser deems it necessary, discussed with the
Purchaser’s own professional legal, tax and financial advisers the suitability of an investment in the Securities for the Purchaser’s particular tax and financial situation, and the Purchaser has determined that the Securities are a
suitable investment for the Purchaser. 
 3.6 Ability to Bear Risk of Loss. Such Purchaser is financially able to hold the Securities
subject to restrictions on transfer for an indefinite period of time, and is capable of bearing the economic risk of losing up to the entire amount of its investment in the Securities. 
 3.7 Non-Registered Securities. Such Purchaser acknowledges that the offer and sale of the Securities have not been registered under the Securities
Act or any state securities laws and the Securities may be resold only if registered pursuant to the provisions thereunder or if an exemption from registration is available. Such Purchaser understands that the offer and sale of the Securities is
intended to be exempt from registration under the Securities Act, based, in part, upon the representations, warranties and agreements of such Purchaser contained in this Agreement. 
 3.8 Truth and Accuracy. All representations and warranties made by such Purchaser in this Agreement are true and accurate as of the date hereof
and shall be true and 

  

 2 

 
accurate as of the date the Issuer issues the Securities. If at any time prior to the issuance of the Securities any representation or warranty shall not be
true and accurate in any respect, such Purchaser shall so notify the Issuer. 
 3.9 Authority. The individual(s) executing and
delivering this Agreement on behalf of such Purchaser have been duly authorized to execute and deliver this Agreement on behalf of such Purchaser, the signature of such individual(s) is binding upon such Purchaser, such Purchaser is duly organized
and subsisting under the laws of the jurisdiction in which it was organized, and such Purchaser was not formed for the specific purpose of acquiring the Securities. 
 3.10 No Violation. The execution and delivery of this Agreement and the consummation of the transactions or performance of the obligations contemplated by this Agreement do not and will not violate any term of
such Purchaser’s organizational documents. 
 3.11 Enforceability. Such Purchaser has duly executed and delivered this Agreement
and (subject to its execution by the Issuer) it constitutes a valid and binding agreement of such Purchaser enforceable in accordance with its terms against such Purchaser, except as such enforceability may be limited by principles of public policy,
and subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies. 
 3.12 Reliance on Own Advisers. In connection with such Purchaser’s investment in the Securities, such Purchaser has not relied upon the
Issuer or its advisers for legal or tax advice, and has, if desired, in all cases sought the advice of such Purchaser’s own legal counsel and tax advisers. 
 3.13 Scope of Business. Such Purchaser has been advised and understands that the Issuer will be exposed to numerous investment opportunities in all areas of the oil and gas industry and may therefore pursue
various types of transactions and opportunities, even if they do not fit within the primary focus of the Issuer’s current business plan. For example, such transactions could include sales of all or substantially all of the Issuer’s assets
and such opportunities could include international investments and downstream investments in oil and gas service companies, pipelines, and gas processing and gas storage facilities. 
 3.14 Brokers or Finders. Such Purchaser has not dealt with any broker or finder other than Energy Capital Solutions LLC and Pritchard Capital
Partners, LLC in connection with the transactions contemplated by the Agreement, and has not incurred, and shall not incur, directly or indirectly, any liability for any brokerage or finders’ fees or agents commissions or any similar charges in
connection with the transactions contemplated by the Agreement. 
 3.15 Short Sales. As of the date of this Agreement, such Purchaser
and its affiliates do not have, to Purchaser’s knowledge, and during the 30 day period prior to the date of this Agreement such Purchaser and its affiliates, to Purchaser’s knowledge, have not entered into, any “put equivalent
position” as such term is defined in Rule 16a-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or short sale positions with respect to 

  

 3 

 
the Common Stock of the Issuer. Until the registration statement referred to in Section 8.1 is declared effective, the Purchaser hereby agrees not to
enter into any such “put equivalent position” or short sale position. 
 4. Issuer’s Representations and
Warranties. The Issuer hereby represents and warrants to the Purchasers that: 
 4.1 Corporate Existence; Authority. The Issuer
is a corporation duly organized, validly existing and in good standing under the laws of Delaware, and it has all requisite power and authority to carry on its business as it is being conducted. The individual executing and delivering this Agreement
on behalf of the Issuer has been duly authorized to execute and deliver this Agreement on behalf of the Issuer, and the signature of such individual is binding upon the Issuer. 
 4.2 Enforceability. The Issuer has duly executed and delivered this Agreement and (subject to its execution by the Purchasers) it constitutes a
valid and binding agreement of the Issuer enforceable in accordance with its terms against the Issuer, except as such enforceability may be limited by principles of public policy, and subject to laws of general application relating to bankruptcy,
insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies. 
 4.3
Capitalization. The authorized capital of the Issuer consists, or will consist immediately prior to the Closing, of: 
 (a)
Preferred Stock. 5,000,000 shares of Preferred Stock, par value $0.04 per share, of which 10,000 shares have been designated Series E Preferred Stock, none of which are issued and outstanding and up to 6,000 shares of which will be sold
pursuant to this Agreement. 
 (b) Common Stock. 50,000,000 shares of Common Stock of which 15,952,807 shares were issued and
outstanding as of May 4, 2007. 
 (c) All of the outstanding shares of Common Stock of the Issuer have been duly and validly issued and
are fully paid, non-assessable and not subject to any preemptive or similar rights. The Series E Preferred Stock has been duly authorized and when issued and delivered to the Purchasers against payment therefor as provided by this Agreement,
will be validly issued, fully paid and non-assessable, shall have the rights and preferences set forth in the Certificate of Designations of Series E Preferred Stock attached hereto as Exhibit B (the “Designations
Certificate”) and the issuance of such Series E Preferred Stock will not be subject to any preemptive or similar rights. If and when issued, the Converted Shares will have been duly authorized, reserved for issuance and, when issued and
delivered to the Purchasers against payment therefor as provided by herein, will be validly issued, fully paid and non-assessable, and the issuance of such Converted Shares will not be subject to any preemptive or similar rights. 
 (d) Prior to giving effect to the transactions set forth herein, there are no outstanding subscriptions, options, warrants, convertible securities,
calls, commitments, agreements or rights to purchase or otherwise acquire from the Issuer any shares of, or any securities convertible into, the capital stock of the Issuer except as set forth on Schedule 4.3(d). 
  

 4 

 (e) Except as set forth on Schedule 4.3(e), no stockholders of the Issuer have any right to
require the registration of any securities of the Issuer or to participate in any such registration. 
 4.4 No Conflicts. The issuance
and sale of the Securities to the Purchasers as contemplated hereby and the performance of this Agreement will not violate or conflict with the Issuer’s Certificate of Incorporation or Bylaws or any agreements to which the Issuer is a party or
by which it is otherwise bound or, to the Issuer’s knowledge, any statute, rule or regulation (federal, state, local or foreign) to which it is subject. 
 4.5 SEC Documents. The Issuer has provided the Annual Report, the Quarterly Report and the Proxy Statement to the Purchasers. As of the date hereof, the Annual Report, the Quarterly Report and the Proxy
Statement do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading. The financial statements of the Issuer included in the Annual Report and the Quarterly Report financial statements dated as of March 31, 2007 heretofore delivered to the Purchasers, have been prepared in accordance with generally
accepted accounting principles applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the financial position of the Issuer as of the dates thereof and the results of its
operations and cash flows for the periods then ended. The Issuer has included in the Annual Report a list of all material agreements, contracts and other documents that it reasonably believes are required to be filed as exhibits to the Annual
Report. 
 4.6 Litigation. There is no litigation or other legal, administrative or governmental proceeding pending or, to the
knowledge of the Issuer, threatened against or relating to the Issuer or its properties or business, that if determined adversely to the Issuer may reasonably be expected to have a material adverse effect on the present or future operations or
financial condition of the Issuer. 
 4.7 No Material Adverse Change. Since the date of the Quarterly Report, there has not been any
material adverse change in the business, operations, properties, prospects, assets, or condition of the Issuer, and no event has occurred or circumstance exists that may result in such a material adverse change. 
 4.8 Environmental Matters. 
 (a)
Except as would not be reasonably likely to have a material adverse effect change in the business, operations, properties, prospects, assets, or condition of the Issuer: (i) to Issuer’s knowledge, Issuer has complied with all applicable
Environmental Laws (as defined in Section 4.8(b)); (ii) to Issuer’s knowledge, Issuer is not subject to liability for any Hazardous Substance disposal or contamination on any third party property; (iii) to Issuer’s
knowledge, Issuer has not been associated with any release or threat of release of any Hazardous Substance; (v) Issuer has not received any notice, demand, letter, claim or request for information alleging that Issuer may be in violation of or
liable under any Environmental Law; (vi) Issuer is not subject to any orders, decrees, injunctions or other arrangements with any governmental entity or is subject to any indemnity or other agreement with any third party 

  

 5 

 
relating to liability under any Environmental Law or relating to Hazardous Substances; and (vii) there are no circumstances or conditions involving
Issuer that could reasonably be expected to result in any claims, liability, investigations, costs or restrictions on the ownership, use or transfer of any property of Issuer pursuant to any Environmental Law. 
 (b) For purposes of this Agreement, the term “Environmental Law” means any federal, state, local or foreign law, regulation, order,
decree, permit, authorization, opinion, common law or agency requirement relating to: (A) the protection, investigation or restoration of the environment, health and safety, or natural resources, (B) the handling, use, presence, disposal,
release or threatened release of any Hazardous Substance or (C) noise, odor, wetlands, pollution, contamination or any injury or threat of injury to persons or property. 
 (c) For purposes of this Agreement, the term “Hazardous Substance” means any substance that is: (A) listed, classified or
regulated pursuant to any Environmental Law; (B) any petroleum product or by-product, asbestos-containing material, lead-containing paint or plumbing, polychlorinated biphenyls, radioactive materials or radon; or (C) any other substance
which is the subject of regulatory action by any governmental entity pursuant to any Environmental Law. 
 4.9 Truth and Accuracy. All
representations and warranties made by the Issuer in this Agreement are true and accurate as of the date hereof and shall be true and accurate as of the date the Issuer issues the Securities. If at any time prior to the issuance of any of the
Securities any representation or warranty shall not be true and accurate in any respect, the Issuer shall so notify the Purchasers. 
 4.10
Compliance with Laws, Other Instruments. The execution, delivery and performance by the Issuer of this agreement will not (a) contravene, result in any breach of, or constitute a default under or result in the creation of any lien in
respect of any property of the Issuer under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or bylaws, or any other material agreement or instrument to which the Issuer is bound or by which the
Issuer or any of its respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or governmental
authority applicable to the Issuer or (c) violate any provision of any statute or other rule or regulation of any governmental authority applicable to the Issuer. 
 4.11 Observance of Agreements, Statutes and Orders. The Issuer is not in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or
ruling of any court, arbitrator or governmental authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation environmental laws) of any governmental authority which default or violation could have a
material adverse effect upon the business or operations of the Issuer. 
 4.12 Brokers or Finders. Except for Energy Capital Solutions
LLC and Pritchard Capital Partners, LLC (which has acted as a finder for the transactions contemplated by the Agreement), the Issuer has not dealt with any broker or finder in connection with the transactions contemplated by the Agreement, and
except for certain fees and expenses payable 

  

 6 

 
by the Issuer to Energy Capital Solutions LLC and Pritchard Capital Partners, LLC, the Issuer has not incurred, and shall not incur, directly or indirectly,
any liability for any brokerage of finders’ fees or agents commissions or any similar charges in connection with the transactions contemplated by the Agreement. 
 5. Conditions of Purchasers’ Obligations at Closing. The obligations of each Purchaser under Section 1 and Section 2 are subject to the fulfillment on or before the Closing of each of the
following conditions, the waiver of which shall not be effective against any Purchaser who does not consent in writing to such waiver: 
 5.1
Representations and Warranties. The representations and warranties of the Issuer contained in Section 4 shall be true and correct on and as of the Closing with the same effect as though such representations and warranties had been made
on and as of the date of such Closing (other than representations and warranties that relate only to a certain date, which shall be true as of such date). 
 5.2 Performance. The Issuer shall have performed and complied with the covenants and agreements in this Agreement that are required to be performed or complied with by it on or before the Closing. 

5.3 Proceedings and Documents. All corporate and other proceedings in connection with the Agreement contemplated to be effected at the Closing
and all documents incident thereto shall be reasonably satisfactory in form and substance to Purchasers’ counsel, and they shall have received all such counterpart original and certified or other copies of such documents as they may reasonably
request. 
 5.4 Opinion of Issuer Counsel. Each Purchaser shall have received from Morgan, Lewis & Bockius LLP, counsel for
the Issuer, an opinion, dated as of the Closing, substantially in the form of Exhibit C. 
 5.5 Reservation of Converted
Shares. The Converted Shares issuable upon conversion of the Series E Preferred Stock shall have been duly authorized and reserved for issuance upon such conversion. 
 5.6 Consents, Permits, and Waivers. The Issuer shall have obtained any and all consents, permits and waivers necessary or appropriate for
consummation of the transactions contemplated by the Agreement. 
 5.7 Secretary’s Certificate. Purchasers shall have received
from the Issuer’s Secretary or Assistant Secretary, a certificate having attached thereto (i) the Certificate of Incorporation as in effect at the time of the Closing, (ii) the Issuer’s Bylaws as in effect at the time of the
Closing, (iii) resolutions approved by the Board of Directors authorizing the transactions contemplated hereby, and (iv) good standing certificates (including tax good standing) with respect to the Issuer from the applicable authorities in
Delaware and Texas. 
 6. Conditions of the Issuer’s Obligations at Closing. The obligations of the Issuer to each
Purchaser under this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions: 
  

 7 

 6.1 Representations and Warranties. The representations and warranties of the Purchaser contained
in Section 3 shall be true on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing. 
 6.2 Payment of Purchase Price. Such Purchaser shall have delivered the Purchase Price specified in Section 1, and the Purchasers shall have delivered Purchase Prices equal to at least $40 million in
aggregate principal amount. 
 6.3 Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or
regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Securities pursuant to this Agreement shall be duly obtained and effective as of the Closing. 
 7. Restrictions on Transfer. 
 7.1 Resale Restrictions. The Purchasers understand that the offer and sale of the Securities to the Purchasers have not been registered under the Securities Act or under any state laws. Each Purchaser agrees not to offer, sell or
otherwise transfer the Securities, or any interest in the Securities, unless (i) the offer and sale is registered under the Securities Act, (ii) the Securities may be sold in accordance with the applicable requirements and limitations of
Rule 144 under the Securities Act and any applicable state laws and, if the Issuer reasonably requests, such Purchaser delivers to the Issuer an opinion of counsel to such effect, or (iii) such Purchaser delivers to the Issuer an opinion of
counsel reasonably satisfactory to the Issuer that the offer and sale is otherwise exempt from Securities Act registration. Notwithstanding the foregoing subsections (ii) and (iii), no opinion shall be required for transfers by a Purchaser to
its affiliates. 
 7.2 Restrictive Legend. Each Purchaser understands and agrees that a legend in substantially the following form
will be placed on the certificates or other documents representing the Securities: 
 “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS (i) THE OFFER AND SALE IS REGISTERED UNDER THE
SECURITIES ACT, OR (ii) THE OFFER AND SALE IS EXEMPT FROM SECURITIES ACT REGISTRATION AND THE TERMS OF SECTION 7.1 OF THE SECURITIES PURCHASE AGREEMENT PURSUANT TO WHICH THE SECURITIES WERE ORIGINALLY PURCHASED HAVE BEEN COMPLIED WITH. (A
COPY OF THE SECURITIES PURCHASE AGREEMENT IS ON FILE AT THE CORPORATE OFFICE OF THE CORPORATION.)” 
 7.3 Illiquid Investment.
Each Purchaser acknowledges that it must bear the economic risk of its investment in the Securities for an indefinite period of time, until such time as the Securities are registered or an exemption from registration is available. Each Purchaser

  

 8 

 
acknowledges that the soonest that the Rule 144 exemption from registration could become available would be after such Purchaser has paid for and held the
Securities for one year. 
 8. Registration of the Converted Shares; Compliance with the Securities Act. 
 8.1 Registration Procedures and Other Matters. The Issuer shall: 
 (a) subject to receipt of necessary information from the Purchasers after prompt request from the Issuer to the Purchasers to provide such information, promptly following the Closing but no later than 60 days after
the Closing (the “Filing Date”), prepare and file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-3 or such other successor form (except that if the Issuer is not then eligible to
register for resale the Converted Shares on Form S-3, in which case such registration shall be on Form S-1 or any successor form) (a “Registration Statement”) to enable the resale of the Converted Shares, by the Purchasers or their
transferees from time to time over the American Stock Exchange or in privately-negotiated transactions. No Purchaser may include any Converted Share in the Registration Statement pursuant to this Agreement unless such Purchaser furnishes to the
Issuer in writing within five business days after receipt of request therefor, such requested information; 
 (b) use commercially
reasonable efforts, subject to receipt of necessary information from the Purchasers after prompt request from the Issuer to the Purchasers to provide such information, to cause the Registration Statement to become effective as soon as practicable;

 (c) use its commercially reasonable efforts to cause such Registration Statement to remain continuously effective and prepare and file
with the SEC such amendments and supplements to the Registration Statement and the prospectus used in connection therewith (the “Prospectus”) (and the applicable Exchange Act reports incorporated therein by reference, so filed on a timely
basis) as may be necessary to keep the Registration Statement current, effective and free from any material misstatement or omission to state a material fact for a period ending on the date that is, with respect to each Purchaser’s Converted
Shares purchased hereunder, the earlier of (i) the date on which the Purchaser may sell all Converted Shares then held by the Purchaser without restriction under Rule 144(k), or (ii) such time as all Converted Shares purchased by such
Purchaser in this Offering have been sold pursuant to a registration statement; 
 (d) so long as a Purchaser holds Converted Shares,
provide copies to and permit single legal counsel designated by the Purchasers to review the Registration Statement and all amendments and supplements thereto, no fewer than three business days prior to their filing with the SEC, and not file any
Registration Statement, amendment or supplement thereto to which a holder of the Converted Shares reasonably objects in writing within such three business day period; 
 (e) furnish to the Purchasers with respect to the Converted Shares registered under the Registration Statement such number of copies of the Registration Statement, Prospectuses and preliminary Prospectuses
(“Preliminary Prospectuses” and individually, “Preliminary Prospectus”) in conformity with the requirements of the Securities Act and such 

  

 9 

 
other documents as the Purchasers may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Converted Shares
by the Purchasers; provided, however, that the obligation of the Issuer to deliver copies of Prospectuses or Preliminary Prospectuses to the Purchasers shall be subject to the receipt by the Issuer of reasonable assurances from the
Purchasers that the Purchasers will comply with the applicable prospectus delivery requirements under the Securities Act and of such other securities or blue sky laws as may be applicable in connection with any use of such Prospectuses or
Preliminary Prospectuses; 
 (f) file documents required of the Issuer for normal blue sky clearance in states specified in writing by the
Purchasers and use its commercially reasonable efforts to maintain such blue sky qualifications during the period the Issuer is required to maintain the effectiveness of the Registration Statement pursuant to Section 8.1(b); provided,
however, that the Issuer shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented; 
 (g) promptly notify the Purchasers after it receives notice of the time when the Registration Statement has been declared effective by the SEC, or when
a supplement or amendment to any Registration Statement has been filed with the SEC; and 
 (h) advise the Purchasers, promptly:
(a) after it shall receive notice or obtain knowledge of the issuance of any stop order by the SEC delaying or suspending the effectiveness of the Registration Statement or of the initiation or threat of any proceeding for that purpose; and it
will promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal at the earliest possible moment if such stop order should be issued; and (b) at any time when a Prospectus relating to
Converted Shares is required to be delivered under the Securities Act, upon discovery that, or upon the happening of an event as a result of which, the Prospectus included in the Registration Statement, as then in effect, includes an untrue
statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. 
 8.2 Transfer of Shares After Registration; Suspension. 
 (a) Each Purchaser agrees that it will not effect any disposition of the Converted Shares that would constitute a sale within the meaning of the Securities Act except as contemplated in the Registration Statement
referred to in Section 8.1 and as described below or as otherwise permitted by law, and that it will promptly notify the Issuer in writing of any changes in the information set forth in the Registration Statement regarding the Purchaser or its
plan of distribution. 
 (b) Except in the event that paragraph (c) below applies, the Issuer shall (i) if deemed necessary by the
Issuer, prepare and file from time to time with the SEC a post-effective amendment to the Registration Statement or a supplement to the related Prospectus or a supplement or amendment to any document incorporated therein by reference or file any
other required document so that such Registration Statement will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not 

  

 10 

 
misleading, and so that, as thereafter delivered to purchasers of the Converted Shares being sold thereunder, such Prospectus will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (ii) provide the Purchasers
copies of any documents filed pursuant to Section 8.2(b)(i), and (iii) inform each Purchaser that the Issuer has complied with its obligations in Section 8.2(b)(i) (or that, if the Issuer has filed a post-effective amendment to the
Registration Statement which has not yet been declared effective, the Issuer will notify the Purchasers to that effect, will use its commercially reasonable efforts to secure the effectiveness of such post-effective amendment as promptly as possible
and will promptly notify the Purchaser pursuant to Section 8.2(b)(i) hereof when the amendment has become effective). 
 (c) In the
event (i) of any request by the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to a Registration Statement or related Prospectus or for
additional information; (ii) of the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose;
(iii) of the receipt by the Issuer of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Converted Shares for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose; or (iv) of any event or circumstance which, upon the advice of its counsel, necessitates the making of any changes in the Registration Statement or Prospectus, or any document incorporated or deemed to be
incorporated therein by reference, so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the
statements therein not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, then the Issuer shall promptly deliver a certificate in writing to the Purchasers (the “Suspension Notice”) to the effect of the foregoing and, upon
receipt of such Suspension Notice, the Purchasers will refrain from selling any Converted Shares pursuant to the Registration Statement (a “Suspension”) until the Purchasers’ receipt of copies of a supplemented or amended Prospectus
prepared and filed by the Issuer, or until the Purchasers are advised in writing by the Issuer that the current Prospectus may be used, and have received copies of any additional or supplemental filings that are incorporated or deemed incorporated
by reference in any such Prospectus. In the event of any Suspension, the Issuer will use its commercially reasonable efforts to cause the use of the Prospectus so suspended to be resumed as promptly as possible after the delivery of a Suspension
Notice to the Purchasers. 
 (d) Provided that a Suspension is not then in effect, the Purchasers may sell Converted Shares under the
Registration Statement in the manner set forth under the caption “Plan of Distribution” in the Prospectus, provided that each arranges for delivery of a current Prospectus to the transferee of such Converted Shares. Upon receipt of a
request therefor, the Issuer has agreed to provide an adequate number of current Prospectuses to the Purchasers and to supply copies to any other parties requiring such Prospectuses. 
 8.3 Indemnification. For the purpose of this Section 8.3: 
  

 11 

 (i) the term “Selling Stockholder” shall include the Purchasers and their respective
affiliates; 
 (ii) the term “Registration Statement” shall include the Prospectus in the form first filed with the SEC pursuant
to Rule 424(b) of the Securities Act or filed as part of the Registration Statement at the time of effectiveness if no Rule 424(b) filing is required, any exhibit, supplement or amendment included in or relating to the Registration Statement
referred to in Section 8.1; and 
 (iii) the term “untrue statement” shall include any untrue statement or alleged untrue
statement of a material fact in the Registration Statement, or any omission or alleged omission to state in the Registration Statement a material fact required to be stated therein or necessary to make the statements therein not misleading.

 (a) The Issuer agrees to indemnify and hold harmless each Selling Stockholder and its officers, directors, members and their respective
successors and assigns (collectively, the “Selling Stockholder Indemnified Parties”) from and against any third party losses, claims, damages or liabilities to which such Selling Stockholder Indemnified Parties may become subject (under
the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon (i) any breach of the representations or warranties of the Issuer contained
herein, or failure to comply with the covenants and agreements of the Issuer contained herein, (ii) any untrue statement of a material fact contained in the Registration Statement as amended at the time of effectiveness or any omission of a
material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or (iii) any failure by the Issuer to fulfill any undertaking included in the
Registration Statement as amended at the time of effectiveness, and the Issuer will reimburse such Selling Stockholder Indemnified Parties for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to
defend any such action, proceeding or claim, provided, however, that the Issuer shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in
such Registration Statement or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading in reliance upon and in conformity with written information furnished to the Issuer by or on
behalf of such Selling Stockholder Indemnified Parties specifically for use in preparation of the Registration Statement, a breach of any representations or warranties made by such Selling Stockholder herein, or the failure of such Selling
Stockholder Indemnified Parties to comply with its covenants and agreements contained in this Agreement hereof or any statement or omission in any Prospectus that is corrected in any subsequent Prospectus that was delivered to the Selling
Stockholder Indemnified Party prior to the pertinent sale or sales by the Selling Stockholder Indemnified Party. The Issuer shall reimburse each Selling Stockholder Indemnified Party for the amounts provided for herein on demand as such expenses are
incurred. 
 (b) Each Purchaser agrees to indemnify and hold harmless the Issuer (and each person, if any, who controls the Issuer within
the meaning of Section 15 of the Securities Act, each officer of the Issuer who signs the Registration Statement and each director of the Issuer) from and against any third party losses, claims, damages or liabilities to which the Issuer (or
any such officer, director or controlling person) may become subject (under the 

  

 12 

 
Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are
based upon, (i) any breach of the representations and warranties of such Purchaser contained herein, (ii) any failure to comply with the covenants and agreements of such Purchaser contained herein, or (iii) any untrue statement of a
material fact contained in the Registration Statement or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading if such untrue statement or omission was made in reliance upon and in
conformity with written information furnished by or on behalf of such Purchaser specifically for use in preparation of the Registration Statement, and such Purchaser will reimburse the Issuer (or such officer, director or controlling person), as the
case maybe, for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim; provided, however, that such Purchaser’s obligation to indemnify
the Issuer or any other persons hereunder shall be limited to the amount by which the net amount received by such Purchaser from the sale of the Converted Shares to which such loss relates exceeds the amount of any damages which such Purchaser has
otherwise been required to pay by reason of such untrue statement or omission, provided further that, with respect to any indemnification obligation arising under clause (iii) of this paragraph (b), such obligation shall be limited to
the net amount received by such Purchaser from the sale of the Converted Shares included in the Registration Statement in question. 
 (c)
Promptly after receipt by any indemnified person of a notice of a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 8.3, such indemnified person shall
notify the indemnifying person in writing of such claim or of the commencement of such action, but the omission to so notify the indemnifying person will not relieve it from any liability which it may have to any indemnified person under this
Section 8.3 (except to the extent that such omission materially and adversely affects the indemnifying person’s ability to defend such action) or from any liability otherwise than under this Section 8.3. Subject to the provisions
hereinafter stated, in case any such action shall be brought against an indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified
person promptly after receiving the aforesaid notice from such indemnified person, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such
indemnified person of its election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof,
provided, however, that if there exists or shall exist a conflict of interest that would make it inappropriate, in the opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and such
indemnifying person or any affiliate or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no indemnifying person shall be
responsible for the fees and expenses of more than one separate counsel (together with appropriate local counsel) for all indemnified parties. In no event shall any indemnifying person be liable in respect of any amounts paid in settlement of any
action unless the indemnifying person shall have approved the terms of such settlement; provided that such consent shall not be unreasonably withheld. No indemnifying person shall, without the prior written consent of the indemnified person, effect
any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party 

  

 13 

 
and indemnification could have been sought hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified
person from all liability on claims that are the subject matter of such proceeding. 
 (d) If the indemnification provided for in this
Section 8.3 is unavailable to or insufficient to hold harmless an indemnified person under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect thereof) referred to
therein, then each indemnifying person shall contribute to the amount paid or payable by such indemnified person as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to
reflect the relative fault of the Issuer on the one hand and the Purchaser(s) on the other in connection with the statements or omissions or other matters which resulted in such losses, claims, damages or liabilities (or actions in respect thereof),
as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, in the case of an untrue statement, whether the untrue statement relates to information supplied by the Issuer on the
one hand or the Purchaser(s) on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement. The Issuer and the Purchasers agree that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take into account the
equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified person as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this
subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified person in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this
subsection (d), a Purchaser shall not be required to contribute any amount in excess of the amount by which the net amount received by such Purchaser from the sale of the Converted Shares to which such loss relates exceeds the amount of any
damages which such Purchaser has otherwise been required to pay by reason of such untrue statement. 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. Each Purchaser’s obligations in this subsection to contribute shall be in proportion to its sale of Converted Shares to which such loss relates and shall not be joint with
any other Selling Stockholders. 
 (e) The parties to this Agreement hereby acknowledge that they are sophisticated business persons who
were represented by counsel during the negotiations regarding the provisions hereof including, without limitation, the provisions of this Section 8.3, and are fully informed regarding said provisions. They further acknowledge that the
provisions of this Section 8.3 fairly allocate the risks in light of the ability of the parties to investigate the Issuer and its business in order to assure that adequate disclosure is made in the Registration Statement as required by the
Securities Act. The parties are advised that federal or state public policy as interpreted by the courts in certain jurisdictions may be contrary to certain of the provisions of this Section 8.3, and the parties hereto hereby expressly waive
and relinquish any right or ability to assert such public policy as a defense to a claim under this Section 8.3 and further agree not to attempt to assert any such defense. 
  

 14 

 8.4 Termination of Conditions and Obligations. The conditions precedent imposed by this Agreement
upon the transferability of the Converted Shares, shall cease and terminate as to any particular Converted Shares when such Converted Shares shall have been effectively registered under the Securities Act and sold or otherwise disposed of in
accordance with the intended method of disposition set forth in the Registration Statement covering the Converted Shares or at such time as an opinion of counsel reasonably satisfactory to the Issuer shall have been rendered to the effect that such
conditions are not necessary in order to comply with the Securities Act. 
 9. Notices. All notices, requests, consents and
other communications hereunder shall be in writing, shall be mailed (A) if within the United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile, or
(B) if delivered from outside the United States, by International Federal Express or facsimile, and shall be deemed given (i) if delivered by first-class registered or certified mail, three business days after so mailed, (ii) if
delivered by nationally recognized overnight carrier, one business day after so mailed, (iii) if delivered by International Federal Express, two business days after so mailed, (iv) if delivered by facsimile, upon electronic confirmation of
receipt and shall be delivered as addressed as follows: 
  

	 	(a)	if to the Issuer, to: 

 Contango Oil &
Gas Company 
 3700 Buffalo Speedway, Suite 960 
 Houston, TX 77098 
 Tel: (713) 960-1901 
 Fax: (713) 960-1065 
  

	 	(b)	With a copy to: 

 Morgan, Lewis &
Bockius LLP 
 300 S. Grand Avenue, Suite 2200 
 Los Angeles, CA 90071 
 Attn: Richard A. Shortz 
 Tel: (213) 612-2526 
 Fax: (213) 612-2554 
  

	 	(c)	if to a Purchaser, at its address on Schedule 1 

 attached hereto, or at such other address or 
 addresses as may have been furnished
to the Issuer 
 in writing 
  

	 	(d)	with a copy to: 

 Energy Capital
Solutions, LLC 
 2651 North Harwood 
 410 Rolex Bldg. 
 Dallas, TX 75201 
  

 15 

 and 
 Patton Boggs LLP 
 2001 Ross Avenue, Suite 3000 
 Dallas, TX 75201 
 Attn: Fred A. Stovall 
 Tel: (214) 758-1500 
 Fax: (214) 758-1550 
 10. Reliance. Each Purchaser and the Issuer understand and agree that the other party and its respective officers, directors, employees and
agents may, and will, rely on the accuracy of the other party’s respective representations and warranties in this Agreement to establish compliance with applicable securities laws. Each Purchaser and the Issuer agree to indemnify and hold
harmless all such parties against all losses, claims, costs, expenses and damages or liabilities which they may suffer or incur caused or arising from their reliance on such representations and warranties; provided, however, that the
indemnification provided by each Purchaser pursuant to this Section 10 shall be limited to the Purchase Price paid by such Purchaser pursuant to this Agreement. 
 11. Miscellaneous. 
 11.1 Survival. The representations and warranties made in this Agreement
shall survive the closing of the transactions contemplated by this Agreement. 
 11.2 Assignment. This Agreement is not transferable
or assignable, except that this Agreement shall be transferable by a Purchaser to its affiliates. 
 11.3 Execution and Delivery of
Agreement. The Issuer shall be entitled to rely on delivery by facsimile transmission of an executed copy of this Agreement, and acceptance by the Issuer of such facsimile copy shall create a valid and binding agreement between the Purchaser and
the Issuer. 
 11.4 Titles. The titles of the sections and subsections of this Agreement are for the convenience of reference only and
are not to be considered in construing this Agreement. 
 11.5 Severability. The invalidity or unenforceability of any particular
provision of this Agreement shall not affect or limit the validity or enforceability of the remaining provisions of this Agreement. 
 11.6
Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matters herein and supersedes and replaces any prior agreements and understandings, whether oral or written,
between them with respect to such matters. 
 11.7 Waiver and Amendment. Except as otherwise provided herein, the provisions of this
Agreement may be waived, altered, amended or repealed, in whole or in part, only upon the mutual written agreement of the Issuer and Purchasers acquiring in the aggregate a majority of the Series E Preferred Stock purchased pursuant to this
Agreement. 
  

 16 

 11.8 Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be an original, but all of which together shall constitute one and the same instrument. 
 11.9 Governing Law. This Agreement is
governed by and shall be construed in accordance with the laws of the State of Delaware. 
 11.10 Attorney’s Fees. In any action
or proceeding brought to enforce any provision of this Agreement, or where any provision hereof is validly asserted as a defense, the successful party shall be entitled to recover reasonable attorney’s fees (including any fees incurred in any
appeal) in addition to its costs and expenses and any other available remedy. 
  

 17 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first
above mentioned. 
  

			
	ISSUER:
	
	CONTANGO OIL & GAS COMPANY
		
	 By:
	 	 /s/ KENNETH R. PEAK

	 Name:
	 	Kenneth R. Peak
	 Title:
	 	Chairman and Chief Executive Officer

  

 [Signature Page to Series E Securities Purchase Agreement] 

			
	 PURCHASER:

	
	 RCH Energy Opportunity Fund II, L.P.

		
	 By:
	 	 /s/ ROBERT RAYMOND

	 Name:
	 	Robert Raymond
	 Title:
	 	Sole-Member

  

 [Signature Page to Series E Securities Purchase Agreement] 

			
	 PURCHASER:

	
	 The Northwestern Mutual Life Insurance Company

		
	 By:
	 	 /s/ JEROME R. BALER

	 Name:
	 	Jerome R. Baler
	 Title:
	 	Its Authorized Representative

  

 [Signature Page to Series E Securities Purchase Agreement] 

			
	 PURCHASER:

	
	 Palo Alto Global Energy Master Fund, L.P.

		
	 By:
	 	 /s/ MARK R. SHAMIA

	 Name:
	 	Mark R. Shamia
	 Title:
	 	Chief Operating Officer

  

 [Signature Page to Series E Securities Purchase Agreement] 

			
	PURCHASER:
	
	 West Coast Opportunity Fund, LLC

		
	 By:
	 	 /s/ ATTICUS LOWE

	 Name:
	 	Atticus Lowe
	 Title:
	 	Chief Investment Officer

  

 [Signature Page to Series E Securities Purchase Agreement] 

			
	 PURCHASER:

	
	 Ironman Energy Fund, LP

		
	 By:
	 	 /s/ G. BRYAN DUTT

	 Name:
	 	G. Bryan Dutt
	 Title:
	 	Managing Director

  

 [Signature Page to Series E Securities Purchase Agreement] 

			
	 PURCHASER:

	
	 BlackGold Capital Partners (QP) LP

		
	 By:
	 	 /s/ ERIK DUBESLAND

	 Name:
	 	Erik Dubesland
	 Title:
	 	Managing Director

  

 [Signature Page to Series E Securities Purchase Agreement] 

			
	 PURCHASER:

	
	 Premium Series PCC Limited

		
	 By:
	 	 /s/ ERIK DUBESLAND

	 Name:
	 	Erik Dubesland
	 Title:
	 	Managing Partner

  

 [Signature Page to Series E Securities Purchase Agreement] 

 SCHEDULE 1 
 LIST OF PURCHASERS 
  

						
	 Name and Address of Purchaser
	  	Number of Shares of
Series E Preferred Stock
Purchased	  	Aggregate Purchase
Price
	 RCH Energy Opportunity Fund II, L.P.
 200 Crescent Court, Suite 1060
 Dallas, TX 75201
	  	2,000	  	$	10,000,000
			
	 The Northwestern Mutual Life Insurance Company
 720 E. Wisconsin Avenue
 Milwaukee, WI 53202
	  	1,000	  	$	5,000,000
			
	 Palo Alto Global Energy Master Fund, L.P.
 470 University Avenue
 Palo Alto, CA 94301
	  	1,000	  	$	5,000,000
			
	 West Coast Opportunity Fund, LLC
 2151 Allessandro Drive, Suite 100
 Ventura, CA 93001
	  	1,000	  	$	5,000,000
			
	 Ironman Energy Fund, LP
 4545 Bissonnet, Suite 291
 Bellaire, TX 77401
	  	600	  	$	3,000,000
			
	 BlackGold Capital Partners (QP) LP
 1400 Post Oak Boulevard, Suite 300
 Houston, TX 77056
	  	200	  	$	1,000,000
			
	 Premium Series PCC Limited
 1400 Post Oak Boulevard, Suite 300
 Houston, TX 77056
	  	200	  	$	1,000,000
			
	 TOTAL:
	  	6,000	  	$	30,000,0002007 Stock Option Plan

 EXHIBIT 10.1 
  

 Dynamic Response Group, Inc. 
 2007 STOCK OPTION PLAN 
  

 1. Purpose. The purpose of this Plan is to advance the interests of Dynamic Response Group, Inc. (the “Company”), by providing an
additional incentive to attract, retain and motivate highly qualified and competent persons who are key to the Company, including key employees, consultants, independent contractors, Officers and Directors, and upon whose efforts and judgment the
success of the Company and its Subsidiaries is largely dependent, by authorizing the grant of options to purchase Common Stock of the Company and other related benefits to persons who are eligible to participate hereunder, thereby encouraging stock
ownership in the Company by such persons, all upon and subject to the terms and conditions of this Plan. 
 2. Definitions. As used
herein, the following terms shall have the meanings indicated: 
 (a) “Board” shall mean the Board of Directors of the Company.

 (b) “Cause” shall mean any of the following: 
 (i) a determination by the Company that there has been a willful, reckless or grossly negligent failure by the Optionee to perform his or her duties as an employee of the Company; 
 (ii) a determination by the Company that there has been a willful breach by the Optionee of any of the material terms or provisions of any employment
agreement between such Optionee and the Company; 
 (iii) any conduct by the Optionee that either results in his or her conviction of a
felony under the laws of the United States of America or any state thereof, or of an equivalent crime under the laws of any other jurisdiction; 
 (iv) a determination by the Company that the Optionee has committed an act or acts involving fraud, embezzlement, misappropriation, theft, breach of fiduciary duty or material dishonesty against the Company, its properties or personnel;

 (v) any act by the Optionee that the Company determines to be in willful or wanton disregard of the Company’s best interests, or
which results, or is intended to result, directly or indirectly, in improper gain or personal enrichment of the Optionee at the expense of the Company; 
 (vi) a determination by the Company that there has been a willful, reckless or grossly negligent failure by the Optionee to comply with any rules, regulations, policies or procedures of the Company, or that the
Optionee has engaged in any act, behavior or conduct demonstrating a deliberate and material violation or disregard of standards of behavior that the Company has a right to expect of its employees; or 
 (vii) if the Optionee, while employed by the Company and for two years thereafter, violates a confidentiality and/or noncompete agreement with the
Company, or fails to safeguard, divulges, communicates, uses to the detriment of the Company or for the benefit of any person or persons, or misuses in any way, any Confidential Information; provided, however, that, if the Optionee has
entered into a written employment agreement with the Company which remains effective and which expressly provides for a termination of such Optionee’s employment for “cause,” the term “Cause” as used herein shall have the
meaning as set forth in the Optionee’s employment agreement in lieu of the definition of “Cause” set forth in this Section 2(b). 
 (c) “Change of Control” shall mean the acquisition by any person or group (as that term is defined in the Exchange Act, and the rules promulgated pursuant to that act) in a single transaction or a series of
transactions of thirty percent (30%) or more in voting power of the outstanding stock of the Company and a change of the composition of the Board of Directors so that, within two 

 
years after the acquisition took place, a majority of the members of the Board of Directors of the Company, or of any corporation with which the Company may
be consolidated or merged, are persons who were not directors or officers of the Company or one of its Subsidiaries immediately prior to the acquisition, or to the first of a series of transactions which resulted in the acquisition of thirty percent
(30%) or more in voting power of the outstanding stock of the Company. 
 (d) “Code” shall mean the Internal Revenue Code of
1986, as amended. 
 (e) “Committee” shall mean the stock option committee appointed by the Board or, if not appointed, the Board.

 (f) “Common Stock” shall mean the Company’s Common Stock, par value $.001 per share. 
 (g) “Director” shall mean a member of the Board. 
 (h) “Employee” shall mean any person, including officers, directors, consultants and independent contractors employed by the Company or any parent or Subsidiary of the Company within the meaning of
Section 3401(c) of the regulators promulgated thereunder. 
 (i) “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended. 
 (j) “Fair Market Value” of a Share on any date of reference shall be the Closing Price of a share of Common
Stock on the business day immediately preceding such date, unless the Committee in its sole discretion shall determine otherwise in a fair and uniform manner. For this purpose, the “Closing Price” of the Common Stock on any business day
shall be (i) if the Common Stock is listed or admitted for trading on any United States national securities exchange, or if actual transactions are otherwise reported on a consolidated transaction reporting system, the last reported sale price
of the Common Stock on such exchange or reporting system, as reported in any newspaper of general circulation, (ii) if the Common Stock is quoted on The Nasdaq Stock Market (“Nasdaq”), or any similar system of automated dissemination
of quotations of securities prices in common use, the mean between the closing high bid and low asked quotations for such day of the Common Stock on such system, or (iii) if neither clause (i) nor (ii) is applicable, the mean between
the high bid and low asked quotations for the Common Stock as reported by the National Quotation Bureau, Incorporated if at least two securities dealers have inserted both bid and asked quotations for the Common Stock on at least five of the 10
preceding days. If the information set forth in clauses (i) through (iii) above is unavailable or inapplicable to the Company (e.g., if the Company’s Common Stock is not then publicly traded or quoted), then the “Fair Market
Value” of a Share shall be the fair market value (i.e., the price at which a willing seller would sell a Share to a willing buyer when neither is acting under compulsion and when both have reasonable knowledge of all relevant facts) of a share
of the Common Stock on the business day immediately preceding such date as the Committee in its sole and absolute discretion shall determine in a fair and uniform manner. 
 (k) “Incentive Stock Option” shall mean an incentive stock option as defined in Section 422 of the Code. 
 (l) “Non-Statutory Stock Option” or “Nonqualified Stock Option” shall mean an Option which is not an Incentive Stock Option. 
 (m) “Officer” shall mean the Company’s chairman, president, principal financial officer, principal accounting officer (or, if there is no
such accounting officer, the controller), any vice-president of the Company in charge of a principal business unit, division or function (such as sales, administration or finance), any other officer who performs a policy-making function, or any
other person who performs similar policy-making functions for the Company. Officers of Subsidiaries shall be deemed Officers of the Company if they perform such policy-making functions for the Company. As used in this paragraph, the phrase
“policy-making function” does not include policy-making functions that are not significant. Unless specified otherwise in a resolution by the Board, an “executive officer” pursuant to Item 401(b) of Regulation S-K (17 C.F.R.
§ 229.401(b)) shall be only such person designated as an “Officer” pursuant to the foregoing provisions of this paragraph. 

 (n) “Option” (when capitalized) shall mean any stock option granted under this Plan.

 (o) “Optionee” shall mean a person to whom an Option is granted under this Plan or any person who succeeds to the rights of such
person under this Plan by reason of the death of such person. 
 (p) “Plan” shall mean this 2007 Stock Option Plan of the Company,
which Plan shall be effective upon approval by the Board, subject to approval, within 12 months of the date thereof by holders of a majority of the Company’s issued and outstanding Common Stock of the Company. 
 (q) “Share” or “Shares” shall mean a share or shares, as the case may be, of the Common Stock, as adjusted in accordance with
Section 10 of this Plan. 
 (r) “Subsidiary” shall mean any corporation (other than the Company) in any unbroken chain of
corporations beginning with the Company if, at the time of the granting of the Option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50 percent or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain. 
 3. Shares and Options. Subject to adjustment in accordance with
Section 10 hereof, the Company may issue up to six million eight hundred thousand (6,800,000) Shares from Shares held in the Company’s treasury or from authorized and unissued Shares through the exercise of Options issued pursuant to
the provisions of this Plan. If any Option granted under this Plan shall terminate, expire, or be canceled, forfeited or surrendered as to any Shares, the Shares relating to such lapsed Option shall be available for issuance pursuant to new Options
subsequently granted under this Plan. Upon the grant of any Option hereunder, the authorized and unissued Shares to which such Option relates shall be reserved for issuance to permit exercise under this Plan. Subject to the provisions of
Section 14 hereof, an Option granted hereunder shall be either an Incentive Stock Option or a Non-Statutory Stock Option as determined by the Committee at the time of grant of such Option and shall clearly state whether it is an Incentive Stock
Option or Non-Statutory Stock Option. All Incentive Stock Options shall be granted within 10 years from the effective date of this Plan. 
 4. Limitations. Options otherwise qualifying as Incentive Stock Options hereunder will not be treated as Incentive Stock Options to the extent that the aggregate Fair Market Value (determined at the time the Option is granted) of the
Shares, with respect to which Options meeting the requirements of Code Section 422(b) are exercisable for the first time by any individual during any calendar year (under all stock option or similar plans of the Company and any Subsidiary),
exceeds $100,000. 
 5. Conditions for Grant of Options. 
 (a) Each Option shall be evidenced by an option agreement that may contain any term deemed necessary or desirable by the Committee, provided such terms are not inconsistent with this Plan or any applicable law.
Optionees shall be those persons selected by the Committee from the class of all regular Employees of the Company or its Subsidiaries, including Employee Directors and Officers who are regular or former regular employees of the Company, Directors
who are not regular employees of the Company, as well as consultants to the Company. Any person who files with the Committee, in a form satisfactory to the Committee, a written waiver of eligibility to receive any Option under this Plan shall not be
eligible to receive any Option under this Plan for the duration of such waiver. 
 (b) In granting Options, the Committee shall take into
consideration the contribution the person has made, or is expected to make, to the success of the Company or its Subsidiaries and such other factors as the Committee shall determine. The Committee shall also have the authority to consult with and
receive recommendations from Officers and other personnel of the Company and its Subsidiaries with regard to these matters. The Committee may from time to time in granting Options under this Plan prescribe such terms and conditions concerning such
Options as it deems appropriate, provided that such terms and conditions are not more favorable to an Optionee than those expressly permitted herein; provided further, however, that to the extent not cancelled pursuant to Section 9(b) hereof,
upon a Change in Control, any Options that have not yet vested, may, in the sole discretion of the Committee, vest upon such Change in Control. 

 (c) The Options granted to employees under this Plan shall be in addition to regular salaries, pension,
life insurance or other benefits related to their employment with the Company or its Subsidiaries. Neither this Plan nor any Option granted under this Plan shall confer upon any person any right to employment or continuance of employment (or related
salary and benefits) by the Company or its Subsidiaries. 
 6. Exercise Price. The exercise price per Share of any Option shall be any
price determined by the Committee but in no event shall the exercise price per Share of any Option be less than the Fair Market Value of the Shares underlying such Option on the date such Option is granted and, in the case of an Incentive Stock
Option granted to a 10% stockholder, the per Share exercise price will not be less than 110% of the Fair Market Value. Re-granted Options, or Options which are canceled and then re-granted covering such canceled Options, will, for purposes of this
Section 6, be deemed to have been granted on the date of the re-granting. 
 7. Exercise of Options. 
 (a) An Option shall be deemed exercised when (i) the Company has received written notice of such exercise in accordance with the terms of the Option,
(ii) full payment of the aggregate option price of the Shares as to which the Option is exercised has been made, (iii) the Optionee has agreed to be bound by the terms, provisions and conditions of any applicable stockholders’
agreement, and (iv) arrangements that are satisfactory to the Committee in its sole discretion have been made for the Optionee’s payment to the Company of the amount that is necessary for the Company or the Subsidiary employing the
Optionee to withhold in accordance with applicable Federal or state tax withholding requirements. Unless further limited by the Committee in any Option, the exercise price of any Shares purchased pursuant to the exercise of such Option shall be paid
in cash, by certified or official bank check, by money order, with Shares or by a combination of the above; provided, however, that the Committee in its sole discretion may accept a personal check in full or partial payment of any Shares. The
Company in its sole discretion may, on an individual basis or pursuant to a general program established by the Committee in connection with this Plan, lend money to an Optionee to exercise all or a portion of the Option granted hereunder. If the
exercise price is paid in whole or part with the Optionee’s promissory note, such note shall (i) provide for full recourse to the maker, (ii) be collateralized by the pledge of the Shares that the Optionee purchases upon exercise of
such Option, (iii) bear interest at a rate no less than the rate of interest payable by the Company to its principal lender, and (iv) contain such other terms as the Committee in its sole discretion shall require. 
 (b) No Optionee shall be deemed to be a holder of any Shares subject to an Option unless and until a stock certificate or certificates for such Shares
are issued to such person(s) under the terms of this Plan. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the record date is prior to
the date such stock certificate is issued, except as expressly provided in Section 10 hereof. 
 (c) Any Option may, in the discretion
of the Committee, be exercised pursuant to a “cashless” or “net issue” exercise. In lieu of exercising the Option as specified in subsection (a) above, the Optionee may pay in whole or in part with Shares, the number of
which shall be determined by dividing (a) the aggregate Fair Value of such Shares otherwise issuable upon exercise of the Option minus the aggregate Exercise Price of such Option by (b) the Fair Value of one such Share, or the Optionee may
pay in whole or in part through a reduction in the number of Shares received through the exercise of the Option equal to the quotient of the (a) aggregate Fair Value of all the Shares issuable upon exercise of the Option minus the aggregate
Exercise Price of such Option (b) divided by the Fair Value of one such share. If the exercise price is paid in whole or in part with Shares, the value of the Shares surrendered shall be their Fair Market Value on the date the Option is
exercised. 
 8. Exercisability of Options. Any Option shall become exercisable in such amounts, at such intervals, upon such events
or occurrences and upon such other terms and conditions as shall be provided in an individual Option agreement evidencing such Option, except as otherwise provided in Section 5(b) or this Section 8. 

 (a) The expiration date(s) of an Option shall be determined by the Committee at the time of grant, but in
no event shall an Option be exercisable after the expiration of 10 years from the date of grant of the Option. 
 (b) Unless otherwise
expressly provided in any Option as approved by the Committee, notwithstanding the exercise schedule set forth in any Option, each outstanding Option, may, in the sole discretion of the Committee, become fully exercisable upon the date of the
occurrence of any Change of Control, but, unless otherwise expressly provided in any Option, no earlier than six months after the date of grant, and if and only if Optionee is in the employ of the Company on such date. 
 (c) The Committee may in its sole discretion accelerate the date on which any Option may be exercised and may accelerate the vesting of any Shares
subject to any Option or previously acquired by the exercise of any Option. 
 9. Termination of Option Period. 
 (a) Unless otherwise expressly provided in any Option, the unexercised portion of any Option shall automatically and without notice immediately terminate
and become forfeited, null and void at the time of the earliest to occur of the following: 
 (i) three months after the date on which the
Optionee’s employment is terminated for any reason other than by reason of (A) Cause, (B) the termination of the Optionee’s employment with the Company by such Optionee following less than 60 days’ prior written notice to
the Company of such termination (an “Improper Termination”), (C) a mental or physical disability (within the meaning of Section 22(e) of the Code) as determined by a medical doctor satisfactory to the Committee, or
(D) death; 
 (ii) immediately upon (A) the termination by the Company of the Optionee’s employment for Cause, or (B) an
Improper Termination; 
 (iii) one year after the date on which the Optionee’s employment is terminated by reason of a mental or
physical disability (within the meaning of Code Section 22(e)) as determined by a medical doctor satisfactory to the Committee or the later of three months after the date on which the Optionee shall die if such death shall occur during the
one-year period specified herein; or 
 (iv) the later of (a) one year after the date of termination of the Optionee’s employment
by reason of death of the employee, or (b) three months after the date on which the Optionee shall die if such death shall occur during the one year period specified in Subsection 9(a)(iii) hereof. 
 (b) The Committee in its sole discretion may, by giving written notice (“cancellation notice”), cancel effective upon the date of the
consummation of any corporate transaction described in Subsection 10(d) hereof, any Option that remains unexercised on such date. Such cancellation notice shall be given a reasonable period of time prior to the proposed date of such cancellation and
may be given either before or after approval of such corporate transaction. 
 (c) Upon termination of Optionee’s employment as
described in this Section 9, or otherwise, any Option (or portion thereof) not previously vested or not yet exercisable pursuant to Section 8 of this Plan or the vesting schedule set forth in such Option shall be immediately canceled.

 10. Adjustment of Shares. 
 (a) If at any time while this Plan is in effect or unexercised Options are outstanding, there shall be any increase or decrease in the number of issued and outstanding Shares through the declaration of a stock dividend or through any
recapitalization resulting in a stock split, combination or exchange of Shares (other than any such exchange or issuance of Shares through which Shares are issued to effect an acquisition of another business or entity or the Company’s purchase
of Shares to exercise a “call” purchase option), then and in such event: 
 (i) appropriate adjustment shall be made in the maximum
number of Shares available for grant under this Plan, so that the same percentage of the Company’s issued and outstanding Shares shall continue to be subject to being so optioned; 

 (ii) appropriate adjustment shall be made in the number of Shares and the exercise price per Share
thereof then subject to any outstanding Option, so that the same percentage of the Company’s issued and outstanding Shares shall remain subject to purchase at the same aggregate exercise price; and 
 (iii) such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. 
 (b) Subject to the specific terms of any Option, the Committee may change the terms of Options outstanding under this Plan, with respect to the option
price or the number of Shares subject to the Options, or both, when, in the Committee’s sole discretion, such adjustments become appropriate by reason of a corporate transaction described in Subsection 10(d) hereof, or otherwise. 
 (c) Except as otherwise expressly provided herein, the issuance by the Company of shares of its capital stock of any class, or securities convertible
into or exchangeable for shares of its capital stock of any class, either in connection with a direct or underwritten sale, or upon the exercise of rights or warrants to subscribe therefor or purchase such Shares, or upon conversion of obligations
of the Company into such Shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of or exercise price of Shares then subject to outstanding Options granted under this Plan.

 (d) Without limiting the generality of the foregoing, the existence of outstanding Options granted under this Plan shall not affect in any
manner the right or power of the Company to make, authorize or consummate (i) any or all adjustments, reclassifications, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business; (ii) any
merger or consolidation of the Company or to which the Company is a party; (iii) any issuance by the Company of debt securities, or preferred or preference stock that would rank senior to or above the Shares subject to outstanding Options;
(iv) any purchase or issuance by the Company of Shares or other classes of common stock or common equity securities; (v) the dissolution or liquidation of the Company; (vi) any sale, transfer, encumbrance, pledge or assignment of all
or any part of the assets or business of the Company; or (vii) any other corporate act or proceeding, whether of a similar character or otherwise. 
 (e) The Optionee shall receive written notice within a reasonable time prior to the consummation of such action advising the Optionee of any of the foregoing. The Committee may, in the exercise of its sole discretion,
in such instances declare that any Option shall terminate as of a date fixed by the Board and give each Optionee the right to exercise his or her Option. 
 11. Transferability. No Option or stock appreciation right granted hereunder shall be sold, pledged, assigned, hypothecated, disposed or otherwise transferred by the Optionee other than by will or the laws of
descent and distribution, unless otherwise authorized by the Board, and no Option or stock appreciation right shall be exercisable during the Optionee’s lifetime by any person other than the Optionee. 
 12. Issuance of Shares. As a condition of any sale or issuance of Shares upon exercise of any Option, the Committee may require such agreements or
undertakings, if any, as the Committee may deem necessary or advisable to assure compliance with any such law or regulation including, but not limited to, the following: 
 (i) a representation and warranty by the Optionee to the Company, at the time any Option is exercised, that he is acquiring the Shares to be issued to him for investment and not with a view to, or for sale in
connection with, the distribution of any such Shares; and 
 (ii) an agreement and undertaking to comply with all of the terms, restrictions
and provisions set forth in any then applicable stockholders’ agreement relating to the Shares, including, without limitation, any restrictions on transferability, any rights of first refusal and any option of the Company to “call” or
purchase such Shares under then applicable agreements, and 

 (iii) any restrictive legend or legends, to be embossed or imprinted on Share certificates, that are, in
the discretion of the Committee, necessary or appropriate to comply with the provisions of any securities law or other restriction applicable to the issuance of the Shares. 
 13. Stock Appreciation Rights. The Committee may grant stock appreciation rights to Employees, either or tandem with Options that have been or are
granted under the Plan or with respect to a number of Shares on which an Option is not granted. A stock appreciation right shall entitle the holder to receive, with respect to each Share as to which the right is exercised, payment in an amount equal
to the excess of the Share’s Fair Market Value on the date the right is exercised over its Fair Market Value on the date the right was granted. Such payment may be made in cash or in Shares valued at the Fair Market Value as of the date of
surrender, or partly in cash and partly in Shares, as determined by the Committee in its sole discretion. The Committee may establish a maximum appreciation value payable for stock appreciation rights. 
 14. Restricted Stock Awards. The Committee may grant restricted stock awards under the Plan in Shares or denominated in units of Shares. The
Committee, in its sole discretion, may make such awards subject to conditions and restrictions, as set forth in the instrument evidencing the award, which may be based on continuous service with the Company or the attainment of certain performance
goals related to profits, profit growth, cash-flow or shareholder returns, where such goals may be stated in absolute terms or relative to comparison companies or indices to be achieved during a period of time. 
 15. Administration of this Plan. 
 (a)
This Plan shall be administered by the Committee, which shall consist of not less than two Directors. The Committee shall have all of the powers of the Board with respect to this Plan. Any member of the Committee may be removed at any time, with or
without cause, by resolution of the Board and any vacancy occurring in the membership of the Committee may be filled by appointment by the Board. 
 (b) Subject to the provisions of this Plan, the Committee shall have the authority, in its sole discretion, to: (i) grant Options, (ii) determine the exercise price per Share at which Options may be exercised,
(iii) determine the Optionees to whom, and time or times at which, Options shall be granted, (iv) determine the number of Shares to be represented by each Option, (v) determine the terms, conditions and provisions of each Option
granted (which need not be identical) and, with the consent of the holder thereof, modify or amend each Option, (vi) defer (with the consent of the Optionee) or accelerate the exercise date of any Option, and (vii) make all other
determinations deemed necessary or advisable for the administration of this Plan, including re-pricing, canceling and regranting Options. 
 (c) The Committee, from time to time, may adopt rules and regulations for carrying out the purposes of this Plan. The Committee’s determinations and its interpretation and construction of any provision of this Plan shall be final,
conclusive and binding upon all Optionees and any holders of any Options granted under this Plan. 
 (d) Any and all decisions or
determinations of the Committee shall be made either (i) by a majority vote of the members of the Committee at a meeting of the Committee or (ii) without a meeting by the unanimous written approval of the members of the Committee.

 (e) No member of the Committee, or any Officer or Director of the Company or its Subsidiaries, shall be personally liable for any act or
omission made in good faith in connection with this Plan. 
 16. Incentive Options for 10% Stockholders. Notwithstanding any other
provisions of this Plan to the contrary, an Incentive Stock Option shall not be granted to any person owning directly or indirectly (through attribution under Section 424(d) of the Code) at the date of grant, stock possessing more than 10% of
the total combined voting power of all classes of stock of the Company (or of its Subsidiary) at the date of grant unless the exercise price of such Option is at least 110% of the Fair Market Value of the Shares subject to such Option on the date
the Option is granted, and such Option by its terms is not exercisable after the expiration of 10 years from the date such Option is granted. 

 17. Interpretation. 
 (a) This Plan shall be administered and interpreted so that all Incentive Stock Options granted under this Plan will qualify as Incentive Stock Options under Section 422 of the Code. If any provision of this Plan
should be held invalid for the granting of Incentive Stock Options or illegal for any reason, such determination shall not affect the remaining provisions hereof, and this Plan shall be construed and enforced as if such provision had never been
included in this Plan. 
 (b) This Plan shall be governed by the laws of the State of Florida. 
 (c) Headings contained in this Plan are for convenience only and shall in no manner be construed as part of this Plan or affect the meaning or
interpretation of any part of this Plan. 
 (d) Any reference to the masculine, feminine, or neuter gender shall be a reference to such other
gender as is appropriate. 
 (e) Time shall be of the essence with respect to all time periods specified for the giving of notices to the
company hereunder, as well as all time periods for the expiration and termination of Options in accordance with Section 9 hereof (or as otherwise set forth in an option agreement). 
 18. Amendment and Discontinuation of this Plan. Either the Board or the Committee may from time to time amend this Plan or any Option without the
consent or approval of the stockholders of the Company; provided, however, that, except to the extent provided in Section 9, no amendment or suspension of this Plan or any Option issued hereunder shall substantially impair any Option previously
granted to any Optionee without the consent of such Optionee. 
 19. Termination Date. This Plan shall terminate ten years after the
date of adoption by the Board of Directors

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]