Document:

Exhibit 10.1

 

CERTAIN IDENTIFIED INFORMATION
HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY
DISCLOSED. [***] INDICATES THAT INFORMATION HAS BEEN REDACTED.

 

Execution Version

 

PURCHASE AND SALE AGREEMENT

 

BETWEEN

 

ENSIGHT IV ENERGY PARTNERS, LLC

 

AND

 

ENSIGHT HAYNESVILLE PARTNERS, LLC 

(COLLECTIVELY, AS SELLER)

 

AND

 

TELLURIAN PRODUCTION LLC 

(AS BUYER)

 

DATED July 13, 2022

     

     

    

 

TABLE OF CONTENTS

 

	1.	Sale and Purchase of Assets	 	1

		1.1	Assets to be Sold	1

		1.2	Exclusions and Reservations	3

		1.3	Suspended Proceeds	5

		1.4	Election to Effect IRC § 1031 Exchange	5

 

	2.	Purchase Price and Effective Time	 	6

		2.1	Purchase Price and Deposit	6

		2.2	Allocation of Purchase Price	6

		2.3	Adjustments to Purchase Price	6

		2.4	Effective Time of Sale	8

		2.5	Withholding Taxes	8

		2.6	Contingent Payment	8

 

	3.	Allocation of Revenues and Costs; Indemnification	 	10

		3.1	Allocation of Revenues and Costs	10

		3.2	Assumption of Obligations by Buyer	12

		3.3	Retained Obligations; Indemnification; Claims Procedures; Subrogation;
                                            Insured Losses; Recoveries from Third Parties	13

		3.4	Joint and Several	21

		3.5	Special Warranty of Title	21

 

	4.	Taxes and Payables	 	21

		4.1	Proration of Taxes	22

		4.2	Tax Returns	22

		4.3	Transfer Taxes	22

		4.4	Cooperation	22

		4.5	True-Up	22

 

	5.	Representations, Warranties, Acknowledgments,
    Disclaimers and Waivers	 	22

		5.1	Seller’s Representations and Warranties	22

		5.2	Buyer’s Representations and Warranties	29

		5.3	Representations and Warranties Exclusive	30

		5.4	Disclaimers, Waivers and Acknowledgments	31

 

	6.	Title Matters	 	32

		6.1	Examination Period	32

		6.2	Title Defects	33

		6.3	Permitted Encumbrances	33

		6.4	Notice of Title Defects; Title Defect Valuation	36

		6.5	Seller’s Right to Cure	37

		6.6	Remedies for Title Defects	38

		6.7	Title Benefits	39

		6.8	Disputed Title Matters	40

		6.9	Limitation of Remedies for Title Defects and Title Benefits	40

 

	7.	Environmental Matters	 	41

		7.1	Environmental Review	41

		7.2	Environmental Definitions	43

 

    Page ii

     

    

 

		7.3	Notice of Environmental Defects	43

		7.4	Seller’s Right to Cure	44

		7.5	Remedies for Environmental Defects	45

		7.6	Disputed Environmental Matters	46

		7.7	Limitation of Remedies for Environmental Defects	46

 

	8.	Independent Experts	 	47

		8.1	Selection of Independent Experts	47

		8.2	Procedures	47

		8.3	Location of Proceeding	48

 

	9.	Additional Covenants and Pre-Closing Actions	 	48

		9.1	Operations Prior to Closing	48

		9.2	Successor Operator	50

		9.3	Antitrust Laws	50

		9.4	Consents to Assign	50

		9.5	Closing Efforts	52

		9.6	Notifications	52

		9.7	Seller Indebtedness	52

		9.8	Financial Statements and Oil & Gas Reserve and Operational
                                            Data	52

		9.9	Non-Competition	53

		9.10	Employee Matters	54

		9.11	Replacement of Credit Support	54

 

	10.	Closing, Termination and Final Adjustments	 	55

		10.1	Conditions Precedent	55

		10.2	Closing	56

		10.3	Termination	57

		10.4	Final Adjustments	60

 

	11.	Disputes	 	60

		11.1	Arbitration	60

 

	12.	Miscellaneous	 	61

		12.1	Gas Imbalances	61

		12.2	Casualty Loss of Assets	61

		12.3	Books and Records	62

		12.4	Publicity	62

		12.5	Assignment	62

		12.6	Entire Agreement	62

		12.7	Headings	63

		12.8	Notices	63

		12.9	Governing Law	63

		12.10	Waiver of Jury Trial	63

		12.11	Records	64

		12.12	Confidentiality	64

		12.13	Further Cooperation	64

		12.14	Counterparts	64

		12.15	Exhibits and Schedules	64

		12.16	Severability	64

		12.17	Expenses, Post-Closing Consents and Recording	65

 

    Page iii

     

    

 

		12.18	Removal of Signs and Markers	65

		12.19	CONSPICUOUSNESS/EXPRESS NEGLIGENCE	65

		12.20	Waiver of Certain Damages; Limitation on Indemnity	65

		12.21	Waiver of Right to Rescind	65

		12.22	No Recourse	66

		12.23	Buyer’s Acquisition of Tag Along Interests	66

		12.24	Louisiana Terminology	66

 

	13.	DEFINED TERMS	 	67

		13.1	References	67

		13.2	Certain Defined Terms	67

 

    Page iv

     

    

 

LIST OF EXHIBITS

 

	Exhibit “A-1”	–	Leases
	Exhibit “A-2”	–	Existing Wells
	Exhibit “A-3”	–	Units
	Exhibit “A-4”	–	Surface Interests
	Exhibit “B”	–	Form of Assignment

 

LIST OF ANNEXES

 

	Annex “A”	–	Illustrative Calculation
    to Show NYMEX Henry Hub Average Price for the Eight Contract Delivery Months Ended May 2022
	Annex “B”	–	Henry Hub Natural Gas Futures
    Calendar

 

LIST OF SCHEDULES

 

	Schedule 1.2(m)	–	Certain Excluded Assets
	Schedule 3.1(e)	–	New Well Costs
	Schedule 5.1(f)	–	Suits and Claims
	Schedule 5.1(g)	–	Tax Matters
	Schedule 5.1(h)	–	Compliance with Laws
	Schedule 5.1(i)	–	Permits
	Schedule 5.1(k)	–	Imbalances
	Schedule 5.1(l)(i)	–	Preferential Rights
	Schedule 5.1(l)(ii)	–	Consents
	Schedule 5.1(l)(iii)	–	Tag-Along Rights
	Schedule 5.1(m)-1	–	Material Contracts
	Schedule 5.1(m)-2	–	Material Contract Matters
	Schedule 5.1(n)	–	Well Matters
	Schedule 5.1(o)	–	Suspended Proceeds
	Schedule 5.1(p)(ii)	–	Lease Matters
	Schedule 5.1(p)(iii)	–	Inactive Wells
	Schedule 5.1(q)(i)	–	Non-Consent Operations
	Schedule 5.1(q)(ii)	–	Payout Balances
	Schedule 5.1(r)	–	Environmental Matters
	Schedule 6.3(c)	–	Encumbrances for Delinquent Taxes
	Schedule 9.9(a)	–	Restricted Persons
	Schedule 9.11	–	Credit Support

 

    Page v

     

    

 

TABLE
OF DEFINED TERMS

 

	AAA	61
	Adjusted Purchase Price	6
	Affiliate	68
	Agreement	1
	Allocated Value	6
	Asset Taxes	21
	Assets	1
	Assignment	56
	Assumed Obligations	13
	Business Day	8
	Buyer	1
	Buyer Certificate	57
	Buyer Parties	14
	Buyer Taxes	22
	Buyer’s Knowledge	31
	Casualty Loss	62
	Claim Notice	15
	Claims	14
	Closing	56
	Closing Date	56
	Closing Payment	8
	Closing Statement	8
	Code	5
	Confidentiality Agreement	64
	Consent	52
	Contingent Payment	9
	Contingent Payment Period	9
	Contracts	3
	CPR	47
	Credit Support	55
	Cure Date	37
	De Minimis Threshold	17
	Debt Instrument	68
	Defect Escrow Account	38
	Defect Escrow Amount	68
	Defensible Title	33
	Deposit	6
	Drilling Costs	12
	EEP	1
	Effective Time	8
	Encumbrance	33
	Environmental Consultant	42
	Environmental Defect	43
	Environmental Defect Notice	44
	Environmental Defect Value	44
	Environmental Information	43
	Environmental Laws	43

	Environmental Review	42
	Escrow Account	6
	Escrow Agent	6
	Escrow Agreement	6
	Examination Period	32
	Excluded Assets	4
	Execution Date	1
	Existing Wells	1
	Final Monthly Statement	9
	Final Settlement Statement	60
	Fundamental Representations	68
	General Indemnity Period	18
	Governmental Authority	68
	Hard Consent	52
	Hazardous Substance	68
	Holdback Amount	19
	Holdback True-Up Amount	6
	Hydrocarbons	68
	Imbalance	61
	Income Taxes	68
	Indemnified Party	15
	Indemnifying Party	15
	Indemnity Deductible	17
	Independent Expert	47
	Invasive Activity	42
	Knowledge of Buyer	31
	Knowledge of Seller	29
	Lands	1
	Law	69
	Leases	1
	Liabilities	69
	Location Costs	12
	Material Contracts	26
	Mineral Rights	53
	Monthly Statement	9
	Monthly Statement Dispute Notice	10
	Net Revenue Interest	69
	New Well AFEs	12
	New Well Costs	12
	New Well Costs Cap	12
	Non-Compete Period	53
	Non-Recourse Person	66
	NORM	69
	NRI	69
	NYMEX Henry Hub Average Price	9
	NYMEX Henry Hub Gas Price	9
	Parties	1

 

    Page vi

     

    

 

	Party	1
	Permits	3
	Permitted Encumbrances	34
	Person	69
	Personal Property	2
	Phase I	42
	Planned Lateral Length	12
	Pre-Effective Time Tax Period	22
	Preferential Rights	25
	Proceeding	24
	Properties	2
	Property Costs	11
	Purchase Price	6
	Records	3
	Restricted Opportunity	53
	Restricted Person	53
	Retained Obligations	13
	Sale Hydrocarbons	2
	Seller	1
	Seller Benefit Plan	69
	Seller Certificate	57
	Seller Parties	14
	Seller’s Knowledge	29
	Stock Hydrocarbons	2
	Straddle Period	21

	Surface Interests	2
	Suspended Proceeds	5
	Tag Along Interests	66
	Tag Along Rights	26
	Target Interval	69
	Tax	69
	Tax Return	22
	Taxes	69
	Taxing Authority	70
	Title Benefit Notice	39
	Title Benefit Value	39
	Title Defect	33
	Title Defect Notice	36
	Title Defect Value	37
	Top Lease	54
	Top Leasing Period	54
	Transaction Documents	70
	Transfer Taxes	22
	Units	2
	Unobtained Hard Consent	51
	Value Asset	6
	Value Assets	6
	WI	70
	Working Interest	70

 

    Page vii

     

    

 

Purchase
and Sale Agreement

 

THIS
PURCHASE AND SALE AGREEMENT (this “Agreement”), dated July 13, 2022 (the “Execution Date”),
is by and between EnSight IV Energy Partners, LLC, a Delaware limited liability company (“EEP”); and EnSight
Haynesville Partners, LLC, a Delaware limited liability company (“EHP” and together with EEP, “Seller”),
each whose address in each case is 333 Texas Street, Suite 1919, Shreveport, Louisiana 71101-3676, and Tellurian Production LLC, a Delaware
limited liability company, whose address is 1201 Louisiana Street, Suite 3100, Houston, TX 77002 (“Buyer”).
Seller and Buyer may each be referred to herein as a “Party” and collectively as the “Parties.”

 

W
I T N E S S E T H:

 

That
Seller desires to sell to Buyer and Buyer desires to purchase from Seller on the terms set forth in this Agreement those certain oil
and gas interests and associated assets described herein. Accordingly, in consideration of the mutual promises contained herein, the
mutual benefits to be derived by each Party hereunder and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Buyer and Seller agree as follows:

 

		1.	Sale
                                            and Purchase of Assets

 

		1.1	Assets
                                            to be Sold.

 

		(a)	At
                                            the Closing, Seller shall sell, transfer and assign, and Buyer shall purchase, pay for and
                                            receive, all of Seller’s right, title and interest in and to the following, save and
                                            except the Excluded Assets (collectively, the “Assets”):

 

		(i)	the
                                            oil and gas leases, oil, gas and mineral leases and subleases described in Exhibit “A-1”,
                                            together with all other right, title and interest of Seller in and to the leasehold estates
                                            created thereby, including carried interests, fee mineral interests, working interests, operating
                                            rights, overriding royalty interests, net revenue interests, net profits interests and record
                                            title interests, together with all top leases, amendments, options, renewals, extensions
                                            or ratifications thereof (collectively, the “Leases”), any and
                                            all Hydrocarbon and fee mineral interests located in, on or under the Lands (as defined below)
                                            and, without limiting the foregoing, all other rights in and to the Hydrocarbons in, on,
                                            under and that may be produced from the lands covered by or associated with the Leases or
                                            the fee minerals or pooled, communitized or unitized therewith (the “Lands”);

 

		(ii)	any
                                            and all Hydrocarbon wells, salt water disposal wells, injection wells and other wells and
                                            wellbores, whether abandoned, not abandoned, plugged or unplugged, located on the Leases
                                            or Lands, including the wells identified in Exhibit “A-2” (the “Existing
                                            Wells”);

 

		(iii)	all
                                            pooled, communitized or unitized acreage that includes all or part of any Lease, and all
                                            tenements, hereditaments and appurtenances belonging thereto (including all undivided interests
                                            of Seller derived from the Leases in the production of Hydrocarbons from any such Unit),
                                            including the Units described in Exhibit “A-3” (the “Units”
                                            and together with the Existing Wells, Leases and Lands, the “Properties”);

 

    1 

     

    

  

		(iv)	all
                                            easements, rights-of-way, servitudes, surface lease agreements, surface fee estates, surface
                                            use agreements, surface and subsurface use agreements, saltwater disposal agreements and
                                            other rights or agreements related to the use of the surface appurtenant to or used or held
                                            for use in connection with the Properties or other Assets or the production, treatment, storage,
                                            disposal, transportation or processing of Hydrocarbons or other substances thereon or therefrom
                                            or the disposal of water from the Properties, including those instruments described in Exhibit “A-4”
                                            (the “Surface Interests”);

 

		(v)	all
                                            equipment, machinery, fixtures and other tangible personal or mixed property and improvements,
                                            whether owned or leased, that are located on the Properties or are used or held for use in
                                            connection with the ownership or operation of the Properties or any of the other Assets or
                                            the production, treatment, storage, disposal, transportation or processing of Hydrocarbons
                                            or other substances produced thereon or therefrom or the disposal of water from the Properties
                                            (including all wellhead equipment, structures, facilities, wellheads, tanks, pumps, compressors,
                                            separators, treaters, fixtures, flowlines, pipelines, gathering lines, materials, improvements,
                                            pads, treatment facilities, disposal facilities, telecommunications equipment, supervisory
                                            control and data acquisition (SCADA) hardware and software and other materials, supplies,
                                            facilities and machinery) (collectively, the “Personal Property”);

 

		(vi)	(A) all
                                            Hydrocarbons produced from, or attributable to, the Properties from and after the Effective
                                            Time (the “Sale Hydrocarbons”), (B) all Hydrocarbons produced
                                            from or attributable to the Properties that are in storage or upstream of the applicable
                                            sales meter as of the Effective Time (the “Stock Hydrocarbons”)
                                            and (C) to the extent related or attributable to the Properties, all Imbalances as of
                                            the Effective Time;

 

		(vii)	all
                                            contracts, agreements and instruments that relate to or are attributable to the other Assets,
                                            the ownership or operation thereof, or the production, treatment, sale, transportation, gathering,
                                            storage, sale or disposal of Hydrocarbons, water or other substances produced therefrom or
                                            associated therewith, including operating agreements, processing agreements, division orders,
                                            farm-in and farm-out agreements, term assignments, rental agreements, equipment lease agreements,
                                            drilling rig lease/use agreements, treating agreements, transportation and gathering agreements
                                            and all other agreements of any kind or nature, whether recorded or unrecorded, including
                                            those agreements identified in Schedule 5.1(m)-1 (collectively, the “Contracts”);

 

    2 

     

    

 

 

		(viii)	all
                                            indemnity rights under any Contracts and all other claims against third parties to the extent
                                            related or attributable to the Assumed Obligations or to periods from and after the Effective
                                            Time (including Claims for adjustments or refunds);

 

		(ix)	all
                                            audit rights and rights to reimbursement with respect to all costs and revenues associated
                                            with joint interest audits and other audits of Property Costs to the extent related or attributable
                                            to the Assumed Obligations or to periods from and after the Effective Time;

 

		(x)	any
                                            trade credits, accounts receivable, notes receivable, take-or-pay amounts receivable, other
                                            receivables and all audit rights to the extent arising under any of the Contracts or otherwise
                                            with respect to the Assets for any period from and after the Effective Time;

 

		(xi)	all
                                            permits, licenses, authorizations, registrations, consents or approvals granted or issued
                                            by any Governmental Authority (“Permits”), in each case, relating
                                            to the ownership or operation of the Assets;

 

		(xii)	all
                                            geophysical, seismic and related technical data, samples, studies and analyses, logs and
                                            cores, in each case, that (A) are transferrable without payment of a fee or other penalty
                                            to any third party under any contract (unless Buyer has separately agreed in writing to pay
                                            such fee or other penalty) and (B) relate to or cover any of the Properties or other
                                            Assets; and

 

		(xiii)	originals
                                            and electronic copies (if originals are not available) of all files, records, information
                                            and data (including electronic data), whether written or electronically stored, to the extent
                                            relating to the Assets, including all lease files, lease records, well records, land files
                                            and title records (including abstracts of title, title opinions, memoranda and curative title
                                            documents), correspondence, maps, production records, regulatory filings and records, machinery
                                            and equipment maintenance files, division order files, lease administration files, abstracts,
                                            title opinions, logs and tests, contract files and well, facility and production records,
                                            engineering and/or production files, operations, environmental, health and safety, pipeline
                                            safety, production, legal, accounting and Tax records (other than those primarily relating
                                            to Income Taxes of Seller) (the “Records”).

 

		1.2	Exclusions
                                            and Reservations. Notwithstanding the foregoing, specifically excepted and reserved unto
                                            Seller from this transaction is Seller’s right, title and interest in and to the following
                                            assets, properties and rights, hereinafter referred to as the “Excluded Assets”:

 

		(a)	corporate,
                                            financial and Tax records that relate to business generally;

 

    3 

     

    

  

		(b)	computer
                                            programs and applications to the extent disclosure or transfer is prohibited or subject to
                                            payment of a fee or other consideration by any license agreement and for which, after Seller
                                            uses its commercially reasonable efforts to obtain consents from the necessary parties, no
                                            consent to transfer has been received and for which Buyer has not agreed in writing to pay
                                            the fee or other consideration, as applicable;

 

		(c)	any
                                            reserve or economic evaluations;

 

		(d)	legal
                                            files and legal records constituting work product of, or attorney-client privileged communications
                                            with, Seller’s legal counsel (other than Leases, title opinions, Contracts, Surface
                                            Interests and environmental reports for the Assets);

 

		(e)	all
                                            of Seller’s proprietary intellectual property rights, patents, trade secrets, copyrights,
                                            names, marks, logos, proprietary software and derivatives therefrom;

 

		(f)	all
                                            indemnity rights, rights under any Contracts and all other Claims of Seller against any third
                                            party to the extent related or attributable to periods prior to the Effective Time, except
                                            to the extent attributable to the Assumed Obligations;

 

		(g)	subject
                                            to Section 12.2, all of Seller’s insurance contracts and rights, titles,
                                            claims and interests of Seller (i) under any policy or agreement of insurance or indemnity
                                            agreement, (ii) under any bond or other security instrument, or (iii) to any insurance
                                            or condemnation proceeds or awards, in each case, from acts, omissions or events, or damage
                                            to or destruction of an Asset prior to the Effective Time to the extent not attributable
                                            to the Assumed Obligations;

 

		(h)	all
                                            Hydrocarbons produced from or attributable to the Assets with respect to all periods prior
                                            to the Effective Time, save and except the Stock Hydrocarbons;

 

		(i)	except
                                            to the extent attributable to the Stock Hydrocarbons and the Imbalances assumed by Buyer,
                                            all monies, proceeds, benefits, receipts, credits, income or revenues (and any security or
                                            other deposits made) attributable to the Assets or the ownership or operation thereof prior
                                            to the Effective Time, including, without limitation, amounts recoverable from audits under
                                            operating agreements and any overpayments of royalties;

 

		(j)	all
                                            derivative or hedging instruments or agreements of any sort;

 

		(k)	all
                                            vehicles, trailers and other rolling stock;

 

		(l)	any
                                            Debt Instrument; and

 

		(m)	without
                                            limiting the foregoing, the assets, contracts or rights described on Schedule 1.2(m).

 

    4 

     

    

 

		1.3	Suspended
                                            Proceeds. At the Closing, Seller shall transfer and pay to Buyer (through a Purchase
                                            Price adjustment made at Closing), and Buyer agrees to accept from Seller for the benefit
                                            of Seller and the party or parties entitled to receive payment thereof, all monies representing
                                            the proceeds from sales of Hydrocarbons relating to the Assets and payable to owners of working
                                            interest, royalties and other similar interests (in each case) that are held by Seller in
                                            suspense (the “Suspended Proceeds”). Buyer shall be responsible
                                            for the proper distribution of the Suspended Proceeds to the party or parties that or who
                                            are entitled to receive payment of same, subject to the Retained Obligations.

 

		1.4	Election
                                            to Effect IRC § 1031 Exchange. Seller and Buyer hereby agree that Seller shall
                                            have the right at any time prior to completion of all the transactions that are to occur
                                            at Closing to assign all or a portion of its rights under this Agreement to a qualified intermediary
                                            (as that term is defined in Section 1.1031(k)-1(g)(4)(v) of the Treasury Regulations)
                                            in order to accomplish the transaction in a manner that will comply, either in whole or in
                                            part, with the requirements of a like-kind exchange pursuant to Section 1031 of Subchapter
                                            O of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986, as amended (the “Code”)
                                            (including Seller’s assignment of its rights and obligations under this Agreement to
                                            the Qualified Intermediary). Likewise, Buyer shall have the right at any time prior to completion
                                            of all the transactions that are to occur at Closing to assign all or a portion of its rights
                                            under this Agreement to a qualified intermediary for the same purpose. If Seller assigns
                                            all or any of its rights under this Agreement for this purpose, Buyer agrees to (a) consent
                                            to Seller’s assignment of its rights in this Agreement, which assignment shall be in
                                            a form reasonably acceptable to Buyer, and (b) pay the Purchase Price (or a designated
                                            portion thereof as specified by such Seller) into a qualified escrow or qualified trust account(s)
                                            at Closing as directed in writing; provided, however, that Buyer shall not
                                            be obligated to: (x) sign a promissory note or deed of trust or mortgage or any other
                                            document that might impose liability on Buyer; or (y) acquire title to any exchange
                                            property. If Buyer assigns all or any of its rights under this Agreement for this purpose,
                                            Seller agrees to (i) consent to Buyer’s assignment of its rights in this Agreement,
                                            which assignment shall be in a form reasonably acceptable to Seller, (ii) accept the
                                            Purchase Price from the qualified escrow or qualified trust account at Closing, and (iii) at
                                            Closing, convey and assign directly to Buyer the Assets (or any portion thereof) as directed
                                            by Buyer in writing; provided, however, that Seller shall not be obligated
                                            to: (x) sign a promissory note or deed of trust or mortgage or any other document that
                                            might impose liability on Seller; or (y) acquire title to any exchange property. Seller
                                            and Buyer acknowledge and agree that any assignment of this Agreement (or any rights hereunder)
                                            to a qualified intermediary shall not release any Party from any of its respective Liabilities
                                            and obligations hereunder and that no Party represents to the other Parties that any particular
                                            Tax treatment will be given to any Party as a result thereof. The Party electing to assign
                                            all or any of its rights under this Agreement pursuant to this Section 1.4 shall
                                            defend, indemnify, and hold harmless the other Parties from all Claims relating to such election.

 

    5 

     

    

 

		2.	Purchase
                                            Price and Effective Time

 

		2.1	Purchase
                                            Price and Deposit. As consideration for the sale of the Assets, Buyer shall pay to Seller
                                            $125,000,000.00 (the “Purchase Price”), adjusted as set forth below.
                                            The Purchase Price as adjusted in accordance with Section 2.3 shall be referred
                                            to as the “Adjusted Purchase Price.” Concurrently with the execution
                                            of this Agreement, Buyer shall pay unto Citibank, N.A. (the “Escrow Agent”),
                                            by wire transfer, in immediately available funds, to the account (the “Escrow
                                            Account”) established under the Escrow Agreement entered into by and among
                                            the Escrow Agent, Buyer, EEP and EHP on the Execution Date (the “Escrow Agreement”),
                                            a performance deposit in the amount equal to 10% of the Purchase Price (such amount, the
                                            “Deposit”). Buyer shall bear 100% of the fees due to Escrow Agent
                                            under the Escrow Agreement. If the Closing occurs, then (a) the entire Deposit shall
                                            be applied against the Closing Payment under Section 2.3(c), (b) $[***]
                                            of the Deposit shall be retained by the Escrow Agent in the Escrow Account in accordance
                                            with Section 3.3(l) and (c) an amount equal to the Deposit less the
                                            Holdback Amount (the “Holdback True-Up Amount”) shall be released
                                            to Seller in accordance with Section 10.2(k)(ii). If the Closing does not occur,
                                            then the Deposit shall be released as provided in Section 10.3(c), 10.3(d)
                                            or 10.3(e), as applicable.

 

		2.2	Allocation
                                            of Purchase Price. The Purchase Price shall be allocated among the individual Assets
                                            (each an “Allocated Value”) as set forth in Exhibit “A-2”
                                            and Exhibit “A-3” on a per Existing Well and per Unit basis (referred
                                            to herein individually as a “Value Asset” or collectively as “Value
                                            Assets”), with such Allocated Values being limited to the Target Interval.
                                            The Allocated Value for the Value Assets shall be without duplication, notably, the Allocated
                                            Value for an Existing Well shall not be included in the Allocated Value for the Unit encompassing
                                            the involved Existing Well. Exhibit “A-2” and Exhibit “A-3”
                                            also set forth an allocation for federal income Tax purposes and for all other purposes
                                            as contemplated in this Agreement. Buyer represents and warrants to Seller that it has made
                                            its own reasonable allocations, in good faith, without advice or influence from Seller, and
                                            that Seller may rely on the allocations for all purposes, including, without limitation,
                                            (a) to notify holders of preferential rights and Tag Along Rights of Buyer’s offer,
                                            (b) division of the Purchase Price by and between the entities comprising Seller, and
                                            (c) as otherwise provided in this Agreement. Buyer and Seller agree to be bound by the
                                            allocation of the Purchase Price among the Assets set forth therein for all purposes; to
                                            consistently report such allocations for all federal, state and local income Tax purposes;
                                            and to timely file all Tax Returns required by the Code and amended returns and claims for
                                            refund concerning the Purchase Price allocations. Notwithstanding anything herein to the
                                            contrary, the Allocated Value for any of the Assets, as determined by Buyer, shall not be
                                            less than zero. Any adjustments to the Purchase Price in accordance with Section 2.3
                                            shall be allocated according to the Allocated Values.

 

		2.3	Adjustments
                                            to Purchase Price. At Closing, the Purchase Price shall be adjusted (without duplication)
                                            in accordance with this Section 2.3.

 

		(a)	The
                                            Purchase Price shall be increased by the following amounts:

 

		(i)	the
                                            aggregate amount of all Property Costs that are attributable to the ownership or operation
                                            of the Assets after the Effective Time and are paid by Seller;

 

		(ii)	the
                                            aggregate amount of those New Well Costs for which Buyer is responsible pursuant to Section 3.1(e)
                                            that are paid by Seller, to the extent not already reimbursed by Buyer to Seller pursuant
                                            to Section 3.1(e);

 

    6 

     

    

 

		(iii)	the
                                            aggregate amount of all Taxes allocated to Buyer pursuant to Section 4.1 that
                                            are paid or economically borne by Seller;

 

		(iv)	the
                                            adjustment amount, if any, due Seller as determined pursuant to Section 12.1
                                            with respect to Imbalances; and

 

		(v)	any
                                            other amount specified herein or otherwise agreed upon by Seller and Buyer in writing.

 

		(b)	The
                                            Purchase Price shall be decreased by the following amounts:

 

		(i)	an
                                            amount equal to the net proceeds (the price at which the Sale Hydrocarbons are sold after
                                            the Effective Time) received by Seller from the sale of Sale Hydrocarbons;

 

		(ii)	the
                                            aggregate amount of all Taxes allocated to Seller pursuant to Section 4.1 that
                                            are paid or economically borne by Buyer;

 

		(iii)	the
                                            adjustment amount, if any, due Buyer as determined pursuant to Section 12.1 with
                                            respect to Imbalances;

 

		(iv)	reductions
                                            due to Title Defects as provided in Section 6, offset by the amount of any Title
                                            Benefits that are finally determined as provided in Section 6;

 

		(v)	reductions
                                            due to Environmental Defects as provided in Section 7;

 

		(vi)	reductions
due to Assets excluded from the transactions contemplated by this Agreement pursuant to Section 7.1(c), Section 7.5
 or Section 9.4;

 

		(vii)	the
                                            amount of Suspended Proceeds as of the Closing Date, if any;

 

		(viii)	the
                                            aggregate amount of all Property Costs that are attributable to the ownership or operation
                                            of the Assets prior to the Effective Time and are paid or otherwise borne by Buyer, excluding
                                            those New Well Costs for which Buyer is responsible pursuant to Section 3.1(e);

 

		(ix)	the
                                            aggregate amount of all New Well Costs for which Seller is responsible pursuant to Section 3.1(e)
                                            that are paid or otherwise borne by Buyer, to the extent not already reimbursed by Seller
                                            to Buyer pursuant to Section 3.1(e); and

 

		(x)	any
                                            other amount specified herein or otherwise agreed upon by Seller and Buyer in writing.

 

    7 

     

    

 

		(c)	Closing
                                            Statement. Seller shall prepare in good faith, using the best information available to
                                            Seller (and to the extent actual figures are not available, using good faith estimates),
                                            and deliver to Buyer a draft settlement statement (the “Closing Statement”)
                                            no later than three Business Days prior to Closing that shall set forth (i) the Purchase
                                            Price, (ii) Seller’s good faith estimate of each adjustment to the Purchase Price
                                            under this Section 2.3 and (iii) the resulting Closing Payment. Within two
                                            Business Days after receipt from Seller of the initial draft of the Closing Statement, Buyer
                                            will have the right, but not the obligation, to deliver to Seller a written report containing
                                            all changes that Buyer proposes to be made to the Closing Statement. The Closing Statement,
                                            as agreed upon by the Parties, will be used to adjust the Purchase Price at Closing; provided,
                                            however, that, if the Parties do not agree upon an adjustment set forth in the Closing
                                            Statement, then the amount of such adjustment used to adjust the Purchase Price at Closing
                                            shall be the amount set forth in Seller’s draft Closing Statement. As used herein,
                                            the term “Business Day” means any day other than Saturday, Sunday,
                                            or any day on which the principal commercial banks located in the State of Louisiana or the
                                            State of New York are authorized or obligated to close under the Laws of such states. As
                                            used herein, “Closing Payment” means an amount equal to (x) the
                                            Adjusted Purchase Price as set forth in the Closing Statement, less (y) the Deposit,
                                            less (z) the Defect Escrow Amount (if any) paid by Buyer into the Escrow Account
                                            at the Closing.

 

		2.4	Effective
                                            Time of Sale. The effective time of the sale of the Assets shall be as of 7:00 a.m.,
                                            local time where the Assets are located, on August 1, 2022 (the “Effective
                                            Time”).

 

		2.5	Withholding
                                            Taxes. To the extent Buyer becomes aware of any applicable withholding Taxes in respect
                                            of the transactions contemplated by this Agreement, Buyer shall: (a) use commercially
                                            reasonable efforts to provide written notice to Seller of such Tax within ten days after
                                            the Closing Date; (b) consult with Seller in good faith as to the nature of the Tax
                                            and the basis upon which such withholding is required; (c) be entitled to withhold such
                                            Tax and (d) timely remit such Taxes to the appropriate Governmental Authority. Any Taxes
                                            properly withheld in accordance with this Section 2.5 shall be entitled to withholding
                                            from the Purchase Price and shall be treated as having been paid to the applicable Seller
                                            in respect of which such withholding was made for purposes of this Agreement.

 

		2.6	Contingent
                                            Payment.

 

		(a)	Subject
                                            to the provisions of this Section 2.6, if (x) the Closing occurs and (y) the
                                            arithmetic (i.e., non-weighted) average of the NYMEX Henry Hub Gas Price for the contract
                                            delivery months beginning with August 2022 and ending with March 2023 (such period,
                                            the “Contingent Payment Period,” and such average, the “NYMEX
                                            Henry Hub Average Price”) is greater than $[***]/MMBtu, Buyer will pay Seller $7,500,000
                                            as additional consideration to Seller hereunder (the “Contingent Payment”).
                                            Solely for illustrative purposes, Annex “A” attached hereto contains
                                            a sample calculation for the eight contract delivery months beginning with October 2021
                                            and ending with May 2022.

 

    8 

     

    

 

		(b)	“NYMEX
                                            Henry Hub Gas Price” means with respect to the NYMEX Henry Hub Natural Gas Futures
                                            Contract (CME Group product code “NG,” or any successor product code) for delivery
                                            during a specified contract delivery month, the amount equal to the last day settlement price
                                            (denominated in United States dollars per one million British Thermal Units and published
                                            by CME Group) for such NYMEX Henry Hub Natural Gas Futures Contract, which price is set on
                                            the third to last Business Day of the month immediately preceding the subject contract delivery
                                            month. Annex “B” attached hereto sets forth the settlement date for
                                            each contract delivery month included in the Contingent Payment Period.

 

		(c)	Monthly
                                            Statements.

 

		(i)	On
                                            or before the date that is five Business Days following the contract delivery month included
                                            in the Contingent Payment Period, Buyer shall prepare and deliver to Seller a written statement
                                            (each, a “Monthly Statement”) setting forth the NYMEX Henry Hub Gas Price
                                            for such contract delivery month.

 

		(ii)	In
                                            addition, the Monthly Statement for the last contract delivery month in the Contingent Payment
                                            Period (the “Final Monthly Statement”) will also include Buyer’s
                                            calculation of the NYMEX Henry Hub Average Price for the Contingent Payment Period.

 

		(d)	Payment
                                            of Contingent Payment. The Contingent Payment, if any, shall be earned as of the settlement
                                            date for March 2023 and, subject to the provisions of Section 2.6(e)(ii),
                                            shall be paid by Buyer to Seller within five Business Days after such settlement date.

 

		(e)	Disputes.

 

		(i)	Seller
                                            shall have the right to dispute Buyer’s calculation of any item set forth in a Monthly
                                            Statement, including, with respect to the Final Monthly Statement, Buyer’s calculation
                                            of the NYMEX Henry Hub Average Price for the Contingent Payment Period, by delivering written
                                            notice of such dispute to Buyer within five Business Days after Seller’s receipt thereof
                                            (a “Monthly Statement Dispute Notice”). Notwithstanding anything to the
                                            contrary set forth in this Section 2.6 or any provision of this Agreement, Seller
                                            shall be deemed to have waived all rights to dispute a Monthly Statement and, if applicable,
                                            Buyer’s calculation of the Contingent Payment (if any) that are not set forth in a
                                            Monthly Statement Dispute Notice timely delivered in accordance with this Section 2.6(e).

 

		(ii)	If
                                            a dispute is pending at the time the Contingent Payment, if any, is otherwise due to Seller,
                                            the resolution of which dispute would result in a determination of whether the Contingent
                                            Payment is owed to Seller, then Buyer shall not be required to pay Seller the Contingent
                                            Payment, if any, until the fifth Business Day after the resolution of such dispute in
                                            accordance with this Section 2.6(e) and Section 11.

 

    9 

     

    

 

		(f)	Payments;
                                            Defaults; No Assignments.

 

		(i)	The
                                            Contingent Payment (if any) shall be made by wire transfer in immediately available funds
                                            in U.S. Dollars to the bank account(s) designated by Seller in the time period set forth
                                            above in this Section 2.6(e).

 

		(ii)	If
                                            the Contingent Payment (if any) is due and not timely paid pursuant to this Section 2.6(e),
                                            such Contingent Payment shall bear interest from the date such payment is due under this
                                            Section 2.6(e) to the date such Contingent Payment is made at the lesser of (i) 5%
                                            per annum and (ii) the maximum amount permitted under applicable Law. Except as expressly
                                            set forth in this Section 2.6(f)(ii), no interest will be paid with respect to
                                            the Contingent Payment, if any.

 

		(iii)	Notwithstanding
                                            any provision in the Agreement to the contrary, the right to receive the Contingent Payment,
                                            if any, may not be assigned, hypothecated or otherwise transferred.

 

		3.	Allocation
                                            of Revenues and Costs; Indemnification

 

		3.1	Allocation
                                            of Revenues and Costs.

 

		(a)	If
                                            Closing occurs, Seller shall (x) own and receive or receive credit in the Closing Statement
                                            or the Final Settlement Statement (as hereinafter defined in Section 10.4), as
                                            applicable for all proceeds from the sale of Hydrocarbons physically produced from or allocable
                                            to the Assets prior to the Effective Time (excluding Stock Hydrocarbons), and shall also
                                            receive (or receive credit in the Closing Statement or the Final Settlement Statement, as
                                            applicable, for) and hold the right to receive all other revenues, proceeds and receipts
                                            attributable to the Assets relating to all periods before the Effective Time and (y) shall
                                            remain responsible (by payment, or through the adjustments to the Purchase Price hereunder)
                                            for all Property Costs attributable to the Assets for the period of time prior to the Effective
                                            Time (subject to Section 3.1(e) hereof). If Closing occurs, Buyer shall (x) be
                                            entitled to all of the rights of ownership with respect to the Assets and shall own and receive
                                            (or receive credit in the Closing Statement or the Final Settlement Statement, as applicable,
                                            for) all proceeds from the sale of Sale Hydrocarbons and Stock Hydrocarbons and shall also
                                            receive (or receive credit in the Closing Statement or the Final Settlement Statement, as
                                            applicable, for) and hold the right to receive all other revenues, proceeds and receipts,
                                            in each case, attributable to the Assets relating to all periods from and after the Effective
                                            Time and (y) shall be responsible (by payment, or through the adjustments to the Purchase
                                            Price hereunder or otherwise) for all Property Costs attributable to the Assets for the period
                                            of time from and after the Effective Time, subject to Section 3.1(e).

 

    10 

     

    

 

		(b)	Should
                                            any Party receive any proceeds or other income after the Closing to which another Party is
                                            entitled under this Section 3.1, such receiving Party shall fully disclose, account
                                            for and promptly remit such proceeds or other income. Should Buyer pay any Property Costs,
                                            or receive any invoice for any Property Costs, after the Closing for which Seller is responsible
                                            under this Section 3.1, Seller shall reimburse Buyer promptly after receipt of
                                            an invoice, to the extent Buyer paid such Property Costs, or shall pay such invoice promptly
                                            upon receipt from Buyer, to the extent Buyer has not paid such Property Costs. Should Seller
                                            pay any Property Costs, or receive any invoice for any Property Costs, after the Closing
                                            for which Buyer is responsible under this Section 3.1, Buyer shall reimburse
                                            Seller promptly after receipt of an invoice, to the extent Seller paid such Property Costs
                                            prior to the expiration of the General Indemnity Period, or shall pay such invoice promptly
                                            upon receipt from Seller, to the extent Seller has not paid such Property Costs.

 

		(c)	For
                                            purposes hereof, “Property Costs” means, without duplication, all
                                            operating expenses (including costs of insurance) and all capital expenditures incurred in
                                            the ownership and operation of the Assets in the ordinary course of business and, where applicable,
                                            in accordance with the relevant operating or unit agreement, if any, and overhead costs charged
                                            to such Assets under the relevant operating agreement or unit agreement, if any, but excluding
                                            Liabilities attributable to (i) personal injury or death, property damage, torts, breach
                                            of contract or violation of any Law, (ii) obligations to remediate, cure or address
                                            any environmental conditions, including any contamination of water or Personal Property,
                                            plug wells, dismantle facilities or clear the site or restore the surface around such wells,
                                            facilities or Personal Property, including under applicable Environmental Law, (iii) obligations
                                            with respect to Imbalances, (iv) obligations to pay Working Interests, royalties, overriding
                                            royalties or other interest owners revenues or proceeds attributable to sales of Hydrocarbons
                                            relating to the Assets, including those held in suspense, (v) after the Effective Time,
                                            the curing by Seller or their Affiliates of any (A) breach (or matter that, if such
                                            cure actions were not taken, would result in a breach) of a representation, warranty, covenant
                                            or agreement under this Agreement, (B) Title Defect or (C) Environmental Defect,
                                            (vi) Claims relating to improper calculation or payment of royalties (including overriding
                                            royalties and other burdens on production) on production from the Assets, (vii) Asset
                                            Taxes, Income Taxes or Transfer Taxes, (viii) after the Effective Time, dividends or
                                            distributions paid or payable to Seller or their Affiliates, or (ix) after the Effective
                                            Time, the discharge of any indebtedness in connection with any Debt Instrument burdening
                                            any of the Assets.

 

		(d)	For
                                            purposes of allocating revenues, production, proceeds, income, accounts receivable, and products
                                            under this Section 3.1, (i) liquid Hydrocarbons produced into storage facilities
                                            will be deemed to be “from or attributable to” the Existing Wells when they pass
                                            through the pipeline connecting into the storage facilities into which they are run, and
                                            (ii) gaseous Hydrocarbons and liquid Hydrocarbons produced into pipelines will be deemed
                                            to be “from or attributable to” the Existing Wells when they pass through the
                                            receipt point sales meters on the pipelines through which they are transported. Seller shall
                                            utilize reasonable interpolating procedures to arrive at an allocation of production when
                                            exact gauging, metering, and strapping data is not available as of the Effective Time. Seller
                                            shall provide to Buyer evidence of all meter readings and all gauging and strapping procedures
                                            conducted on or about the Effective Time in connection with the Assets, together with all
                                            data necessary to support any estimated allocation.

 

    11 

     

    

 

		(e)	Notwithstanding
                                            the foregoing, with respect to any Property Costs incurred by Seller (whether prior to, at
                                            or after the Effective Time) with respect to (1) the location and construction costs
                                            for each well described on Schedule 3.1(e) (the “New Wells”
                                            and the costs described in this clause (1), the “Location Costs”)
                                            and (2) the drilling costs for those wells highlighted in yellow on Schedule 3.1(e)
                                            (the “New Wells – Planned Lateral” and the costs described
                                            in this clause (2), the “Drilling Costs,” and together with
                                            the Location Costs, the “New Well Costs”), at and after the Closing,
                                            Buyer shall be responsible for such New Well Costs to the extent (i) such costs are
                                            applied to operations expressly contemplated by those AFEs listed on and as attached to Schedule 3.1(e)
                                            (the “New Well AFEs”) and (ii) the aggregate New Well
                                            Costs are less than (x) the aggregate expense amounts contemplated by the New Well AFEs,
                                            multiplied by (y) 115% (the “New Well Costs Cap”),
                                            except as otherwise provided herein. Any New Well Costs or associated costs or expenses that
                                            are in excess of the New Well Costs Cap or are not expressly contemplated in the New Well
                                            AFEs shall be the sole responsibility of Seller. If one or more New Wells – Planned
                                            Lateral does not achieve the lateral length set forth on Schedule 3.1(e) for
                                            each such New Well – Planned Lateral (the “Planned Lateral Length”)
                                            on or prior to the Closing Date, then the New Well Costs Cap shall be proportionately reduced
                                            to a percentage equal to the actual lateral length drilled for all New Wells – Planned
                                            Lateral, divided by the aggregate Planned Lateral Length for all New Wells –
                                            Planned Lateral. For illustrative purposes only, if the aggregate Planned Lateral Length
                                            for all New Wells – Planned Lateral is 13,800 feet, and the aggregate actual lateral
                                            length for such Wells as of the Closing Date is 10,000, then the New Wells Cost Cap will
                                            be reduced to 72.46% of the original New Well Costs Cap (10,000 / 13,800). Lateral Length
                                            shall be defined as the length of casing set in the Target Interval for a New Well.

 

		3.2	Assumption
                                            of Obligations by Buyer. At Closing, without limiting Buyer’s rights to indemnity
                                            under Section 3.3(c), Buyer shall assume all obligations and Liabilities related
                                            to the Assets and their ownership, use or operation for all periods prior to, on or after
                                            the Effective Time, including obligations for plugging and abandonment of the Existing Wells
                                            and dismantlement, decommissioning or abandonment of all equipment included in the Assets
                                            (collectively, the “Assumed Obligations”); provided, however,
                                            that Buyer shall not assume any obligations or Liabilities to the extent that they are (a) Retained
                                            Obligations (until the Retained Obligations become Assumed Obligations in accordance with
                                            Section 3.3(a) below, if applicable) or (b) attributable to or arising out
                                            of the ownership, use or operation of the Excluded Assets.

 

    12 

     

    

 

		3.3	Retained
                                            Obligations; Indemnification; Claims Procedures; Subrogation; Insured Losses; Recoveries
                                            from Third Parties.

 

		(a)	Retained
                                            Obligations. Upon Closing, Seller shall retain the Retained Obligations. The following
                                            Liabilities, obligations and Claims are the “Retained Obligations”:
                                            Liabilities, obligations and Claims attributable to, arising out of, in connection with,
                                            based upon or related to (i) personal injury (including death) or personal property
                                            damage resulting from events occurring prior to the Closing; (ii) any Liabilities arising
                                            from any off-site disposal or transportation of Hazardous Substances prior to Closing; (iii) the
                                            gross negligence or willful misconduct of Seller or any of its Affiliates in connection with
                                            pre-Closing operations by Seller or any of its Affiliates or any contractor of Seller or
                                            its Affiliates; (iv) any civil or administrative fines or penalties or criminal sanctions
                                            imposed on Seller, any of its Affiliates or their respective Representatives arising out
                                            of or related to pre-Closing conduct; (v) failure to properly and timely pay, in accordance
                                            with the terms of any Lease, Contract or applicable Law, all burdens (and related escheat
                                            obligations) and any amounts due under any joint interest billing or AFE attributable to
                                            Seller’s interest in the Assets (in each case) with respect to the Assets prior to
                                            the Closing Date; (vi) any pending or, to the Knowledge of Seller, threatened litigation
                                            arising or occurring prior to and as of the Closing Date against Seller or its Affiliates
                                            with respect to the Assets; (vii) any Claim made by or on behalf of an employee or contractor
                                            of Seller or any Affiliate of Seller arising from or relating to work performed, to an employment
                                            or contracting relationship with Seller or any Affiliate of Seller; (viii) any Seller
                                            Benefit Plan, (ix) any arrangements between Seller and any Affiliate thereof and (x) except
                                            to the extent the Purchase Price is reduced pursuant to Section 2.3(b)(viii),
                                            any Property Costs for which Seller is responsible pursuant to Section 3.1, in
                                            the case of clauses (i), (ii), (iii), (iv), (v),
                                            (vi) or (x) hereof, to the extent a valid Claim Notice is given within the
                                            survival period set forth in Section 3.3(j)(iii) for the Retained Obligations;
                                            provided, however, that the items set forth in clauses (vii), (viii)
                                            or (ix) shall remain Retained Obligations indefinitely, notwithstanding the termination
                                            of the survival period set forth in Section 3.3(j)(iii).

 

		(b)	Indemnification
                                            by Buyer. If the Closing occurs, Buyer shall indemnify Seller and Seller’s respective
                                            owners, directors, officers, members, managers, employees, Representatives and Affiliates
                                            (the “Seller Parties”), against all losses, costs, expenses, claims,
                                            demands, causes of action, assessments, penalties, attorney’s fees, expert fees, court
                                            costs, fines or damages (“Claims”) suffered or incurred by any
                                            Seller Party arising from, based upon, related to or associated with

 

		(i)	Buyer’s
                                            breach of any of its representations or warranties made herein or any covenant or obligation
                                            of Buyer made herein or any other Transaction Document;

 

		(ii)	any
                                            breach or non-fulfillment by Buyer of any of its covenants, agreements, or obligations to
                                            be performed by Buyer pursuant to this Agreement or any other Transaction Document;

 

		(iii)	Buyer
                                            Taxes; and

 

		(iv)	the
                                            Assumed Obligations.

 

    13 

     

    

 

 

The
foregoing indemnification obligations will be applicable without regard to whether the Claims in question arose or resulted solely or
in part from the sole, joint, concurrent or comparative negligence (but not Seller’s gross negligence or willful misconduct),
strict liability, liability without fault, regulatory liability, statutory liability, breach of contract, breach of warranty, or other
fault or responsibility of Seller or any other person or party.

 

		(c)	Indemnification
                                            by Seller. If the Closing occurs, Seller shall be responsible for, shall pay and hereby
                                            agrees to defend, indemnify and hold harmless and release Buyer and its Affiliates, and its
                                            and their respective owners, directors, officers, members, managers, employees, representatives
                                            (the “Buyer Parties”) from and against all Claims suffered or incurred
                                            by any Buyer Party arising from, based upon, related to or associated with:

 

		(i)	Seller’s
                                            breach of any of its representations or warranties contained in this Agreement or any other
                                            Transaction Document;

 

		(ii)	any
                                            breach or non-fulfillment by Seller of any of its covenants, agreements, or obligations to
                                            be performed by Seller pursuant to this Agreement or any other Transaction Document;

 

		(iii)	the
                                            Retained Obligations;

 

		(iv)	the
                                            Seller Taxes; and

 

		(v)	the
                                            Excluded Assets.

 

The
foregoing indemnification obligations will be applicable without regard to whether the Claims in question arose or resulted solely or
in part from the sole, joint, concurrent or comparative negligence (but not Buyer’s gross negligence or willful misconduct),
strict liability, liability without fault, regulatory liability, statutory liability, breach of contract, breach of warranty, or other
fault or responsibility of Buyer or any other person or party.

 

		(d)	Claims
                                            Procedures.

 

		(i)	For
                                            purposes of this Agreement, the term “Indemnifying Party,” when
                                            used in connection with particular Claims, means the Party having an obligation to indemnify
                                            any Seller Party or Buyer Party, as applicable, with respect to such Claim pursuant to this
                                            Section 3, and the term “Indemnified Party” when used
                                            in connection with particular Claims means a Seller Party or the Buyer Party, as applicable,
                                            having the right to be indemnified with respect to such Claims by Buyer or Seller, as applicable,
                                            pursuant to this Section 3.

 

    14 

     

    

 

		(ii)	Promptly
                                            upon an Indemnified Party becoming aware of any Claim with respect to which it believes it
                                            is entitled to indemnification hereunder, such Indemnified Party shall notify the Indemnifying
                                            Party in writing of the existence and nature of such Claim, the identity of any third-party
                                            claimants and a description of the damages and the amount thereof relating to such Claim
                                            (the “Claim Notice”); provided, however, that the
                                            failure of any Indemnified Party to give notice of a third party Claim as provided in this
                                            Section 3.3(d) shall not relieve the Indemnifying Party of its obligations under
                                            this Section 3 except to the extent such failure results in insufficient time
                                            being available to permit the Indemnifying Party to effectively defend against the third
                                            party Claim or otherwise materially prejudices the Indemnifying Party’s ability to
                                            defend against the third party Claim. If within 15 Business Days after the date on which
                                            the Claim Notice has been given pursuant to this Section 3.3(d)(ii), the Indemnifying
                                            Party shall acknowledge in writing to the Indemnified Party its obligation to provide an
                                            indemnity as provided in this Section 3.3 and assume the defense of the Claim,
                                            then, except as hereinafter provided, the Indemnified Party shall not, and the Indemnifying
                                            Party shall, have the right to contest, defend, litigate or settle such Claim. Notwithstanding
                                            the foregoing, the Indemnified Party is authorized, prior to and during such 15-Business
                                            Day period, at its expense, to file any motion, answer or other pleading that it shall deem
                                            necessary or appropriate to protect its interests or those of the Indemnifying Party and
                                            that is not prejudicial to the Indemnifying Party. The Indemnified Party shall have the right
                                            to be represented by counsel at the Indemnified Party’s expense, subject to the limitations
                                            hereof, in any such contest, defense, litigation or settlement conducted by the Indemnifying
                                            Party. The Indemnifying Party shall lose its right to defend and settle the Claim if it fails
                                            to diligently contest and defend the Claim. So long as the Indemnifying Party has not lost
                                            its right and/or obligation to contest, defend, litigate and settle as herein provided, the
                                            Indemnifying Party shall have the exclusive right to contest, defend and litigate the Claim
                                            and shall have the exclusive right, in its discretion exercised in good faith, and upon the
                                            advice of counsel, to settle any such matter, either before or after the initiation of litigation,
                                            at such time and upon such terms as it deems fair and reasonable; provided, however,
                                            that at least five Business Days prior to any such settlement, written notice of its intention
                                            to settle shall be given to the Indemnified Party and the Indemnified Party shall have consented
                                            thereto, which consent shall not be unreasonably withheld, conditioned or delayed. All expenses
                                            (including, without limitation, attorneys’ fees) incurred by the Indemnifying Party
                                            in connection with the foregoing shall be paid by the Indemnifying Party. Notwithstanding
                                            the foregoing, in connection with any settlement negotiated by an Indemnifying Party, the
                                            Indemnified Party shall not be required by an Indemnifying Party to: (x) enter into
                                            any settlement that does not include as an unconditional term thereof the delivery by the
                                            claimant or plaintiff to the Indemnified Party of a release from all Liability in respect
                                            of such Claim or litigation, (y) enter into any settlement that attributes by its terms
                                            Liability or wrongdoing to the Indemnified Party or (y) consent to the entry of any
                                            judgment that does not include as a term thereof a full dismissal of the litigation or Proceeding
                                            with prejudice. No failure by an Indemnifying Party to acknowledge in writing its indemnification
                                            obligations under this Section 3.3 shall relieve it of such obligations to the
                                            extent they exist.

 

    15 

     

    

 

		(iii)	If
                                            the Indemnifying Party fails to assume the defense of a Claim pursuant to this Section 3.3(d),
                                            or if, in accordance with the foregoing, the Indemnifying Party shall lose its right to contest,
                                            defend, litigate and settle such a Claim, the Indemnified Party shall have the right, without
                                            prejudice to its right of indemnification hereunder, in its discretion exercised in good
                                            faith and upon the advice of counsel, to contest, defend and litigate such Claim, and may
                                            settle such Claim, either before or after the initiation of litigation, at such time and
                                            upon such terms as the Indemnified Party deems fair and reasonable; provided, however,
                                            that, the Indemnified Party will not settle such Claim without the prior written consent
                                            of the Indemnifying Party, which consent shall not be unreasonably withheld, conditioned
                                            or delayed. If, pursuant to this Section 3.3(d), the Indemnified Party so contests,
                                            defends, litigates or settles a Claim for which it is entitled to indemnification hereunder
                                            as hereinabove provided, the Indemnified Party shall be reimbursed by the Indemnifying Party
                                            for the reasonable attorneys’ fees and other expenses of defending, contesting, litigating
                                            and/or settling the Claim promptly following the presentation to the Indemnifying Party of
                                            itemized bills for said attorneys’ fees and other expenses.

 

		(e)	Subrogation.
                                            Following full indemnification as provided for hereunder, the Indemnifying Party shall be
                                            subrogated to all rights of the Indemnified Party with respect to all parties relating to
                                            the matter for which indemnification has been made, and the Indemnified Party agrees to fully
                                            cooperate with the Indemnifying Party in exercising such subrogation rights. Notwithstanding
                                            the foregoing, subrogation shall not include rights against an Indemnified Party, its/their
                                            partners, members, managers, directors, officers, employees, contractors and Representatives.

 

		(f)	Insured
                                            Losses; Recoveries from Third Parties. The amount of any damages for which indemnification
                                            is provided under this Section 3.3 or the other provisions hereof shall be net
                                            of any duplicative amounts recovered by the Indemnified Party under insurance policies or
                                            from unaffiliated third parties with respect to such damages. If an Indemnified Party receives
                                            an amount under insurance coverage or from an unaffiliated third party with respect to damages
                                            at any time subsequent to any indemnification provided by the Indemnifying Party pursuant
                                            to this Section 3.3 or the other provisions hereof, then such Indemnified Party
                                            shall promptly deliver such amount (up to the amount of the indemnification payment made
                                            to such Indemnified Party regarding such matter) to the Indemnifying Party; provided,
                                            however, that such Indemnified Party shall be entitled to retain the amount of any
                                            payments made or costs or expenses incurred in connection with obtaining such payment. The
                                            obligation created by this Section 3.3 or the other provisions hereof is an obligation
                                            to make repayment in the event of a recovery from a third party and shall not delay an Indemnified
                                            Party’s right to repayment from the Indemnifying Party under this Section 3.3
                                            or the other provisions hereof.

 

    16 

     

    

 

		(g)	Materiality
                                            Scrape. For purposes of this Section 3, any inaccuracy or breach of any representation
                                            or warranty shall be determined without regard to any materiality or other similar qualification
                                            contained in or otherwise applicable to such representation or warranty.

 

		(h)	Certain
                                            Limitations.

 

		(i)	Seller
                                            will not have any Liability under Section 3.3(c)(i) for any indemnification (A) for
                                            any individual Claim unless the amount with respect to such Claim exceeds $[***] (the “De
                                            Minimis Threshold”), and (B) until and unless the aggregate amount of
                                            all Claims for which Claim Notices are delivered by Buyer that exceed the De Minimis Threshold
                                            exceeds an amount equal to [***]% of the Purchase Price (the “Indemnity Deductible”),
                                            after which point Seller will only be liable for such indemnification to the extent such
                                            Claims that exceed the De Minimis Threshold exceed the Indemnity Deductible; provided,
                                            however, that the limitations on Seller’s Liability in this Section 3.3(h)(i)
                                            will not apply to: (x) Seller’s Liability for breaches of its Fundamental
                                            Representations or the representations and warranties in Section 5.1(g); (y) Seller’s
                                            Liability for breaches of any covenant to be performed at or following the Closing, and (z) Seller’s
                                            Liability under Section 3.3(c)(iii) for the Retained Obligations, Section 3.3(c)(iv)
                                            for any Seller Taxes and Section 3.3(c)(v) for the Excluded Assets.

 

		(ii)	Notwithstanding
                                            anything to the contrary contained in this Agreement, Seller will not be required to indemnify
                                            Buyer for aggregate Liabilities under Section 3.3(c)(i) or Section 3.3(c)(ii)
                                            in excess of an amount equal to 10% of the Purchase Price; provided, however,
                                            that the limitations on Seller’s Liability in this Section 3.3(h)(ii) will
                                            not apply to (A) Seller’s Liability for breaches of its Fundamental Representations
                                            and the representations and warranties in Section 5.1(g), (B) Seller’s
                                            Liability for breaches of any covenant to be performed at or following the Closing, and (C) Seller’s
                                            Liability under Section 3.3(c)(iii) for the Retained Obligations, Section 3.3(c)(iv)
                                            for any Seller Taxes and Section 3.3(c)(v) for the Excluded Assets.

 

		(iii)	Notwithstanding
                                            anything to the contrary contained in this Agreement, Seller’s aggregate Liabilities
                                            under this Agreement will not exceed the Purchase Price.

 

		(iv)	The
                                            obligations set forth in Sections 3.3(b) and 3.3(c) will not apply to
                                            (A) any amount that was taken into account as an adjustment to the Purchase Price pursuant
                                            to the provisions hereof, (B) except as otherwise provided in this Agreement, any Party’s
                                            costs and expenses with respect to the negotiation and consummation of this Agreement and
                                            the purchase and sale of the Assets, and (C) any amount that would result in a double
                                            recovery.

 

    17 

     

    

 

		(i)	Exclusive
                                            Remedy. Notwithstanding anything to the contrary contained in this Agreement, the Parties
                                            agree that, from and after Closing, except in the case of fraud, Section 2.3,
                                            Section 10.4, the special warranty of Defensible Title set forth in the Assignments,
                                            and this Section 3, contain the Parties’ exclusive remedies against each
                                            other with respect to this Agreement, the Transaction Documents and the transactions contemplated
                                            hereby or thereby (whether in contract, tort or otherwise), including breaches of the representations,
                                            warranties, covenants and agreements of the Parties contained in this Agreement or in any
                                            Transaction Document.

 

		(j)	Survival.

 

		(i)	Seller’s
                                            Representations and Warranties. Seller’s representations and warranties in Section 5.1
                                            (including the Fundamental Representations) and the corresponding indemnity obligations
                                            of Seller under Section 3.3(c)(i) with respect to all such representations and
                                            warranties will expire and terminate on December 31, 2023 (the “General
                                            Indemnity Period”); provided, however, that Seller’s representations
                                            and warranties set forth in Section 5.1(g) and the corresponding indemnity obligations
                                            will expire and terminate on the date set forth in Section 3.3(j)(iii).

 

		(ii)	Seller’s
                                            Covenants. Except as provided in Section 3.3(j)(iii), each of the covenants
                                            and performance obligations of Seller set forth in this Agreement that are to be complied
                                            with or performed by Seller at or prior to the Closing and the corresponding indemnity obligations
                                            of Seller under Section 3.3(c)(ii) with respect to such covenants and obligations
                                            will expire and terminate at the end of the General Indemnity Period. All other covenants
                                            and performance obligations of Seller set forth in this Agreement and the corresponding indemnity
                                            obligations of Seller under Section 3.3(c)(ii) with respect to such covenants
                                            and obligations will survive the Closing and remain and full and effect until fully performed.

 

		(iii)	Seller’s
                                            Other Indemnity Obligations. The indemnity obligations of Seller under Section 3.3(c)(iii)
                                            with respect to the Retained Obligations will expire and terminate on the date that is
                                            24 months after the Closing Date. The indemnity obligations of Seller under Section 3.3(c)(v)
                                            with respect to the Excluded Assets will survive the Closing and remain in full force
                                            and effect indefinitely. The representations and warranties in Section 5.1(g),
                                            the covenants of Seller in Section 4, and the corresponding indemnity obligations
                                            of Seller under Section 3.3(c)(iv) with respect to the Seller Taxes shall, in
                                            each case, expire and terminate on the date that is 60 days following the applicable statute
                                            of limitations for such Taxes.

 

    18 

     

    

 

		(iv)	Buyer’s
                                            Indemnity Obligations. The representations, warranties, covenants and performance obligations
                                            of Buyer in this Agreement and all covenants, assumptions and indemnities set forth in Section 3.3(b)
                                            will survive the Closing and remain in full force and effect indefinitely.

 

		(v)	Survival
                                            After Claim. Notwithstanding the foregoing, if a Claim Notice has been properly delivered
                                            under Section 3.3(d) before the date any representation, warranty, covenant,
                                            indemnity or performance obligation would otherwise expire under such Sections alleging a
                                            right to indemnification or defense for Claims arising out of, relating to or attributable
                                            to the breach of such representation, warranty, covenant, indemnity or performance obligation,
                                            such representation, warranty, covenant, indemnity or performance obligation will continue
                                            to survive until the Claims asserted in such Claim Notice that are based on the breach of
                                            such representation, warranty, covenant, indemnity or performance obligation have been fully
                                            and finally resolved under this Section 3.

 

		(k)	Anti-Indemnity
                                            Acts. The Parties acknowledge and agree that the provisions of any anti-indemnity statute
                                            relating to oilfield services and associated activities will not be applicable to this Agreement,
                                            the Seller Certificate, the Buyer Certificate or the other Transaction Documents or the transactions
                                            contemplated hereby or thereby.

 

		(l)	Holdback
                                            Amount Claims.

 

		(i)	If
                                            the Closing occurs, $[***] of the Deposit shall be retained by the Escrow Agent in escrow
                                            in accordance with the terms of the Escrow Agreement (the “Holdback Amount”).
                                            For the avoidance of doubt, as provided in Section 2.1, the entire Deposit (including
                                            the Holdback Amount) will reduce the Closing Payment payable to Seller at Closing, and the
                                            amount thereof shall be deemed a credit against the Adjusted Purchase Price. Upon the final
                                            determination of the amount of any Claims, if any, payable to Buyer pursuant to Section 3.3(c),
                                            Seller and Buyer shall promptly (and in any event within two Business Days after such final
                                            determination) deliver to the Escrow Agent written instructions instructing the Escrow Agent
                                            to disburse to Buyer from the Holdback Amount an amount equal to all or a stipulated amount
                                            of such alleged losses, if any, to which it has been finally determined that Buyer is entitled.

 

		(ii)	Subject
                                            to the limitations set forth in this Section 3, on or prior to the end of the
                                            General Indemnity Period, any amounts due by Seller to Buyer under this Section 3
                                            will be first satisfied from the Holdback Amount, and thereafter, to the extent that
                                            Buyer is determined to be owed by Seller amounts in excess of the Holdback Amount, Buyer
                                            may seek payment for such amount from Seller. After the release of the Holdback Amount as
                                            contemplated by this Section 3.3(l), Buyer may seek payment of any amounts due
                                            to Buyer as set forth in this Section 3 from Seller.

 

    19 

     

    

 

		(iii)	If
                                            Seller does not dispute any Claim made by Buyer against Seller in accordance with this Section 3,
                                            Seller and Buyer shall provide written instructions to the Escrow Agent in accordance with
                                            the Escrow Agreement to disburse to Buyer the amount of the undisputed Claim. If Seller does
                                            dispute any Claim made by Buyer against Seller in accordance with this Section 3,
                                            then upon final determination of such Claim (or a settlement between the Parties) with respect
                                            to such Claim, Seller and Buyer shall provide written instructions to the Escrow Agent to
                                            disburse to Buyer the amount determined by such final determination or settlement to be due.

 

		(iv)	Notwithstanding
                                            anything in this Agreement to the contrary, on the first Business Day following June 30, 2023,
                                            Buyer and Seller shall jointly execute and deliver to the Escrow Agent written instructions
                                            instructing the Escrow Agent to release and deliver to Seller the then balance of the Holdback
                                            Amount in excess of the greater of (A) the aggregate amount of all unresolved or unsatisfied
                                            claims for indemnification that Buyer has made against Seller on or before such date pursuant
                                            to this Section 3 (if any) and (B) an amount equal to 50% of the Holdback
                                            Amount.

 

		(v)	Notwithstanding
                                            anything in this Agreement to the contrary, on the first Business Day following December 31, 2023,
                                            Buyer and Seller shall jointly execute and deliver to the Escrow Agent written instructions
                                            instructing the Escrow Agent to release and deliver to Seller the then balance of the Holdback
                                            Amount in excess of the aggregate amount of all unresolved or unsatisfied Claims for indemnification
                                            that Buyer has made against Seller on or before such date pursuant to this Section 3
                                            (if any). From and after the first Business Day following December 31, 2023,
                                            the aggregate amount of all unresolved or unsatisfied Claims for indemnification that Buyer
                                            has made against Seller on or before such date pursuant to this Section 3 (if
                                            any) will continue to be held by the Escrow Agent pursuant to the terms of the Escrow Agreement
                                            until such Claims have been resolved by the Parties in writing or in a court of competent
                                            jurisdiction and the Escrow Agreement will be deemed to be extended accordingly; provided,
                                            however, that if the remaining balance of the Holdback Amount at any time or from
                                            time to time thereafter exceeds the aggregate amount of all Claims specified in any then-unresolved
                                            or unsatisfied Claims for indemnification that Buyer has made against Seller on or before
                                            such date pursuant to this Section 3, then Seller and Buyer shall promptly notify
                                            the Escrow Agent in writing that the excess amount shall be released promptly to Seller.

 

		(m)	Tax
                                            Treatment of Indemnity Payments. Unless otherwise required by applicable Law, the Parties
                                            agree to treat any indemnity payment made under this Agreement as an adjustment to the Purchase
                                            Price for federal, state, local and foreign income Tax purposes.

 

    20 

     

    

 

		(n)	Effect
                                            of Investigation. The representations and warranties of the Indemnifying Party, and the
                                            Indemnified Party’s right to indemnification with respect thereto, shall not be affected
                                            or deemed waived by reason of any investigation made by or on behalf of the Indemnified Party
                                            (including by any of its Representatives) or by reason of the fact that the Indemnified Party
                                            or any of its Representatives knew or should have known that any such representation or warranty
                                            is, was, or might be inaccurate or by reason of the Indemnified Party’s waiver of any
                                            condition set forth in Section 10.1(a) or Section 10.1(b), as the
                                            case may be.

 

		3.4	Joint
                                            and Several. Notwithstanding anything in this Agreement to the contrary, each
                                            of EEP and EHP shall be jointly and severally liable for each representation, warranty, covenant,
                                            agreement, indemnification obligation and breach of this Agreement and the Transaction Documents
                                            by each other Person.

 

		3.5	Special
                                            Warranty of Title. Notwithstanding anything in this Agreement to the contrary, the special
                                            warranty of Defensible Title set forth in the Assignments shall be (a) a separate cause
                                            of action outside of the terms and provisions of this Section 3, (b) survive
                                            until the date that is 24 months after the Closing Date and (c) will be subject only
                                            to those limitations set forth in Section 6.1(b).

 

	4.	Taxes
                                            and Payables

 

		4.1	Proration
                                            of Taxes. Seller shall be allocated all ad valorem, property, excise, severance, production,
                                            sales, use or similar Taxes based upon the operation or ownership of the Assets or the severance
                                            or production of Hydrocarbons or the receipt of proceeds therefrom Taxes (“Asset
                                            Taxes”) for (a) any taxable period ending on the day immediately before
                                            the date on which the Effective Time occurs, and (b) the portion of any taxable period
                                            beginning before and ending after the Effective Time (the “Straddle Period”),
                                            in each case, ending on the day immediately before the date prior to the day on which the
                                            Effective Time occurs (collectively, the “Pre-Effective Time Tax Period”),
                                            and Buyer shall be allocated all Asset Taxes for any taxable period beginning on the date
                                            on which the Effective Time occurs and the portion of any Straddle Period beginning on the
                                            date on which the Effective Time occurs, without duplicating any adjustment to the Purchase
                                            Price required by Section 2.3(c) (such Taxes allocated to Buyer, the “Buyer
                                            Taxes”). For the purposes of determining such allocation of Asset Taxes, (i) Asset
                                            Taxes that are attributable to severance or production (other than such Asset Taxes described
                                            in clause (iii)) shall be allocated to the taxable period in which the severance
                                            or production giving rise to such Asset Taxes occurred; (ii) Asset Taxes that are based
                                            upon or related to sales or receipts or imposed on a transactional basis (other than such
                                            Asset Taxes described in clause (i) or (iii)) shall be allocated to the
                                            taxable period in which the transaction giving rise to such Asset Taxes occurred; (iii) Asset
                                            Taxes that are ad valorem, property or other Asset Taxes imposed on a periodic basis pertaining
                                            to a Straddle Period shall be allocated between the Pre-Effective Time Tax Period and the
                                            portion of such Straddle Period beginning at the Effective Time by prorating each such Asset
                                            Tax based on the number of days in the Pre-Effective Time Tax Period, on the one hand, and
                                            the number of days in such Straddle Period that include or occur after the Effective Time,
                                            on the other hand; and (iv) any other Asset Taxes imposed on Seller or any of its subsidiaries
                                            shall be allocated using a “closing of the books” methodology as of the Effective
                                            Time. To the extent the actual amount of any such Tax is not known at the Closing or at the
                                            time of the final Purchase Price is finally determined pursuant to Section 10.4,
                                            as applicable, the Parties shall utilize the most recent information available in estimating
                                            the amount of such Tax for purposes of such adjustment.

 

    21 

     

    

 

		4.2	Tax
                                            Returns. Seller shall prepare and timely file (or cause to be prepared and timely filed)
                                            all reports, declarations of estimated Tax, information statements or returns, or claims
                                            for refund required to be filed with any Taxing Authority prior to the Closing Date (“Tax
                                            Return”) in a manner consistent with past practice. Buyer shall prepare and
                                            timely file all other Tax Returns related to the Assets.

 

		4.3	Transfer
                                            Taxes. Buyer shall be responsible for the timely payment of, and shall solely bear all
                                            sales (including bulk sales), use, value added, documentary, stamp, gross receipts, registration,
                                            transfer, conveyance, excise, recording, license, stock transfer stamps and other similar
                                            Taxes and fees arising out of or in connection with or attributable to the transactions effected
                                            pursuant to this Agreement, excluding however any Taxes attributable to Seller’s receipt
                                            of the Purchase Price, (collectively, “Transfer Taxes”). Buyer
                                            shall, or shall cause Seller or any of its subsidiaries to, file all necessary Tax Returns
                                            and other documentation with respect to all such Transfer Taxes as required by applicable
                                            Law.

 

		4.4	Cooperation.
                                            Buyer and Seller agree to furnish or cause to be furnished to the other, upon request, as
                                            promptly as practicable, such information and assistance relating to the Assets, including
                                            access to books and records, as is reasonably necessary for the filing of all Tax Returns
                                            by Buyer or Seller, the making of any election relating to Taxes, the preparation for any
                                            audit by any Taxing Authority and the prosecution or defense of any Claim, suit or other
                                            Proceeding relating to any Tax.

 

		4.5	True-Up.
                                            To the extent either Party is allocated a Tax under this Section 4 that is ultimately
                                            paid or economically borne by the other Party after the Closing Date, the non-paying Party
                                            shall reimburse the paying Party in an amount equal to its allocable share of such Taxes
                                            within ten Business Days after receipt of notice.

 

	5.	Representations,
                                            Warranties, Acknowledgments, Disclaimers and Waivers

 

		5.1	Seller’s
                                            Representations and Warranties. Each of EEP and EHP represents and warrants to Buyer,
                                            as of the Execution Date and as of the Closing Date, as follows:

 

		(a)	Formation.
                                            Each of EEP and EHP is a limited liability company duly organized, validly existing and in
                                            good standing under the laws of the State of Delaware and is duly qualified to carry on its
                                            business in the states where the Assets of Seller are located. Each of EEP and EHP has the
                                            power and authority to own the Assets and carry on its business as now conducted and to enter
                                            into and perform its obligations under this Agreement and the other Transaction Documents.

 

    22 

     

    

 

		(b)	Authorization.
                                            Each of EEP and EHP has the power and authority to enter into and perform this Agreement
                                            and the other Transaction Documents to be executed and delivered by EEP and EHP, as applicable,
                                            at the Closing and to consummate the transactions contemplated by this Agreement and the
                                            Transaction Documents. The execution and delivery of this Agreement and the other Transaction
                                            Documents to be executed and delivered by Seller at the Closing and the consummation of the
                                            transactions contemplated hereby and thereby have been duly authorized by all necessary action
                                            on behalf of EEP and EHP, as applicable. This Agreement has been duly executed and delivered
                                            by EEP and EHP, and all Transaction Documents to be executed and delivered by EEP or EHP
                                            shall be duly executed and delivered by EEP and EHP, as applicable, and this Agreement constitutes,
                                            and at the Closing such Transaction Documents shall constitute, the valid and binding obligations
                                            of EEP and EHP, as applicable, enforceable in accordance with their terms except as such
                                            enforceability may be limited by applicable bankruptcy or other similar Laws affecting the
                                            rights and remedies of creditors generally as well as to general principles of equity (regardless
                                            of whether such enforceability is considered in a proceeding in equity or at law).

 

		(c)	No
                                            Conflicts. The execution, delivery and performance of this Agreement and the other Transaction
                                            Documents by each of EEP and EHP, and the consummation of the transactions contemplated hereby
                                            and thereby, do not and will not (i) conflict with or result in a breach or constitute
                                            an event that, with notice or lapse of time or both, would reasonably be expected to result
                                            in default of any provision of the certificate of incorporation or formation or the limited
                                            liability company agreement, bylaws or other organizational documents, as applicable, of
                                            Seller, (ii) result in a material default or an event that, with due notice or lapse
                                            of time or both, would reasonably be expected to result in a material default, or the creation
                                            of any material Encumbrance or give rise to any right of termination, cancellation or acceleration
                                            under any of the terms, conditions or provisions of any Lease, Contract, Permit, license,
                                            note, bond, mortgage, indenture, or other instrument or agreement to which Seller is a party
                                            or by which Seller or the Assets may be bound, (iii) violate in any material respect
                                            any judgment, order, ruling, or decree applicable to Seller as a party in interest, or (iv) violate
                                            in any material respect any Laws applicable to Seller or any of the Assets (or the ownership
                                            or operation of the Assets).

 

		(d)	No
                                            Brokers. Seller is not a party to any contract or agreement for the payment of any broker’s
                                            or finder’s fee in connection with the origin, negotiation, execution or performance
                                            of this Agreement for which Buyer will have any liability.

 

		(e)	Bankruptcy.
                                            There are no bankruptcy, reorganization or arrangement proceedings pending, being contemplated
                                            by or threatened against Seller.

 

		(f)	Suits
                                            and Claims. Except as set forth in Schedule 5.1(f), there is no suit, demand,
                                            action, arbitration, audit, investigation or proceeding (each a “Proceeding”)
                                            pending or threatened in writing (a) against Seller or its Affiliates with respect to
                                            the Assets, (b) otherwise relating to the Assets or (c) that would be reasonably
                                            likely to impair or delay Seller’s ability to consummate the transactions contemplated
                                            under this Agreement or the other Transaction Documents. To Seller’s Knowledge, no
                                            event has occurred or circumstances exist that may give rise to, or serve as the basis for,
                                            any such Proceeding.

 

    23 

     

    

 

		(g)	Taxes.
                                            Except as set forth on Schedule 5.1(g):

 

		(i)	all
                                            Tax Returns required to be filed with respect to any Asset Taxes have been timely filed,
                                            and all such Tax Returns are true, correct and complete in all respects;

 

		(ii)	all
                                            Asset Taxes due and owing have been timely paid;

 

		(iii)	there
                                            are no audits, Claims, assessments, levies, administrative or judicial action or other Proceedings
                                            pending, proposed in writing, or threatened in writing with respect to any Asset Taxes, and
                                            all deficiencies asserted and assessments with respect to Asset Taxes as a result of any
                                            examination by any Governmental Authority have been fully paid;

 

		(iv)	no
                                            waiver of any statute of limitations relating to Asset Taxes is in effect, and no written
                                            request for such a waiver is outstanding;

 

		(v)	no
                                            extension of time within which to file any Tax Return related to Asset Taxes required to
                                            be filed by Seller is in effect;

 

		(vi)	there
                                            are no liens for Taxes upon any of the Assets, except for liens for Taxes that are not yet
                                            delinquent; and

 

		(vii)	no
                                            Asset is subject to any tax partnership agreement or provisions requiring a partnership income
                                            Tax Return to be filed under Subchapter K of Chapter 1 of Subtitle A of the Code or any similar
                                            state statute.

 

		(h)	Compliance
                                            with Laws. Except as set forth in Schedule 5.1(h), with respect to the Assets
                                            operated by Seller, Seller is, and has been during the three-year period prior to the Execution
                                            Date (or such shorter period to the extent an Asset has not been operated for a prior three
                                            year period), in compliance in all material respects with all applicable Laws with respect
                                            to the ownership and operation of the Assets. To Seller’s Knowledge, any Assets operated
                                            by third parties are being operated and have been operated by such Persons during such period
                                            in compliance in all material respects with all applicable Laws. Neither Seller nor any of
                                            its Affiliates has received from any Person any written notice with respect to the Assets
                                            of a material violation or material default by Seller of any Law applicable to the Assets
                                            or the ownership or operation thereof that remains unresolved.

 

		(i)	Permits.
                                            Except as set forth in Schedule 5.1(i), with respect to Assets operated by Seller,
                                            Seller (a) has obtained and is maintaining all material Permits required for the ownership
                                            and operation of the Assets as currently owned and operated and (b) is not in material
                                            default of its obligations thereunder. To Seller’s Knowledge, there are no Proceedings
                                            pending or threatened with respect to such Permits challenging or seeking revocation or limitation
                                            of any such Permits.

 

    24 

     

    

 

		(j)	Take-or-Pay
                                            Arrangements. Seller is not obligated by virtue of any take-or-pay payment, advance payment
                                            or other similar payment to deliver Hydrocarbons, or proceeds from the sale thereof, attributable
                                            to Seller’s interest in the Properties at some future time without receiving full payment
                                            therefor or after the time of delivery.

 

		(k)	Imbalances.
                                            As of the Effective Time, there are no Imbalances associated with the Assets or the production
                                            therefrom, except as set forth on Schedule 5.1(k) as of the date shown on such
                                            schedule.

 

		(l)	Preferential
                                            Rights, Hard Consents and Tag Along Rights.

 

		(i)	Schedule 5.1(l)(i)
                                            contains a list of all preferential rights to purchase, rights of first refusal or similar
                                            rights (“Preferential Rights”) that may be applicable to, or triggered
                                            by, the sale or transfer of the Assets by Seller as contemplated by this Agreement or otherwise
                                            in connection with the consummation of the transactions contemplated by this Agreement or
                                            the other Transaction Documents.

 

		(ii)	Schedule 5.1(l)(ii)
                                            contains a list of all Consents that may be applicable to, or triggered by, the sale
                                            or transfer of the Assets by Seller as contemplated by this Agreement or otherwise in connection
                                            with the consummation of the transactions contemplated by this Agreement or the other Transaction
                                            Documents.

 

		(iii)	Except
                                            as set forth on Schedule 5.1(l)(iii), the Assets are not subject to, or otherwise
                                            burdened by, any tag-along or similar rights that may permit Persons other than Seller to
                                            sell or transfer interests to Buyer and obligate Buyer to purchase such interests from such
                                            Persons, pursuant to the terms and conditions of the applicable Contract (“Tag
                                            Along Rights”).

 

		(m)	Material
                                            Contracts. Schedule 5.1(m)-1 sets forth all Contracts of the type described
                                            below with respect to the Assets (collectively, the “Material Contracts”):

 

		(i)	any
                                            Contract that can reasonably be expected to result in aggregate payments or revenues of more
                                            than $50,000 during the current or any subsequent fiscal year;

 

		(ii)	Contracts
                                            between EEP and EHP, on the one hand, and any other Affiliate of EEP or EHP, on the other
                                            hand;

 

		(iii)	Contracts
                                            for the sale, purchase, exchange, or other disposition of Hydrocarbons produced from the
                                            Properties that are not cancelable without penalty to Seller, its Affiliates, or its or their
                                            permitted successors and assigns, on 60 days’ or less prior written notice;

 

    25 

     

    

 

		(iv)	any
                                            Contract that is a farmout or farmin agreement, participation agreement, exploration agreement,
                                            joint venture agreement, development, exploration, operating, purchase and/or acquisition
                                            agreement, joint operating agreement, unit agreement or similar Contract under which Seller
                                            has an unperformed obligation to sell, lease, farmout, exchange, transfer or dispose of any
                                            of the Assets;

 

		(v)	any
                                            Contract for the gathering, treatment, processing, storage or transportation of Hydrocarbons
                                            or that contains an acreage dedication or volume commitment, which Contract is not cancelable
                                            without penalty to Seller, its Affiliates, or its or their permitted successors and assigns,
                                            on 60 days’ or less prior written notice;

 

		(vi)	any
                                            Contract that constitutes a lease under which Seller is the lessor or the lessee of real
                                            or personal property, which lease (A) cannot be terminated by Seller without penalty
                                            upon 60 days’ or less notice and (B) involves an annual base rental of more
                                            than $50,000;

 

		(vii)	any
                                            Contract that (A) contains or constitutes an area of mutual interest agreement (or any
                                            other agreement that purports to restrict, limit or prohibit the manner in which, or the
                                            locations in which, Seller conducts business), (B) includes non-competition restrictions
                                            or other similar restrictions on doing business or (C) contains drag-along rights or
                                            tag-along rights held by a third party with respect to any Asset;

 

		(viii)	any
                                            Surface Interests providing a third Person with rights to material burdens or payments (other
                                            than customary surface damage provisions providing for remediation of, or indemnification
                                            for, damages to the surface) triggered by the use of the relevant surface property for drilling
                                            or other purposes;

 

		(ix)	any
                                            Contract that is an indenture, mortgage, loan, credit agreement, sale-leaseback, guaranty
                                            of any obligation, bond, letter of credit or similar financial contract; and

 

		(x)	any
                                            Contract granting any Person a call upon, option to purchase or similar rights with respect
                                            to the production from the Assets.

 

Except
as set forth on Schedule 5.1(m)-2, each Material Contract is a legal, valid and binding obligation of each party thereto,
is enforceable in accordance with its terms against each party thereto, and is in full force and effect, except as such enforceability
may be limited by applicable bankruptcy or other similar Laws affecting the rights and remedies of creditors generally as well as to
general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), and there
are no current notices received by Seller of the exercise of any premature termination, price redetermination, market-out, or curtailment
of any Material Contract. There exists no material breach or material default under any Material Contract by Seller (or its Affiliates)
or, to Seller’s Knowledge, by any other Person that is a party to any such Material Contract, and no event has occurred that with
notice or lapse of time or both would constitute a material default under any such Material Contract by Seller or, to Seller’s
Knowledge, any other Person who is a party to such Material Contract. Seller has not given or received written notice of any action to
terminate, rescind, procure a judicial reformation of, or amendment to any of the Material Contracts that would be materially adverse
to Seller. Prior to the Execution Date, Seller has made available to Buyer true and complete copies of each Material Contract, including,
in each case, any and all amendments or modifications thereto.

 

    26 

     

    

 

		(n)	Existing
                                            Wells and Personal Property. Except as set forth on Schedule 5.1(n):

 

		(i)	(A)
                                            Seller has good and indefeasible title to all of the Personal Property free and clear of
                                            all Encumbrances other than Permitted Encumbrances, (B) all currently producing Existing
                                            Wells (and related Personal Property) are in an operable state of repair adequate to maintain
                                            normal operations in accordance with past practices, ordinary wear and tear excepted, and
                                            (C) the Personal Property is sufficient for the continued conduct of Seller’s
                                            activities with respect to the Assets after the Closing in substantially the same manner
                                            as conducted by Seller prior to the Closing;

 

		(ii)	with
                                            respect to the Assets that Seller or its Affiliates operate and, to Seller’s Knowledge,
                                            with respect to the Assets that Seller and its Affiliates do not operate, there are no dry
                                            holes, or shut-in, temporarily abandoned or otherwise inactive Existing Wells, included among
                                            the Assets;

 

		(iii)	with
                                            respect to the Assets that Seller or its Affiliates operate and, to Seller’s Knowledge,
                                            with respect to the Assets that Seller and its Affiliates do not operate: (A) all Existing
                                            Wells have been drilled and completed within the limits permitted by all applicable Leases,
                                            (B) there is no Existing Well included in the Assets with respect to which Seller is
                                            in violation of any applicable Laws for failing to timely plug and abandon, (C) there
                                            is no Existing Well included in the Assets with respect to which Seller is obligated by any
                                            applicable Law or order of a Governmental Authority to plug, dismantle, or abandon that has
                                            not been plugged or abandoned, (D) there is no Existing Well included in the Assets
                                            that is subject to penalties on allowables because of any overproduction or any other violation
                                            of applicable Law and (E) there is no Existing Well included in the Assets that has
                                            been plugged and abandoned other than in compliance in all material respects with applicable
                                            Law and applicable requirements of each relevant Governmental Authority having jurisdiction
                                            over such Existing Well.

 

		(o)	Suspended
                                            Proceeds. Schedule 5.1(o) lists all Suspended Proceeds as of the Effective
                                            Time, the names of the Persons claiming such funds or to whom such funds are owed as of the
                                            Effective Time and an identification, in reasonably sufficient detail, of the reason for
                                            the existence of such Suspended Proceeds.

 

    27 

     

    

 

		(p)	Lease
                                            Matters.

 

		(i)	Neither
                                            Seller nor any of its Affiliates has received any written notice from a lessor seeking to
                                            terminate, cancel, amend, rescind or procure judicial reformation of any such Lease that
                                            remains unresolved.

 

		(ii)	Except
                                            as described in reasonable detail on Schedule 5.1(p)(ii), (A) none of the
                                            Leases operated by Seller or any of its Affiliates, and expressly limited to those sections
                                            listed on Schedule 5.1(p)(ii) (excluding, solely for purposes of this clause (A)
                                            (x) those Leases with respect to which the lessor’s rights apply solely to
                                            not more than five gross surface acres and (y) surface waivers or similar restrictions
                                            on drilling or location of drill sites that are included in the Louisiana Bath or a similar
                                            standardized Louisiana lease form, without giving effect to any addenda thereto) are subject
                                            to any surface waivers or similar restrictions on drilling or location of drill sites, in
                                            each case, that would, individually or in the aggregate, be reasonably likely to materially
                                            impair or have a material and adverse effect on the reasonably foreseeable, as of the date
                                            hereof, development of the Assets and (B) none of the Leases are subject to an outstanding
                                            drilling commitment or outstanding condition to drill a well or wells during the primary
                                            term thereof (excluding, solely for purposes of this clause (B), any well required
                                            pursuant to an implied covenant under Louisiana Law).

 

		(iii)	Schedule 5.1(p)(iii)
                                            sets forth those Leases that are being maintained in full force and effect by the payment
                                            of shut-in royalties or other payments in lieu of operations or production.

 

		(q)	Non-Consent
                                            Operations; Payout Balances.

 

		(i)	Except
                                            as set forth on Schedule 5.1(q)(i), Seller has not elected not to participate
                                            in any operation or activity proposed with respect to the Properties that could reasonably
                                            be expected to result in any of Seller’s interest in such Properties becoming subject
                                            to a penalty, charge, fee or forfeiture as a result of such election not to participate in
                                            such operation or activity.

 

		(ii)	With
                                            respect to those Existing Wells operated by Seller or its Affiliates, Schedule 5.1(q)(ii)
                                            sets forth, and with respect to any Existing Well operated by a third Person, to Seller’s
                                            Knowledge, Schedule 5.1(q)(ii) sets forth, a complete and accurate list of the
                                            status of any payout balances for each Existing Well subject to a reversion or other adjustment
                                            at any level of cost recovery or Hydrocarbon production from or attributable to such Property,
                                            as of the dates shown on such Schedule with respect to each Property.

 

    28 

     

    

 

		(r)	Environmental
                                            Matters. Except as set forth in Schedule 5.1(r):

 

		(i)	the
                                            Assets and Seller, in respect to the operation of the Assets, are and have been during the
                                            three-year period prior to the Execution Date (or such shorter period to the extent an Asset
                                            has not been operated for a prior three-year period) in compliance in all material respects
                                            with applicable Environmental Laws;

 

		(ii)	Seller
                                            has not entered into any agreements and is not subject to any orders of a Governmental Authority
                                            that are in existence as of the date hereof, that are based on or arise under any Environmental
                                            Laws, and that relate to the current or future operation, ownership or use of any of the
                                            Assets; and

 

		(iii)	there
                                            has not been any release or disposal of any Hazardous Substance at, on or from any land,
                                            facility, asset or property included in the Assets that would reasonably be expected to:
                                            (A) interfere with or prevent material compliance by Seller with any Environmental Law
                                            or the terms of any Permit issued pursuant thereto; or (B) give rise to or result in
                                            any common Law or other material liability of Seller to any Person.

 

		(s)	For
                                            purposes of this Agreement, the term “Knowledge of Seller” (and
                                            any similar expression, including the expression “Seller’s Knowledge”)
                                            shall refer to matters actually known by George A. Baldwin, Jr., Lonnie Shaw, Ron Tuminello
                                            or Gregory K. Madden, in each case, following reasonable inquiry to such individual’s
                                            direct reports.

 

		5.2	Buyer’s
                                            Representations and Warranties. Buyer represents and warrants to Seller, as of the Execution
                                            Date and as of the Closing Date, as follows:

 

		(a)	Formation.
                                            Buyer is duly organized and validly existing and in good standing under the laws of the State
                                            of Delaware and is or will be, prior to Closing, duly qualified to carry on its business
                                            in each of the states in which it is required to be qualified and has the power and authority
                                            to own its property and to carry on its business as now conducted and to enter into and to
                                            carry out the terms of this Agreement and the transactions contemplated by this Agreement.

 

		(b)	Authorization.
                                            The execution and delivery of this Agreement and the consummation of the transactions contemplated
                                            hereby have been duly authorized by all necessary action on behalf of Buyer, and Buyer is
                                            not subject to any charter, by-law, lien, Encumbrance, agreement, instrument, order or decree
                                            of any court or governmental body that would prevent the consummation of the transactions
                                            contemplated by this Agreement.

 

		(c)	No
                                            Brokers. Buyer is not a party to any contract or agreement for the payment of any broker’s
                                            or finder’s fee in connection with the origin, negotiation, execution or performance
                                            of this Agreement for which Seller will have any liability.

 

    29 

     

    

 

		(d)	Bankruptcy.
                                            There are no bankruptcy, reorganization or arrangement proceedings pending, being contemplated
                                            by or, to the actual and current Knowledge of Buyer, threatened against Buyer.

 

		(e)	Suits
                                            and Claims. There is no Proceeding pending or, to Buyer’s Knowledge, threatened
                                            against Buyer or its Affiliates that will materially affect Buyer’s ability to consummate
                                            the transactions contemplated herein.

 

		(f)	Independent
                                            Evaluation. Buyer acknowledges that it is an experienced and knowledgeable investor in
                                            the oil and gas business, as well as the business of purchasing, owning, developing and operating
                                            oil and gas properties such as the Assets. If Closing occurs, Buyer represents and acknowledges
                                            that it has had full access to the Assets, the officers, and employees of Seller, and to
                                            the books, records and files of Seller relating to the Assets. In making the decision to
                                            enter into this Agreement and to consummate the transactions contemplated hereby, Buyer has
                                            relied solely upon (a) its own independent due diligence investigation of the Assets
                                            and (b) the express representations and warranties made by Seller in this Agreement
                                            and the other Transaction Documents, and (c) its own expertise and its own legal, Tax,
                                            operations, environmental, reservoir engineering and other professional counsel and advisors
                                            concerning this transaction, the Assets and the value thereof.

 

		(g)	Qualification.
                                            As of the Closing, Buyer shall be qualified with all applicable Governmental Authorities
                                            to own and, if applicable, operate the Assets.

 

		(h)	Securities
                                            Laws. Buyer is acquiring the Assets for its own account and not with a view to, or for
                                            an offer of resale in connection with, a distribution thereof, within the meaning of the
                                            Securities Act of 1933, 15 U.S.C. § 77(a) et seq., and any other
                                            rules, regulations, and laws pertaining to the distribution of securities.

 

		(i)	Funds.
                                            Buyer has arranged to have available by the Closing Date sufficient funds to enable Buyer
                                            to pay in full the Purchase Price as herein provided and to otherwise perform its duties
                                            and obligations under this Agreement.

 

		(j)	For
                                            purposes of this Agreement, the term “Knowledge of Buyer” (and
                                            any similar expression, including the expression “Buyer’s Knowledge”)
                                            shall refer to matters actually known by John Howie and Kian Granmayeh, in each case, following
                                            reasonable inquiry to such individual’s direct reports.

 

		5.3	Representations
                                            and Warranties Exclusive. Except as and to the extent expressly set forth in Section 5.1,
                                            the Seller Certificate and the Assignments, (i) Seller makes no representations or warranties,
                                            express or implied, and (ii) Seller expressly disclaims all liability and responsibility
                                            for any representation, warranty, statement, or information made or communicated (orally
                                            or in writing) to Buyer or any of its Affiliates, employees, agents, consultants, or Representatives
                                            (including any opinion, information, projection, or advice that may have been provided to
                                            Buyer by any officer, director, employee, agent, consultant, Representatives, or advisor
                                            of Seller or any of its or their Affiliates).

 

    30 

     

    

 

		5.4	Disclaimers,
                                            Waivers and Acknowledgments.

 

		(a)	Except
                                            as and to the extent expressly set forth in Section 5.1, the Seller Certificate
                                            and the Assignments, SELLER EXPRESSLY DISCLAIMS, NEGATES AND EXCLUDES, AND BUYER HEREBY WAIVES,
                                            RELINQUISHES AND DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, STATUTORY
                                            OR OTHERWISE. Except as and to the extent expressly set forth in Section 5.1,
                                            the Seller Certificate and the Assignments, THE ASSETS SHALL BE CONVEYED PURSUANT HERETO
                                            WITHOUT ANY WARRANTY OR REPRESENTATION WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE,
                                            WITH RESPECT TO: (A) THE CONDITION OF ANY EXISTING WELLS, WELLBORES, FIXTURES, PIPELINES,
                                            EQUIPMENT OR OTHER PERSONAL PROPERTY THAT MAY BE LOCATED ON THE ASSETS AND/OR THE LANDS COVERED
                                            BY THE LEASES OR ANY OF THEM; (B) THE ACCURACY OR COMPLETENESS OF ANY DATA, REPORTS,
                                            RECORDS, PROJECTIONS, INFORMATION OR MATERIALS NOW, HERETOFORE OR HEREAFTER FURNISHED OR
                                            MADE AVAILABLE TO BUYER INCLUDING, WITHOUT LIMITATION, RELATIVE TO PRICING ASSUMPTIONS, OR
                                            QUALITY OR QUANTITY OF HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE TO THE ASSETS OR THE ABILITY
                                            OR POTENTIAL OF THE ASSETS TO PRODUCE HYDROCARBONS; (C) THE QUALITY, QUANTITY OR VOLUME
                                            OF THE RESERVES, IF ANY, OF OIL, GAS OR OTHER HYDROCARBONS IN OR UNDER THE ASSETS; (D) THE
                                            PHYSICAL AND ENVIRONMENTAL CONDITION OF THE ASSETS, BOTH SURFACE AND SUBSURFACE, INCLUDING
                                            BUT NOT LIMITED TO CONDITIONS SPECIFICALLY RELATED TO THE PRESENCE, RELEASE OR DISPOSAL OF
                                            HAZARDOUS SUBSTANCES, SOLID WASTES, ASBESTOS AND OTHER MAN MADE FIBERS, OR NATURALLY OCCURRING
                                            RADIOACTIVE MATERIALS; AND (E) THE COMPLETENESS OR ACCURACY OF INFORMATION CONTAINED
                                            IN THE DATA OR ANY OTHER MATERIALS FURNISHED OR MADE AVAILABLE TO BUYER BY SELLER OR BY SELLER’S
                                            REPRESENTATIVES OR BY ANY OTHER PARTY. Except as and to the extent expressly set forth in
                                            Section 5.1, the Seller Certificate and the Assignments, SELLER FURTHER DISCLAIMS
                                            ANY REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY OR IMPLIED, OF MERCHANTABILITY, FREEDOM
                                            FROM LATENT VICES OR DEFECTS, FITNESS FOR A PARTICULAR PURPOSE OR CONFORMITY TO MODELS OR
                                            SAMPLES OF MATERIALS OF ANY OF THE ASSETS, RIGHTS OF A BUYER UNDER APPROPRIATE STATUTES TO
                                            CLAIM DIMINUTION OF CONSIDERATION OR RETURN OF THE PURCHASE PRICE, IT BEING EXPRESSLY UNDERSTOOD
                                            AND AGREED BY THE PARTIES THAT BUYER SHALL BE DEEMED TO BE OBTAINING THE ASSETS IN THEIR
                                            PRESENT STATUS, CONDITION AND STATE OF REPAIR, “AS IS” AND “WHERE IS,”
                                            WITH ALL FAULTS OR DEFECTS (KNOWN OR UNKNOWN, LATENT, DISCOVERABLE OR UNDISCOVERABLE), THAT
                                            BUYER HAS MADE OR CAUSED TO BE MADE SUCH INSPECTIONS AS BUYER DEEMS APPROPRIATE.

 

    31 

     

    

 

		(b)	BUYER
                                            ACKNOWLEDGES THAT THE ASSETS HAVE BEEN USED FOR EXPLORATION, DEVELOPMENT AND PRODUCTION OF
                                            OIL AND GAS DRILLING AND THAT THERE MAY BE PETROLEUM, PRODUCED WATER, WASTE, OR HAZARDOUS
                                            SUBSTANCES OR MATERIALS LOCATED ON OR UNDER THE PROPERTIES OR ASSOCIATED WITH THE ASSETS.
                                            EQUIPMENT AND SITES INCLUDED IN THE ASSETS MAY CONTAIN ASBESTOS, NORM OR OTHER HAZARDOUS
                                            SUBSTANCES. NORM MAY AFFIX OR ATTACH ITSELF TO THE INSIDE OF WELLS, MATERIALS AND EQUIPMENT
                                            AS SCALE OR IN OTHER FORMS. THE WELLS, MATERIALS AND EQUIPMENT LOCATED ON THE PROPERTIES
                                            OR INCLUDED IN THE ASSETS MAY CONTAIN NORM AND OTHER WASTES OR HAZARDOUS SUBSTANCES. NORM
                                            CONTAINING MATERIAL AND OTHER WASTES OR HAZARDOUS SUBSTANCES MAY HAVE COME IN CONTACT WITH
                                            THE SOIL. SPECIAL PROCEDURES MAY BE REQUIRED FOR THE REMEDIATION, REMOVAL, TRANSPORTATION
                                            OR DISPOSAL OF SOIL, WASTES, ASBESTOS, NORM AND OTHER HAZARDOUS SUBSTANCES FROM THE PROPERTIES.

 

	6.	Title
                                            Matters

 

		6.1	Examination
                                            Period.

 

		(a)	During
                                            the period commencing on the Execution Date and ending at 5:00 p.m. CT on the 30th
                                            day thereafter (the “Examination Period”), Seller shall provide
                                            Buyer and its Representatives reasonable access to the Assets and all Records in the possession
                                            or control of Seller or its Affiliates, and to designated employees of Seller and its Affiliates
                                            responsible for the Assets for the purpose of conducting a review of the Assets, subject
                                            to such restrictions upon disclosure as may exist under confidentiality or other agreements
                                            binding upon Seller or such data (provided, however, that Seller will provide
                                            all title opinions, revenue and expense data, and environmental reports in its possession
                                            or control, irrespective of such confidentiality agreements). Except as and to the extent
                                            expressly set forth in Section 5.1, the Seller Certificate and the Assignments,
                                            Seller makes no representations or warranties whatsoever as to the accuracy, completeness
                                            or reliability of such information.

 

		(b)	The
                                            Assignments delivered at Closing shall contain a special warranty of Defensible Title to
                                            the Properties by, through and under Seller and its Affiliates, but not otherwise, subject
                                            to the Permitted Encumbrances. The special warranty of Defensible Title contained in the
                                            Assignments shall survive the Closing until the date that is 24 months following the Closing
                                            Date and, except as set forth in this Section 6.1(b), shall not be subject to
                                            any thresholds, deductibles or other limitations set forth in this Agreement. If Buyer provides
                                            written notice of a breach of the special warranty to Seller, Seller shall have a reasonable
                                            opportunity to cure such breach. The aggregate Title Defect Value attributable to the effects
                                            of all Title Defects upon any given Property shall not exceed the Allocated Value of such
                                            affected Property, except in the case of Encumbrances that are liquidated in amount.

 

    32 

     

    

 

		6.2	Title
                                            Defects.

 

		(a)	As
                                            used in this Agreement, the term “Title Defect” means any lien,
                                            charge, encumbrance, obligation or defect (each an “Encumbrance”)
                                            that causes Seller not to have Defensible Title to any Property.

 

		(b)	As
                                            used in this Agreement, “Defensible Title” means that record title
                                            of Seller that, as of the Effective Time, the expiration of the Examination Period and the
                                            Closing Date, subject to the Permitted Encumbrances:

 

		(i)	with
                                            respect to each Existing Well set forth on Exhibit “A-2”, entitles
                                            Seller to not less than the Net Revenue Interest in the Target Interval set forth on Exhibit “A-2”
                                            for such Existing Well throughout the productive life thereof, except as otherwise expressly
                                            stated on Exhibit “A-2”;

 

		(ii)	with
                                            respect to each Existing Well set forth on Exhibit “A-2”, obligates
                                            Seller to bear a Working Interest for such Existing Well as to the Target Interval that is
                                            not greater than the Working Interest set forth in Exhibit “A-2”
                                            for such Existing Well without a proportionate increase in corresponding net revenue interest
                                            throughout the productive life of such Existing Well, except as otherwise expressly stated
                                            on Exhibit “A-2”;

 

		(iii)	with
                                            respect to each Unit set forth on Exhibit “A-3”, entitles Seller
                                            to not less than the Net Revenue Interest in the Target Interval set forth on Exhibit “A-3”
                                            for such Unit, except as otherwise expressly stated on Exhibit “A-3”;

 

		(iv)	with
respect to each Unit set forth on Exhibit “A-3”, obligates Seller to bear a Working Interest for such Unit as
to the Target Interval that is not greater than the Working Interest set forth on Exhibit “A-3” for such Unit
without a proportionate increase in corresponding net revenue interest, except as otherwise expressly stated on Exhibit “A-3”;
and

 

		(v)	with
                                            respect to each Property, is free and clear of all Encumbrances.

 

		6.3	Permitted
                                            Encumbrances. The term “Permitted Encumbrances” means:

 

		(a)	lessor’s
                                            royalties, non-participating royalties, overriding royalties and similar burdens, if the
                                            net cumulative effect of such burdens does not (i) interfere with or affect the operation
                                            or use of any of the Assets as currently owned, operated and used, (ii) operate to reduce
                                            the Net Revenue Interest in any Value Asset with respect to the Target Interval to an amount
                                            less than the Net Revenue Interest set forth on Exhibit “A-2” for
                                            any Existing Well or for any Unit, as applicable, or (iii) obligate Seller to bear a
                                            Working Interest with respect to the Target Interval for any Existing Well or Unit in an
                                            amount greater than the Working Interest set forth on Exhibit “A-2”
                                            for such Existing Well or Exhibit “A-3” for such Unit, as applicable
                                            (without a corresponding increase in the Net Revenue Interest of Seller set forth on Exhibit “A-2”
                                            or Exhibit “A-3”, as applicable);

 

    33 

     

    

 

 

		(b)	the
                                            terms and conditions of all Leases, Contracts and Surface Interests, if the net cumulative
                                            effect of such Leases, Contracts and Surface Interests does not (i) interfere with or
                                            affect the operation or use of any of the Assets as currently owned, operated and used, (ii) operate
                                            to reduce the Net Revenue Interest in any Value Asset with respect to the Target Interval
                                            to an amount less than the Net Revenue Interest set forth on for any Existing Well or for
                                            any Unit, as applicable, or (iii) obligate Seller to bear a Working Interest with respect
                                            to the Target Interval for any Existing Well or Unit in an amount greater than the Working
                                            Interest set forth on Exhibit “A-2” for such Existing Well or Exhibit “A-3”
                                            for such Unit, as applicable (without a corresponding increase in the Net Revenue Interest
                                            of Seller set forth on Exhibit “A-2” or Exhibit “A-3”,
                                            as applicable);

 

		(c)	Encumbrances
                                            for Taxes or assessments not yet due or delinquent, or if delinquent, that are being diligently
                                            contested in good faith in the normal course of business and described on Schedule 6.3(c);

 

		(d)	Preferential
                                            Rights to purchase and Consents identified on Schedule 5.1(l)(ii), with respect
                                            to which prior to Closing (i) waivers or consents have been obtained from the appropriate
                                            Person; (ii) the applicable period of time for asserting such rights has expired; or
                                            (iii) there is no need satisfy such Preferential Right or Consent prior to a transfer
                                            of any of the Assets;

 

		(e)	all
                                            rights to consent by, required notices to, filings with, or other actions by Governmental
                                            Authorities in connection with the sale or conveyance of the Assets or interests therein,
                                            if the same are customarily obtained subsequent to such sale or conveyance;

 

		(f)	any
                                            Encumbrance expressly waived by Buyer in writing prior to the Closing Date;

 

		(g)	any
                                            easements, rights-of-way, servitudes, Permits and other rights in respect of surface operations,
                                            pipelines or the like, and easements for pipelines, power lines and other similar rights-of-way,
                                            and encroachments, on, over or in respect of any of the Assets if the net cumulative effect
                                            of such rights does not (i) adversely affect the operation or use of any of the Assets
                                            as currently owned, operated and used, (ii) operate to reduce the Net Revenue Interest
                                            in any Value Asset with respect to the Target Interval to an amount less than the Net Revenue
                                            Interest set forth on Exhibit “A-2” for any Existing Well or Exhibit “A-3”
                                            for any Unit, as applicable, or (iii) obligate Seller to bear a Working Interest
                                            with respect to the Target Interval for any Existing Well or Unit in an amount greater than
                                            the Working Interest set forth on Exhibit “A-2” for such Existing
                                            Well or Exhibit “A-3” for such Unit, as applicable (without a corresponding
                                            increase in the Net Revenue Interest of Seller set forth on Exhibit “A-2”
                                            or Exhibit “A-3”, as applicable);

 

    34 

     

    

 

		(h)	defects
                                            based solely on the failure to recite marital status in documents or omission of succession
                                            or heirship proceedings, unless Buyer provides evidence that such failure or omission could
                                            reasonably be expected to result in another Person’s claim of superior title to the
                                            relevant Asset;

 

		(i)	defects
                                            based solely on lack of survey, unless a survey is required by Law;

 

		(j)	defects
                                            based solely on lack of evidence of authority to execute documents on behalf of an entity,
                                            unless Buyer provides evidence that such defect could reasonably be expected to result in
                                            another Person’s claim of superior title to the relevant Asset;

 

		(k)	the
                                            following defects:

 

		(i)	defects
                                            that have been cured or remedied by applicable statutes of limitation or statutes of prescription;

 

		(ii)	defects
                                            consisting of omissions of succession or heirship proceedings, unless Buyer provides reasonable
                                            evidence that such omission could reasonably be expected to result in another Person’s
                                            claim of superior title to the relevant Asset;

 

		(iii)	defects
                                            in the chain of title prior to the date that is 30 years prior to the effective date
                                            of the applicable Lease, except for any defects consisting of claims or reservations by Governmental
                                            Authorities;

 

		(iv)	defects
                                            consisting of failure to describe changes in marital status in a document, unless Buyer provides
                                            reasonable evidence that such failure could reasonably be expected to result in another Person’s
                                            claim of superior title to the relevant Asset;

 

		(v)	defects
                                            consisting of a lack of recorded trust instruments;

 

		(vi)	mortgages
                                            granted by lessors without subordinations that would be customarily accepted by an experienced
                                            purchaser of oil and gas assets similar to the Assets in the same area where the Assets are
                                            located, unless foreclosure proceedings have been initiated and are ongoing with respect
                                            thereto; and

 

		(vii)	defects
                                            arising from the failure to record releases of Hydrocarbon leases that have expired by their
                                            own terms, unless Buyer provides reasonable evidence that such defect could reasonably be
                                            expected to result in another Person’s claim of superior title to the relevant Asset;

 

		(l)	all
                                            Laws, rules, regulations and orders of Governmental Authority having jurisdiction over the
                                            Assets, including, without limitation, rules and regulations governing production rates and
                                            allowables;

 

		(m)	vendors’,
                                            carriers’, warehousemen’s, repairmen’s, mechanics’, workmen’s,
                                            materialmen’s, construction or other like liens arising by operation of law in the
                                            ordinary course of business or incident to the construction or improvement of any property
                                            in respect of obligations that are not yet due;

 

    35 

     

    

 

		(n)	any
                                            obligations or duties to any municipality or other Governmental Authority with respect to
                                            any franchise, grant, certificate, license or other Permit, and all applicable Law;

 

		(o)	to
                                            the extent not triggered as of the Execution Date, conventional rights of reassignment arising
                                            upon final intention to abandon any Asset; and

 

		(p)	any
                                            defect or loss of title affecting ownership interests in any Value Asset in formations or
                                            intervals other than the Target Interval.

 

		6.4	Notice
                                            of Title Defects; Title Defect Valuation.

 

		(a)	To
                                            assert a claim arising out of a Title Defect, Buyer must notify Seller of such alleged Title
                                            Defect in writing on or before the expiration of the Examination Period. Such notice (each,
                                            a “Title Defect Notice”) shall be in writing and shall include
                                            (i) a description of the Title Defect, (ii) a description of the Value Asset affected
                                            by such Title Defect and the Allocated Value of such Value Asset, (iii) copies of all
                                            supporting documents reasonably necessary for Seller to verify the existence of the alleged
                                            Title Defect, to the extent in Buyer’s possession or control, and (iv) the Title
                                            Defect Value, as reasonably determined by Buyer acting in good faith. Without limitation
                                            of Buyer’s rights and remedies (i) with respect to breaches of the special warranty
                                            of Defensible Title set forth in the Assignments and (ii) under Section 3.3(c)(i)
                                            with respect to breaches of the representations and warranties set forth in Section 5.1,
                                            Buyer shall be deemed to have waived any Title Defects that Buyer fails to timely assert
                                            in a Title Defect Notice to Seller in accordance with this Section 6.4(a).

 

		(b)	The
                                            amount by which the Allocated Value of a Property affected by a Title Defect is reduced as
                                            a result of a Title Defect (the “Title Defect Value”) shall be
                                            determined as follows:

 

		(i)	if
                                            Buyer and Seller agree in writing upon the Title Defect Value, that amount shall be the Title
                                            Defect Value;

 

		(ii)	if
                                            the Title Defect is an Encumbrance that is undisputed and liquidated in amount, then the
                                            Title Defect Value shall be the amount necessary to be paid to remove the Title Defect from
                                            the affected Asset;

 

		(iii)	if
                                            the Title Defect asserted is that Seller’s aggregate Net Revenue Interest attributable
                                            to a Value Asset as to the Target Interval is less than the Net Revenue Interest stated in
                                            Exhibit “A-2” or Exhibit “A-3” with respect
                                            to an Existing Well or Unit, as applicable, then the Title Defect Value shall be the product
                                            of the Allocated Value attributable to such Value Asset, multiplied by a fraction,
                                            the numerator of which is the difference between the Net Revenue Interest applicable thereto
                                            set forth in Exhibit “A-2” or Exhibit “A-3”,
                                            as applicable, and the actual Net Revenue Interest of Seller, and the denominator of which
                                            is the applicable Net Revenue Interest stated in Exhibit “A-2” or
                                            Exhibit “A-3” for such Value Asset;

 

    36 

     

    

 

		(iv)	if
                                            the Title Defect represents an Encumbrance of a type not described in Section 6.4(b)(i),
                                            6.4(b)(ii) or 6.4(b)(iii) above, the amount of the Title Defect Value shall
                                            be determined by taking into account the Allocated Value of the affected Value Asset, the
                                            portion of the Value Asset affected by the Title Defect, the legal effect of the Title Defect,
                                            the potential discounted economic effect of the Title Defect over the life of the affected
                                            Value Asset and such other factors as are necessary to make a proper evaluation;

 

		(v)	the
                                            Title Defect Value of a Title Defect shall be determined without duplication of any costs
                                            or losses included in another Title Defect Value hereunder;

 

		(vi)	if
                                            a Title Defect is not in effect or does not adversely affect an Asset throughout the entire
                                            productive life of such Asset, such fact shall be considered in determining the Title Defect
                                            Value; and

 

		(vii)	notwithstanding
                                            anything herein to the contrary, in no event shall a Title Defect Value exceed the Allocated
                                            Value of the Value Asset affected thereby, except with respect to Encumbrances that are undisputed
                                            and liquidated in amount.

 

		6.5	Seller’s
                                            Right to Cure.

 

		(a)	Seller
                                            shall have the right, but not the obligation, to attempt, at Seller’s sole cost, risk,
                                            and expense, to cure or remove, on or before the date that is 120 days after the Closing
                                            Date (the “Cure Deadline”), any alleged Title Defects of which
                                            Seller has been advised by Buyer pursuant to a Title Defect Notice. Unless Seller provides
                                            written notice to Buyer that it does not intend to attempt to cure such alleged Title Defects
                                            on or before 5:00 p.m. local time where the Assets are located on the date that
                                            is at least three Business Days prior to the Closing Date, Seller shall be deemed to have
                                            elected to Cure the alleged Title Defect. In the event that Seller does not elect to provide
                                            written notice to Buyer that it does not intend to attempt to cure such alleged Title Defect,
                                            (i) the Closing Payment shall be reduced by the Title Defect Value attributable to such
                                            Title Defect, as asserted by Buyer in the applicable Title Defect Notice, (ii) such
                                            amount will be paid by Buyer at the Closing into a separate escrow account with the Escrow
                                            Agent, to be governed by the Escrow Agreement (the “Defect Escrow Account”)
                                            and (iii) the affected Asset will be conveyed to Buyer at the Closing. The election
                                            by Seller to attempt to cure one or more of such alleged Title Defects shall not affect the
                                            rights and obligations of the Parties under Section 8 with respect to dispute
                                            resolution. Seller’s election to attempt to cure an alleged Title Defect shall not
                                            constitute a waiver of any of the rights of Seller pursuant to this Section 6,
                                            including Seller’s right to dispute the existence, nature, or value of such Title Defect.
                                            Buyer shall use commercially reasonable efforts to cooperate with Seller in connection with
                                            Seller’s cure efforts pursuant to this Section 6.5(a); provided,
                                            however, that, for the avoidance of doubt, Buyer will have no obligation to incur
                                            any costs or expenses or to institute any proceedings in connection therewith.

 

    37 

     

    

 

		(b)	If
                                            the Parties agree that any Title Defect that Seller elects to cure pursuant to Section 6.5(a)
                                            has been cured by Seller on or prior to the Cure Deadline, then Buyer and Seller shall
                                            promptly direct the Escrow Agent to release to Seller the Title Defect Value attributable
                                            to such Title Defect from the Defect Escrow Account. If the Parties mutually agree that a
                                            Title Defect that Seller elects to cure pursuant to Section 6.5(a) has been only
                                            partially cured by Seller on or prior to the Cure Deadline, then the Parties shall reasonably
                                            agree upon the portion of the Title Defect Value attributable to such Title Defect that should
                                            be released to Buyer from the Defect Escrow Account to compensate Buyer for the uncured portion
                                            thereof, and the remaining portion of such amount shall be released to Seller in accordance
                                            with the terms of the Escrow Agreement. If the Parties agree that any such Title Defect that
                                            Seller elects to cure pursuant to Section 6.5(a) is not cured by Seller prior
                                            to the Cure Deadline, then the Parties shall promptly direct the Escrow Agent to release
                                            to Buyer the applicable Title Defect Value attributable to such Title Defect from the Defect
                                            Escrow Account in accordance with the terms of the Escrow Agreement.

 

		(c)	Any
                                            dispute relating to whether and to what extent a Title Defect that Seller has elected to
                                            cure post-Closing pursuant to Section 6.5(a) has been cured by Seller shall be
                                            resolved as set forth in Section 8, except that any such matter shall be submitted
                                            to the Independent Expert on or before the date that is ten Business Days after the Cure
                                            Deadline; provided, however, that any prior or concurrent determination by
                                            the Independent Expert with respect to Title Defects (or factual or legal matters relating
                                            thereto, even if determined in connection with the resolution of an otherwise unrelated dispute)
                                            that Seller has elected to attempt to cure pursuant to Section 6.5(a) shall be
                                            binding on the Parties with respect to such Title Defect (or factual or legal matters relating
                                            thereto, even if determined in connection with the resolution of an otherwise unrelated dispute).

 

		6.6	Remedies
                                            for Title Defects. In the event that any Title Defect is not waived in writing by Buyer
                                            prior to the Closing, is not cured by Seller on or prior to the Closing Date, or with respect
                                            to which Seller has elected not to attempt to cure after the Closing as described in Section 6.5
                                            then, with respect to each Property affected by a Title Defect set forth in a Title Defect
                                            Notice, such Property shall be assigned to and accepted by Buyer at the Closing subject to
                                            all uncured Title Defects, and, subject to Section 6.9, the Purchase Price shall
                                            be reduced by an amount equal to the aggregate Title Defect Value asserted by Buyer in the
                                            applicable Title Defect Notice.

 

    38 

     

    

 

		6.7	Title
                                            Benefits.

 

		(a)	Notice
                                            of Title Benefits. Should Seller discover any Title Benefit at any time on prior to the
                                            expiration of the Examination Period, Seller shall have the right, but not the obligation,
                                            to promptly, but in no event later than the expiration of the Examination Period, deliver
                                            to Buyer a written notice (each a “Title Benefit Notice”), which
                                            shall include the following to be effective: (i) a description of the alleged Title
                                            Benefit, (ii) a description of the Value Asset affected by such Title Benefit and the
                                            Allocated Value of such affected Value Asset, (iii) supporting documents reasonably
                                            necessary for Buyer to verify the existence of the alleged Title Benefit and (iv) Seller’s
                                            good faith estimate of the amount by which the Allocated Value of the affected Value Asset
                                            is enhanced by virtue of Seller having a greater Net Revenue Interest in such Value Asset
                                            than the Net Revenue Interest specified on Exhibit “A-2” or Exhibit “A-3”,
                                            as applicable, for such Value Asset and the calculations and information upon which Seller’s
                                            belief is based (the “Title Benefit Value”). Notwithstanding anything
                                            herein to the contrary, Seller shall be deemed to have waived any Title Benefits for which
                                            Seller fails to provide a Title Benefit Notice to Buyer on or prior to the expiration of
                                            the Examination Period. To the extent Buyer identifies a Title Benefit prior to the expiration
                                            of the Examination Period, Buyer shall promptly, but in no event later than the expiration
                                            of the Examination Period, provide Seller with notice thereof, such notice to include the
                                            information required to be provided by Seller in a Title Benefit Notice as provided for above,
                                            to the extent such information is in the possession of Buyer.

 

		(b)	The
                                            Title Benefit Value of any Title Benefit shall be determined as follows:

 

		(i)	if
                                            the Parties agree on the Title Benefit Value in writing, then that amount shall be the Title
                                            Benefit Value;

 

		(ii)	if
                                            the Title Benefit Value represents an increase in Seller’s Net Revenue Interest as
                                            to the Target Interval for a Value Asset, then the Title Benefit Value shall be the product
                                            of the Allocated Value of such Value Asset affected by such Title Benefit, multiplied
                                            by a fraction, the numerator of which is the Net Revenue Interest increase with respect
                                            to such Value Asset and the denominator of which is the Net Revenue Interest set forth for
                                            such affected Value asset on Exhibit “A-2” or Exhibit “A-3”
                                            for such Value Asset, as applicable; and

 

		(iii)	if
                                            the Title Benefit is of a type not described in clause (i) or (ii) above,
                                            then the Title Benefit Value shall be determined by taking into account the Allocated Value
                                            of the Value Asset affected by such Title Benefit, the portion of such Value Asset affected
                                            by such Title Benefit, the legal effect of the Title Benefit, the potential economic effect
                                            of the Title Benefit over the life of such affected Value asset, the values placed upon the
                                            Title Benefit by Buyer and Seller and such other reasonable factors as are necessary to make
                                            a proper evaluation.

 

		(c)	Notwithstanding
                                            the foregoing, (i) the Parties agree and acknowledge that there shall be no upward adjustment
                                            to the Purchase Price for any Title Benefit Value attributable to any Title Benefit and (ii) no
                                            individual claim for a Title Benefit shall be used to offset the aggregate Title Defect Value
                                            unless the Title Benefit Value with respect thereto exceeds an amount equal to $[***].

 

    39 

     

    

 

		6.8	Disputed
                                            Title Matters.

 

		(a)	Seller
                                            and Buyer shall attempt to agree upon the existence of all Title Defects and Title Benefits
                                            and the corresponding Title Defect Values and Title Benefit Values, as applicable, on or
                                            before the Closing Date or, with respect to any Title Defects that Seller has elected to
                                            cure pursuant to Section 6.5(a), the Cure Deadline. If Seller and Buyer are unable
                                            to agree by the applicable date, then Buyer’s Title Defect Value set forth in the applicable
                                            Title Defect Notice shall be used to determine the Closing Payment pursuant to Section 2.3(c)
                                            and, solely to the extent Seller and Buyer are unable to reach a mutual agreement with
                                            respect to Title Defect Values and Title Benefit Values in dispute, such disputed matters
                                            shall be exclusively and finally resolved pursuant to Section 8.

 

		(b)	If
                                            Buyer agrees with the existence of the Title Benefit and Seller’s good faith estimate
                                            of the Title Benefit Value in writing, then the aggregate Title Defect Value attributable
                                            to all Title Defects shall be offset by the amount of the Title Benefit Value. If the Parties
                                            cannot reach an agreement by the Closing Date, the Title Benefit or the Title Benefit Value
                                            in dispute shall be submitted to the Independent Expert in accordance with Section 8.
                                            If a contested Title Benefit cannot be resolved prior to the Closing, there shall be no offset
                                            to the aggregate Title Defect Value for purposes of determining the Closing Payment at the
                                            Closing with respect to such claimed Title Benefit; provided, however, if the
                                            Title Benefit dispute results in a determination that a Title Benefit exists, then the aggregate
                                            Title Defect Value shall be adjusted downward by the Title Benefit Value as determined in
                                            such dispute pursuant to Section 8 (which adjustment shall be made on the Final
                                            Settlement Statement).

 

		6.9	Limitation
                                            of Remedies for Title Defects and Title Benefits. Notwithstanding anything to the contrary
                                            contained in this Agreement, (a) if the Title Defect Value for a given Title Defect,
                                            or the Title Benefit Value of a given Title Benefit, does not exceed $[***], then no claim
                                            or adjustment to the Purchase Price shall be made for such Title Defect or Title Benefit;
                                            provided, however, that all Title Defect Values attributable to any single
                                            Title Defect that affects multiple Assets shall be aggregated for purposes of applying the
                                            threshold described in this clause (a), (b) if the aggregate amount of all
                                            uncured Title Defects exceeding $[***] does not exceed an amount equal to [***]% of the Purchase
                                            Price (prior to any adjustments thereto), then no adjustment of the Purchase Price shall
                                            be made therefor, and (c) if the aggregate amount of all uncured Title Defects exceeds
                                            an amount equal to [***]% of the Purchase Price (prior to any adjustments thereto), then
                                            the Purchase Price shall be adjusted only by the amount of such excess (as offset by the
                                            aggregate Title Benefit Value determined in accordance with Section 6.7).

 

    40 

     

    

 

		7.	Environmental
                                            Matters

 

		7.1	Environmental
                                            Review.

 

		(a)	Buyer
                                            and its Representatives shall have the right to conduct (i) on-site inspections and
                                            (ii) an environmental review of the Assets prior to the expiration of the Examination
                                            Period. Seller shall provide Buyer and its Representatives reasonable access to the Assets,
                                            all Records in the possession or control of Seller or its Affiliates, and to designated employees
                                            of Seller and its Affiliates responsible for the Assets for the purpose of conducting a review
                                            (including an Environmental Review) of the Assets, but only to the extent that Seller may
                                            do so without (i) violating applicable Laws, (ii) violating any obligations to
                                            any third Person, (iii) waiving any legal privilege of Seller, any of its Affiliates
                                            or its counselors, attorneys, accountants or consultants (provided, however,
                                            that Seller will provide all title opinions and environmental reports in its possession or
                                            control, irrespective of this clause (iii), and (iv) to the extent that
                                            Seller has authority to grant such access without breaching any restriction binding on Seller
                                            (provided, however, that Seller shall use commercially reasonable efforts to
                                            obtain any such consents or waivers to allow Buyer and its Representatives access to the
                                            Assets). Such access by Buyer shall be limited to Seller’s normal business hours, and
                                            Buyer’s investigation shall be conducted in a manner that minimizes interference with
                                            the operation of the business of Seller and any applicable third Person operator. All investigations
                                            and due diligence conducted by Buyer or any of its Representatives shall be conducted at
                                            Buyer’s sole cost, risk and expense, and any conclusions made from any examination
                                            done by Buyer or its Representatives shall result from Buyer’s own independent review
                                            and judgment. Seller shall use commercially reasonable efforts (but without the obligation
                                            to incur any out-of-pocket costs, expenses, or the obligation to undertake any liability
                                            or other obligations to or by Seller) to obtain permission for Buyer to gain access to third
                                            Person operated Properties to inspect the condition of the same; provided, however,
                                            that Seller shall have no liability to Buyer for failure to obtain such operator’s
                                            permission. Seller or its designee shall have the right to accompany Buyer and its Representatives
                                            whenever they are on site on the Assets. Except as set forth below, Buyer shall not be entitled
                                            to conduct any Invasive Activity relating to the Assets.

 

		(b)	As
                                            part of the access granted under Section 7.1(a), Buyer shall have the right to
                                            conduct, or cause a reputable environmental consulting or engineering firm (the “Environmental
                                            Consultant”) to conduct, an inspection of the environmental condition of the
                                            Properties (the “Environmental Review”), which shall be limited
                                            to conducting a Phase I Environmental Site Assessment in accordance with the American Society
                                            for Testing and Materials (A.S.T.M.) Standard Practice Environmental Site Assessments: Phase
                                            I Environmental Site Assessment Process (Publication Designation: E1527-13) (“Phase
                                            I”) except as otherwise provided herein. For any Property not operated by Seller,
                                            Seller shall use commercially reasonable efforts to obtain permission from the third Person
                                            operator for Buyer or the Environmental Consultant to conduct the Environmental Review; provided,
                                            however, that Seller shall have no liability to Buyer for failure to obtain such operator’s
                                            permission, and Seller shall not be required to make any payments or undertake any obligations
                                            for the benefit of any other Person with respect to such access. Seller shall have the right
                                            to have one or more Representatives accompany Buyer or the Environmental Consultant, as applicable,
                                            at all times during the Environmental Review. The Environmental Review shall not include
                                            any sampling, boring, operation of Equipment, or other invasive activity (“Invasive
                                            Activity”) without the prior written consent of Seller, which consent may be
                                            withheld in Seller’s sole discretion, and that of any applicable third Person operator.
                                            In performing its Environmental Review, Buyer shall (and shall cause the Environmental Consultant
                                            and Buyer’s other Representatives to): (i) perform all work in a safe and workmanlike
                                            manner; (ii) perform all work in such a way as to not unnecessarily and unreasonably
                                            interfere with the operation of any Property or the business of Seller or third Person operator;
                                            (iii) comply with all applicable Laws; and (iv) at its sole cost, risk, and expense,
                                            restore the Properties to their condition prior to the commencement of the Environmental
                                            Review.

 

    41 

     

    

 

		(c)	If,
                                            following Buyer’s Phase I inspection, Buyer reasonably concludes based on the results
                                            thereof that it is necessary to conduct Invasive Activity on a Property prior to the Closing
                                            in order for Buyer to ascertain the existence or extent of an Environmental Defect or any
                                            Environmental Defect Value for an Environmental Defect, and Buyer requests (in writing) authorization
                                            from Seller to perform such Invasive Activity (which notice includes the corresponding portions
                                            of Buyer’s Phase I on which Buyer has based its reasonable conclusions), and Seller
                                            rejects or fails to consent to Buyer’s request within two Business Days after Seller’s
                                            receipt thereof, Buyer shall have the right, in its sole discretion, to exclude such Property
                                            and its directly associated Assets from the Assets conveyed by Seller to Buyer at the Closing,
                                            in which case (i) the affected Property and its directly associated Assets shall not
                                            be conveyed to Buyer at the Closing, (ii) the Purchase Price shall be reduced by the
                                            Allocated Value of such excluded Assets, (iii) such Property shall be deemed to be deleted
                                            from the Exhibits attached hereto and (iv) such Property and its directly associated
                                            Assets shall constitute “Excluded Assets” for all purposes hereunder. To the
                                            extent Buyer does not exclude the Property, then subject to Buyer’s rights pursuant
                                            to this Section 7, Buyer shall accept the Property and make payment therefore
                                            and, except for the indemnity provided under Section 3.3(c) as it relates to
                                            Retained Obligations or breaches of the representations in Section 5.1, shall
                                            have no further right under this Agreement or the Transaction Documents with respect to an
                                            Environmental Defect that would have been disclosed pursuant to the requested Invasive Activity.

 

		(d)	Except
                                            (i) as may be required or permitted pursuant to the exercise of the rights and fulfillment
                                            of the obligations of a Party under this Agreement, (ii) for disclosure to Buyer’s
                                            Representatives in connection with transactions contemplated hereby, (iii) as may be
                                            required by applicable Law, or (iv) for information that is or becomes public knowledge
                                            through no fault of the Person against whom this sentence is sought to be enforced, Buyer
                                            and Seller shall (and shall cause their respective Affiliates and Representatives to) maintain,
                                            all information, reports (whether interim, draft, final, or otherwise), data, work product,
                                            and other matters obtained or generated from or attributable to the Environmental Review
                                            (the “Environmental Information”) strictly confidential, and shall
                                            not disclose all or any portion of the Environmental Information to any third Person without
                                            the consent of Buyer or Seller, as applicable, which consent shall not be unreasonably withheld,
                                            conditioned or delayed; provided, however, that if the Closing should occur,
                                            the foregoing confidentiality restriction on Buyer shall terminate (except as such Environmental
                                            Information relates to (A) such portion of the Assets that are not conveyed to Buyer
                                            pursuant to the provisions of this Agreement and (B) the Excluded Assets).

 

    42 

     

    

 

		7.2	Environmental
                                            Definitions.

 

		(a)	The
                                            term “Environmental Defect” shall mean, with respect to any given
                                            Asset, a material violation of Environmental Laws in effect as of the Effective Time in the
                                            jurisdiction in which such Asset is located.

 

		(b)	The
                                            term “Environmental Laws” means the Comprehensive Environmental
                                            Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.;
                                            the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.;
                                            the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.;
                                            the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Hazardous
                                            Materials Transportation Act, 49 U.S.C. § 5101 et seq.;
                                            the Toxic Substances Control Act, 15 U.S.C. §§ 2601 through 2629; the
                                            Oil Pollution Act, 33 U.S.C. § 2701 et seq.; the Emergency
                                            Planning and Community Right to Know Act, 42 U.S.C. § 11001 et seq.;
                                            the Safe Drinking Water Act, 42 U.S.C. §§ 300f through 300j; the Louisiana
                                            Environmental Quality Act (La. Rev. Stat. 30:2001 et seq.); the Louisiana
                                            Office of Conservation Statewide Order 29-B (LAC 43.XIX. Subpart 1), in each case as amended
                                            to the date hereof, and all Laws as of the date hereof of any Governmental Authority having
                                            jurisdiction over the property or Assets in question relating to pollution, the protection
                                            of the environment or natural, biological or cultural resources, occupational health and
                                            safety, the reclamation, remediation or restoration of real property, or the generation,
                                            storage, handling, use, treatment, transportation or disposal of Hazardous Substances.

 

		(c)	The
                                            term “Environmental Defect Value” shall mean the amount by which
                                            the Allocated Value of an affected Environmental Defect Property is reduced as a result of
                                            an Environmental Defect.

 

		7.3	Notice
                                            of Environmental Defects. To assert a claim for an Environmental Defect, Buyer must,
                                            on or before the expiration of the Examination Period, deliver to Seller one or more notices
                                            relating to Environmental Defects (each, an “Environmental Defect Notice”),
                                            which notices shall be in writing and shall include, (a) a description of the Environmental
                                            Defect, (b) a description of the affected Property, (c) such supporting documentation
                                            as is reasonably necessary for Seller to verify the existence of the alleged Environmental
                                            Defect, to the extent in Buyer’s possession or control, and (d) Buyer’s
                                            good faith estimate of the Environmental Defect Value attributable to such Environmental
                                            Defect. Without limiting Buyer’s rights and remedies set forth in Section 3.3(c)(i)
                                            with respect to Section 5.1(r) and subject to Seller’s indemnification
                                            obligations pursuant to Section 3.3(c)(iii), any matters that may otherwise constitute
                                            Environmental Defects, but of which Seller has not been specifically notified by Buyer in
                                            accordance with the foregoing, shall be deemed to have been waived by Buyer for all purposes
                                            and constitute an Assumed Obligation of Buyer at Closing.

 

    43 

     

    

 

		7.4	Seller’s
                                            Right to Cure.

 

		(a)	Subject
                                            to Section 7.5(a), Seller shall have the right, but not the obligation, to attempt,
                                            at Seller’s sole cost, risk and expense, to cure or remove, on or before the Cure Deadline,
                                            any alleged Environmental Defects of which Seller has been advised by Buyer pursuant to an
                                            Environmental Defect Notice, with Seller being deemed to have elected to cure such Environmental
                                            Defect prior to the Cure Deadline unless Seller provides written notice to Buyer of its intent
                                            not to attempt to cure such alleged Environmental Defect on or before 5:00 p.m. local
                                            time where the Assets are located on the date that is at least three Business Days prior
                                            to the Closing Date. In the event that Seller does not deliver written notice of its intent
                                            not to cure the applicable Environmental Defect prior to the Cure Deadline, (i) the
                                            Closing Payment shall be reduced by the Allocated Value of the affected Asset, (ii) such
                                            amount will be paid by Buyer at the Closing into the Defect Escrow Account, (iii) such
                                            Asset shall be retained by Seller at the Closing and deemed to be deleted from the Exhibits
                                            attached hereto and (iv) such Asset shall constitute an Excluded Asset for all purposes
                                            hereunder. The election by Seller to attempt to cure one or more of such alleged Environmental
                                            Defects shall not affect the rights and obligations of the Parties under Section 8
                                            with respect to dispute resolution. Seller’s election to attempt to cure an alleged
                                            Environmental Defect shall not constitute a waiver of any of the rights of Seller pursuant
                                            to this Section 7, including Seller’s right to dispute the existence, nature,
                                            or value of such Environmental Defect.

 

		(b)	If
                                            the Parties agree that any Environmental Defect that Seller elects to cure pursuant to Section 7.4(a)
                                            has been cured by Seller on or prior to the Cure Deadline, then Buyer and Seller shall
                                            hold an additional Closing within five Business Days following such determination. At such
                                            additional Closing, (i) Seller shall convey the affected Asset to Buyer using the form
                                            of Assignment attached hereto as Exhibit “B”, (ii) the Parties
                                            shall deliver all instruments and documents that would have been required under the terms
                                            hereof to be delivered at the Closing with respect to such Asset, (iii) the Parties
                                            will issue joint written instructions to the Escrow Agent instructing the Escrow Agent to
                                            release to Seller the Allocated Value attributable to the affected Asset from the Defect
                                            Escrow Account and (iv) such Asset shall no longer be deemed to be (A) deleted
                                            from the Exhibits attached hereto or (B) an Excluded Asset for any purposes under this
                                            Agreement.

 

    44 

     

    

 

		(c)	If
                                            the Parties agree that any Environmental Defect that Seller elects to cure pursuant to Section 7.4(a)
                                            has been only partially cured by Seller on or prior to the Cure Deadline, then Buyer
                                            and Seller shall hold an additional Closing within five Business Days following such determination.
                                            At such additional Closing, (i) Seller shall convey the affected Asset to Buyer using
                                            the form of Assignment attached hereto as Exhibit “B”, (ii) the
                                            Parties shall deliver all instruments and documents that would have been required under the
                                            terms hereof to be delivered at the Closing with respect to such Asset, (iii) the Parties
                                            shall reasonably agree upon the portion of the Environmental Defect Value attributable to
                                            such Environmental Defect that should be released to Buyer from the Defect Escrow Account
                                            to compensate Buyer for the uncured portion thereof, and the remaining portion of such amount
                                            shall be released to Seller in accordance with the terms of the Escrow Agreement and issue
                                            joint written instructions to the Escrow Agent instructing the Escrow Agent to release such
                                            amounts from the Defect Escrow Account in accordance with this clause (iii) and
                                            (iv) such Asset shall no longer be deemed to be (A) deleted from the Exhibits attached
                                            hereto or (B) an Excluded Asset for any purposes under this Agreement.

 

		(d)	If
                                            any such Environmental Defect that Seller elects to cure pursuant to Section 7.4(a)
                                            is not cured by Seller prior to the Cure Deadline, then (i) the Asset affected by
                                            such Environmental Defect shall continue to be owned and retained by Seller, (ii) the
                                            Parties shall promptly direct the Escrow Agent to release to Buyer the Allocated Value of
                                            the affected Asset from the Defect Escrow Account in accordance with the terms of the Escrow
                                            Agreement and (iii) such Asset shall continue to be deemed (A) deleted from the
                                            Exhibits attached hereto and (B) an Excluded Asset for all purposes under this Agreement.

 

		7.5	Remedies
                                            for Environmental Defects. In the event that any Environmental Defect is not waived in
                                            writing by Buyer or is not cured by Seller on or prior to the Closing Date, then:

 

		(a)	In
                                            the event that any Environmental Defect Value asserted by Buyer in an Environmental Defect
                                            Notice exceeds the Allocated Value of the affected Asset (or, if such Asset has no Allocated
                                            Value, an amount equal to $[***]), either Buyer or Seller may elect by written notice to
                                            the other Party prior to the Closing to exclude such affected Asset from the Closing. In
                                            such case, (i) the affected Asset shall not be conveyed to Buyer at the Closing, (ii) the
                                            Purchase Price shall be reduced by an amount equal to the Allocated Value of such affected
                                            Asset, (iii) such Asset shall be deemed to be deleted from the Exhibits attached hereto
                                            and (iv) such Asset shall constitute an Excluded Asset for all purposes hereunder; or

 

		(b)	With
                                            respect to each Property affected by Environmental Defects reported in an Environmental Defect
                                            Notice, such Property shall be assigned to Buyer at the Closing subject to all uncured Environmental
                                            Defects (except with respect to those Properties (i) that Buyer or Seller has elected
                                            to exclude pursuant to Section 7.5(a);or (ii) with respect to which Seller
                                            has made an election to attempt to cure after the Closing as described in Section 7.4)
                                            and the Purchase Price shall be reduced by an amount equal to the aggregate Environmental
                                            Defect Value asserted by Buyer in the applicable Environmental Defect Notice; provided,
                                            however, that if Seller disputes any Environmental Defect or Environmental Defect
                                            Value asserted by Buyer and the Parties cannot agree upon such contested matters prior to
                                            the Closing, subject to Section 7.7, the Closing Payment shall be reduced by
                                            Buyer’s good faith estimate of the Environmental Defect Value set forth in the applicable
                                            Environmental Defect Notice for such disputed Environmental Defect, which amount shall be
                                            deposited into the Defect Escrow Account at the Closing by Buyer pending final resolution
                                            of such contested Environmental Defect and, within two Business Days following final resolution
                                            of such contested Environmental Defect in accordance with Section 8, Seller and
                                            Buyer shall execute and deliver joint written instructions to the Escrow Agent to release
                                            such disputed Environmental Defect Value to Seller or Buyer, as applicable.

 

    45 

     

    

 

		7.6	Disputed
                                            Environmental Matters. Seller and Buyer shall attempt to agree upon the existence of
                                            all Environmental Defects and the corresponding Environmental Defect Values on or before
                                            the Closing Date or, with respect to any Environmental Defects that Seller has elected to
                                            cure pursuant to Section 7.4(a), the Cure Deadline. If Seller and Buyer are unable
                                            to agree by the applicable date, then Buyer’s Environmental Defect Value set forth
                                            in the applicable Environmental Defect Notice shall be used to determine the Closing Payment
                                            pursuant to Section 2.3(c) and, to the extent (and only to the extent) Seller
                                            and Buyer are unable to reach a mutual agreement with respect to Environmental Defect Values
                                            in dispute, such disputed matters shall be exclusively and finally resolved pursuant to Section 8.

 

		7.7	Limitation
                                            of Remedies for Environmental Defects. Notwithstanding anything to the contrary contained
                                            in this Agreement, (a) if the Environmental Defect Value for a given Environmental Defect
                                            does not exceed $[***], then no adjustment to the Purchase Price shall be made for such Environmental
                                            Defect; provided, however, that all Environmental Defect Values attributable
                                            to any single Environmental Defect that affects multiple Assets shall be aggregated for purposes
                                            of applying the threshold described in this clause (a), (b) if the aggregate
                                            amount of all Environmental Defect Values exceeding $[***] for uncured Environmental Defects
                                            not waived by Buyer in writing does not exceed an amount equal to [***]% of the Purchase
                                            Price (prior to any adjustments thereto), then no adjustment of the Purchase Price shall
                                            be made therefor, and (c) if the aggregate amount of all Environmental Defect Values
                                            exceeding $[***] for uncured Environmental Defects not waived by Buyer exceeds an amount
                                            equal to [***]% of the Purchase Price (prior to any adjustments thereto), then the Purchase
                                            Price shall be reduced only by the amount of such excess.

 

    46 

     

    

 

		8.	Independent
                                            Experts

 

		8.1	Selection
                                            of Independent Experts. Any disputes regarding Title Defects, Title Benefits, Title Defect
                                            Values, Title Benefit Values, Environmental Defects, Environmental Defect Values (including,
                                            in each case, the adequacy of notice thereof), the cure of Title Defects or Environmental
                                            Defects, and the calculation of the Final Settlement Statement, may, as herein provided,
                                            be submitted by a party, with written notice to the other party, to a qualified independent
                                            expert (the “Independent Expert”), who shall serve as the sole
                                            and exclusive arbitrator of any such dispute. The Independent Expert with respect to each
                                            matter shall be such person as Buyer and Seller shall mutually agree upon in writing. In
                                            the event the parties are unable to mutually agree upon an Independent Expert with respect
                                            to title matters, environmental matters or other matters, then in such case where agreement
                                            is not reached, each of Buyer and Seller shall designate a qualified person as its Independent
                                            Expert for such matter, and the two designated persons shall together select a third person
                                            to serve as the Independent Expert with respect to the particular matter. Each party shall
                                            bear its own costs and expenses incurred in connection with any such proceeding and one-half
                                            (1/2) of the costs and expenses of the Independent Expert.

 

		8.2	Procedures.

 

		(a)	Disputes
                                            to be resolved by an Independent Expert shall be resolved in accordance with mutually agreed
                                            procedures and rules and, failing such agreement, in accordance with the rules and procedures
                                            as set forth in the 2018 CPR Non-Administered Arbitration Rules (“CPR”),
                                            except to the extent the referenced CPR is inconsistent with the Dispute resolution procedures
                                            as provided herein, in which event the Dispute resolution procedures as provided in this
                                            Agreement shall govern and control. The Independent Expert shall be instructed by the Parties
                                            to resolve such dispute as soon as reasonably practicable in light of the circumstances but
                                            in any event within 15 days for Title Defects or Title Benefits and within 30 days
                                            for Environmental Defects. The Independent Expert award shall be in writing, shall be signed
                                            by the Independent Expert and shall include a statement of written findings of fact and conclusions
                                            regarding the reasons for his/her determination, which shall include, if applicable, as to
                                            (A) whether the subject defect (benefit) exists or has been cured and, subject to the
                                            following sentence, the resulting defect value, (B) the deficiencies in any notice of
                                            the foregoing and the specific supplemental information that, if provided, would cause such
                                            notice to be in compliance with the terms hereof, and/or (C) the adequacy of any curative
                                            action, including any such additional curative actions necessary to cure properly any asserted
                                            defect, as applicable, in each case, including the Independent Expert’s rationale for
                                            the determination. The Independent Expert may consult with and engage disinterested third
                                            parties to advise the Independent Expert but shall disclose to the Parties the identities
                                            of any such consultants. Any such consultant shall not have worked as an employee of or consultant
                                            for either Party or its Affiliates during the two-year period preceding the expert determination
                                            and shall not have any financial interest in the dispute. The decision and award of the Independent
                                            Expert shall be binding upon the parties and final and non-appealable to the maximum extent
                                            permitted by law, and judgment thereon may be entered in a court of competent jurisdiction
                                            and enforced by any Party as a final judgment of such court. Notwithstanding anything to
                                            the contrary herein, the Independent Expert shall be limited to awarding only the final amount
                                            proposed by either Party in its submissions pursuant to this Section 8.2. To
                                            the extent the Independent Expert determination includes a distribution of escrowed funds,
                                            the prevailing party shall be entitled to receipt of the awarded funds within 48 hours
                                            of the Parties’ receipt of the Independent Expert determination.

 

    47 

     

    

 

		(b)	A
                                            qualified Independent Expert to address a Title Defect/Benefit shall be an attorney with
                                            at least 15 years of experience, which shall include substantial experience with respect
                                            to participation in oil and gas purchase and sale transactions and examining oil and gas
                                            titles in the State and region in which the affected Assets are located. A qualified Independent
                                            Expert to address an Environmental Defect shall be an environmental expert with at least
                                            ten years’ experience with respect to investigations and remediation of oil and gas
                                            producing properties in the jurisdiction in which the affected Assets are located. A qualified
                                            Independent Expert to address a final accounting issue shall be an independent certified
                                            public accounting firm qualified and of national recognition in the United States.

 

		8.3	Location
                                            of Proceeding. All proceedings under this Section 8 shall be conducted in
                                            Dallas, Texas, or such other location mutually agreed upon in writing by the Parties.

 

		9.	Additional
                                            Covenants and Pre-Closing Actions

 

		9.1	Operations
                                            Prior to Closing.

 

		(a)	From
                                            and after the date of this Agreement and until the Closing, except as may be consented to
                                            by Buyer in writing, Seller shall:

 

		(i)	own,
                                            use, operate and maintain the Assets as a reasonably prudent operator, in accordance with
                                            applicable Laws, and in substantially the same manner in which they have been owned, used,
                                            operated and maintained prior to this Agreement;

 

		(ii)	use
                                            commercially reasonable efforts to maintain in full force and effect each Lease, and timely
                                            and properly pay all Lease renewals and extensions that become due after the date of this
                                            Agreement but prior to Closing in accordance with the terms of the applicable Lease;

 

		(iii)	keep
                                            Buyer apprised of any drilling, re-drilling or completion operations commenced, proposed,
                                            agreed to or conducted by Seller with respect to the Assets;

 

		(iv)	with
                                            respect to the drilling of the New Wells, not deviate from the operations described in the
                                            New Well AFEs as attached hereto as Schedule 3.1(e);

 

		(v)	notify
                                            Buyer of any application for a drilling permit by a third party affecting the Assets;

 

		(vi)	not
                                            commence, propose or agree to any operation reasonably expected to cost Seller in excess
                                            of $50,000 (net to Seller’s interest);

 

		(vii)	will
                                            not make any election (or fail to make an election, the result of which is) to go non-consent
                                            with respect to any of the Properties;

 

    48 

     

    

 

		(viii)	promptly
                                            notify Buyer of any proposal (including any proposal to drill or workover a well) that Seller
                                            receives requiring an expenditure (net to Seller’s interest) equal to or greater than
                                            $50,000;

 

		(ix)	not
                                            (A) enter into, terminate, cancel, extend or materially amend or modify a Contract that,
                                            if entered into on or prior to the Execution Date, would be required to be listed on Schedule 5.1(m)-1,
                                            (B) terminate, cancel, extend or materially amend or change the terms of any Material
                                            Contract, or (C) enter into, terminate, cancel, extend or amend or modify any other
                                            Contract except in the ordinary course of business;

 

		(x)	not
                                            transfer, sell, mortgage, pledge or dispose of any portion of the Assets other than (A) the
                                            sale or disposal of Hydrocarbons in the ordinary course of business or (B) sales of
                                            equipment that is no longer necessary in the operation of the Assets or for which replacement
                                            equipment is obtained;

 

		(xi)	provide
                                            Buyer with copies of any and all material correspondence received from any Governmental Authority
                                            with respect to the Assets within five Business Days after Sellers’ receipt of such
                                            correspondence or notice thereof;

 

		(xii)	not
                                            voluntarily relinquish its position as operator to anyone other than Buyer with respect to
                                            any of the Assets, or voluntarily abandon any of the Assets other than as required pursuant
                                            to the terms of a Lease, Contract or Law;

 

		(xiii)	use
                                            commercially reasonable efforts to maintain its existing insurance policies relating to the
                                            Assets in such amounts and with such deductibles as are currently maintained by Seller;

 

		(xiv)	not
                                            waive, release, assign, settle or compromise any Proceeding, material right or Claim relating
                                            to the Assets, other than waivers, releases, assignments, settlements or compromises that
                                            involve only the payment of monetary damages not in excess of $50,000 individually or $50,000
                                            in the aggregate (in each case, excluding amounts to be paid under insurance policies);

 

		(xv)	pay
                                            (or cause to be paid) any and all Asset Taxes that could result in an Encumbrance with respect
                                            to the Assets that become due and payable on or prior to the Closing Date;

 

		(xvi)	not
take, nor permit any of its Affiliates (or authorize any investment banker, financial advisor, attorney, accountant or other Person retained
by, acting for or on behalf of Seller or any such Affiliate) to take, directly or indirectly, any action to solicit, or negotiate, any
offer from any Person concerning the direct or indirect acquisition of the Assets by any Person other than Buyer or its Affiliates except
for sales of Hydrocarbons, equipment and inventory in the ordinary course of business; and

 

		(xvii)	not
                                            enter into any agreement or commitment with respect to any of the foregoing.

 

    49 

     

    

 

		(b)	After
                                            the signing of this Agreement and prior to Closing, Seller shall have the right to make any
                                            changes, repairs or modifications to the Assets and incur any related expenditure deemed
                                            necessary by Seller, acting as a reasonably prudent operator, to prevent or react to an emergency
                                            or environmental incident, and Seller shall notify Buyer of any such charge or actions promptly
                                            thereafter. Regarding the preceding sentence, Seller shall have the right to cause or effect
                                            such expenditure or action, with or without Buyer’s approval, and recover such costs
                                            in the Closing Statement or Final Settlement Statement adjustments, as appropriate.

 

		9.2	Successor
                                            Operator. Buyer acknowledges and agrees that Seller cannot and does not covenant or warrant
                                            that Buyer shall become successor operator of the Assets or portions thereof that Seller
                                            may presently operate, since same may be subject to unit, pooling, communitization or operating
                                            agreements or other agreements that control the appointment of a successor operator. Seller
                                            agrees, however, that it will use commercially reasonable efforts to facilitate the appointment
                                            of Buyer or its designee as a successor operator of the Assets, effective as of the Closing,
                                            and it will, in a prudent manner, resign as operator of the Assets it operates to be effective
                                            as of the Closing.

 

		9.3	Antitrust
                                            Laws. If compliance with the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
                                            amended, is required in connection with the transaction contemplated by this Agreement, as
                                            promptly as possible, both Parties shall file with the Federal Trade Commission and the Department
                                            of Justice, as applicable, the required notification and report forms and shall as promptly
                                            as practicable furnish any supplemental information that may be requested in connection therewith.
                                            Each Party shall take all reasonable steps to achieve early termination of applicable waiting
                                            periods.

 

		9.4	Consents
                                            to Assign. With respect to each Consent set forth on Schedule 5.1(l)(ii),
                                            Seller shall send to the holder, within three Business Days after the Execution Date,
                                            of each such Consent a notice in material compliance with the contract provisions applicable
                                            to such Consent seeking such holder’s consent to the transaction contemplated hereby.

 

		(a)	If
                                            Seller fails to obtain a Consent set forth on Schedule 5.1(l)(ii) prior to Closing
                                            and such Consent is a Hard Consent, then (1) the Asset (or portion thereof) affected
                                            by such Hard Consent shall not be conveyed at the Closing, (2) such Asset (or portion
                                            thereof) shall be retained by Seller until such Hard Consent is obtained, the Purchase Price
                                            will be reduced at Closing by an amount equal to the aggregate Allocated Values of such Assets,
                                            and, subject to Section 10, the Closing will occur as to the remainder of the
                                            Assets (or interests therein); provided, however, that until such time as Seller
                                            receives such Hard Consent, Seller and Buyer shall use commercially reasonable efforts to
                                            obtain the Hard Consent applicable to the transfer of such Asset following the Closing; on
                                            the condition that no Party will be required to incur any Liability or pay any money or provide
                                            other consideration to any holder of any such Hard Consent in order to obtain such Hard Consent.
                                            In the event that a Hard Consent (with respect to an Asset excluded pursuant to this Section 9.4)
                                            that was not obtained prior to Closing (an “Unobtained Hard Consent”)
                                            is obtained within 120 days after the Closing, Seller and Buyer shall effect a Closing pursuant
                                            to Section 10.2 (and the other terms and conditions herein) with respect to,
                                            and Seller shall transfer to Buyer using the form of Assignment attached to this Agreement,
                                            the Assets (or interests therein) subject to such Hard Consents and Buyer shall pay or provide
                                            to Seller an amount equal to the aggregate Allocated Values of such Assets (as adjusted pursuant
                                            to Section 2.3).

 

    50 

     

    

 

		(b)	If
                                            Seller fails to obtain a Consent other than the Hard Consents set forth on Schedule 5.1(l)(ii)
                                            prior to Closing and the failure to obtain such Consent would not cause (i) the
                                            assignment of the Assets (or portion thereof) affected thereby to Buyer to be void (including
                                            at the election of the holder of the Consents) or (ii) the termination of a Lease or
                                            Contract (including at the election of the holder of the Consents), in each case, under the
                                            express terms thereof, then the Asset (or portion thereof) subject to such un-obtained Consent
                                            will nevertheless be assigned by Seller to Buyer at Closing as part of the Assets and Buyer
                                            will have no Claim against, Seller will have no Liability to Buyer for, the failure to obtain
                                            such Consent and there will be no Purchase Price reductions attributable to such unobtained
                                            Consent.

 

		(c)	Prior
                                            to Closing, Seller and Buyer shall use their commercially reasonable efforts to obtain all
                                            Consents listed on Schedule 5.1(l)(ii); on the condition that no Party will be
                                            required to incur any liability, pay any money or provide any other consideration to the
                                            holders of any Consent in order to obtain any such Consent.

 

		(d)	For
                                            purposes hereof:

 

		(i)	“Hard
                                            Consent” means any Consent with respect to which (a) there is a provision
                                            within the applicable instrument that such Consent may be withheld in the sole discretion
                                            of the holder or words to similar effect, or (b) there is a provision within the applicable
                                            instrument expressly stating that an assignment in violation thereof (i) is void or
                                            voidable, (ii) triggers the payment of liquidated damages, or (iii) causes the
                                            instrument or applicable Assets to terminate or be terminable, or words of similar effect;
                                            and

 

		(ii)	“Consent”
                                            means any restrictions on assignment, including requirements for approvals, consents, ratifications,
                                            waivers or other authorizations (including any Permit) from any Government Authorities or
                                            other Person that is required in connection with the execution or delivery of this Agreement,
                                            the transfer of the Assets by Seller to Buyer or the consummation of the transactions contemplated
                                            hereby.

 

    51 

     

    

 

		9.5	Closing
                                            Efforts. Each Party agrees that, from and after the Execution Date until the Closing
                                            Date, it will use its commercially reasonable efforts to take, or cause to be taken, all
                                            action and to do, or cause to be done, all actions reasonably necessary, proper, or advisable
                                            under applicable Laws to consummate the transactions contemplated hereunder, including (a) each
                                            Party will use its respective commercially reasonable efforts to cooperate with the other
                                            Party to obtain any Consents, approvals, orders, authorizations, waivers, declarations, filings,
                                            or registrations of or with any Governmental Authorities or Third Parties that are required
                                            in connection with the consummation of the transactions contemplated hereunder; (b) the
                                            Parties will use their respective commercially reasonable efforts to cooperate with each
                                            other to cause to be lifted or rescinded any injunction or restraining order or other order
                                            adversely affecting the ability of the Parties to consummate the transactions contemplated
                                            hereunder; (c) the Parties will use their respective commercially reasonable efforts
                                            to defend, and to cooperate with each other in defending, all lawsuits or other legal proceedings
                                            challenging this Agreement or the consummation of the transactions contemplated by this Agreement;
                                            and (d) the execution of any additional instruments necessary to consummate the transactions
                                            contemplated by this Agreement.

 

		9.6	Notifications.
                                            If, prior to Closing, either Seller or Buyer obtains Knowledge that it has breached a representation,
                                            warranty, covenant, obligation or other agreement under this Agreement, then such Party,
                                            as applicable, shall promptly inform such other Party of such breach.

 

		9.7	Seller
                                            Indebtedness. Seller shall negotiate and obtain on or prior to the Closing Date (a) releases
                                            of all Encumbrances securing borrowed monies or payment obligations incurred by Seller or
                                            its Affiliates under any Debt Instrument that are secured by the Assets, (b) authorizations
                                            to file UCC-3 termination statements releases in all applicable jurisdictions to evidence
                                            the release of all such liens on the Assets securing due and payable obligations under Debt
                                            Instruments, and (c) all instruments and agreements reasonably requested by, and in
                                            form and substance reasonably acceptable to, Buyer to effect and file of record the release
                                            of all liens in connection therewith.

 

		9.8	Financial
                                            Statements and Oil & Gas Reserve and Operational Data. Seller acknowledges that the
                                            rules and regulations of the Securities and Exchange Commission are expected to require Buyer’s
                                            publicly-traded Affiliate to file with such commission and publicly disclose certain oil
                                            & gas reserve and operational data, as well as certain historical and pro forma financial
                                            information, in each case, in connection with the Assets. Seller further acknowledges that
                                            Buyer will prepare, or cause to be prepared, at Buyer’s sole expense, the financial
                                            statements and other disclosures required to be filed with the Securities and Exchange Commission.
                                            Seller does not object to, and will cooperate with, the preparation of such required financial
                                            statements and/or disclosures, including, without limitation, (x) promptly providing
                                            the oil & gas reserve, operating information and financial information reasonably requested
                                            by Buyer for such purpose and (y) making its accountants, reserve engineers and employees
                                            available to Buyer for such purpose. Buyer will bear all third party out-of-pocket expenses
                                            incurred by Seller in connection with the preparation of the financial statements and other
                                            disclosures described in this Section 9.8.

 

    52 

     

    

 

		9.9	Non-Competition.

 

		(a)	Seller
                                            acknowledges that Buyer is entering into this Agreement and assuming the Assumed Obligations
                                            in contemplation of undertaking substantial further development of the Assets, which development
                                            is intended to permit Buyer to satisfy such Assumed Obligations. As a material inducement
                                            to Buyer to enter into this Agreement, from and after the Closing, Seller shall not, and
                                            shall ensure and cause its controlled Affiliates and each individual listed on Schedule 9.9(a)
                                            (together with Seller and its controlled Affiliates, each a “Restricted Person”)
                                            not to, directly or indirectly, acquire in any capacity during the period from and after
                                            the Execution Date and ending on the date that is one year after the Closing Date (the “Non-Compete
                                            Period”), any interest in any Restricted Opportunity, whether alone or as a
                                            partner, joint venturer or equity interest holder of any Person acquiring such interest.

 

		(b)	As
                                            used herein, “Restricted Opportunity” means any opportunity for,
                                            including an opportunity to finance, the acquisition of any mineral fee interests in Hydrocarbons,
                                            including rights to royalties on production and rights to shut-in royalties, executive rights
                                            to lease, rights to produce, rights to delay rentals, rights to bonus payments, rights of
                                            reversion and any and all other rights relating to the ownership of mineral fee interests
                                            (collectively, “Mineral Rights”), in each case in the lands covered
                                            by the Units.

 

		(c)	Notwithstanding
                                            anything to the contrary in this Agreement, the Parties agree that if any court of competent
                                            jurisdiction in a final non-appealable judgment determines that a specified time period,
                                            a specified geographic area, a specified business limitation, or any other relevant feature
                                            of this Section 9.9 is unreasonable, arbitrary or against public policy, then
                                            a lesser period, geographical area, business limitation or other relevant feature that is
                                            determined by such court to be reasonable, not arbitrary and not against public policy may
                                            be enforced against the applicable Party. If any Law or court interpreting such Law does
                                            not allow such lesser time period, geographical area, business limitation, or other relevant
                                            feature to be enforced against the applicable Person, the Parties acknowledge and agree that
                                            Section 12.16 will apply.

 

		(d)	Provided
                                            that the Closing occurs, from and after the Closing Date until the end of the Non-Compete
                                            Period, Seller shall enforce the terms of agreements with the other Restricted Persons to
                                            the extent such terms restrict or prohibit the direct or indirect acquisition of any Restricted
                                            Opportunity by any such Restricted Person. Additionally, each Restricted Person set forth
                                            on Schedule 9.9(a) attached hereto hereby acknowledges and agrees to abide by
                                            each covenant set forth in this Section 9.9.

 

		(e)	If,
                                            during the Non-Compete Period, Seller acquires any Mineral Rights that are located under
                                            the lands covered by the Units conveyed to Buyer under this Agreement, then Seller shall
                                            give Buyer written notice of such acquisition no later than ten Business Days following such
                                            acquisition, together with a copy of the conveyance into Seller of such acquired Mineral
                                            Rights. Buyer shall then have a period of ten Business Days following receipt of Seller’s
                                            notice in which to elect, by written notice to Seller, to acquire such Mineral Rights from
                                            Seller for Seller’s reasonably documented out-of-pocket costs to acquire such Mineral
                                            Rights. If Buyer timely and properly elects to acquire a Mineral Right pursuant to this Section 9.9(e),
                                            then (i) Seller shall convey such Mineral Right to Buyer and (ii) Buyer shall pay
                                            Seller an amount equal to Seller’s reasonably documented out-of-pocket costs to acquire
                                            such Mineral Rights, as set forth in Seller’s notice delivered under this Section 9.9(e).
                                            Except for a special warranty contained in such conveyance, the conveyance of any such Mineral
                                            Rights to Buyer made pursuant to this Section 9.9(e) shall be made without warranty
                                            of title, either express or implied. Notwithstanding the foregoing, if Buyer does not timely
                                            elect to acquire such Mineral Rights pursuant to this Section 9.9(e), then Seller’s
                                            obligation to sell such Mineral Rights to Buyer under this Agreement shall terminate and
                                            Seller shall have no further obligation to Buyer with respect to such Mineral Rights.

 

    53 

     

    

 

  

		(f)	In
                                            addition to the restrictions set forth in Section 9.9(a), Seller shall not, and
                                            shall ensure and cause each other Restricted Person not to, directly or indirectly, acquire
                                            or finance in any capacity during the period from and after the Execution Date and ending
                                            on the date that is six months following the expiration of the primary term of the applicable
                                            Lease (with respect to each such Lease, the “Top Leasing Period”),
                                            any interest in any Top Lease. As used herein, “Top Lease” means
                                            the acquisition of a mineral lease (or an option to acquire a mineral lease) covering the
                                            Lands under any of the Leases conveyed by Seller to Buyer under this Agreement, to become
                                            possessory only upon expiration or termination of such Leases.

 

		9.10	Employee
                                            Matters. From the Execution Date until the Closing Date, Buyer and its controlled Affiliates
                                            shall not be permitted to and shall not meet with, solicit, interview or employ the field
                                            employees of Seller providing services with respect to the Assets in connection with prospective
                                            employment with Buyer or any Affiliate thereof. Notwithstanding the preceding sentence, nothing
                                            in this Agreement shall restrict Buyer’s ability to undertake any of the foregoing
                                            activities with respect to any independent contractor engaged by Seller to perform field
                                            services relating to the Assets.

 

		9.11	Replacement
                                            of Credit Support.

 

		(a)	The
                                            Parties acknowledge that none of the bonds, letters of credit, guarantees, credit support
                                            and other similar commitments (the “Credit Support”) set forth
                                            on Schedule 9.11, if any, posted by Seller or any Affiliate thereof with or for
                                            the benefit of any Governmental Authority or third Person and relating to the Assets will
                                            be transferred to Buyer. Seller expressly reserves and retains any and all right thereto,
                                            including any and all reimbursements associated therewith.

 

		(b)	On
                                            or before the Closing Date, Buyer shall post or obtain, or cause to be posted or obtained
                                            in the name of Buyer (or, if applicable, Buyer’s operating Affiliate) replacements
                                            for the Credit Support described on Schedule 9.11 to the extent such replacements
                                            are necessary to permit the cancellation or release of such Credit Support and shall provide
                                            Seller with evidence of the same.

 

    54 

     

    

 

		10.	Closing,
                                            Termination and Final Adjustments

 

		10.1	Conditions
                                            Precedent.

 

		(a)	The
                                            obligations of Seller to consummate the transactions provided for herein are subject to the
                                            fulfillment on or prior to the Closing Date of each of the following conditions, unless waived
                                            in writing by Seller:

 

		(i)	The
                                            representations and warranties of Buyer herein contained shall be true and correct in all
                                            material respects on the Closing Date, as though made on and as of such date; provided,
                                            however, that those representations that by their terms are made as of a specified
                                            date need be true and correct only as of the date so specified.

 

		(ii)	Buyer
                                            shall have performed and complied in all material respects with the duties, obligations and
                                            covenants under this Agreement required to be performed or complied with by it at or prior
                                            to Closing.

 

		(iii)	No
                                            suit, action or other Proceeding shall be pending or threatened that seeks to, or could reasonably
                                            result in a judicial order, judgment or decree that would restrain, enjoin or otherwise prohibit
                                            the consummation of the transactions contemplated by this Agreement, other than an action
                                            or Proceeding instituted or threatened by Seller or any of its Affiliates.

 

		(b)	The
                                            obligations of Buyer to consummate the transactions provided for herein are subject to the
                                            fulfillment on or prior to the Closing Date of each of the following conditions, unless waived
                                            in writing by Buyer:

 

		(i)	The
                                            representations and warranties of Seller herein contained shall be true and correct in all
                                            material respects on the Closing Date, as though made on and as of such date; provided,
                                            however, that each Fundamental Representation made by Seller shall be true and correct
                                            as though made on and as of such date; provided further that those representations
                                            that by their terms are made as of a specified date need be true and correct only as of the
                                            date so specified;

 

		(ii)	Seller
                                            shall have performed and complied in all material respects with the duties, obligations and
                                            covenants under this Agreement required to be performed or complied with by it at or prior
                                            to Closing.

 

		(iii)	No
                                            suit, action or other Proceeding shall be pending or threatened that seeks to, or could reasonably
                                            result in a judicial order, judgment or decree that would restrain, enjoin or otherwise prohibit
                                            the consummation of the transactions contemplated by this Agreement, other than an action
                                            or Proceeding instituted or threatened by Buyer or any of its Affiliates.

 

    55 

     

    

 

		10.2	Closing.
                                            The closing of the transactions contemplated herein and the transfer of the Assets (“Closing”)
                                            shall occur on the 40th day following the execution hereof, at Seller’s
                                            office, located at 333 Texas Street, Suite 1919, Shreveport, Louisiana 71101 at 10:00 a.m.,
                                            local time, except that, if all conditions in Section 10.1 to be satisfied
                                            at or prior to Closing (other than those conditions that by their nature can be satisfied
                                            only at the Closing) have not yet been satisfied or waived in writing by Buyer or Seller
                                            (as applicable) by such date, then the Closing shall occur within five Business Days after
                                            such conditions have been satisfied or waived, subject to the rights of the Parties under
                                            Section 10.3, or on such other date or time, or at such other place, as Seller
                                            and Buyer may agree in writing (the “Closing Date”). At Closing,
                                            the following shall occur:

 

		(a)	Buyer
                                            and Seller shall execute, acknowledge and deliver an Assignment and Bill of Sale in substantially
                                            the form of Exhibit “B” (the “Assignment”)
                                            in sufficient counterparts to facilitate recording in the applicable parishes covering the
                                            Assets;

 

		(b)	Buyer
                                            and Seller shall execute and acknowledge, if appropriate, any such other instruments as are
                                            reasonably necessary to effectuate the transfer, sale or conveyance of the Assets to Buyer,
                                            including without limitation and to the extent required, separate assignments of the Assets
                                            on officially approved forms in sufficient counterparts to satisfy applicable statutory and
                                            regulatory requirements for the transfer of the Assets;

 

		(c)	To
                                            the extent permitted by Law or contract, Seller and Buyer shall execute and deliver at Closing
                                            the requisite number of change of operator forms or other designation of operator forms and
                                            any other necessary forms as may be required by any Governmental Authority;

 

		(d)	Seller
                                            shall deliver to Buyer an IRS Form W-9 duly completed and executed by Seller;

 

		(e)	Seller
                                            shall deliver, on forms supplied by Buyer (with assistance from Seller) and reasonably acceptable
                                            to Seller, transfer orders or letters in lieu thereof directing all third party operators
                                            and purchasers of production to make payment to Buyer of proceeds attributable to production
                                            from the Assets from and after the Effective Time, for delivery by Buyer to the purchasers
                                            of production;

 

		(f)	Seller
                                            shall deliver an executed certificate of non-foreign status that meets the requirements set
                                            forth in Treasury Regulation § 1.1445-2(b)(2);

 

		(g)	An
                                            authorized officer of each of EEP and EHP shall execute and deliver a certificate, dated
                                            as of the Closing Date, certifying that the conditions set forth in Sections 10.1(b)(i)
                                            and 10.1(b)(ii) have been fulfilled (the “Seller Certificate”);

 

		(h)	An
                                            authorized officer of Buyer shall execute and deliver a certificate, dated as of the Closing
                                            Date, certifying that the conditions set forth in Sections 10.1(a)(i) and 10.1(a)(ii)
                                            have been fulfilled (the “Buyer Certificate”);

 

    56 

     

    

 

		(i)	Seller
                                            shall deliver releases of all Encumbrances securing borrowed monies incurred by any Seller
                                            or any of their Affiliates under any Debt Instrument that are burdening the Assets, (ii) authorizations
                                            to file UCC-3 termination statements releases in all applicable jurisdictions to evidence
                                            the release of all such Encumbrances on the Assets securing due and payable obligations under
                                            Debt Instruments, and (iii) all instruments and agreements reasonably requested by,
                                            and in form and substance reasonably acceptable to, Buyer to effect and file of record the
                                            release of all Encumbrances in connection therewith;

 

		(j)	Seller
                                            shall deliver up to Buyer possession of the Assets (except the Suspended Proceeds, which
                                            shall be conveyed to Buyer by way of one or more adjustments to the Purchase Price as provided
                                            in Section 3);

 

		(k)	At
                                            the Closing, and upon delivery of the Assignments and other instruments described in this
                                            Section 10.2:

 

		(i)	Buyer
                                            shall pay unto the Escrow Agent the Defect Escrow Amount, if any;

 

		(ii)	The
                                            Parties shall jointly direct the Escrow Agent to distribute the Holdback True-Up Amount to
                                            Seller; and

 

		(iii)	Buyer
                                            shall pay the Closing Payment to Seller by bank wire, as designated in advance by Seller
                                            in the Closing Statement.

 

		(l)	On
                                            or before Closing, Seller shall, with respect to any Seller-operated Assets, supply Buyer
                                            with an appropriate governmental form as required by the governmental agency, board or commission
                                            having jurisdiction and authority to change the name of the operator from Seller to Buyer,
                                            for each Seller-operated Existing Well (whether dry, inactive, injector or producing), Lease
                                            or any other well or facility or Personal Property, as may be required or defined by said
                                            agency, board or commission located on the premises that form a part of the subject matter
                                            of this Agreement. All such forms shall be executed by Buyer and/or Seller as may be required
                                            prior to or during Closing. Buyer shall be solely responsible for any fee as may be required
                                            by such governmental agency, board or commission and, at the Parties’ option, shall
                                            either deliver its check payable to the governmental agency, board or commission to Seller
                                            at Closing or credit this fee amount to Seller in the Final Settlement Statement. Seller
                                            shall mail the completed form and fee to the proper governmental agency, board or commission
                                            after Closing.

 

		10.3	Termination.

 

		(a)	This
                                            Agreement and the transactions contemplated hereby may be terminated at any time prior to
                                            the Closing (by written notice from the terminating Party to the other Party) in the following
                                            instances:

 

		(i)	By
                                            Seller, if there have been one or more breaches by Buyer of any of its representations, warranties,
                                            covenants or agreements contained herein that have not been waived by Seller and would result
                                            in the failure to satisfy any of the conditions set forth in Section 10.1(a)(i)
                                            or Section 10.1(a)(ii), and such breaches have not been cured within 30 days
                                            after written notice thereof has been received by Buyer; provided, however,
                                            that Seller shall not be entitled to terminate this Agreement pursuant to this Section 10.3(a)(i)
                                            if Seller is in material breach of this Agreement at such time;

 

    57 

     

    

 

		(ii)	By
                                            Buyer, if there have been one or more breaches by Seller of any of its representations, warranties,
                                            covenants or agreements contained herein that have not been waived by Buyer and would result
                                            in the failure to satisfy any of the conditions set forth in Section 10.1(b)(i)
                                            or Section 10.1(b)(ii), and such breaches have not been cured within 30 days
                                            after written notice thereof has been received by Seller; provided, however,
                                            that Buyer shall not be entitled to terminate this Agreement pursuant to this Section 10.3(a)(ii)
                                            if Buyer is in material breach of this Agreement at such time;

 

		(iii)	By
                                            mutual written agreement of Buyer and Seller;

 

		(iv)	By
                                            Buyer or Seller, if the Closing does not occur on or before September 30, 2022;
                                            provided, however, that no Party shall be entitled to terminate this Agreement
                                            pursuant to this Section 10.3(a)(iv) if such Party is in material breach of this
                                            Agreement at such time;

 

		(v)	By
                                            Seller or Buyer, if at or before Closing, to the sum of (A) all Title Defect Values
                                            and Environmental Defect Values asserted by Buyer that exceed the applicable thresholds (excluding
                                            any such amounts with respect to any Assets excluded from the transactions in accordance
                                            with this Agreement), (B) the Allocated Values of any Assets excluded from the transactions
                                            in accordance with this Agreement and (C) the amount of any Casualty Loss, is equal
                                            to or in excess of an amount equal to 10% of the Purchase Price; or

 

		(vi)	By
                                            Seller, if the Deposit is not provided pursuant to Section 2.1.

 

		(b)	If
                                            this Agreement is terminated pursuant to any provision of Section 10.3(a), then
                                            this Agreement will immediately become void and of no further force or effect, and the Parties
                                            will have no Claim or obligation hereunder; provided, however, that the provisions
                                            of this Section 10.3 and Sections 5.4, 11, 12.4, 12.6,
                                            12.7, 12.8, 12.9, 12.10, 12.16, 12.17, 12.20,
                                            12.22 and 13.1, and such of the defined terms as set forth in this Agreement
                                            to give context to such Sections will, in each case, survive such termination. Upon the termination
                                            of this Agreement, Seller will be free immediately to enjoy all rights of ownership of the
                                            Assets and to sell, transfer, encumber or otherwise dispose of the Assets to any Person without
                                            any restriction under this Agreement.

 

    58 

     

    

 

		(c)	If
                                            (w) Buyer, through no fault of Seller, fails, refuses, or is unable for any reason not
                                            permitted by this Agreement to close the sale pursuant hereto, (x) all of Buyer’s
                                            conditions to Closing set forth in Section 10.1 have been satisfied, (y) Seller
                                            is ready, willing and able to close the transactions contemplated hereby and (z) Seller
                                            is entitled to terminate this Agreement pursuant to Section 10.3(a)(i) hereof,
                                            then Seller, as its sole and exclusive remedy hereunder, will be entitled to terminate this
                                            Agreement and have the Deposit paid to Seller as liquidated damages, and not as a penalty,
                                            for such termination, free and clear, as the Seller Parties’ sole and exclusive remedy
                                            against the Buyer Parties for the failure to consummate the transactions contemplated at
                                            the Closing. THE PARTIES HEREBY ACKNOWLEDGE THAT THE EXTENT OF DAMAGES TO SELLER OCCASIONED
                                            BY THE FAILURE OF THIS TRANSACTION TO BE CONSUMMATED WOULD BE IMPOSSIBLE OR EXTREMELY DIFFICULT
                                            TO ASCERTAIN AND THAT THE AMOUNT OF THE DEPOSIT IS A FAIR AND REASONABLE ESTIMATE OF SUCH
                                            DAMAGES UNDER THE CIRCUMSTANCES AND DOES NOT CONSTITUTE A PENALTY. If Seller elects to terminate
                                            this Agreement pursuant to this Section 10.3(c) and receive the Deposit as liquidated
                                            damages, then within two Business Days after Seller’s election, the Parties shall execute
                                            and deliver to the Escrow Agent a joint instruction letter directing the Escrow Agent to
                                            release the Deposit to Seller.

 

		(d)	If
                                            (x) Buyer is entitled to terminate this Agreement pursuant to Section 10.3(a)(ii),
                                            (y) all of Seller’s conditions set forth in Section 10.1(a) have been
                                            satisfied, and (z) Buyer is ready, willing and able to close the transactions contemplated
                                            pursuant to this Agreement and the Transaction Documents, then Buyer shall have the right
                                            to either (1) enforce specific performance by Seller of this Agreement, without posting
                                            any bond or the necessity of proving the inadequacy of monetary damages as a remedy, in which
                                            event the Deposit will be applied as called for herein, or (2) if Buyer does not seek
                                            and successfully enforce specific performance, terminate this Agreement and (in addition
                                            to the return to Buyer of the Deposit) receive as liquidated damages (and not as a penalty)
                                            from Seller an amount equal to Buyer’s actual documented third party out-of-pocket
                                            costs and expenses, incurred in connection with the transactions contemplated by this Agreement,
                                            provided, however, that said amount shall not exceed the amount of $1,500,000,
                                            as a result of such termination as liquidated damages, free and clear of any Claims thereon
                                            by Seller and as Buyer’s sole and exclusive remedy. If Buyer elects to terminate this
                                            Agreement pursuant to clause (2) of the immediately preceding sentence and receive
                                            such liquidated damages as a result of such termination, then within two Business Days after
                                            Buyer’s election, (A) the Parties shall execute and deliver to the Escrow Agent
                                            a joint instruction letter directing the Escrow Agent to release the Deposit to Buyer, and
                                            (B) Seller shall pay by wire transfer of ready funds the amount due to Buyer pursuant
                                            to clause (2) of this Section 10.3(d) to such account or accounts as Buyer
                                            may direct.

 

		(e)	Notwithstanding
                                            the foregoing, if this Agreement is terminated under Section 10.3 and Seller
                                            is not entitled to receive the Deposit under any of the preceding paragraphs, the entirety
                                            of the Deposit will be promptly returned to Buyer and the Parties shall execute and deliver
                                            joint written instructions to the Escrow Agent to such effect within two Business Days after
                                            such termination.

 

    59 

     

    

 

		10.4	Final
                                            Adjustments. Within 90 days after the date of Closing, Seller shall (i) prepare,
                                            in consultation with Buyer, a Final Settlement Statement, acting reasonably and in good faith
                                            (the “Final Settlement Statement”), setting forth the final adjustments
                                            to the Purchase Price provided in Section 2.4 and the resulting final Purchase
                                            Price and (ii) submit such Final Settlement Statement to Buyer, along with copies of
                                            third-party vendor invoices, or other evidence of expenses reflected in such Final Settlement
                                            Statement. Buyer shall respond in writing with objections and proposed corrections within
                                            30 days after receiving the Final Settlement Statement, said Buyer response shall include
                                            supporting materials, in reasonable detail, but only to the extent such supporting materials
                                            are in Buyer’s possession or control at such time. During such 30-day period, Buyer
                                            shall be given reasonable access to Seller’s and its Affiliates’ books and records
                                            relating to the matters required to be accounted for in the Final Settlement Statement to
                                            allow Buyer to conduct an audit and review such items. If Buyer does not respond to the Final
                                            Settlement Statement by signing or objecting in writing within such 30-day period, the Final
                                            Settlement Statement will be deemed approved by Buyer and final and binding between the Parties.
                                            After approval of the Final Settlement Statement, Seller will send a check or invoice to
                                            Buyer for the net amount, reflecting the difference between the adjusted Purchase Price paid
                                            at Closing and the final Purchase Price (excluding the Holdback Amount and any other amounts
                                            still held in escrow at such time). If Buyer and Seller are unable to agree to all adjustments
                                            within 30 days after Buyer’s written objection to the Final Settlement Statement
                                            submitted by Seller, adjustments that are not in dispute shall be paid by Buyer or Seller,
                                            as the case may be, at the expiration of such 30-day period and either Party may submit such
                                            disagreement to an Independent Expert selected in the manner provided in Section 8
                                            for resolution.

 

		11.	Disputes

 

		11.1	Arbitration.

 

		(a)	In
                                            case of a dispute, controversy or Claim arising out of, relating to or in connection with
                                            this Agreement, including any dispute regarding its validity or termination, but excluding
                                            any dispute to be resolved by an Independent Expert selected pursuant to Section 8,
                                            Seller and Buyer shall attempt in good faith to agree upon the rights of the respective parties
                                            with respect to each such Claim within 30 days after receipt of notice of such Claim.
                                            If the applicable parties should so agree, a memorandum setting forth such agreement shall
                                            be prepared and signed by such parties.

 

		(b)	If
                                            no such agreement can be reached after good faith negotiation lasting not longer than 30 days
                                            after the receipt of notice of such Claim, any of the applicable parties may demand binding
                                            arbitration of the matter unless the amount of the damage or loss is at issue in pending
                                            litigation with a third party, in which event arbitration shall not be commenced until such
                                            amount is ascertained or both Parties agree to arbitration. Arbitration shall be administered
                                            by the American Arbitration Association (“AAA”). The number of
                                            arbitrators shall be three. The place of arbitration shall be Dallas, Texas. The language
                                            of the arbitration shall be English. The arbitration shall be conducted consistent with the
                                            rules, regulations, and requirements thereof, as well as any requirements imposed by applicable
                                            state Law. Any arbitral award determination shall be final and binding upon the Parties.
                                            Judgment upon the award rendered by the arbitrators may be entered in any court of competent
                                            jurisdiction.

 

    60 

     

    

 

		(c)	Arbitration
                                            shall proceed only on an individual basis. The Parties waive the right to assert, participate
                                            in, or receive money or any other relief from any class, collective, or representative proceeding.
                                            Each Party shall submit only its own individual claims against the other and will not seek
                                            to represent the interests of any other Person. Notwithstanding anything to the contrary
                                            in the Commercial Arbitration Rules of the American Arbitration Association, no arbitrator
                                            shall have jurisdiction or authority to compel any class or collective claim, to consolidate
                                            different arbitration proceedings, or to join any other Person to an arbitration between
                                            the Parties.

 

		(d)	Except
                                            for the Parties’ legal fees, each of Buyer and Seller shall be responsible for one-half
                                            the cost of the arbitration proceedings. Each Party shall be solely responsible for its own
                                            legal fees.

 

		12.	Miscellaneous

 

		12.1	Gas
                                            Imbalances. Regardless of whether Seller is overproduced or underproduced as to its share
                                            of total gas production, any balancing obligation or credit arising from such over or underproduction,
                                            and any pipeline imbalance, in each case, determined as of the Effective Time (an “Imbalance”)
                                            shall transfer to Buyer as of the Effective Time, and the Purchase Price shall be adjusted
                                            therefor. Buyer and Seller will settle all Imbalances as existing as of the Effective Time
                                            through Purchase Price adjustments using a settlement price of $2.50 per MMBtu.

 

		12.2	Casualty
                                            Loss of Assets. If prior to the Closing, any portion of the Assets is damaged or destroyed
                                            or made unavailable or unusable for the intended purpose by Casualty Loss, Buyer shall nevertheless
                                            be required to close and Seller, at the Closing, shall pay to Buyer all sums paid to Seller
                                            by third parties by reason of such Casualty Loss insofar as such payments are directly attributable
                                            to the Assets and the applicable Casualty Loss, and shall assign, transfer and set over to
                                            Buyer or subrogate Buyer to all of Seller’s right, title and interest (if any) in insurance
                                            claims, unpaid awards and other rights against third parties (excluding any Liabilities,
                                            other than insurance claims, of or against any member of the Seller Parties) arising out
                                            of such Casualty Loss insofar as and with respect to such Assets; provided, however,
                                            that Seller shall reserve and retain (and Buyer shall assign to Seller) all rights, title,
                                            interests and Claims against third parties for the recovery of Seller’s costs and expenses
                                            incurred prior to the Closing in pursuing or asserting any such insurance claims or other
                                            rights against third parties with respect to any such Casualty Loss. The term “Casualty
                                            Loss” shall mean physical damage to an Asset that (a) occurs between the
                                            execution of this Agreement and Closing, (b) is not the result of normal wear and tear,
                                            mechanical failure or gradual structural deterioration of materials, equipment and infrastructure,
                                            reservoir changes, or downhole failure (including, without limitation, failure arising or
                                            occurring during drilling or completing operations, junked or lost holes or sidetracking
                                            or deviating a well); and (c) exceeds $100,000 in value. Notwithstanding the foregoing
                                            provisions of this Section 12.2, in the event of a conflict between this Section 12.2
                                            and the cost allocation provisions of Section 3.1(e) with respect to any
                                            Casualty Loss, the provisions of Section 3.1(e) shall control; provided,
                                            however, that the full amount of such Casualty Loss shall be treated as such for purposes
                                            of Section 10.3(a)(v).

 

    61 

     

    

 

		12.3	Books
                                            and Records. Seller shall deliver to Buyer at Closing or within a reasonable time thereafter
                                            the Records, except to the extent constituting Excluded Assets.

 

		12.4	Publicity.
                                            Prior to and after the Closing Date, no Party (or Affiliate thereof) will issue a press release
                                            or announcement concerning this Agreement or the transactions contemplated hereby without
                                            the prior written consent of Seller and Buyer, except as required by applicable Law or national
                                            or foreign stock exchange regulation; provided, however, that the foregoing
                                            will not prohibit Buyer (or its Affiliates), on or after the Execution Date, from issuing
                                            a press release (a) announcing the transactions contemplated hereby pursuant to a public
                                            press release (and making public statements and disclosures consistent with such mutually
                                            agreeable press release) or (b) announcing the termination the Agreement in accordance
                                            with the provisions hereof, in each case, subject to the opportunity of Seller to review
                                            and comment on any such press release, which comments will be considered in good faith by
                                            Buyer.

 

		12.5	Assignment.
                                            Other than as permitted by Section 1.4, no Party shall assign or otherwise transfer
                                            all or any part of this Agreement to any third Person, nor shall any Party delegate any of
                                            its rights or duties hereunder to any third Person, without the prior written consent of
                                            the other Party and any transfer or delegation made without such consent shall be void ab
                                            initio; provided, however, that Buyer, without the consent
                                            of Seller but with five Business Days’ prior written notice to Seller, may assign its
                                            rights or delegate its duties under this Agreement to an Affiliate of Buyer that agrees in
                                            writing to fully assume all obligations of Buyer hereunder. Any assignment of this Agreement
                                            permitted by this Section 12.5 shall be made subject to the obligations contained
                                            in this Agreement, and such assignment shall not relieve the assigning Party of any obligations
                                            and responsibilities hereunder. Subject to the foregoing, this Agreement shall be binding
                                            upon and inure to the benefit of the Parties and their respective successors and assigns

 

		12.6	Entire
                                            Agreement. This Agreement, the Confidentiality Agreement and the other Transaction Documents
                                            constitute the entire agreement between Seller and Buyer with respect to the transactions
                                            contemplated herein and supersede all prior oral or written agreements, commitments, and
                                            understandings between the Parties. No amendment shall be binding upon any of the Parties
                                            unless such amendment is in writing and signed by each of Seller and Buyer and expressly
                                            identified as an amendment or modification to this Agreement. This Agreement is for the benefit
                                            of Seller and Buyer and their respective successors and permitted assigns, and nothing in
                                            this Agreement shall entitle any other Person to any Claim, cause of action, right or remedy
                                            of any kind, except the rights expressly provided to the Persons described in Section 3.3(b),
                                            Section 3.3(c) and Section 12.22.

 

    62 

     

    

 

		12.7	Headings.
                                            The table of contents, list of exhibits, list of schedules, table of defined terms, headings,
                                            titles and captions contained in this Agreement (a) are inserted only as a matter of
                                            convenience and for reference and (b) shall not be construed to define, limit, extend
                                            or describe the scope or the intent of any provision of this Agreement.

 

		12.8	Notices.
                                            All notices and consents to be given hereunder shall be in writing and shall be deemed to
                                            have been duly given if delivered either by personal delivery, telex, telecopy or similar
                                            facsimile or electronic means, by certified or registered mail, return receipt requested,
                                            or by courier or delivery service, addressed to the Parties hereto at the following addresses:

 

If
to Seller:

 

EnSight
IV Energy Partners, LLC

333
Texas Street, Suite 1919

Shreveport,
Louisiana 71101-3676

Attention:  
[*****]

E-Mail:  
[*****]

Telephone
No.:   [*****]

Fax
No.:            [*****]

 

If
to Buyer:

 

Tellurian
Production LLC

1201
Louisiana St., Suite 3100

Houston,
Texas 77002

Attention:  
[*****]

E-Mail:
[*****] and [*****]

 

Notices
shall be deemed given when received, if sent by facsimile (confirmation of such receipt by confirmed facsimile transmission being deemed
receipt of communications); and when delivered and receipted for (or upon the date of attempted delivery where delivery is refused),
if either hand-delivered, e-mailed or sent by express courier or delivery service, or sent by certified or registered mail, return receipt
requested. Notwithstanding anything herein to the contrary, any and all notices or other communications as required, permitted or otherwise
provided for herein may be delivered via e-mail delivery, utilizing the e-mail addresses for the Parties as provided above.

 

		12.9	Governing
                                            Law. This Agreement shall be governed by the laws of the State of Louisiana, without
                                            giving effect to any principles of conflicts of law. The validity of the conveyances affecting
                                            the title to real property shall be governed by and construed in accordance with the laws
                                            of the jurisdiction in which such property is situated. The provisions contained in such
                                            conveyances and the remedies available because of a breach of such provisions shall be governed
                                            by and construed in accordance with the laws of the State of Louisiana, without giving effect
                                            to the principles of conflict of laws.

 

		12.10	Waiver
                                            of Jury Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
                                            LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING, OR COUNTERCLAIM
                                            ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR ANY TRANSACTION
                                            CONTEMPLATED HEREBY OR THEREBY.

 

    63 

     

    

  

		12.11	Records.
                                            As soon as practicable, but in no event later than 30 days after the Closing Date, Seller
                                            shall deliver or cause to be delivered to Buyer the original Records (or digital copies to
                                            the extent originals are not in Seller’s possession or control) that are in the possession
                                            of Seller or its Affiliates; provided, however, that that the Records in electronic
                                            form shall be delivered by Seller to Buyer within five days after the Closing Date.

 

		12.12	Confidentiality.
                                            Buyer agrees that all information furnished or disclosed by Seller or acquired by Buyer in
                                            connection with the sale of the Assets shall remain confidential prior to Closing pursuant
                                            to the terms of the Confidentiality Agreement (but subject, in any case, to any disclosure
                                            permitted pursuant to Section 12.4). In the event that Closing of the transactions
                                            contemplated by this Agreement does not occur for any reason, (i) Buyer agrees that
                                            all information furnished or disclosed by Seller or acquired by Buyer in connection with
                                            the inspection, testing, inventory or sale of the Assets shall remain confidential, with
                                            Seller being a third-party beneficiary of any privilege held by Buyer; and, (ii) Buyer
                                            and its Representatives shall promptly return to Seller any and all materials and information
                                            furnished or disclosed by Seller relating in any way to the Assets, including any notes,
                                            summaries, compilations, analyses or other material derived from the inspection or evaluation
                                            of such material and information, without retaining copies thereof and destroy any information
                                            relating to the Assets and independently acquired by Buyer. Notwithstanding the provisions
                                            of Section 12.6, nothing in this Section and this Agreement shall have the
                                            effect, prior to Closing, of terminating, modifying or superseding that certain Confidentiality
                                            Agreement, dated February 8, 2022, between Buyer and Seller (the “Confidentiality
                                            Agreement”), which shall terminate as of the Closing Date if the Closing occurs.

 

		12.13	Further
                                            Cooperation. After the Closing, each Party shall execute, acknowledge, and deliver all
                                            documents, and take all such acts that from time to time may be reasonably requested by the
                                            other Party in order to carry out the purposes and intent of this Agreement.

 

		12.14	Counterparts.
                                            This Agreement may be executed in one or more counterparts with the same effect as if all
                                            signatures of the Parties hereto were on the same document, but, in such event, each counterpart
                                            shall constitute an original, and all of such counterparts shall constitute one Agreement;
                                            but in making proof of this Agreement, it shall not be necessary to produce or account for
                                            more than one such counterpart signed by each Party.

 

		12.15	Exhibits
                                            and Schedules. All the Exhibits and Schedules referred to in this Agreement are hereby
                                            incorporated into this Agreement by reference and constitute a part of this Agreement.

 

		12.16	Severability.
                                            If any term or provision of this Agreement is invalid, illegal or incapable of being enforced
                                            by any rule of law, all other conditions and provisions of the Agreement shall nevertheless
                                            remain in full force and effect so long as the economic or legal substance of the transactions
                                            contemplated hereby is not affected in any materially adverse manner to the other Party.

 

    64 

     

    

 

		12.17	Expenses,
                                            Post-Closing Consents and Recording. Notwithstanding other provisions of this Agreement,
                                            Buyer shall be responsible for the filing and recording of the Assignment(s), conveyances
                                            or other instruments required to convey title to the Assets to Buyer in the appropriate federal,
                                            state and local records and all required documentary, filing and recording fees and expenses
                                            incurred in connection therewith. Buyer shall supply Seller with a true and accurate photocopy
                                            of all the recorded and filed Assignment(s) within a reasonable period after such are available.
                                            Buyer shall be responsible for timely obtaining all consents and approvals of Governmental
                                            Authorities customarily obtained subsequent to transfer of title and all costs and fees associated
                                            therewith. Except as otherwise specifically provided, all fees, costs and expenses incurred
                                            by Buyer or Seller in negotiating this Agreement or in consummating the transactions contemplated
                                            by this Agreement shall be paid by the Party incurring the same, including, without limitation,
                                            legal and accounting fees, costs and expenses.

 

		12.18	Removal
                                            of Signs and Markers. Seller may either remove its name and signs from the Seller-operated
                                            Existing Wells, facilities and Personal Property or require Buyer, at Buyer’s cost,
                                            to do so for those Assets that Buyer will operate. If Seller’s name or signs remain
                                            on the Assets after Seller ceases to be the operator and Buyer has become operator thereof,
                                            Buyer shall (a) remove any remaining signs and references to Seller within 90 days
                                            after Seller ceases to be the operator of the Assets and (b) install signs complying
                                            with applicable governmental regulations, including signs showing Buyer as operator of the
                                            Assets it operates.

 

		12.19	CONSPICUOUSNESS/EXPRESS
                                            NEGLIGENCE. THE DEFENSE, INDEMNIFICATION AND HOLD HARMLESS PROVISIONS PROVIDED FOR IN
                                            THIS AGREEMENT SHALL BE APPLICABLE WHETHER OR NOT THE DAMAGES, LOSSES, INJURIES, LIABILITIES,
                                            COSTS OR EXPENSES IN QUESTION AROSE SOLELY OR IN PART FROM THE ACTIVE, PASSIVE OR CONCURRENT
                                            NEGLIGENCE, STRICT LIABILITY, BREACH OF DUTY (STATUTORY OR OTHERWISE), OR OTHER FAULT OF
                                            ANY INDEMNIFIED PARTY, OR FROM ANY PRE-EXISTING DEFECT, EXCEPT TO THE EXTENT CAUSED BY THE
                                            INDEMNIFIED PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. BUYER AND SELLER ACKNOWLEDGE
                                            THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS.

 

		12.20	Waiver
                                            of Certain Damages; Limitation on Indemnity. Each Party irrevocably waives and agrees
                                            not to seek indirect, consequential, punitive or exemplary damages of any kind in connection
                                            with any dispute arising out of or related to this Agreement or the breach hereof. For the
                                            avoidance of doubt, this Section 12.20 does not diminish or otherwise affect
                                            the Parties’ rights and obligations to be indemnified against, and provide indemnity
                                            for, indirect, consequential, punitive or exemplary damages awarded to any third party for
                                            which indemnification is provided in this Agreement.

 

		12.21	Waiver
                                            of Right to Rescind. Seller and Buyer acknowledge that if this Agreement is not terminated
                                            and Closing occurs, the payment of money, as limited by the terms of this Agreement, shall
                                            be adequate compensation for breach of any representation, warranty, covenant or agreement
                                            contained herein or for any other Claim arising in connection with or with respect to the
                                            transactions contemplated in this Agreement. As the payment of money shall be adequate compensation,
                                            Buyer and Seller waive any right to rescind the transactions contemplated by this Agreement.

 

    65 

     

    

 

		12.22	No
                                            Recourse. Except to the extent a named Party to this Agreement, and subject in all cases
                                            to the terms and conditions of and limitations herein, the Parties acknowledge and agree
                                            that no past, present or future director, manager, officer, employee, incorporator, member,
                                            partner, stockholder, agent, attorney, Representative, Affiliate or financing source of any
                                            of the Parties to this Agreement (each, a “Non-Recourse Person”),
                                            in such capacity, shall have any Liability or responsibility (in contract, tort or otherwise)
                                            for any Liabilities of any Party hereto, as applicable, under this Agreement or for any Claim
                                            based on, in respect of, or by reason of, the transactions contemplated hereby. This Agreement
                                            may be enforced only against, and any action based upon, arising out of, or related to this
                                            Agreement, or the negotiation, execution or performance of this Agreement, may be brought
                                            only against the entities that are expressly named as Parties hereto (and their permitted
                                            successors and assigns) and then only with respect to the specific obligations set forth
                                            herein with respect to such Party. Each Non-Recourse Person is expressly intended as a third-party
                                            beneficiary of this Section 12.22. For clarity, the Parties acknowledge and agree
                                            that nothing in this Section shall affect any obligations or Liabilities of any Non-Recourse
                                            Person arising under an agreement other than this Agreement and the other Transaction Documents.

 

		12.23	Buyer’s
                                            Acquisition of Tag Along Interests. Schedule 5.1(l)(iii) identifies the applicable
                                            agreements providing Tag Along Rights for the transfer to and Buyer’s acquisition of
                                            certain additional interests in and to Leases, Existing Wells and other Properties as included
                                            within the Assets to be transferred from Seller unto Buyer as provided for herein (collectively,
                                            “Tag Along Interests”). Buyer shall take all actions as required
                                            by such Tag Along Rights, including without limitation providing an irrevocable written offer
                                            to purchase said Tag Along Interests on the same terms and conditions as set forth in this
                                            Agreement. Upon proper exercise of the applicable Tag Along Rights by the applicable holders
                                            thereof, Buyer agrees to and shall purchase all available Tag Along Interests, with Buyer’s
                                            acquisition of the Tag Along Interests being in addition to Buyer’s purchase of the
                                            Assets as provided for herein. If a Contingent Payment is made to Seller in accordance with
                                            Section 2.6, then Buyer will contemporaneously make a payment to each holder
                                            of a Tag Along Interest acquired by Buyer in accordance with this Section 12.23,
                                            which payment shall be equal to the Allocated Value attributable to the Contingent Payment
                                            for such holder’s Tag Along Interest.

 

		12.24	Louisiana
                                            Terminology. In this Agreement, and without intending to modify the choice of Law set
                                            forth in Section 12.9, the following terms will have the following meanings with
                                            respect to any of the Assets located in the state of Louisiana. Each reference to (a) “easement”
                                            will include a reference to “servitude”; (b) “buildings” will
                                            include a reference to “other constructions”; (c) a county, in reference
                                            to a subdivision of the state of Louisiana, will include a reference to a Louisiana parish;
                                            (d) the terms “land,” “real property,” and “real estate”
                                            will, in each case, include “immovable property” as that term is used in the
                                            Louisiana Civil Code; (e) the term “personal property” will include “movable
                                            property” as that term is used in the Louisiana Civil Code; (f) the term “tangible
                                            property” will include “corporeal property” as that term is used in the
                                            Louisiana Civil Code; (g) the term “intangible property” will include “incorporeal
                                            property” as that term is used in the Louisiana Civil Code; (h) the terms “fee
                                            title,” “fee estate,” or “fee simple title” will, in each case,
                                            include “full ownership interest” as that term is used in the Louisiana Civil
                                            Code; and (i) the term “condemnation” will include “expropriation”
                                            as that term is used in Louisiana Law.

 

    66 

     

    

 

		13.	DEFINED
                                            TERMS

 

		13.1	References.
                                            In this Agreement, unless the context requires otherwise: (a) references to any gender
                                            includes a reference to all other genders; (b) references to the singular includes the
                                            plural, and vice versa; (c) reference to any Section means an Section of this Agreement;
                                            (d) reference to any Exhibit or Schedule means an Exhibit or Schedule to this Agreement,
                                            all of which are incorporated into, and made a part of, this Agreement for all purposes;
                                            (e) unless expressly provided to the contrary, “hereunder,” “hereof,”
                                            “herein,” and words of similar import are references to this Agreement as a whole
                                            and not any particular Section or other provision of this Agreement; (f) references
                                            to “$” or “Dollars” means United States Dollars; (g) “include”
                                            and “including” mean include or including without limiting the generality of
                                            the description preceding such term; (h) the words “shall” and “will”
                                            are used interchangeably throughout this Agreement and shall accordingly be given the same
                                            meaning, regardless of which word is used; (i) unless expressly provided to the contrary
                                            herein or used to set forth a list of elections available to a Party hereto, the word “or”
                                            is not exclusive; (j) references herein to any federal, state, local or foreign Law
                                            shall be deemed to also refer to all rules and regulations promulgated thereunder, unless
                                            the context requires otherwise, and reference herein to any agreement, instrument or Law
                                            means such agreement, instrument or Law as from time to time amended, modified or supplemented,
                                            including, in the case of agreements or instruments, by waiver or consent and, in the case
                                            of Laws, by succession of comparable successor Laws; and (k) references to a Person
                                            are also to its permitted successors and permitted assigns. All references to “ordinary
                                            course of business” shall mean the ordinary course of business consistent with the
                                            customs and practices of reasonably prudent operators.

 

		13.2	Certain
                                            Defined Terms. As used in this Agreement, the following capitalized terms shall have
                                            the following meanings:

 

		(a)	“Affiliate”
                                            means, with respect to any Person, a Person that directly or indirectly controls, is controlled
                                            by, or is under common control with, such Person. “Control” and derivatives
                                            of such term, as used in this definition, means having the ability, whether or not exercised,
                                            to direct the management or policies of a Person through ownership of voting shares or other
                                            securities, pursuant to a written agreement, or otherwise.

 

		(b)	“Debt
                                            Instrument” means any contract or agreement that is an indenture, mortgage,
                                            loan, credit agreement, sale-leaseback, guaranty of any obligation, bond, letter of credit
                                            or similar financial contract.

 

    67 

     

    

 

		(c)	“Defect
                                            Escrow Amount” means any amounts deposited in the Escrow Account pursuant to
                                            Section 6.5 or Section 7.5.

 

		(d)	“Fundamental
                                            Representations” means the representations and warranties of Seller set forth
                                            in Section 5.1(a), Section 5.1(b), Section 5.1(c), Section 5.1(d)
                                            and Section 5.1(e) (including the corresponding representations and warranties
                                            given in the Seller Certificate).

 

		(e)	“Governmental
                                            Authority” means any tribal authority, the United States and any state, county,
                                            parish, city or political subdivisions that exercises jurisdiction, and any agency, department,
                                            board, commission or other instrumentality thereof.

 

		(f)	“Hazardous
                                            Substance” means any pollutants, contaminants, toxics or hazardous or extremely
                                            hazardous substances, materials, wastes, constituents, compounds or chemicals that are regulated
                                            by, or for which Liability or standards of care are imposed under, any Environmental Laws,
                                            including NORM, Hydrocarbons, petroleum, petroleum products or petroleum by-products and
                                            other hazardous materials, including asbestos.

 

		(g)	“Hydrocarbons”
                                            means oil, gas, well gas, casinghead gas, condensate, and all components of any of them (including
                                            liquids and products produced from any of the foregoing).

 

		(h)	“Income
                                            Taxes” means any income, franchise, or similar Taxes based on or measured by
                                            net income (including any interest, fine, penalty or additions to Tax imposed by a Governmental
                                            Authority in connection with such Taxes).

 

		(i)	“Law”
                                            means all Permits, laws, statutes, rules, regulations, ordinances, orders, decrees, writs,
                                            injunctions, requirements, judgments, and codes, including rules of common law, of Governmental
                                            Authorities.

 

		(j)	“Liabilities”
                                            means any and all Claims, obligations, causes of action, payments, charges, demands, judgments,
                                            assessments, liabilities, losses, damages, penalties, fines and costs and expenses, including
                                            reasonable and documented fees and other expenses of outside counsel incurred in connection
                                            therewith.

 

		(k)	“Net
                                            Revenue Interest” and “NRI” means the aggregate interest
                                            of Seller in Hydrocarbons produced from or attributable to the applicable Value Assets and
                                            limited to the Target Interval, after deducting and giving effect to all royalties (including
                                            lessor’s royalties) and other burdens on Hydrocarbons produced therefrom (only to the
                                            extent such other interests or burdens are not included in the Assets).

 

		(l)	“NORM”
                                            means naturally occurring radioactive material.

 

		(m)	“Person”
                                            means any individual, corporation, partnership, limited liability company, trust, estate,
                                            Governmental Authority or any other entity.

 

    68 

     

    

 

		(n)	“Representative”
                                            means, with respect to any Person, any and all directors, officers, employees, consultants,
                                            financial advisors, counsel, accountants, and any other agents of such Person.

 

		(o)	“Seller
                                            Benefit Plan” means any employee benefit or compensation plan, program, practice,
                                            policy, agreement or arrangement that is sponsored, maintained or contributed to by Seller
                                            or any of its Affiliates or with respect to which Seller or any of its Affiliates is a party
                                            or has any Liability.

 

		(p)	“Target
                                            Interval” means the Haynesville Formation, being that certain geologic zone(s)
                                            and formation(s) occurring at the stratigraphic equivalent of that gas and condensate bearing
                                            interval encountered between the depth of 10,368 MD and 10,684 MD as encountered and identified
                                            on the Array Induction Gamma Ray-SP Log dated May 3, 2005 for the EOG Resources
                                            USA #74 Well (API#17-015-23633) as located in Section 6, Township 17 North, Range 11
                                            West, Bossier Parish, Louisiana.

 

		(q)	“Tax”
                                            or “Taxes” means: (i) any U.S. federal or state, local or
                                            non-U.S. income, gross receipts, payroll, employment, excise, severance, stamp, occupation,
                                            premium, windfall profits, environmental, conservation, fuel, custom duties, capital stock,
                                            intangible property, production, license, capital gains, goods and services, franchise, profits,
                                            withholding, social security, unemployment, disability, real property, personal property,
                                            sales, use, transfer, registration, value added, alternative or add on minimum, estimated
                                            or other tax, fee or other similar charge in the nature of a tax imposed by any Governmental
                                            Authority; and (ii) any interest, penalty, fine, additions to Tax or additional amounts
                                            imposed by any Taxing Authority in connection with any item described in clause (i).

 

		(r)	“Taxing
                                            Authority” means any Governmental Authority having jurisdiction over the assessment,
                                            determination, collection or other imposition of any Tax.

 

		(s)	“Transaction
                                            Documents” means this Agreement, the Escrow Agreement and the other contracts,
                                            agreements, certificates, documents and instruments delivered or to be delivered by any of
                                            the Parties in connection with this Agreement.

 

		(t)	“Working
                                            Interest” and “WI” means the interest in and to any
                                            Value Asset that is burdened with the obligation to bear and pay costs and expenses of maintenance,
                                            development and operations with respect to such Value Asset, limited to the Target Interval,
                                            in each case, without regard to the effect of any royalties and other burdens.

 

[Signature
Pages Follow]

 

    69 

     

    

 

EXECUTED
as of the date first above written.

 

	 	SELLER:
	 	 
	 	ENSIGHT IV ENERGY PARTNERS, LLC
	 	 
	 	By: 	/s/ [*****]
    
	 	 	[*****]
	 	 	[*****]
	 	 
	 	ENSIGHT HAYNESVILLE PARTNERS,
    LLC
	 	 
	 	By:	/s/ [*****]
	 	 	[*****]
	 	 	[*****]

 

Signature
Page to Purchase And Sale Agreement

 

     

     

    

 

	 	BUYER:
	 	 	 
	 	TELLURIAN PRODUCTION LLC
	 	 	 
	 	By:	/s/ [*****]
	 	 	[*****]
	 	 	[*****]

 

Signature
Page to Purchase And Sale AgreementExhibit 4.9

 

COMMON STOCK PURCHASE WARRANT

 

kiora
pharmaceuticals, inc.

 

	Warrant Shares: _______	Issue Date: _______, 2022

 

THIS COMMON STOCK PURCHASE WARRANT
(the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”)
is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after
the Authorized Share Increase Date (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time)
on the fifth anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for
and purchase from Kiora Pharmaceuticals, Inc., a Delaware corporation (the “Company”), up to ______ shares (as
subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock
under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant shall initially be issued and maintained
in the form of a security held in book-entry form and the Depository Trust Company or its nominee (“DTC”) shall initially
be the sole registered holder of this Warrant, subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant
to the terms of the Warrant Agency Agreement, in which case this sentence shall not apply.

 

Section 1.     Definitions.
In addition to the terms defined elsewhere in this Warrant, the following terms have the meanings indicated in this Section 1:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Amendment”
means the amendment to the Company’s certificate of incorporation that effects a reverse stock split such that, following such reverse
stock split, there are authorized and unissued shares of Common Stock sufficient for the issuance of the Warrant Shares upon the exercise
of any purchase rights under this Warrant.

 

“Authorized
Share Approval” means approval of the Amendment by the shareholders of the Company.

 

“Authorized
Share Increase Date” means, subject to Authorized Share Approval, the date on which the Amendment is filed and accepted with
the State of Delaware.

 

    	 	1	 

     

    

 

“Bid Price”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading
Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New
York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average
price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock
is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the Pink Open Market
(or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common
Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser
selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company,
the fees and expenses of which shall be paid by the Company.

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized
or required by law to remain closed due to “stay at home”, “shelter-in-place”, “non-essential employee” 
or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority
so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally
are open for use by customers on such day.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.01 per share, and any other class of securities into which such securities
may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is
at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company,
joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Registration
Statement” means the Company’s registration statement on Form S-1 (File No. 333-264641).

 

    	 	2	 

     

    

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary”
means any subsidiary of the Company and shall, where applicable, also include any direct or indirect subsidiary of the Company formed
or acquired after the date hereof.

 

“Trading
Day” means a day on which the Common Stock is traded on a Trading Market.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock
Exchange (or any successors to any of the foregoing).

 

“Transfer
Agent” means VStock Transfer, LLC, the current transfer agent of the Company, with a mailing address of 18 Lafayette Place,
Woodmere, New York 11598, and any successor transfer agent of the Company.

 

“Underwriting
Agreement” means the underwriting agreement, dated as of _________, 2022, among the Company and Ladenburg Thalmann &
Co. Inc. as representative of the underwriters named therein, as amended, modified or supplemented from time to time in accordance with
its terms.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date)
on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30
a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume
weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if
the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on the
Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per
share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined
by an independent appraiser selected in good faith by the holders of a majority in interest of the Warrants then outstanding and reasonably
acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

“Warrant
Agency Agreement” means that certain warrant agency agreement, dated on or about the Issue Date, between the Company and the
Warrant Agent.

 

“Warrant
Agent” means the Transfer Agent and any successor warrant agent of the Company.

 

    	 	3	 

     

    

 

“Warrants”
means this Warrant and other Common Stock purchase warrants issued by the Company pursuant to the Registration Statement.

 

Section 2.     Exercise.

 

a)            Exercise
of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on
or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed PDF copy submitted
by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within
the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as
defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise
Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States
bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise.
No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of
any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender
this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised
in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of
the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant
Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall
maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection
to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of
this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant
Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on
the face hereof.

 

Notwithstanding
the foregoing in this Section 2(a), a holder whose interest in this Warrant is a beneficial interest in certificate(s) representing
this Warrant held in book-entry form through DTC (or another established clearing corporation performing similar functions), shall effect
exercises made pursuant to this Section 2(a) by delivering to DTC (or such other clearing corporation, as applicable) the appropriate
instruction form for exercise, complying with the procedures to effect exercise that are required by DTC (or such other clearing corporation,
as applicable), subject to a Holder’s right to elect to receive a Warrant in certificated form pursuant to the terms of the Warrant
Agency Agreement, in which case this sentence shall not apply.

 

b)            Exercise
Price. The exercise price per share of Common Stock under this Warrant shall be $_____, subject to adjustment hereunder (the “Exercise
Price”).

 

    	 	4	 

     

    

 

c)            Cashless
Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained
therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may only be exercised, in whole or in
part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

	(A)	=	as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

	(B)	=	the Exercise Price of this Warrant, as adjusted hereunder; and

 

	(X)	=	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If Warrant Shares
are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities
Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not to take any
position contrary to this Section 2(c).

 

Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant
to this Section 2(c).

 

    	 	5	 

     

    

 

		d)	Mechanics of Exercise.

 

 i.            Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the third Trading Day after the Warrant Share Delivery Date) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

ii.           Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and
upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing
the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other
respects be identical with this Warrant.

 

    	 	6	 

     

    

 

iii.          Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by
the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.          Compensation
for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if
the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above
pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase
(in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver
in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying
(1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue
times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the
Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in
which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been
issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with
an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence
the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit
a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree
of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock
upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.           No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall,
at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Exercise Price or round up to the next whole share.

 

    	 	7	 

     

    

 

vi.          Charges,
Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental
expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant
Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however,
that, in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for
exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as
a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all
Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another
established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

vii.         Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

 

    	 	8	 

     

    

 

e)            Holder’s
Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise
as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting
as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)),
would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number
of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude
the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised
or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject
to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its
Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance
with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance
therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which
portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall
be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the
Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject
to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.
In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the
number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the
Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement
by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in
writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the
Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported.
The “Beneficial Ownership Limitation” shall be 4.99% (or, upon election by a Holder prior to the issuance of any Warrants,
9.99%) of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation
provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant
held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership
Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein
contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained
in this paragraph shall apply to a successor holder of this Warrant.

 

    	 	9	 

     

    

 

Section 3.     Certain
Adjustments.

 

a)            Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes
a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of
Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way
of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of
shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before
such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the
number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this
Warrant shall remain unchanged, subject to the limitation on fractional shares in Section 2(d)(v). Any adjustment made pursuant to
this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to
receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination
or re-classification.

 

b)            Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues
or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders
of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the
terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the
number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof,
including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant,
issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent that the Holder’s
right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder
shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as
a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until
such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

c)            Pro
Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution
of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including,
without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) other than a dividend or other distribution of the type described
in Section 3(a) above (a “Distribution”), at any time after the issuance of this Warrant, then, in each such
case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations
on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is
taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to
be determined for the participation in such Distribution (provided, however, that, to the extent that the Holder's right
to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall
not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a
result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder
until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

    	 	10	 

     

    

 

d)            Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company (and all of its Subsidiaries,
taken as a whole), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of
all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer,
tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted
to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of
the outstanding Common Stock or 50% or more of the voting power of the common equity of the Company, (iv) the Company, directly or
indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or
any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash
or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase
agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme
of arrangement) with another Person or group of Persons whereby such other Person or group acquires 50% or more of the outstanding shares
of Common Stock or 50% or more of the voting power of the common equity of the Company (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without
regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor
or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on
the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock
in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable
manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given
any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same
choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding
anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at
the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction
(or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder by
paying to the Holder the Black Scholes Value (as defined below) of the remaining unexercised portion of this Warrant on the date of the
consummation of such Fundamental Transaction using the same type or form of consideration (and in the same proportion) that is being offered
and paid to the holders of Common Stock of the Company in connection with the Fundamental Transaction, whether that consideration be in
the form of cash, stock or any combination thereof, or whether the holders of Common Stock are given the choice to receive from among
alternative forms of consideration in connection with the Fundamental Transaction; provided, further, that if holders of
Common Stock of the Company are not offered or paid any consideration in such Fundamental Transaction, such holders of Common Stock will
be deemed to have received common stock of the Successor Entity (which Entity may be the Company following such Fundamental Transaction)
in such Fundamental Transaction. “Black Scholes Value” means the value of this Warrant based on the Black-Scholes Option
Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day
of consummation of the applicable contemplated Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest
rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable
Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility
obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable contemplated
Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the price per share being
offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction, and (D) a
remaining option time equal to the time between the date of the public announcement of the applicable contemplated Fundamental Transaction
and the Termination Date. The payment of the Black Scholes Value will be made by wire transfer of immediately available funds (or such
other consideration) within five Business Days of the Holder’s election (or, if later, on the date of consummation of the Fundamental
Transaction). The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the
 “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant in accordance with
the provisions of this Section 3(d) pursuant to written agreements in form and substance reasonably satisfactory to the Holder
and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder,
deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor
Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without
regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies
the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such
exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction,
the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions
of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and
power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor
Entity had been named as the Company herein. For the avoidance of doubt, except as expressly set forth in this Warrant, in no event does
this agreement result in the Company having an obligation to issue cash or other assets to the Holder.

 

    	 	11	 

     

    

 

e)            Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For
purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be
the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

f)            Notice
to Holder.

 

i.            Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly
deliver to the Holder by email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number
of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

    	 	12	 

     

    

 

ii.           Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of
capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all
or substantially all of its assets, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash
or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs
of the Company, then, in each case, the Company shall cause to be delivered by email to the Holder at its last email address as it shall
appear upon the Warrant Register of the Company, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter
specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to
such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected
that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to
deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to
be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information
regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a
Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of
such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

g)            Voluntary
Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may, but in no event shall be
obligated to, at any time during the term of this Warrant, reduce the then current Exercise Price to any amount and for any period of
time deemed appropriate by the board of directors of the Company.

 

Section 4.     Transfer
of Warrant.

 

a)            Transferability.
This Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part,
upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this
Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute
and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so
assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required
to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall
surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to
the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder
for the purchase of Warrant Shares without having a new Warrant issued.

 

    	 	13	 

     

    

 

b)            New
Warrants. If this Warrant is not held in global form through DTC (or any successor depositary), this Warrant may be divided or combined
with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names
and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a),
as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants
in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or
exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of
Warrant Shares issuable pursuant thereto.

 

c)            Warrant
Register. The Warrant Agent shall register this Warrant, upon records to be maintained by the Warrant Agent for that purpose (the
 “Warrant Register”), in the name of the record Holder hereof from time to time. The Company and the Warrant Agent may
deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section 5.     Miscellaneous.

 

a)            No
Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights, dividends
or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly
set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant
to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in
no event shall the Company be required to net cash settle an exercise of this Warrant.

 

b)            Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case
of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include
the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make
and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)            Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business
Day.

 

    	 	14	 

     

    

 

d)            Authorized
Shares.

 

The Company covenants
that, during the period the Warrant is outstanding, it will seek Authorized Share Approval to effectuate the Amendment in order to reserve
from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the
exercise of any purchase rights under this Warrant and upon such Authorized Share Approval will reserve from its duly authorized unissued
Common Stock a sufficient number of shares for issuances of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
Until such time as the Amendment has been approved and deemed effective and the Company shall have reserved for issuance the maximum number
of shares of Common Stock issuable upon exercise of the Warrants, any newly available authorized and unreserved shares of Common Stock
(including, without limitation, because of an Authorized Share Approval, a reverse stock split, stock combination or similar transaction)
shall first be reserved for issuance to exercise the Warrants (ratably among all Warrants) before being used for any other purpose. The
Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty
of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable
action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all
Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase
rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully
paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes
in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the
extent as necessary in connection with the Authorized Share Approval or otherwise waived or consented to by the Holder, the Company shall
not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against
impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares
above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as
may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon
the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under
this Warrant.

 

    	 	15	 

     

    

 

Before taking any
action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price,
the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory
body or bodies having jurisdiction thereof.

 

e)            Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and
construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of
law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Warrant (whether brought against a party hereto or their respective affiliates, directors, officers, shareholders,
partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.
Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough
of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address
in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law. If either party shall commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in
such action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

f)            Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not
utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g)            Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as
a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this
Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages
to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but
not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts
due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

    	 	16	 

     

    

 

h)            Notices.
Any and all notices or other communications or deliveries to be provided by the Holders hereunder including, without limitation, any Notice
of Exercise, shall be in writing and delivered personally, by e-mail, or sent by a nationally recognized overnight courier service, addressed
to the Company, at 1371 East 2100 South, Suite 200, Salt Lake City, UT 84105, Attention: Chief Executive Officer, email address:
bstrem@kiorapharma.com, or such other email address or address as the Company may specify for such purposes by notice to the Holders.
Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally,
by e-mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the e-mail address or address of such
Holder appearing on the books of the Company. Any notice or other communication or deliveries hereunder shall be deemed given and effective
on the earliest of (i) the time of transmission, if such notice or communication is delivered via e-mail at the e-mail address set
forth in this Section prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the time of
transmission, if such notice or communication is delivered via e-mail at the e-mail address set forth in this Section on a day that
is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following
the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to
whom such notice is required to be given. To the extent that any notice provided hereunder constitutes, or contains, material, non-public
information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant
to a Current Report on Form 8-K.

 

i)            Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase
price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the
Company.

 

j)            Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any
action for specific performance that a remedy at law would be adequate.

 

k)            Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder.
The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable
by the Holder or holder of Warrant Shares.

 

    	 	17	 

     

    

 

l)            Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company, on the one hand, and
the Holder or the beneficial owner of this Warrant, on the other hand.

 

m)            Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n)            Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

o)            Warrant
Agency Agreement. If this Warrant is held in global form through DTC (or any successor depositary), this Warrant is issued subject
to the Warrant Agency Agreement. To the extent any provision of this Warrant conflicts with the express provisions of the Warrant Agency
Agreement, the provisions of this Warrant shall govern and be controlling.

 

********************

 

(Signature Page Follows)

 

    	 	18	 

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	kiora pharmaceuticals, inc.
	 	 
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

    	 	19	 

     

    

 

NOTICE OF EXERCISE

 

To:     kiora
pharmaceuticals, inc.

 

(1)            The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised
in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)            Payment
shall take the form of (check applicable box):

 

 ̈
in lawful money of the United States; or

 

 ̈
if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in
subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless
exercise procedure set forth in subsection 2(c).

 

(3)            Please
issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

The Warrant Shares shall be delivered to the following
DWAC Account Number:

 

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE
OF HOLDER]

 

	Name of Investing Entity:	 

	Signature of Authorized Signatory of Investing Entity:	 

	Name of Authorized Signatory:	 

	Title of Authorized Signatory:	 

	Date:	 

 

     

    

    

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute this
form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and
all rights evidenced thereby are hereby assigned to

 

	Name:	
	 	(Please Print)
	Address:	
		(Please Print) 
	 	 
	Phone Number:	 
	 	 
	 Email Address: 	 
	 	 
	Dated: _______________ __, ______	 
	 	 
	Holder’s Signature:	 	 
	 	 	 
	Holder’s Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00346-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00346-of-00352.parquet"}]]