Document:

EXHIBIT
10.23

 

ASSET
PURCHASE AND SALE AGREEMENT

 

 

by
and between

 

 

Carrell
Oil Company

 

and

 

Cat
Creek Holdings LLC

 

 

Dated
as of July 1, 2020

     

     

    

ASSET
PURCHASE AND SALE AGREEMENT

 

This
Asset Purchase and Sale Agreement (“Agreement”) dated July 1, 2020, is by and between CARRELL OIL COMPANY, a
Montana corporation (hereinafter called “Seller”) and CAT CREEK HOLDINGS LLC, a Montana limited liability
company (hereinafter called “Buyer) and LARRY CARRELL, SUCCESSOR CO-TRUSTEE OF THE FIRST AMENDED LLOYD CARRELL TRUST,
DATED MARCH 28, 2018 (hereinafter “Seller Shareholder”) (each a “Party” and collectively the
“Parties”).

 

RECITALS

 

Seller
desires to sell, and Buyer desires to buy, all of Seller’s right, title, and interest in certain oil and gas properties
in the Cat Creek Field in Petroleum and Garfield Counties, Montana, as described in Section 2.1 below, and this Agreement
sets forth the terms and conditions for such transaction; and

 

Seller Shareholder is the sole shareholder of Seller and will execute
this Agreement and the contemplated conveyance as a party for the purpose of ensuring the conveyance of any interest deemed to
have been distributed from Seller to Seller Shareholder for any reason.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of mutual promises and the representations, warranties and covenants herein made, and other valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows:

 

ARTICLE
1

DEFINED
TERMS

 

1.1       Certain
Defined Terms. Defined terms used in this Agreement shall have the meanings set forth in Appendix I hereto.

 

ARTICLE
2

SALE
AND PURCHASE OF ASSETS

 

2.1       Property
to be Sold and Purchased. Seller agrees to sell and Buyer agrees to purchase, for the consideration hereinafter set forth,
and subject to the terms and provisions herein contained, the following described properties, assets, rights and interests:

 

(a)       All of Seller’s right, title, and interest in and to the oil and gas leases and lands described in Exhibit A hereto
(and any ratifications and/or amendments to such leases, whether or not such ratifications or amendments are described in Exhibit
A) (such leases, the “Leases”, and together with such lands, the “Lands and Leases”) subject
to the restrictions, exceptions, reservations, conditions, limitations, interests and other matters set forth therein, including
landowner’s royalties, overriding royalties and all contracts, agreements, and other instruments pertaining to the same;

     

     

    

(b)       Without limitation of the foregoing, all other right, title and interest (of whatever kind or character, whether legal or equitable,
and whether vested or contingent) of Seller in and to the oil, gas and other minerals that may be produced from the Lands and
Leases (including, without limitation overriding royalties, production payments and net profits interests) in such Lands and Leases
and any fee mineral interests, fee royalty interests, and other interests in such Lands and Leases;

 

(c)       All
right, title and interest of Seller in and to, or otherwise derived from, all presently existing and valid oil, gas and/or mineral
unitization, pooling, and/or communitization agreements, declarations and/or orders, and
in and to the properties covered and the units created thereby (including, without limitation, all units formed under orders,
rules, regulations, or other official acts of any Governmental Authority having jurisdiction, voluntary unitization agreements,
designations and/or declarations, and so called “working interest units” created
under operating agreements or otherwise), relating to the properties described in subsections (a) and (b) above, to the
extent, and only to the extent, such right, title and interest are attributable to the properties described in subsections (a)
and (b) above;

 

(d)       All
right, title and interest of Seller in and to all presently existing and valid production sales contracts, operating agreements,
Surface Rights agreements or easements, and other agreements and Contracts, and Permits (to the extent transferable), which relate
to any of the properties described in subsections (a), (b) and (c) above, or which relate
to the exploration, development, operation or maintenance thereof or the treatment, storage, transportation or marketing of production
therefrom (or allocated thereto), to the extent, and only to the extent, such right, title and interest are attributable
to the properties described in subsections (a), (b) and (c) above; and

 

(e)       All
right, title and interest of Seller in and to all materials, supplies, machinery, equipment, improvements and other personal property
and fixtures (including, but not by way of limitation, all Wells, wellhead equipment, pumping units, flowlines, tanks, buildings,
saltwater disposal facilities, and other equipment), located on properties described in subsections (a), (b) and (c) above, and
being used in connection with the exploration, development, operation, or maintenance thereof. The Parties acknowledge there are
no shared facilities in existence regarding the Oil Producing Properties and the Excluded Assets (both as defined below) and all
items of personal property and fixtures described in this paragraph (e) and currently used in connection with the Oil Producing
Properties will be conveyed to Seller at Closing; and

 

(f)       All of Seller’s lease files, abstracts and title opinions, production
records, well files, accounting records (but not including general financial accounting or tax accounting records), electric logs,
and other files, documents, and records which directly relate to the properties described above in subsections (a) through (e)
(“Records”), but excluding those Records which Seller is precluded from transferring to Buyer because of contractual
or legal restrictions. Originals or copies of all such Records will be provided to Buyer in their current format.

     

     

    

(The
properties and interests specified in the foregoing subsections (a), (b) and (c) are herein collectively called the “Oil
Producing Properties,” and the properties and interests specified in the foregoing subsections (a), (b), (c), (d), (e),
and (f) are herein collectively called the “Assets.”)

 

2.2       Effective
Date. The purchase and sale of the Assets shall be effective for all purposes as of July 1, 2020 at 8:00 a.m., Mountain Time
(the “Effective Date”).

 

2.3       Excluded
Assets. Seller shall reserve and retain all of the Excluded Assets. “Excluded Assets” shall mean all assets
of Seller other than the Assets, including: (a) Seller’s corporate minute books, financial records and other business
records that relate to Seller’s business generally; (c) all trade credits, all accounts, receivables and all other
proceeds, income, or revenues attributable to the Assets during the period of time prior to the Effective Date, other than oil
production produced but not sold prior to the Effective Date; (d) all claims and causes of action of Seller arising under
or with respect to any Contracts that are attributable to periods of time prior to the Effective Date (including claims for adjustments
or refunds); (e) subject to Section 17.2, all rights and interests of Seller (i) under any policy or agreement
of insurance or indemnity, (ii) under any bond or (iii) to any insurance or condemnation proceeds or awards arising,
in each case, from acts, omissions or events, or damage to or destruction of property; (f) all oil production produced and
sold from the Oil Producing Properties prior to the Effective Date; (g) all claims of Seller for refunds of or loss carry
forwards with respect to (i) oil production or any taxes attributable to any period prior to the Effective Date, (ii) income
or franchise taxes or (iii) any taxes attributable to the Excluded Assets; (h) all of Seller’s proprietary computer
software, patents, trade secrets, copyrights, names, trademarks, logos and other intellectual property; (i) all documents
and instruments of Seller that may be protected by an attorney-client privilege, except as provided in Section 7.1; (j) all
data that cannot be disclosed to Buyer as a result of confidentiality arrangements under agreements with Third Parties; and (k) all
audit rights arising under any of the Contracts or otherwise attributable to any period prior to the Effective Date or to any
of the Excluded Assets.

 

ARTICLE
3

PURCHASE
PRICE AND DEPOSIT

 

3.1       Purchase
Price. The purchase price for the Assets shall be FOUR HUNDRED THOUSAND and No/100 Dollars ($400,000.00) (herein called the
“Base Purchase Price”). Such Base Purchase Price may be adjusted as provided in Section 6.1(c) and Articles 8
and 14 hereof (the Base Purchase Price, as so adjusted, and as the same may otherwise be adjusted by mutual agreement of the Parties,
being herein called the “Purchase Price”). The Purchase Price shall be paid in cash at the Closing as hereinafter provided,
subject to post-Closing adjustments determined pursuant to Article 8 or Article 14. The Base Purchase Price has been allocated
among the Wells in the manner set forth in Exhibit B (herein called the “Allocated Values” and each
such Well allocated value therein an “Allocated Value Property”). To the extent required by the Code and other
applicable Law, and subject to mutual agreement of the Parties, Seller and Buyer also agree (i) to use such Allocated Values
in the preparation, filing and audit of any tax return (including filing Form 8594 with its federal income tax return for the
taxable year that includes the Closing Date) in which the Allocated Values are relevant except as otherwise required by the Code
or applicable Law, and (ii) to provide the other with a copy of the Form 8594 proposed to be filed by it no later than
thirty (30) days prior to such filing. If any adjustment is made to the Purchase Price as provided herein, a corresponding adjustment
shall be made to the Allocated Values for the affected Allocated Value Properties in such Exhibit B.

     

     

    

ARTICLE
4

REPRESENTATIONS
AND WARRANTIES OF SELLER

 

4.1       Representations
and Warranties of Seller. Seller represents and warrants to Buyer that:

 

(a)       Organization
and Qualification. Seller is a corporation created under the laws of the State of Montana and is qualified to do business and in good standing in Montana and Montana.

 

(b)       Power
and Authority. Seller has full power to enter into and perform its obligations under this Agreement and has taken all proper
action to authorize entering into this Agreement and performance of its obligations hereunder.

 

(c)       No
Conflict or Violation. Other than Preference Rights and Transfer Requirements, and except for approvals required to be obtained
from Governmental Authorities who are lessors under Leases (or who administer such leases on behalf of such lessors) which are
customarily obtained post-closing (“Routine Governmental Approvals”), neither the execution and delivery of this
Agreement, nor the consummation of the transactions contemplated hereby, nor the compliance with the terms hereof, will result
in any default under any Contract or instrument to which Seller is a party or by which the Assets are bound, or violate any Law
or Order applicable to Seller or to the Assets.

 

(d)       Enforceability.
This Agreement, and the Seller’s Closing Documents provided for herein to be delivered at Closing will, when executed and
delivered, constitute the legal, valid and binding obligation of Seller, enforceable in accordance with its terms, except as limited
by bankruptcy or other laws applicable generally to creditor’s rights and as limited by general equitable principles.

 

(e)       Actions
or Proceedings. There are no pending Actions or Proceedings in which Seller is a party which affect the Assets (including,
without limitation, any actions challenging or pertaining to Seller’s title to any of the Assets), or affecting the execution
and delivery of this Agreement or the consummation of the transactions contemplated hereby.

 

(f)       Title.
Seller does not warrant title to the Assets, but does warrant that its interest is free and clear of any and all Liens, options,
overriding royalties, net profits interests, title defects or other burdens for which Buyer will be responsible that were created
by, through or under Seller, except for the Permitted Encumbrances.

 

(g)       No
Default. There has been no act or omission by Seller whereby it is, or would be, in default under any Law or Order or any
of the leases or Contracts to which Seller is a party applicable to the Assets, which default would reasonably be expected to
have a material adverse effect on: (1) the aggregate value of the Assets, or (2) Buyer’s ability to obtain access to, and
enjoy the use and benefit of, the Assets from and after Closing.

     

     

    

(h)       Royalties
and O&G Taxes. With respect to the Operated Assets, and to Seller’s Knowledge with respect to the Nonoperated Assets,
except as disclosed on Schedule 4.1(h) for suspense accounts or otherwise, all royalties and all O&G Taxes and all
amounts due and payable in connection with Permitted Encumbrances, or the receipt of proceeds therefrom, payable in respect of
the Oil Producing Properties prior to the date hereof have been fully paid and discharged, or will be paid by Seller upon coming
due.

 

(i)         Preference
Rights and Consents. No Person has any Preference Rights, and each Material Contract which is being assigned to or assumed
by Buyer under this Agreement is assignable by Seller to Buyer without the consent or approval of any other Person, except as
disclosed on Schedule 4.1(i).

 

(j)         Environmental. Except as specifically disclosed on Schedule 4.1(j), with
respect to the Operated Assets, and to Seller’s Knowledge with respect to the Nonoperated Assets, there have been no:

 

(i)         Orders under any Environmental Law which require any work, repairs, construction or capital expenditures with respect to the Assets,
where any such Order has not been complied with in all material respects; or

 

(ii)         Actions or Proceedings as a result of any breach of any Environmental Law applicable to the Assets, including any Law or Order
respecting the use, storage, treatment, transportation or disposition of environmental contaminants, which Actions or Proceedings
remain outstanding at the date hereof.

 

(k)        Capital Projects and AFEs. Schedule 4.1(k) sets forth a list and description of all capital projects with respect
to the Oil Producing Properties (i) approved and budgeted by Seller or (ii) for which the Seller has issued or received a currently
effective authorization for expenditure (“AFE”) and associated costs or estimates thereof, in each case to the extent
such costs or estimates exceed $2,500.00 per capital project net to the Seller’s interest.

 

(l)         Audits. With respect to the Operated Assets, and to Seller’s Knowledge with respect to the Nonoperated Assets, Schedule
4.1(l) lists all audits that have been conducted since January 1, 2018 (i) by any Governmental Authority for the payment of
or calculation of O&G Taxes or royalties attributable to the Oil Producing Properties (“Government Audits”)
and (ii) by parties (other than through Government Audits) under the Operating Agreements, or other operating agreements or arrangements,
for the payment of or calculation of royalties or operating expenses or revenues attributable to the Oil Producing Properties
(“Third Party Audits”). Except as disclosed in Schedule 4.1(l), with respect to the Operated Assets, and
to Seller’s Knowledge with respect to the Nonoperated Assets, the Oil Producing Properties are not currently undergoing any
Government Audits or Third Party Audits.

 

(m)       Calls
on Production. Except as disclosed in Schedule 4.1(m), with respect to the Operated Assets, and to Seller’s Knowledge
with respect to the Nonoperated Assets, there are no calls on or preferential rights to purchase production from the Oil Producing
Properties. Except as disclosed in Schedule 4.1(m), with respect to the Operated Assets, and to Seller’s Knowledge
with respect to the Nonoperated Assets, no amounts of oil produced from the Oil Producing Properties is the subject of a sales
Contract, and no Person has any call upon, option or similar rights under any sales Contract with respect to the Oil Producing
Properties which is not terminable within 31 days.

     

     

    

(n)       Certain
Contractual Arrangements. Except as disclosed in Schedule 4.1(n), with respect to the Operated Assets, and to Seller’s
Knowledge with respect to the Nonoperated Assets, Seller has not delivered nor will Seller be obligated by virtue of any prepayment
made under any production sales Contract or any other Contract containing a “take or pay” clause, or under any similar
arrangement, to deliver oil produced from or allocated to any of the Oil Producing Properties at some future time without receiving
full payment therefor at the time of delivery.

 

(o)       Material Contracts. With respect to the Operated Assets, and to Seller’s
Knowledge with respect to the Nonoperated Assets, Schedule 4.1(o) sets forth all Material Contracts.

 

4.2       Scope
of Representations of Seller and Disclaimer of Warranties. EXCEPT AS SET FORTH IN THIS AGREEMENT AND THE SELLER’S CLOSING DOCUMENTS, SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS, STATUTORY OR IMPLIED AS TO, AND BUYER RELEASES SELLER WITH RESPECT TO, CLAIMS ARISING FROM: (I) THE ACCURACY, COMPLETENESS OR MATERIALITY OF ANY DATA, INFORMATION OR RECORDS FURNISHED (ORALLY OR IN WRITING) TO BUYER IN CONNECTION WITH THE ASSETS OR OTHERWISE CONSTITUTING A PORTION OF THE ASSETS, INCLUDING WITHOUT LIMITATION, SEISMIC DATA AND SELLER’S INTERPRETATION AND OTHER ANALYSIS THEREOF; (II) THE PRESENCE, QUALITY AND QUANTITY OF HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE TO THE ASSETS; (III) THE ABILITY OF THE ASSETS TO PRODUCE HYDROCARBONS, INCLUDING, WITHOUT LIMITATION, PRODUCTION RATES, DECLINE RATES AND RECOMPLETION OPPORTUNITIES; (IV) THE PRESENT OR FUTURE VALUE OF THE ANTICIPATED INCOME, COSTS OR PROFITS, IF ANY, TO BE DERIVED FROM THE ASSETS; (V) THE ENVIRONMENTAL CONDITION OR ANY OTHER CONDITION OF THE ASSETS; (VI) ANY PROJECTIONS AS TO EVENTS THAT COULD OR COULD NOT OCCUR WITH RESPECT TO THE ASSETS; (VII) THE TAX ATTRIBUTES OF ANY ASSETS; (VIII) TITLE TO ANY OF THE ASSETS, OR (IX) THE MAINTENANCE, REPAIR, CONDITION, QUALITY, SUITABILITY, DESIGN OR MARKETABILITY OF THE ASSETS.

 

ARTICLE
5

REPRESENTATIONS
AND WARRANTIES OF BUYER

 

5.1       Representations
and Warranties of Buyer. Buyer represents and warrants to Seller that:

 

(a)       Organization
and Qualification. Buyer is a limited liability company duly organized and legally existing under the laws of the State of
Montana and is qualified to do business and in good standing in the State of Montana.

 

(b)       Power
and Authority. Buyer has full power to enter into and perform its obligations under this Agreement and has taken all proper
action to authorize entering into this Agreement and performance of its obligations hereunder.

     

     

    

(c)       No
Conflict or Violation. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated
hereby, nor the compliance with the terms hereof, will result in any default under any Contract or instrument to which Buyer is
a party or by which the Assets are bound, or violate any Law or Order applicable to Buyer or to the Assets.

 

(d)       Enforceability.
This Agreement constitutes, and the Buyer’s Closing Documents provided for herein to be delivered at Closing will, when executed
and delivered, constitute the legal, valid and binding obligation of Buyer, enforceable in accordance with its terms, except as
limited by bankruptcy or other laws applicable generally to creditor’s rights and as limited by general equitable principles.

 

(e)       Actions or Proceedings. There are no pending Actions or Proceedings in which Buyer is a party which affect the execution
and delivery of this Agreement or the consummation of the transactions contemplated hereby.

 

ARTICLE
6

RESERVED

 

ARTICLE
7

RESERVED

 

ARTICLE
8

RESERVED

 

ARTICLE
9

TRANSFER
OF OPERATORSHIP AND JOA REQUIREMENTS

 

9.1       Transfer
of Operatorship. As of the Effective Date, and subject to any Operator Transfer Restrictions, Buyer shall succeed Seller as
operator for any Operated Assets. Buyer agrees to use commercially reasonable efforts, and Seller agrees to use commercially reasonable
efforts to assist Buyer, both before and after Closing, as applicable, to address any Operator Transfer Restrictions and to effect
the transfer of operatorship from Seller to Buyer, including (i) obtaining the necessary consents or approvals or other actions
required to address Operator Transfer Restrictions, and any related communications to non-operators advising them of the transfer
of operatorship, (ii) the preparation and filing post-Closing of the necessary forms or other instruments documenting such transfer
as required by applicable Laws with the MBOGC or BLM, or any other Governmental Authority as required, (iii) the preparation and
filing of the necessary forms or other instruments for the transfer of any operator-related Permits, or issuance of new operator-related
Permits to Buyer, as required by applicable Laws, with DEQ or any other Governmental Authority, (iv) obtaining any necessary consents
and preparing and executing necessary assignments or partial assignments or other instruments for the assignment of applicable
operator-related Contracts, or entering into new operator-related Contracts with applicable Third Parties, (v) the post-Closing
posting by Buyer of the necessary bond(s) required by MBOGC or BLM or such other appropriate Governmental Authority as security
for any and all Plugging and Abandonment Obligations and any other operatorship obligations for said Operated Assets promptly
after Buyer obtains knowledge of such required additional bond(s), and (vi) the release or partial release of Seller’s bonds
applicable to the Oil Producing Properties as soon as practical following Closing; provided that Seller shall not be required
to expend any funds (other than the cost of Seller’s internal resources and personnel) in satisfaction of its obligations
under this Section 9.1 and any Governmental Authority or Third Party costs associated with this Section 9.1 shall
be the responsibility of Buyer.

     

     

    

9.2
      JOA Requirements. In the event any Third Party who is a party to an Operating
Agreement (a “Contesting JOA Party”) asserts a claim that Seller has not complied with a JOA Requirement and seeks to
challenge the transfer pursuant to this Agreement of Seller’s interest in the Lease(s) or Well(s) subject to such Operating Agreement
(the “Associated Property”), then Buyer may, at its option, retransfer the Associated Property to Seller and Seller
shall pay to Buyer the Allocated Value of such property. Upon the exercise of such option by Buyer, Seller shall use commercially
reasonable efforts to comply with the applicable JOA Requirements. Upon compliance with the applicable JOA Requirements by Seller,
to the reasonable satisfaction of Buyer, Seller and Buyer agree that Buyer shall repurchase the Associated Property from Seller
for the Allocated Value thereof, such repurchase subject to the terms and conditions herein, tailored as appropriate for the closing
of such repurchase. For purposes of this Section 9.2, “JOA Requirement” shall mean with respect to an Operating Agreement,
any advance notice requirement or provision requiring Seller to provide a party notice of the Seller’s intent to sell its
interest in the Associated Property.

 

ARTICLE
10

POSSESSION AND CORPORATE AUTHOIRITY FOR CLOSING

 

10.1
    Possession. Buyer shall be entitled to possession of the Assets on the Effective Date, subject
to Closing and the terms of this Article.

 

10.2
    Authorization to Close. The Parties recognize that Seller is, as of the date of this Agreement,
an involuntarily dissolved corporation by the Montana Secretary of State. Buyer’s obligation to close shall be contingent
upon Seller obtaining the requisite legal authority to sell and convey the assets to Buyer per the terms of this Agreement.

 

10.3
    Operations. In the interim between the Effective Date and Closing, Buyer and Seller agree to collaborate
in transferring the operating rights and responsibilities associated with the Assets to Buyer under a form of contract operator
or sublease to be mutually agreed to and negotiated in good faith between the Parties. Provided, however, in the event that Closing
does not occur, Seller shall - subject to Buyer’s remedies in the event Closing does not occur by reason of Seller’s
breach - be entitled to retake possession and operation of the Assets.

 

ARTICLE
11

RESERVED

 

ARTICLE
12

RESRVED

     

     

    

ARTICLE
13

CLOSING

 

13.1
    Closing Date. The closing under
this Agreement shall take place at 9:00 a.m. on July 31, 2020, at the offices of Patten, Peterman, Bekkedahl & Green, PLLC
in Billings, Montana, or at such other time as Buyer and Seller may mutually agree upon, but in no event later than thirty (30)
days subsequent to July 31, 220 it being understood that time is of the essence of this Agreement, provided that Seller shall
have secured the legal authority and ability to sell the Assets.

 

13.2
    Closing Actions. At the Closing:

 

(a)       Seller
shall:

 

(i)        execute,
acknowledge and deliver to Buyer a conveyance of the Assets, , in the form attached hereto as Exhibit C (with Exhibits A and B
attached thereto), effective as to runs of oil as of the Effective Date (the “Conveyance”); and

 

(ii)       deliver
to Buyer such other bills of sale, assignments, documents and other instruments of transfer and conveyance as may reasonably be
requested by Buyer, each in form and substance satisfactory to Buyer and Seller; and

 

(iii)      execute
and deliver to Buyer mutually agreeable transfer orders or letters in lieu thereof, directing the applicable operator to make
payment of proceeds attributable to production from the Oil Producing Properties after the Effective Date to Buyer; and

 

(iv)     execute
and deliver to Buyer necessary governmental form assignments for any federal or state leases included in Exhibit A, each in form
and substance satisfactory to Buyer and Seller; and

 

(v)      subject
to Section 9.1, execute and deliver to Buyer the necessary documents required by applicable Governmental Authorities, or
to address Operator Transfer Restrictions, for the change of operator from Seller to Buyer for the Operated Assets, and execute
and deliver the necessary documents to assign (or partially assign, as applicable) the operator-related Contracts or Permits with
respect to the Operated Assets;

 

(vi)     deliver
to Buyer a non-foreign affidavit, as such affidavit is referred to in Section 1445(b)(2) of the Code, dated as of the Closing
Date; and

 

(vii)    turn
over possession of the Assets; and

 

(viii)   within
fourteen (14) days after Closing, deliver to Buyer the Records described in Section 2.1(f).

 

(b)        Buyer
shall:

 

 (i)        deliver
to the Seller, by wire transfer to an account designated by Seller in a bank located in the United States, an amount equal to
the Purchase Price minus the Deposit ; and

     

     

    

 (ii)       execute,
acknowledge and deliver to Seller the Conveyance; and

 

(iii)     execute
necessary governmental form assignments for federal leases included in Exhibit A, each in form and substance satisfactory to Buyer
and Seller; and

 

(iv)     subject
to Section 9.1, execute and deliver to Seller the necessary documents required by applicable Governmental Authorities or
to address Operator Transfer Restrictions for the change of operator from Seller to Buyer for the Operated Assets, and execute
and deliver the necessary documents to assign (or partially assign, as applicable) the operator-related Contracts or Permits with
respect to the Operated Assets.

 

(c)        Seller Shareholder shall:

 

(i)        along with Seller, execute, acknowledge and deliver to Buyer a conveyance of the Assets, in the form attached hereto as
Exhibit C (with Exhibits A and B attached thereto), effective as to runs of oil as of the Effective Date (the “Conveyance”);
and

 

(ii)       deliver
to Buyer such other bills of sale, assignments, documents and other instruments of transfer and conveyance as may reasonably
be requested by Buyer, each in form and substance satisfactory to Buyer and Seller.

 

13.3     Immediate
Post-Closing Actions. Actions. Seller, Seller Shareholder, and Buyer shall cooperate to record the Conveyances with the Clerk and Recorder’s Office in Petroleum and Garfield Counties, Montana, as applicable, on the Closing Date, unless recording on such date is not logistically possible, in which case it shall be recorded the next Business Day or such other day mutually agreed by the Parties. Recording costs shall be paid by Buyer. Seller and Buyer shall cooperate to promptly deliver for filing, as soon as logistically possible after Closing, required governmental form assignments with the applicable Governmental Authorities, with any filing fees paid by Buyer. Seller and Buyer shall cooperate to promptly deliver for filing, as soon as logistically possible after Closing, all necessary documents and instruments to effectuate the transfer of operatorship from Seller to Buyer for the Operated Assets, including the transfer or assignment of any associated operator-related Permits or Contracts. Any filing fees or other fees or costs of Governmental Authorities or Third Parties associated with such transfer of operatorship shall be paid by Buyer.

     

     

    

ARTICLE
14

ACCOUNTING
ADJUSTMENTS

 

14.1    General Provisions. Appropriate adjustments shall be made
between Buyer and Seller so that (i) all expenses which are incurred in the operation of the Oil Producing Properties before the Effective Date
will be borne by Seller and all proceeds (net of applicable production, severance and similar taxes) from sale of oil produced therefrom before the Effective Date will be received by Seller, and (ii) all expenses which are incurred in the operation of the Oil Producing Properties after the Effective Date will be borne by Buyer and all proceeds (net of applicable production, severance and similar taxes) from the sale of oil produced therefrom after the Effective Date will be received by Buyer. It is agreed that, in making such adjustments: (i) all expenses or proceeds as provided in the first sentence in this Section 14.1 shall be calculated using Seller’s accrual method accounting practices consistent with the practices used to prepare its financial statements; (ii) oil which was produced from the Oil Producing Properties and which was, on the Effective Date, stored in tanks located on the Oil Producing Properties (or located elsewhere but used by Seller to store oil produced from the Oil Producing Properties prior to delivery to oil purchasers) shall be deemed to have been produced after the Effective Date; (iii) ad valorem taxes assessed with respect to a period which the Effective Date splits (regardless of whether such taxes are computed based upon production in a prior period) shall be prorated based on the number  of days in such period which fall on each side of the Effective Date (with the day on which the Effective Date falls being counted in the period after the Effective Date), and shall, where  the current year’s taxes are not yet known, be based on the previous year’s taxes; and (iv) no consideration shall be given to the local, state or federal income tax liabilities of any Party. With respect to the Operated Assets, the above provisions shall apply to Seller’s applicable share corresponding to Seller’s applicable  Working  Interests for such Operated  Assets. The provisions  of this Section shall apply in such a manner so as not to give the components and calculations duplicative effect to any item of adjustment and, except as otherwise expressly provided in this Agreement.

 

14.2     Final
Purchase Price. As soon as practicable after Closing, but in no event more than sixty (60) days thereafter, Seller shall prepare
in accordance with this Agreement and with generally accepted accounting principles, a statement (the “Statement”)
setting forth each adjustment or payment that was not finally determined at Closing, and showing the calculation of the final
Purchase Price based upon such Statement (the “Final Purchase Price”). As soon as practicable after the receipt
of the Statement, but in no event longer than ten (10) days from date of receipt, Buyer shall deliver to Seller a written report
containing any proposed changes. In the event Buyer shall fail to propose any changes to the Statement, the Statement shall be
deemed to set forth the Final Purchase Price. The Parties shall attempt to agree as to the amount due pursuant to such post-Closing
adjustment no later than ten (10) days after the Buyer’s receipt of the Statement. The date upon which said agreement is
reached shall be herein called the “Settlement Date.” In the event that (i) the Final Purchase Price is more
than the amount delivered to Seller at the Closing, Buyer shall pay to Seller within five (5) Business Days subsequent to the
Settlement Date, in immediately available federal funds, the amount of such difference, or (ii) the Final Purchase Price is less
than the amount delivered to Seller at Closing, Seller shall pay to Buyer within five (5) Business Days subsequent to the Settlement
Date, in immediately available federal funds, the amount of such difference. All invoices received prior to the Settlement Date
for expenses which are incurred in the operation of the Oil Producing Properties (i) before the Effective Date will be forwarded
to and paid by Seller and (ii) after the Effective Date will be forwarded to and paid by Buyer. All proceeds received prior to
the Settlement Date (net of applicable production, severance and similar taxes) from sale of oil therefrom (i) before the Effective
Date will be forwarded to and retained by Seller, and (ii) after the Effective Date will be forwarded to and retained by Buyer.
The treatment of invoices and proceeds in the preceding two sentences shall be reflected in the Statement as appropriate.

     

     

    

ARTICLE
15

ASSUMPTION
OF LIABILITIES, INDEMNIFICATION AND DAMAGES

 

15.1     Assumption
of Liabilities. Subject to Section 15.2 and Section 16.1, Buyer shall, on the date of Closing, agree (and, upon the delivery
to Buyer of the Conveyance shall be deemed to have agreed) (a) to assume, and to timely pay and perform, all duties, obligations
and liabilities relating to the ownership and/or operation of the Assets after the Effective Date (including, without limitation,
those arising under the Contracts described in Section 2.1(d) above), and (b) to defend, indemnify and hold Seller Indemnitees
harmless from and against any and all Adverse Consequences of any kind or character arising out of or otherwise relating to the
ownership and/or operation of the Assets after the Effective Date. In connection with (but not in limitation of) the foregoing,
and again subject to Section 15.2 and Section 16.1, it is specifically understood and agreed that matters arising out or otherwise
relating to the ownership and/or operation of the Assets after the Effective Date shall include all matters arising out of the
condition of the Assets on the Effective Date (including, without limitation, within such matters all Plugging and Abandonment
Obligations with respect to Wells, obligations to restore the surface of the Oil Producing Properties, and to comply with, or
to bring the Oil Producing Properties into compliance with, applicable Environmental Laws, including conducting any remediation
activities which may be required on or otherwise in connection with activities on the Oil Producing Properties), regardless of
when the events occurred which give rise to such condition (and regardless of whether Seller, its officers, employees, agents
or other representatives, were wholly or partially negligent or otherwise, at fault), and the above provided for assumptions and
indemnifications by Buyer shall expressly cover and include such matters so arising out of such condition. This indemnification
expressly includes any claims that arise as a result of strict liability.

 

15.2     Audits.
Notwithstanding any other provision in this Agreement, Seller shall be fully responsible for, and shall defend, indemnify and
hold harmless the Buyer Indemnitees from any Adverse Consequences resulting from any Third Party Audit or any Government Audit
relating to the ownership and/or operation of the Oil Producing Properties prior to the Effective Date.

 

15.3     RESERVED.

 

15.4
    Indemnification Procedure. Whenever any claim shall arise for indemnification
hereunder, either between the Parties or involving a claim by a Third Party, the Person entitled to indemnification (the “Indemnified
Person”) shall provide written notice to the other Party (the “Indemnifying Party”) within ten (10)
days of receipt of a Third Party Claim, or within sixty (60) days of becoming aware of the right to indemnification for other
claims, and, as expeditiously as possible thereafter, the facts constituting the basis for such claim. In connection with any
claim giving rise to indemnity hereunder, the Indemnifying Party, at its sole cost and expense and upon written notice to the
Indemnified Person, may assume the defense of any such claim or legal proceeding with counsel reasonably satisfactory to the Indemnified
Person. The Indemnified Person shall be entitled to participate in the defense of any such action, with its counsel and at its
own expense. If the Indemnifying Party does not assume the defense of any such claim or litigation resulting therefrom, the Indemnified
Person may, but shall not be obligated to, defend against such claim or litigation in such manner as it may deem appropriate including,
but not limited to, settling such claim or litigation, after giving notice of it to the Indemnifying Party, on such terms as the
Indemnified Person may deem appropriate and no action taken by the Indemnified Person in accordance with such defense and settlement
shall relieve the Indemnifying Party of its indemnification obligations herein provided.

     

     

    

15.5     Damages.
NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN ANY OTHER PROVISION OF THIS AGREEMENT OR THE CLOSING DOCUMENTS, SELLER AND
BUYER AGREE THAT THE RECOVERY OF ANY DAMAGES SUFFERED OR INCURRED AS A RESULT OF ANY BREACH BY EITHER PARTY OF ANY OF ITS REPRESENTATIONS,
WARRANTIES OR OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE ACTUAL DAMAGES SUFFERED OR INCURRED AS A RESULT OF THE
BREACH BY THE BREACHING PARTY OF ITS REPRESENTATIONS, WARRANTIES OR OBLIGATIONS HEREUNDER AND IN NO EVENT SHALL THE BREACHING
PARTY BE LIABLE TO THE NON-BREACHING PARTY FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING,
WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR LOST OR DELAYED PRODUCTION) SUFFERED OR INCURRED
BY THE NON-BREACHING PARTY AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF ANY OF ITS REPRESENTATIONS, WARRANTIES OR OBLIGATIONS
HEREUNDER, EXCEPT FOR SUCH DAMAGES ACTUALLY PAYABLE BY EITHER PARTY TO A THIRD PARTY PURSUANT TO INDEMNITY OBLIGATIONS HEREIN.

 

15.6     Plugging
and Abandonment Obligations. NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN ANY OTHER PROVISION OF THIS AGREEMENT,
IT IS EXPRESSLY AGREED FOR ALL PURPOSES OF THIS AGREEMENT THAT (a) THE PLUGGING AND ABANDONMENT OBLIGATIONS CONSTITUTE OBLIGATIONS
ASSUMED BY BUYER, (b) THE PLUGGING AND ABANDONMENT OBLIGATIONS SHALL NOT CONSTITUTE DEFECTS, (c) EXCEPT AS PROVIDED
IN THIS AGREEMENT, (i) SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO THE PLUGGING AND ABANDONMENT
OBLIGATIONS, AND (ii) SELLER SHALL HAVE NO LIABILITIES OR OBLIGATIONS WITH RESPECT TO THE PLUGGING AND ABANDONMENT OBLIGATIONS;
PROVIDED THAT NOTHING IN THIS SECTION 12.3 SHALL LIMIT BUYER’S REMEDIES FOR A BREACH OF THE REPRESENTATIONS AND WARRANTIES
SET FORTH IN SECTION 4.1(j).

 

ARTICLE
16

SURVIVAL

 

16.1     Survival
of Provisions. Except where a different time is specified therein, the representations and warranties in Articles 4
and 5 of this Agreement shall be true at the Closing Date. All representations and warranties made by the Buyer and Seller,
respectively, will survive the Closing for a period of one (1) year from the Closing Date, except that any such representation
and warranty that would otherwise terminate will continue to survive if a notice has been given pursuant to Section 15.4 in good
faith containing specific facts establishing a valid indemnity claim on or prior to such termination date, until such claim for
indemnification has been satisfied or otherwise resolved. Subject to the foregoing, and to Section 16.1. Notwithstanding
the foregoing, nothing contained in this Section shall alter, limit or otherwise affect the rights and obligations of the Parties
set forth in Articles 14 through 16 inclusive that shall also survive the Closing and the delivery of the Conveyance.
Subject to the above provisions in this Section and in Article 15, Seller shall defend, indemnify and hold harmless Buyer Indemnitees
from and against, any and all Adverse Consequences suffered, incurred or sustained by it or to which it becomes subject, resulting
from, arising out of or relating to any breach of representation or warranty of Seller.

     

     

    

ARTICLE
17

GENERAL
PROVISIONS

 

17.1     No
Brokers. Seller and Buyer represent and warrant to each other that neither has used the services of a broker or other finder
or will become obligated to pay any claim for brokerage commissions, finder’s fees or similar compensation in connection with
the execution or performance of this Agreement of the transactions contemplated herein. Seller agrees to defend, indemnify and
hold harmless Buyer Indemnitees from and against any and all Adverse Consequences of any kind or character arising out of or resulting
from any agreement, arrangement or understanding alleged to have been made by, or on behalf of, Seller with any broker or finder
in connection with this Agreement or the transaction contemplated hereby. Buyer agrees to defend, indemnify and hold harmless
Seller Indemnitees from and against any and all Adverse Consequences of any kind or character arising out of or resulting from
any agreement, arrangement or understanding alleged to have been made by, or on behalf of, Buyer with any broker or finder in
connection with this Agreement or the transaction contemplated hereby.

 

17.2     [RESERVED.]

 

17.3     Notices.
All notices and other communications required under this Agreement shall (unless otherwise specifically provided herein) be in
writing and be delivered personally, by recognized commercial courier or delivery service (which provides a receipt), by facsimile
(with receipt acknowledged), by electronic transmission, or by registered or certified mail (postage prepaid), at the following
addresses:

 

If
to Buyer:

 

Cat
Creek Holdings LLC

P.O. Box 953

231
Skookum Road
 Lakeside, MT 59922

 

With
a copy to:

 

Patten,
Peterman, Bekkedahl & Green, PLLC

Attn: Patrick G.N. Beddow

2817 2nd Ave. North, Ste. 300

Billings, MT 59101

 

If
to Seller:

 

Larry
Carrell

773 Hanson Creek Road

Lewistown, MT 59457

     

     

    

and
shall be considered delivered on the date of receipt. Either Seller or Buyer may specify as its proper address any other post
office address within the continental limits of the United States by giving notice to the other Party, in the manner provided
in this Section, at least ten (10) days prior to the effective date of such change of address.

 

17.4     Public
Announcements; Confidential Information. Neither Party will issue any press release or otherwise make any public statements
with respect to this Agreement or the transactions contemplated hereby without the prior consent of the other Party, which consent
shall not be unreasonably withheld, unless required by Law or applicable securities agencies. Failure of either Party to respond
within three (3) business days to a request by the other Party for consent to a press release or public statement shall be deemed
a consent to such request. If a Party is required by Law to make any such disclosure, including, but not limited to, disclosure
in connection with any United States securities offering or public financing by such Party or its Affiliates, to the extent permitted
by Law, it must first provide to the other Party the content of the proposed disclosure and afford such other Party a reasonable
opportunity to comment upon and propose changes in the disclosure.

 

17.5     Disclaimers
Conspicuous. Seller and Buyer agree that, to the extent required by applicable Law to be effective, the disclaimers of certain
representations and warranties or other disclaimers herein are “conspicuous” disclaimers for the purpose of any such
Laws.

 

17.6     Further
Assurances. After the Closing, each Party shall execute and deliver, and shall otherwise cause to be executed and delivered,
from time to time and upon the other Party’s reasonable request, such further instruments, notices, division orders, transfer
orders and other documents, and do such other and further acts and things, as may be reasonably necessary to more fully and effectively
grant, convey and assign the Assets to Buyer and to transfer operatorship of the Operated Assets to Buyer.

 

17.7     Assignment.
Neither Party shall have the right to assign its rights under this Agreement, without the prior written consent of the other Party
first having been obtained, which consent shall not be unreasonably withheld. The Agreement shall be binding on the Parties hereto
and their respective permitted successors and assigns.

 

17.8     Expenses.
Each Party shall bear and pay all expenses incurred by it in connection with the transaction contemplated by this Agreement.

 

17.9     Entire
Agreement. This Agreement and the Closing Documents contain the entire understanding of the Parties hereto with respect to
subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions among the Parties with
respect to such subject matter.

 

17.10   Interpretation.
The descriptive headings contained in this Agreement are for convenience only and shall not control or affect the meaning or construction
of any provision of this Agreement. Within this Agreement words of any gender shall be held and construed to cover any other gender,
and words in the singular shall be held and construed to cover the plural, unless the context otherwise requires. The term “including”
shall mean “including without limitation.”

 

17.11
  [RESERVED.]

     

     

    

17.12   Amendment
and Waiver. This Agreement may be amended, modified, supplemented, restated or discharged (and provisions hereof may be waived)
only by an instrument in writing signed by the Party against whom enforcement of the amendment, modification, supplement, restatement
or discharge (or waiver) is sought.

 

17.13   No
Merger. The representations and warranties herein and the indemnity obligations herein shall be deemed to apply to any representations
or warranties contained in all assignments, conveyances, transfers and other documents conveying any of the Assets from Seller
to Buyer, provided, however, that as so applied such representations and warranties and indemnity obligations shall be subject
to all applicable provisions in the Agreement, including without limitation, the survival period provisions in Section 16.1. There
shall not be any merger of any such representations or warranties or indemnity obligations in such assignments, conveyances, transfers
or other documents, notwithstanding any rule of law, equity or statute to the contrary, and all such rules are hereby waived.

 

17.14   Counterparts. This Agreement may be executed by Seller and Buyer in any number
of counterparts, each of which shall be deemed to be an original instrument, but all of which together shall constitute one and
the same instrument. Execution may be evidenced by facsimile or electronic signatures with original signatures to follow promptly.

 

17.15   Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Montana, and venue shall be in Yellowstone County, Montana.

 

17.16   Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect without being impaired
 or invalidated in any way and shall be construed in accordance with the purposes and intent of this Agreement.

 

[REMAINDER
OF PAGE INTENTIONALLY BLANK - SIGNATURE PAGE FOLLOWS]

     

     

    

IN
WITNESS WHEREOF, this Agreement is executed by the Parties hereto on the date set forth above.

 

	 	Carrell Oil Company
	 	 
	 	By: 	/s/ Larry Carrell
	 	 	Name: 	Larry Carrell
	 	 	Title:	President
	 	 	 	 
	 	Cat Creek Holdings LLC
	 	 	 	 
	 	By: 	/s/ Mark See
	 	 	Name:	Mark See
	 	 	Title:	President
	 	 	 	 
	 	THE FIRST AMENDED LLOYD CARRELL TRUST, DATED MARCH 28, 2018
	 	 	 
	 	/s/ Larry Carrell
	 	Larry Carrell, Successor Co-Trustee

     

     

    

APPENDIX
1

DEFINED
TERMS

 

The
following terms shall have the applicable defined meaning as used in this Agreement: 

 

“Actions
or Proceedings” means any action, suit, proceeding, claims, demands, complaints, arbitration or Governmental Authority notice
or investigation.

 

“Adverse
Consequences” means all actions, suits, proceedings, hearings, investigations, charges, complaints, claims, demands, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, deficiencies, costs, liabilities, obligations, taxes, liens,
losses, expenses, and fees, including, without limitation, court costs, interest and reasonable fees of attorneys, accountants
and other experts or other reasonable expenses of litigation or other proceedings or of any claim, default or assessment.

 

“AFE”
has the meaning ascribed to it in Section 4.1(k).

 

“Affiliate”
means any Person that directly, or indirectly through one of more intermediaries, controls or is controlled by or is under common
control with the Person specified. For purposes of this definition, control of a Person means the power, direct or indirect, to
direct or cause the direction of the management and policies of such Person whether by Contract or otherwise.

 

“Allocated
Value” has the meaning ascribed to it in Section 3.1.

 

“Allocated
Value Property” has the meaning ascribed to it in Section 3.1.

 

“Agreement”
has the meaning ascribed to it in the preamble.

 

“Assets”
has the meaning ascribed to it in the last paragraph of Section 2.1.

 

“Associated
Property” has the meaning ascribed to it in Section 9.2.

 

“Base
Purchase Price” has the meaning ascribed to it in Section 3.1.

 

“BLM”
shall mean the United States Department of the Interior Bureau of Land Management.

 

“Business
Day” shall mean a day on which national banks in Montana are open for business.

 

“Buyer”
has the meaning ascribed to it in the preamble.

 

“Buyer
Indemnitees” means Buyer and its Affiliates and their respective directors, officers, employees and agents.

 

“Buyer’s
Closing Documents” shall mean the documents delivered by Buyer at Closing pursuant to Section 13.2(b)(ii), (iii)
and (iv).

     

     

    

“Closing”
shall mean the execution and and delivery by the Parties of this Agreement and the other documents and agreements required to
be executed and exchanged simultaneously with this Agreement.

 

“Closing
Date” shall have the meaning ascribed to it in Section 13.1.

 

“Closing
Documents” shall mean collectively the Seller’s Closing Documents and the Buyer’s Closing Documents.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

 

“Contract”
means any agreement, lease, license, evidence of indebtedness, mortgage, indenture, security agreement or other contract.

 

“Contesting
JOA Party” has the meaning ascribed to it in Section 9.2.

 

“Conveyance”
has the meaning ascribed to it in Section 13.2(a)(i).

 

“COPAS”
has the meaning commonly ascribed to such term in the oil and gas industry.

 

“Defect”
means the following:

 

(a)       Seller’s
ownership of the Oil Producing Properties is such that, with respect to an Allocated Value Property listed on Exhibit B
hereto, (A) Seller is entitled to receive a decimal share of the oil produced from, or allocated to, such Allocated Value Property,
at any time throughout the entire productive life of such Allocated Value Property, which is less than the decimal share set forth
on Exhibit B in connection with such Allocated Value Property in the column headed “Net Revenue Interest” or
(B) Seller is obligated to bear a decimal share of the cost of operation of such Allocated Value Property, at any time throughout
the entire productive life of such Allocated Value Property, greater than the decimal share set forth on Exhibit B in connection
with such Allocated Value Property in the column headed “Working Interest” without a proportionate (or greater) increase
in the Net Revenue Interest.

 

(b)       Seller’s
ownership of an Oil Producing Property is subject to a Lien other than (A) a Lien reflected on Schedule 7.2(b) hereto (any such
Lien to be released at or prior to Closing), (B) a lien for taxes not yet delinquent, or (C) a construction, mechanic’s or
materialmen’s lien (or other similar lien), or a lien under an operating agreement or similar agreement, to the extent the
same relates to expenses incurred which are not yet due; or

 

(c)       Seller’s
ownership of an Oil Producing Property is subject to a Preference Right or a Transfer Requirement requiring that consent to assignment
be obtained, unless a waiver of such right or consent has been obtained with respect to the transaction contemplated hereby or,
in the case of a Preference Right, an appropriate tender of the applicable interest has been made to the party holding such right,
and such party has either declined to exercise such right, or the period of time required for such party to exercise such right
has expired without such party exercising such right; or

     

     

    

(d)       Seller’s
ownership of an Oil Producing Property is subject to an imperfection in title which, if asserted, could have a material adverse
effect on Seller’s ability to obtain access to, produce, treat, transport or otherwise market hydrocardons from the Oil Producing
Properties, and such imperfection in title is not such as would normally be waived by persons engaged in the oil and gas industry
and in possession of all relevant facts when purchasing producing properties; or

 

(e)       An Oil Producing Property is in violation
of applicable Environmental Laws in any material respect.

 

“Effective
Date” has the meaning ascribed to it in Section 2.2.

 

“Environmental
Law” means any Law or Order relating to the regulation or protection of human health, safety or the environment or to emissions,
discharges, releases or threatened releases of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances
or wastes into the environment (including, without limitation, ambient air, soil, surface water, ground water, wetlands, land
or subsurface strata).

 

“Environmental
Liabilities” shall mean all Adverse Consequences and liabilities pertaining to the Assets arising from any Environmental
Law which results from oil and gas exploration and production operations or other operations conducted with respect to the Assets,
including but not limited to Adverse Consequences and liabilities related to:

 

		1.	the
                                         transportation, storage, use or disposal of toxic or hazardous substances or hazardous,
                                         dangerous or non-dangerous oilfield substances or waste;

 

		2.	the
release, spill, escape or emission of toxic or hazardous substances;

 

		3.	any
                                         other pollution or contamination of the surface, substrata, soil, air, ground water,
                                         surface water or marine environments;

 

		4.	Adverse
                                         Consequences and liabilities suffered by Third Parties as a result of the occurrences
                                         in subparagraphs 1, 2 and 3 above; and

 

		5.	any
                                         obligations imposed by any Law or Order to protect the environment or to rectify environmental
                                         problems.

 

 “Government
Audits” has the meaning ascribed to it in Section 4.1(l).

 

“Governmental
Authority” means any court, tribunal, arbitrator, authority, agency, commission, official or other instrumentality of the
United States or any state, county, city or other political subdivision.

 

“Indemnified
Person” has the meaning ascribed to it in Section 15.4.

 

“Indemnifying
Party” has the meaning ascribed to it in Section 15.4.

     

     

    

“JOA
Requirements” has the meaning ascribed to it in Section 9.2.

 

“Lands
and Leases” has the meaning ascribed to it in Section 2.1(a).

 

“Laws”
means all laws, statutes, rules, regulations, ordinances and other pronouncements having the effect of law, including the common
law, of the United States, any foreign country or any domestic or foreign state, county, city or other political subdivision or
of any Governmental Authority.

 

“Leases”
has the meaning ascribed to it in Section 2.1(a).

 

“Lien”
means any mortgage, pledge, assessment, security interest, lease, lien, levy, charge or other encumbrance of any kind, or any
conditional sale Contract, title retention Contract or other Contract to give any of the foregoing.

 

“Material
Contract” means any written Contract currently in force and effect and constituting a part of the Assets, which if terminated,
would materially and adversely affect the value of the Assets or Buyer’s ability to obtain access to, produce, treat, transport
or otherwise market hydrocardons from the Oil Producting Properties from and after the Closing.

 

“MBOGC”
shall mean the State of Montana Board of Oil and Gas Conservation.

 

 “Net
Revenue Interest” or “NRI” has the meaning commonly ascribed to such term in the oil and gas industry.

 

“Nonoperated
Assets” shall mean the Oil Producing Properties for which Seller is not the operator under applicable Operating Agreements,
as identified in the definition of Operating Agreements.

 

“O&G
Taxes” means all ad valorem, property, production, excise, net proceeds, severance, windfall profit and all other taxes and
similar obligations assessed against the Oil Producing Properties or based upon or measured by the ownership of the Oil Producing
Properties or the production of oil or the receipt of proceeds therefrom, other than income taxes.

 

“Oil
Producing Properties” has the meaning ascribed to it in the last paragraph of Section 2.1.

 

“Operated
Assets” shall mean the Oil Producing Properties for which Seller is the operator under applicable Operating Agreements,
as identified in the definition of Operating Agreements.

 

“Operating
Agreements” means the following agreements applicable to the Oil Producing Properties, under which the Seller is either the
operator or a non-operator as identified below:

 

[PAT TO PROVIDE AGREEMENTS TO FILL IN]

 

	________________________________________________;	 
	 	 
	________________________________________________;	 
	 	 
	________________________________________________;	 
	 	 
	________________________________________________;	  and
	 	 
	________________________________________________.	 

     

     

    

“Operator
Transfer Restriction” shall mean any required notice to, or consent, approval, or authorization from, any Third Party which
is required under an Operating Agreement or any other agreement or instrument to be obtained, made or complied with for or in
connection with the transfer of operator from Seller to Buyer with respect to the Operated Assets.

 

“Order”
means any writ, judgment, decree, injunction or other order of any Governmental Authority (in each such case whether preliminary
or final).

 

“Party”
and “Parties” has the meaning ascribed to it in the preamble.

 

“Permits”
means all licenses, permits, certificates of authority, authorizations, registrations, franchises and similar consents granted
or issued by any Governmental Authority.

 

“Permitted
Encumbrances” shall mean:

 

		1.	Liens
                                         for taxes, assessments and governmental charges which are not due or delinquent at the
                                         Closing Date;

 

		2.	division
                                         orders and sales contracts terminable without penalty upon no more than 60 days notice;

 

		3.	Preference
                                         Rights and Transfer Requirements requiring Third Party consents to assignment and similar
                                         agreements with respect to which waivers or consents are obtained from the appropriate
                                         parties or the appropriate time period for asserting the rights has expired on or prior
                                         to Closing without an exercise of such rights;

 

		4.	lessors’
                                         royalties, overriding royalties, net profits interests, production payments, reversionary
                                         interests and similar burdens if the net cumulative effect of such burdens does not operate
                                         to reduce the NRI for the applicable Allocated Value Property below that described in
                                         Exhibit B for the entire productive life of such properties.

 

		5.	construction,
                                         mechanics’, builders’, materialmen’s, contractor’s, operator’s or similar
                                         liens and charges arising in the ordinary course of business for obligations incurred,
                                         services rendered or goods supplied for which payment is not delinquent, or if delinquent,
                                         that are being contested in good faith by appropriate action at the Closing Date;

 

		6.	Routine
                                         Governmental Approvals;

 

		7.	conventional
                                         rights of reassignment prior to termination of a lease or other interest requiring not
                                         more than 60 days written notice to the holders of such rights;

     

     

    

		8.	easements,
                                         rights of way, servitudes and other similar rights in lands which in total do not materially
                                         impair the use of the Oil Producing Properties as being used at the Closing Date;

 

		9.	legally
                                         binding requirements imposed by Law or Governmental Authorities concerning rates of production
                                         from operations on any of the Oil Producing Properties or otherwise affecting recoverability
                                         of natural gas from the Oil Producing Properties which are generally applicable to the
                                         oil and gas industry in Montana;

 

		10.	all
                                         other Liens, charges, Contracts, leases, agreements, (including but not limited to all
                                         operating agreements, unit agreements and unit operating agreements affecting the Oil
                                         Producing Properties), Orders, instruments, documents, obligations, defects and irregularities
                                         affecting the Oil Producing Properties or the units or wells to which they relate that
                                         individually or in the aggregate:

 

(a)       are
not such as to interfere with the operation, value or use of the Oil Producing Property to which they pertain, or

 

(b)       do
not unreasonably delay the receipt or prevent Buyer from receiving the proceeds of production from any of the units or wells to
which the Oil Producing Property pertains, or

 

(c)       do not and will not, with respect to the interest of Seller (or Buyer from and
after the Closing) with respect to oil produced from any Well (i) reduce such interest below the NRI for the applicable Allocated
Value Property described in Exhibit B or (ii) increase the percentage of the costs or expenses applicable to such interest
above the WI set forth on Exhibit B for such Allocated Value Property for the entire productive life of such property.

 

“Person”
means any natural person, corporation, limited liability company, general partnership, limited partnership, proprietorship, other
business organization, trust, union, association or Governmental Authority.

 

“Plugging
and Abandonment Obligations” shall mean any and all liabilities arising out of or attributable to the plugging, abandonment
or removal or any obligation to plug, abandon or remove any Well, flow lines, equipment, fixtures, facilities or other property
comprising part of the Assets.

 

“Preference
Rights” means a right of first refusal, preferential right to purchase, pre-emptive right of purchase or similar right whereby
a Third Party has the right to acquire or purchase a portion of the Oil Producing Properties as a consequence of Seller having
agreed to sell the Oil Producing Properties to Buyer in accordance with the terms of this Agreement.

     

     

    

“Purchase
Price” has the meaning ascribed to it in Section 3.1.

 

“Records”
has the meaning ascribed to it in Section 2.1(f).

 

“Routine
Governmental Approvals” has the meaning ascribed to it in Section 4.1(c).

 

“Seller” has the meaning ascribed to it in the preamble; however, to the extent any distributions were deemed to have occurred from Carrell Oil Company as a result of, or since, the death of Lloyd Carrell, Seller Shareholder shall be deemed to be included in said definition.

 

“Seller
Indemnitees” means Seller and its Affiliates and their respective directors, officers, employees and agents.

 

“Seller Shareholder” has the meaning ascribed to it in the preamble.

 

“Seller’s
Closing Documents” shall mean the documents delivered by Seller at Closing pursuant to Section 13.2(a)(i) through
(vi).

 

“Seller’s
Knowledge” means the constructive knowledge of any of the following Persons: Larry Carrell and
_______, and _____,

 

“Settlement
Date” has the meaning ascribed to it in Section 14.2.

 

“Statement”
has the meaning ascribed to it in Section 14.2.

 

“Surface
Rights” means all rights to use the surface of land in connection with the Oil Producing Properties, including the right
to enter upon and occupy the surface of land on which the Wells are located and rights to cross or otherwise use the surface of
land for access to the Oil Producing Properties.

 

“Third
Party” shall mean any Person other than Seller or Buyer or their respective Affiliates.

 

“Third
Party Audits” has the meaning ascribed to it in Section 4.1(l).

 

“Transfer
Requirement” shall mean any consent, approval, or authorization of, or required notice or governmental filing with, any
Third Party or Governmental Authority which is required to be obtained, made or complied with for or in connection with the sale
of the Assets to Buyer as contemplated by this Agreement, including Operator Transfer Restrictions.

 

“Well”
has the meaning ascribed to it in Section 2.1(a).

 

“Working
Interest” or “WI” has the meaning commonly ascribed to such term in the oil and gas industry.

     

     

    

EXHIBIT
A

LEASES
AND LANDS

 

Attached
to that certain Asset Purchase and Sale Agreement

By and Carrell Oil Company and Cat Creek Holdings LLC.

 

Dated
July 1, 2020

 

LANDS:

 

Township
15 North, Range 29 East, MPM

Section
9: NE, E/2SE

Section 10: S/2NW, S/2

Section 11: NWSW, S2S2

Section 12: SWSW

Section 13: W2NW

Section 14: N2NW, SENW, NE

 

LEASES/LANDS/UNITS:

 

-
Unit designation (Cat Creek Sands)

 

-
MTM-068656-X - Oil and Gas Secondary Unit 1,240 acres

-
Established: August 25, 1958

-
Cat Creek 1st Formation

-
Cat Creek 2nd Formation

 

-
Operator: Carrell Oil Company

January
15, 1999

-
Bond: MT-0929

January 15, 1999

 

	OGL’s:	MTBIL-022077	MTBIL-022167-A	MTBIL-022205-A
	 	MTBIL-022205-B	MTBIL-022237	MTBIL-022307
	 	MTBIL-022314	MTBIL-022316	MTBIL-022317
	 	MTBIL-022331-A	MTBIL-035347	MTBIL-039901

 

-
MTM-068656-B - Oil and Gas Participating Area 560 acres

-
Established: August 25, 1958

-
UA Cat Creek Sands

-
West Dome PA 2

Effective:
8-1-1959

 

-
Operator: Carrell Oil Company

     

     

    

-
MTM-068656-A - Oil and Gas Participating Area 680 acres

-
Established: July 18-1961

-
UA Cat Creek Sands

-
East Dome PA 1

Effective:
11-1-1961

 

-
Operator: Carrell Oil Company

 

-
Unit designation (Cat Creek East Ellis)

 

-
MTM-068657-X - Oil and Gas Secondary Unit 589.91 acres

-
Established: July 19, 1973

-
Ellis; Ellis Sand Formation

 

-
Operator: Carrell Oil Company

August
13, 1997

-
Bond: MT-0929

August 13, 1997

 

OGL’s:
MTBIL-038176

 

-
MTBIL-038176 [Tract #1, 2 & 3 – Cat Creek East Ellis)

-
Effective: 6-1-1941

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Robert L. Hoss to Carrell Oil Co.

Filed: 3-31-1997

Approved:
8-25-1997

 

14N-31E/6:
Lots 2; 3; 4; 5; 6; 7; SWNE; SENW; E2SW; W2SE

 

-
MTBIL-022077 [Tract #1 East Dome) - Effectively Committed

-
Effective: 1-17-1921

-
Lessee : Herbert D. Hadley – 97.24%

  Jewell
Enlow – 2.76%

 

15N-29E/10:
SESE 11: SWSW

 

-
MTBIL-022167-A [Tract #2 East Dome) - Effectively Committed

-
Effective: 12-14-1920

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed: 2-25-1997

Effective: 2-1-1999

 

15N-29E/11:
SWSE

  14:
NWNE; N2NW

     

     

    

-
MTBIL-022307 [Tract #3 East Dome] - Effectively Committed

-
Effective: 1-25-1920

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed: 2-25-1997

Effective: 2-1-1999

 

15N-29E/14:
SWNE

 

-
MTBIL-022314 [Tract #4 East Dome] - Effectively Committed

-
Effective: 9-9-1920

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed:
2-25-1997

Effective:
2-1-1999

 

15N-29E/13:
SWNW

 

Subject
to outstanding segregated operating rights limited to all depths and formations below the base of the swift sandstone formation
(known as the deep sands)

 

-
MTBIL-022316 [Tract #5 East Dome] - Fully Committed

-
Effective: 4-4-1922

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed: 2-25-1997

Effective: 2-1-1999

 

15N-29E/11:
SESE

 

Subject
to outstanding segregated operating rights limited to all depths and formations below the base of the swift sandstone formation
(known as the deep sands)

 

-
MTBIL-022317 [Tract #6 East Dome]- Effectively Committed

-
Effective: 5-24-1923

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed: 2-25-1997

Effective: 2-1-1999

 

15N-29E/14:
SENW

 

Subject
to outstanding segregated operating rights limited to all depths and formations below the base of the swift sandstone

     

     

    

-
MTBIL-022331-A [Tract #7 East Dome] - Effectively Committed

-
Effective: 1-24-1921

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed: 2-25-1997

Effective: 2-1-1999

 

15N-29E/13:
NWNW 14: E2NE

 

Subject
to outstanding segregated operating rights limited to all depths and formations below the base of the swift sandstone formation:

 

15N-29E/13:
NWNW

 

-
MTBIL-034347 [Tract #8 East Dome] - Effectively Committed

-
Effective: 3-30-1921

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed: 2-25-1997

Effective: 2-1-1999

 

15N-29E/12:
SWSW

 

Subject
to outstanding segregated operating rights limited to all depths and formations below the base of the swift sandstone formation
(known as the deep sands)

 

-
MTBIL-022205-A [Tract #11 West Dome]-Effectively Committed

-
Effective: 11-13-1920

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed: 2-25-1997

Effective: 2-1-1999

 

15N-29E/9:
E2NE; SWNE; NESE

 

-
MTBIL-022205-B [Tract #12 West Dome]-Effectively Committed

-
Effective: 11-1-1920

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed:
2-25-1997

Effective:
2-1-1999

 

15N-29E/9:
SESE

     

     

    

-
MTBIL-022237 [Tract #13 West Dome] - Effectively Committed

-
Effective: 4-15-1921

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed:
2-25-1997

Effective:
2-1-1999

 

15N-29E/10:
N2SW; SWSW

 

Subject
to outstanding segregated operating rights limited to all depths and formations below the base of the Ellis formation:

 

Subject
to outstanding segregated operating rights limited to all depths and formations below the base of the swift sandstone formation:

 

-
MTBIL-039901 [Tract #14 West Dome] - Effectively Committed

-
Effective: 1-17-1921

-
Lessee: Carrell Oil Company – 100%

 

-
Assignment: Cenex to Carrell Oil Co.

Filed:
2-25-1997

Effective:
2-1-1999

 

15N-29E/10:
SESW; SWSE

 

Subject
to outstanding segregated operating rights limited to all depths and formations below the base of the swift sandstone formation
(known as the deep sands):

 

FEE
LEASES:

 

-
Robert Fifer, et ux

  Bk.55,
Pg.460

  15N-30E/20:
E2NE

  21:
Lots 3; 4 (N2NW)

 

-
H.A. Brown

  Bk.9,
Pg.497

  15N-30E/17:
SE; W2NW; NESW

 

-
Bert R. Benson

  Bk.4,
Pg.496

  15N-29E/10:
N2SE; N2NE

     

     

    

-
Bert R. Benson

  Bk.4,
Pg.496

  15N-29E/10:
SWNE; N2NE (Overriding Royalty Interest Only)

  11:
W2NW (Overriding Royalty Interest Only)

 

-
Richard Ihde

  Bk.6,
Pg.423

  15N-29E/11:
N2SW; SENW; N2SE; SESW; S2SENE

 

-
Earl Harlan

  Bk.4,
Pg.441

  15N-29E/3:
SW

  10: SENW; SWNW

 

-
Nels D. Fradd

  Bk.84,
Pg.256

  15N-29E/9:
E2NWNE

 

STATE
OF MONTANA LEASES:

 

	-
    Agreement No.:	OG-6039-60
	  Status:	Producing
    – Active
	  Customer:	Carrell
    Oil Company – 100% working Interest
	  Legal
    Description:	15N-30E/16:
    NESW; SESW; SWSE
	 	-
    Mosby Dome-Swift Sand Unit
	 	 
	-
    Agreement No.:	OG-8550-66
	  Status:	Producing
    – Active
	  Customer:	Carrell
    Oil Company – 100% working Interest
	  Legal
    Description:	15N-30E/16:
    NWSW
	 	-
    Mosby Dome-Swift Sand Unit
	 	 
	-
    Agreement No.:	OG-8551-66
	  Status:	Producing
    – Active
	  Customer:	Carrell
    Oil Company – 100% working Interest
	  Legal
    Description:	15N-30E/16:
    SWSW
	 	-
    Mosby Dome-Swift Sand Unit

 

FEE
INTEREST - SURFACE ESTATE:

 

Township
15 North, Range 29 East, M.P.M.

Section 14: SWNE; SENW

 

	Vesting
    Document:	Certificate
    of Redemption
	 	Doc
    #53485
	 	Dated:
    8-11-2017
	 	 
	 	United
    States Patent (Exchange)
	 	Doc.#42581;42582
	 	Patent
    No.: 25-99-0149
	 	 25-99-150
	 	Dated:
    2-3-1999

     

     

    

DEEDED
ROYALTY INTERESTS:

 

	-
    Co-Personal	Doris
    J. Foley, Deceased
	  Representatives’	-to-
	  Royalty
    Deed	Carrell
    Oil Company, Montana corporation
	  Doc.#:
    52221	 
	  Dated:
    3-18-2013	 
	 	 
	  Conveys
    “All interest of the Estate in and to the Estate’s royalty interest in the following... 15N-29E/10
	 	 
	-
    Co-Personal	Everard
    Book, Deceased
	  Representatives’	-to-
	  Royalty
    Deed	Carrell
    Oil Company, Montana corporation
	  Doc.#:
    52222	 
	  Date:
    3-6-2013	 
	 	 
	  Conveys
    “All interest of the Estate in and to the Estate’s royalty interest in the following... 15N-30E/21
	 	 
	-
    Conservator’s	Nancy
    B. Johnson, Estate
	  Royalty
    Deed	-to-
	  Doc.#:
    52223	Carrell
    Oil Company, Montana  corporation
	  Date:
    1-8-2013	 
	 	 
	  Conveys
    “All interest of the Conservatorship Estate in and to the Estate’s royalty interest in the following ... 15N-29E/11
	 	 
	-
    Trustee’s	John
    S. Underwood Trust
	  Royalty
    Deed	-to-
	  Doc.#:
    52560	Carrell
    Oil Company, Montana corporation
	  Date:
    5-21-2014	 
	 	 
	  Conveys
    “All interest of the Conservatorship Estate in and to the Estate’s royalty interest in the following... 15N-29E/10 &
    11

     

     

    

DEEDED
WORKING INTERESTS:

 

	-
    Working Interest	Neil
    T. Bassett
	  Deed	-to-
	  Doc.#:
    52678	Carrell
    Oil Company, Montana corporation
	  Date:
    9-23-2014	 
	 	 
	  Conveys
    “All my working interest in the following ... 15N-29E/11;
    12; 13 & 14
	 	 
	-
    Working Interest	McKenna
    Oil, LLC
	  Deed	-to-
	  Doc.#:
    53308	Carrell
    Oil Company, Montana corporation
	  Date:
    12-28-2016	 
	 	 
	  Conveys
    “All working interest in the following ... 15N-30E/16
    & 21
	 	 
	-
    Working Interest	Kathleen
    Woodward
	  Deed	-to-
	  Doc.#:
    53309	Carrell
    Oil Company, Montana corporation
	  Date:
    12-30-2016	 
	 	 
	  Conveys
    “All my working interest in the following ... 15N-30E/16
    & 21

 

PROPERTY
    – SURFACE – LEASEHOLD

 

	-
    Geocode Number:	55-2479-16-3-03-03-0000
	  Primary
    Owner:	Carrell
    Oil Company
	  Property
    Category:	Real
    Property – Agricultural/Timber
	  Legal
    Description:	15N-30E/16:
    Part SWNWSWSW; Part N2NWSWSWSW 2.36
    acres
	  Appraisal:	Land=
    $18,187 (2020)

 

PERSONAL
PROPERTY – MANUFACTURED HOMES

 

	-
    Geocode Number:	55-2478-14-2-01-01-8001
	  Primary
    Owner:	Carrell
    Oil Company
	  Property
    Category:	Real
    Property
	  Legal
    Description:	Manufactured
    Home not attached to Real property
	 	Serial#
    R276961
	 	Title#
    E228142
	 	Make:
    Schult. 1997 16x76
	 	Location:
    15N-29E/14

     

     

    

	-
    Geocode Number:	55-2478-14-2-01-01-0001
	  Primary
    Owner:	Lloyd
    A. & Karen A. Carrell
	  Property
    Category:	Real
    Property
	  Legal
    Description:	Manufactured
    Home not attached to Real Property
	 	Serial
    # HK5960AB
	 	Make:
    1996 Silvercrest Double Wide 28x72
	 	Location:
    15N-29E/14: SWNE

 

OILFIELD
PERSONAL PROPERTY

 

	-
    Geocode Number: 	55-0001000702-001
	  Primary
    Owner:	Carrell
    Oil Company
	  Property Category: 	Personal Property
	  Legal Description: 	Oil & Gas Equipment; Portable Building
	 	 
	-
    Geocode Number: 	55-0001000703-001
	  Primary
    Owner:	Carrell
    Oil Company
	  Property Category:	 Personal Property
	  Legal Description: 	Oil & Gas Equipment; Portable Building
	 	 
	
    - Geocode Number:	55-0001000704-001
	  Primary
    Owner:	Carrell
    Oil Company
	  Property
    Category:	Personal
    Property
	  Legal
    Description:	Ag.
    Implements/Machinery
	 	Oil
    & Gas Equipment; Portable Building
	 	Service/Workover
    Rigs & Related Equipment
	 	 
	-
    Geocode Number:	55-0001000705-001
	  Primary
    Owner:	Carrell
    Oil Company
	  Property
    Category:	Personal
    Property
	  Legal
    Description:	Oil
    & Gas Equipment; Portable Building
	 	Service/Workover
    Rigs & Related Equipment
	 	 
	
    - Geocode Number:	55-0001000706-001
	  Primary
    Owner:	Carrell
    Oil Company
	  Property
    Category:	Personal
    Property
	  Legal
    Description:	Heavy
    Equipment and SM Equipment
	 	Oil
    & Gas Equipment; Portable Building
	 	 
	
    - Geocode Number:	55-00010001216-001
	  Primary
    Owner:	Carrell
    Oil Company
	  Property Category:	 Personal Property
	  Legal Description: 	Oil & Gas Equipment; Portable Building

     

     

    

EXHIBIT
B

WELLS,
WI, NRI AND ALLOCATED VALUES

 

Attached
to that certain Asset Purchase and Sale Agreement

By and Carrell Oil Company and Cat Creek Holdings LLC.

 

Dated
July 1, 2020

 

	Area:
    Township 15 North, Range 29 East - Petroleum County, MT
	 
	Well
    Name:	Unit
    2 39
	Field:	Cat
    Creek
	Well
    Type:	Injection,
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-29E/9:
    SENESE
	API#:	25-069-05192-00-00
	 	 
	Well
    Name:	Harlan
    11
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10:
    SWSWNW
	API#:	25-069-05213-00-00
	 	 
	Well
    Name:	Harlan
    12
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10:
    SWSENW
	API#:	25-069-05215-00-00
	 	 
	Well
    Name:	Harlan
    13
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10
    : SWSWNW
	API
    #:	25-069-05212-00-00
	 	 
	Well
    Name:	Oldham
    Govt. 23
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10:
    NWNWSW
	API
    #:	25-069-05201-00-00

     

     

    

	Well
    Name:	UN
    (BNSN 1) 44
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/10:
    SWNWSE
	API#:	25069601990000
	 	 
	Well
    Name:	Unit
    8
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/10:
    W2SWNW
	API#:	25-069-60082-00-00
	 	 
	Well
    Name:	Unit
    13 (5)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10:
    SESWNW
	API#:	25-069-60085-00-00
	 	 
	Well
    Name:	Unit
    14 (4)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/10:
    S2SWNW
	API#:	25-069-60084-00-00
	 	 
	Well
    Name:	Unit
    #26 (11-A)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10:
    NENWSW
	API#:	25-069-60099-00-00
	 	 
	Well
    Name:	Unit
    27 (#16)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/10:
    NWNESW
	API#:	25-069-06541-00-00
	 	 
	Well
    Name:	Unit
    28 (17)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10:
    NESW
	API#:	25-069-06542-00-00

     

     

    

	Well
    Name:	Unit
    2 (Benson) 30
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-29E/10:
    NWNWSE
	API#:	25-069-05211-00-00
	 	 
	Well
    Name:	Unit
    2 #11 (14)
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-29E/10:
    SENW
	API#:	25-069-05226-00-00
	 	 
	Well
    Name:	Unit
    2 #53 (28)
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-29E/10:
    NESWSW
	API#:	25-069-05189-00-00
	 	 
	Well
    Name:	Unit
    33 (21)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10:
    SWNESW
	API#:	25-069-05368-00-00
	 	 
	Well
    Name:	Unit
    41 (#6)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/10:
    SENWSW
	API#:	25-069-60094-00-00
	 	 
	Well
    Name:	Unit
    54 (4)
	Field:	Cat
    Creek
	Well
    Type:	Water
    Service
	Well
    Status:	Producing
	Location:	15N-29E/10:
    SWSE
	API
    #:	25-069-06526-00-00
	 	 
	Well
    Name:	Unit
    63
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/11:
    SESESE
	API#:	25-069-21024-00-00

     

     

    

	Well
    Name:	Unit
    1 #57
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-29E/11:
    N2SESE
	API#:	25-069-05193-00-00
	 	 
	Well
    Name:	Ihde
    3
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/11:
    SWSESW
	API#:	25-069-60113-00-00
	 	 
	Well
    Name:	Ihde
    10
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/11:
    SESW
	API#:	25-069-6012-00-00
	 	 
	Well
    Name:	Cat
    Creek Unit 1 65
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/11:
    NESWSW
	API#:	25-069-21072-00-00
	 	 
	Well
    Name:	Unit
    (Ihde 11) 21
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/11:
    SESW
	API#:	25-069-60121-00-00
	 	 
	Well
    Name:	Unit
    #27 (#5)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/12:
    SESWSW
	API#:	25-069-05367-00-00

     

     

    

	Well
    Name:	Unit
    (Catlett 10) 60
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/12:
    SWSWSW
	API#:	25-069-05184-00-00
	 	 
	Well
    Name:	Unit
    1-11 (7-A)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/12:
    SWSW
	API#:	25-069-06525-00-00
	 	 
	Well
    Name:	CAT
    CR UN. 1-64
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/13:
    NWNWNW
	API#:	25-069-21025-00-00
	 	 
	Well
    Name:	Unit
    1-42
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/13:
    NWNW
	API#:	25-069-60005-00-00
	 	 
	Well
    Name:	Unit
    1 #38 (8)
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-29E/14:
    SWNWNE
	API#:	25-069-60030-00-00
	 	 
	Well
    Name:	Unit
    1 #47 (6)
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-29E/14:
    S2NWNE
	API#:	25-069-60028-00-00
	 	 
	Well
    Name:	Unit
    1 #14-B
	Field:	Cat
    Creek
	Well
    Type:	Water
    Source
	Well
    Status:	Producing
	Location:	15N-29E/14:
    NWSENE
	API#:	25-069-06536-00-00

     

     

    

	Well
    Name:	Unit
    1 #29 (4)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/14:
    NENWNE
	API#:	25-069-60026-00-00
	 	 
	Well
    Name:	Unit
    1 #31 (5)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/14:
    NWNWNE
	API#:	25-069-60027-00-00
	 	 
	Well
    Name:	Unit
    1 #35 (8)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/14:
    NWNENW
	API#:	25-069-60035-00-00
	 	 
	Well
    Name:	Unit
    1 #37 (19)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/14:
    NENW
	API#:	25-069-60039-00-00
	 	 
	Well
    Name:	Unit
    1 #49 (18)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/14:
    SENENW
	API#:	25-069-60038-00-00
	 	 
	Well
    Name:	Unit
    1 #53 (6)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-29E/14:
    NWSENE
	API#:	25-069-60013-00-00
	 	 
	Well
    Name:	Unit
    1 #61 (17)
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-29E/14:
    NENENE
	API#:	25-069-05177-00-00

     

     

    

	Area:
    Township 15 North, Range 30 East - Petroleum County, MT
	 	 
	Well
    Name:	State
    9
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-30E/16:
    NESWSW
	API#:	25-069-210140-00-00
	 	 
	Well
    Name:	State
    6
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location
    :	15N-30E/16:
    SWSW
	API#:	25-069-05159-00-00
	 	 
	Well
    Name:	State
    4
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location
    :	15N-30E/16:
    NWSWSW
	API
    #:	25-069-05163-00-00
	 	 
	Well
    Name:	State
    3
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location
    :	15N-30E/16:
    SWNWSW
	API#:	25-069-05167-00-00
	 	 
	Well
    Name:	State
    2
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-30E/16:
    SESWSW
	API#:	25-069-05149-00-00
	 	 
	Well
    Name:	H.A.
    Brown 20
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Completed
	Location
    :	l5N-30E/17:
    NESWSE
	API#:	25-069-21011-00-00

     

     

    

	Well
    Name:	H.A.
    Brown 19
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Completed
	Location:	15N-30E/17:
    NESWSE
	API#:	25-069-21010-00-00
	 	 
	Well
    Name:	H.A.
    Brown 21
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-30E/17:
    SWNESE
	API#:	25-069-21012-00-00
	 	 
	Well
    Name:	Fifer
    2
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	15N-30E/21:
    NWNW
	API#:	25-069-06574-00-00
	 	 
	Well
    Name:	Fifer
    5
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-30E/21:
    NENWNW
	API#:	25-069-05144-00-00
	 	 
	Well
    Name:	Fifer
    4
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-30E/20:
    NENENE
	API#:	25-069-05146-00-00
	 	 
	Well
    Name:	Fifer
    3
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	15N-30E/21:
    SWNWNW
	API#:	25-069-05141-00-00
	 	 
	Well
    Name:	Brown
    15
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Completed
	Location:	15N-30E/17:
    NESESE
	API#:	25-069-05161-00-00

     

     

    

	Well
    Name:	Brown
    12
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Completed
	Location:	15N-30E/17:
    SENESE
	API#:	25-069-05166-00-00
	 	 
	Well
    Name:	Brown
    10
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Completed
	Location:	15N-30E/17:
    SESESE
	API#:	25-069-05155-00-00
	 	 
	Well
    Name:	Brown
    1
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	15N-30E/17:
    SESESE
	API#:	25-069-60044-00-00
	 	 
	Area:
    Township 14 North, Range 31 East - Garfield County, MT
	 	 
	Well
    Name:	Federal
    16
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	14N-31E/6:
    SWSWNE
	API#:	25-033-05041-00-00
	 	 
	Well
    Name:	Federal
    17
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Producing
	Location:	14N-31E/6:
    NWSENW
	API#:	25-033-05046-00-00
	 	 
	Well
    Name:	Govt.
    13
	Field:	Cat
    Creek
	Well
    Type:	Water
    Source
	Well
    Status:	Completed
	Location:	14N-31E/6:
    SENWSW
	API#:	25-033-05030-00-00

     

     

    

	Well
    Name:	Govt.
    15
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	14N-31E/6:
    SWNWNW
	API#:	25-033-05044-00-00
	 	 
	Well
    Name:	Govt.
    4
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	Active
    Injection
	Location:	14N-3IE/6:
    SWNWSE
	API#:	25-033-05028-00-00
	 	 
	Well
    Name:	U.S.14
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	14N-31E/6:
    NWSWNW
	API
    #:	25-033-05047-00-00
	 	 
	Well
    Name:	U.S.
    2
	Field:	Cat
    Creek
	Well
    Type:	Injection
    EOR
	Well
    Status:	P&A
    Approved
	Location:	14N-3IE/6:
    SENESW
	API#:	25-033-05027-00-00
	 	 
	Well
    Name:	U.S.
    8
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	14N-3IE/6:
    SESENW
	API
    #:	25-033-05037-00-00
	 	 
	Area:
    Township 14 North, Range 30 East - Garfield County, MT
	 	 
	Well
    Name:	NPRR#l
	Field:	Cat
    Creek
	Well
    Type:	Oil
	Well
    Status:	Shut
    In
	Location:	14N-30E/1
    : NENESE
	API
    #:	25-033-06177-00-00

 

AND
ANY AND ALL OTHER WELLS, LANDS, LEASES, OR PROPERTIES OF SELLER IN PETROLEUM AND GARFIELD COUNTIES, MONTANA WHETHER OR NOT SPECIFICALLY
SET FORTH AND ENUMERATED HEREIN – WITHOUT LIMITATION

     

     

    

ALLOCATIONS

 

	REAL PROPERTY:	 	 	 
	80 Acres	 	$	40,344.61	 
	1995 Fleetwood 28‘X80’ double-wide manufactured home	 	$	36,142.05	 
	1997 Schult 16’ X 76’ manufactured mobile home	 	$	21,012.82	 
	Permanent Operational Support Buildings: Shop, Office, Storage	 	$	33,620.51	 
	TOTAL REAL PROPERTY	 	$	131,119.98	 
	 	 	 	 	 
	PICKUP TRUCKS:	 	 	 	 
	1979 Ford F250 4 w/d: VIN F26SRFC6806 (crew cab-welding truck)	 	$	2,101.28	 
	1979 Ford F150 4 w/d: VIN F14BCEJ3774	 	$	1,260.77	 
	2001 Ford F150 4 w/d: VIN 1FTRW08L11KE20845	 	$	2,941.79	 
	TOTAL PICKUP TRUCKS	 	$	6,303.85	 
	 	 	 	 	 
	HEAVY DUTY TRUCKS & MAJOR MAINTENANCE EQUIPMENT	 	 	 	 
	1989 International 2+ ton truck: VIN 1HTSCZWPXLH223339, with 50 Bbl. Tank, 3” Roper Pump, hoses & fittings.	 	$	5,043.08	 
	1996 Ford F800 2+ ton truck: VIN 1FDYF80E5TVA16578, with 20,000# winch on headache rack & 10’ Leland bed w/live tailroll	 	$	5,043.08	 
	2007 Peterbilt Conventional 33 AWD: VIN 2NPLHD7X87M730891 with Pull Star P38000HD rig (new in 2007) mounted+ tools	 	$	126,076.91	 
	Komatsu Backhoe: Serial #KMTWB001E36R21151	 	$	25,215.38	 
	Swabbing Unit w/tools	 	$	6,724.10	 
	Vermeil trenching machine	 	$	2,521.54	 
	TOTAL HEAVY DUTY EQUIPMENT	 	$	170,624.08	 
	 	 	 	 	 
	TRAILERS:	 	 	 	 
	Titan Gooseneck w/Tandem Duals Axles, 32’ Deck w/beavertail SN 4TGF33200X1011716	 	$	6,724.10	 
	Tandem Axle Flatbed, Bumper Pull, 16’ wood deck	 	$	1,260.77	 
	Single Axle Light Weight Utility, Ramp Tailgate, 5‘X8’ bed	 	$	588.36	 
	30’ Single Axle Pipe Trailer	 	$	1,260.77	 
	TOTAL TRAILERS	 	$	9,834.00	 
	 	 	 	 	 
	MISCELLANEOUS EQUIPMENT AND
    TOOLS:	 	 	 	 
	Electric well logging machine w/tools	 	$	4,202.56	 
	Trailer mounted wire line unit w/gas engine and Amerada bomb tools for measuring bottom hole pressure	 	$	4,202.56	 
	Pump shop tools & pump parts inventory	 	$	5,043.08	 
	Small mechanics hand tools and field tools	 	$	6,724.10	 
	Acetylene & electric welding equipment & plasma cutter	 	$	5,043.08	 
	Air compressors	 	$	840.51	 
	Trailer mounted Landa hot water pressure washer w/tank	 	$	1,681.03	 
	Cementing pump, tank & high pressure 2” piping	 	$	4,202.56	 
	Fusion machine for connecting PVC pipe	 	$	2,521.54	 
	Propane tanks: 2-1,000 & 1-500 gallon	 	$	1,260.77	 
	Fuel tanks : 3-500 & 3-250 gallon	 	$	1,008.62	 
	Pumping units, motors, control panels and down-hole equipment (rods, tubing & pumps) in 18 active wells	 	$	40,344.61	 
	All surplus & warehouse equipment not currently being used	 	$	4,202.56	 
	Metal lathe	 	$	840.51	 
	TOTAL MISC EQUIPMENT & TOOLS	 	$	82,118.09	 
	 	 	 	 	 
	TOTAL	 	$	400,000.00	 

     

     

    

EXHIBIT
C

FORM
OF CONVEYANCE

 

Attached
to that certain Asset Purchase and Sale Agreement

By and Carrell Oil Company and Cat Creek Holdings LLC.

 

Dated
July 1, 2020Exhibit 4.1 

 

RESALE REGISTRATION RIGHTS AGREEMENT

 

THIS RESALE REGISTRATION
RIGHTS AGREEMENT, dated as of August 9, 2020 (this “Agreement”), has been entered into by and between
SENSEONICS HOLDINGS, INC., a Delaware corporation (the “Company” or “Senseonics”)
and the Purchaser (as defined below).

 

BACKGROUND

 

In connection with
the Note Purchase Agreement, dated as of August 9, 2020 (the “NPA”), by and among PHC Holdings Corporation,
any other persons otherwise party thereto from time to time (each a “Purchaser”), the Company, the guarantors
from time to time party thereto and Alter Domus (US) LLC, as collateral agent, pursuant to which the Purchaser has agreed to purchase
from the Company (i) $35,000,000 in aggregate principal amount of secured promissory notes, represented by the Second Lien Secured
Notes (the “Notes”) of the Company, and (ii) 2,941,176 shares of Common Stock (as defined below) issuable
by the Company to the Purchaser in respect of the funding fee under the NPA (“the Placement Fee Shares”),
the Company has agreed to provide to the Purchaser certain resale registration rights under the Securities Act of 1933, as amended,
and the rules and regulations thereunder (together, the “Securities Act”), and applicable state securities
laws with respect to the Notes, the Conversion Shares (as defined below), and the Placement Fee Shares.

 

AGREEMENT

 

In light of the above,
the Company and the Purchaser hereby agree as follows:

 

		1.	Definitions.

 

As used in this Agreement,
the following terms will have the respective meanings set forth in this Section 1:

 

“Additional
Interest” has the meaning set forth in Section 2(c)(iv).

 

“Advice”
has the meaning set forth in Section 2(d)(iv).

 

“As-Converted
Conversion Share Ownership Percentage” means with respect to any Holder(s) as of any time, a fraction (a) whose numerator
is the aggregate number of Conversion Shares owned, or issuable upon conversion of the Notes owned, by such Holder(s) as of such
time; and (b) whose denominator is the aggregate number of Conversion Shares that are then outstanding or are issuable upon conversion
of the Notes then outstanding; provided, however, that for purposes of this definition, Registrable Securities not relating
to any Notes or Conversion Shares issued pursuant to the NPA will be disregarded.

 

“Block
Trade” means a Demand Underwritten Offering that does not require a management road show.

 

“Business
Day” means (i) a day on which the Common Stock is traded on a Trading Market, (ii) if the Common Stock is not listed
on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation
Bureau Incorporated (or any similar organization or agency succeeding to its functions of reporting prices) or (iii) in the event
that the Common Stock is not listed or quoted as set forth in (i) and (ii) hereof, any day other than a Saturday, a Sunday or a
day on which banking institutions in The City of New York are authorized or required by law, regulation or executive order to remain
closed.

 

“Commission”
means the Securities and Exchange Commission or any successor agency.

 

     

     

    

 

“Common
Stock” means the Company’s common stock, par value $0.001 per share.

 

“Conversion
Share” means any share of Common Stock issued or issuable upon conversion of the Notes.

 

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

 

“Demand
Registration Notice” has the meaning set forth in Section 2(e)(i).

 

“Demand
Registration Statement” means each registration statement under the Securities Act that is designated by the Company
for the registration, under the Securities Act, of any Demand Underwritten Offering pursuant to Section 2(e). For the avoidance
of doubt, the Demand Registration Statement may, at the Company’s election, be the Registration Statement filed pursuant
to Section 2(a).

 

“Demand
Underwritten Offering” has the meaning set forth in Section 2(e)(i).

 

“Demand
Underwritten Offering Majority Holders” has the meaning set forth in Section 2(e)(iv)(1).

 

“Demanding
Notice Holders” has the meaning set forth in Section 2(e)(i).

 

“Discontinuance
Notice” has the meaning set forth in Section 3(d).

 

“Effective
Date” means, with respect to any Registration Statement, the date on which the Commission first declares effective
such Registration Statement.

 

“Effectiveness
Deadline” means, with respect to a Registration Statement filed pursuant to Section 2(a), ninety (90) calendar days
after the Filing Deadline in the case of a filing on Form S-3 and one hundred twenty (120) calendar days after the Filing Deadline
in the case of a filing on Form S-1.

 

“Effectiveness
Period” has the meaning set forth in Section 2(a).

 

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

 

“Filing
Deadline” means September 8, 2020.

 

“FINRA”
means the Financial Industry Regulatory Authority, Inc. or any successor organization performing similar functions.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” has the meaning set forth in Section 5(c).

 

“Indemnifying
Party” has the meaning set forth in Section 5(c).

 

“Losses”
has the meaning set forth in Section 5(a).

 

“Managing
Underwriters” means, with respect to any Demand Underwritten Offering, one or more registered broker-dealers that
are designated in accordance with this Agreement to administer such offering.

 

    2

     

    

 

“Maximum
Successful Underwritten Offering Size” means, with respect to any Demand Underwritten Offering, the maximum number
of securities that may be sold in such offering without adversely affecting the success of such offering, as advised by the Managing
Underwriters for such offering to the Company and the applicable Demand Underwritten Offering Majority Holders.

 

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

 

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

 

“Offering
Launch Time” means, with respect to a Demand Underwritten Offering, the earliest of (a) the first date a preliminary
prospectus (or prospectus supplement) for such offering is filed with the Commission; (b) the first date such offering is publicly
announced; and (c) the date a definitive agreement is entered into with the Managing Underwriters respect to the such offering.

 

“Person”
or “person” means any individual, corporation, partnership, limited liability company, joint venture,
association, joint-stock company, trust, unincorporated organization or government or other agency or political subdivision thereof.
Any division or series of a limited liability company, limited partnership or trust will constitute a separate “person”
under this Agreement.

 

“Plan
of Distribution” has the meaning set forth in Section 2(a).

 

“Placement
Fee Shares” has the meaning set forth in the preamble.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, any preliminary prospectus, any free-writing
prospectus and any prospectus that includes any information previously omitted from a prospectus filed as part of an effective
registration statement under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to such prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such prospectus.

 

“Purchaser”
is any of one of the Purchasers.

 

“Purchasers”
means the purchasers of the Notes and the Shares identified on Schedule 2.2 to the NPA and each successor and assignee that becomes
party to the NPA.

 

“Registrable
Securities” means (i) the Placement Fee Shares and (ii) any Conversion Shares issued or issuable upon conversion
of the Notes. “Registrable Securities” also includes any shares of capital stock issued or issuable with
respect to the foregoing as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise.
As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when (i) the Commission has
declared a Registration Statement covering such securities effective and such securities have been disposed of pursuant to such
effective Registration Statement; (ii) such securities are sold under circumstances in which all of the applicable conditions of
Rule 144 under the Securities Act are met and the legend restricting further transfer has been removed from the certificate for
such securities; or (iii) such securities are no longer outstanding.

 

“Registration
Default” has the meaning set forth in Section 2(c)(iv).

 

    3

     

    

 

“Registration
Statement” means a registration statement filed pursuant to the terms hereof and which covers the resale by the Holders,
including the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective
amendments, all exhibits thereto and all material incorporated by reference (or deemed to be incorporated by reference) therein.
For the avoidance of doubt, “Registration Statement” means the initial registration statement described
above in this paragraph and any additional registration statement or registration statements that are needed to sell additional
Registrable Securities with the effect that the obligations of the Company under this Agreement also extend to such additional
registration statement or registration statements, in all cases, as specified in this Agreement.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such
Rule.

 

“Securities
Act” has the meaning set forth in the preamble.

 

“Selling
Holder Questionnaire” has the meaning set forth in Section 2(d)(i).

 

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

 

“Shares”
means the Placement Fee Shares issuable from the Company to the Purchaser.

 

“Subsequent
Form S-3” has the meaning set forth in Section 3(n).

 

“Suspension
Notice” has the meaning set forth in Section 2(b).

 

“Suspension
Period” has the meaning set forth in Section 2(b).

 

“Trading
Market” means whichever of the NYSE American, New York Stock Exchange, the Nasdaq Global Market, the Nasdaq Capital
Market, Nasdaq Global Select Market or such other United States registered national securities exchange on which the Common Stock
is listed or quoted for trading on the date in question.

 

 

 

		2.	Registration.

 

(a)              
Mandatory Registration. On or prior to the Filing Deadline, the Company will prepare and file with the Commission a
Registration Statement covering the resale of all Registrable Securities for an offering to be made on a continuous basis pursuant
to Rule 415. The Registration Statement will be on Form S-3 (except if the Company is not then eligible to register for resale
the Registrable Securities on Form S-3, in which case such registration will be on Form S-1, and if for any reason the Company
is not then eligible to register for resale the Registrable Securities on Form S-1, then another appropriate form for such purpose)
and will contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such
Registration Statement) a “Plan of Distribution” section, substantially in the form attached hereto as
Annex A, as the same may be amended in accordance with the provisions of this Agreement. The Company will use its reasonable best
efforts to cause the Registration Statement to be declared effective under the Securities Act as soon as possible but, in any event,
no later than the Effectiveness Deadline, and will use their reasonable best efforts to keep the Registration Statement (or a Subsequent
Form S-3) continuously effective under the Securities Act until such date when all Registrable Securities covered by the Registration
Statement cease to be Registrable Securities as determined by the counsel to the Company (the “Effectiveness Period”).

 

    4

     

    

 

(b)              
Suspension Periods. Notwithstanding Section 2(a), the Company may, at any time, delay the filing or delay or suspend
the effectiveness of a Registration Statement or any pending or potential Demand Underwritten Offering or, without suspending such
effectiveness, deliver a notice (a “Suspension Notice”) that instructs any selling Holders not to sell
any securities included in the Registration Statement or delay the filing of any amendment or supplement pursuant to Section 3,
if the board of directors of the Company has determined and promptly notifies the selling Holders in writing that in its reasonable
good faith judgment (i) a material event has occurred or is likely to occur with respect to the Company that has not been publicly
disclosed and, if disclosed, could reasonably be expected to materially and adversely affect the Company and its ability to consummate
the registration of the resale of the Registrable Securities or (ii) such registration could reasonably be expected to materially
interfere with any material financing, acquisition, corporate reorganization, merger, tender offer or other significant transaction
involving the Company (a “Suspension Period”), by providing the selling Holders with written notice of
such Suspension Period and the reasons therefor. The Company will use its reasonable best efforts to provide such notice at least
ten (10) Business Days prior to the commencement of such a Suspension Period; provided, however, that in any event the Company
will provide such notice no later than the commencement of such Suspension Period; provided, further, that in no event will a Suspension
Period exceed 30 days and in no event shall the total number of days subject to a Suspension Period during any consecutive 12-month
period exceed 45 days. Any Suspension Period will not be deemed to end until the Holders have received a notice from the Company
stating that such Suspension Period has ended.

 

(c)          
Additional Interest. The parties hereto agree that the Holders will suffer damages if the Company fails to fulfill its
obligations under this Section 2 and that, in such case, it would not be feasible to ascertain the extent of such damages with
precision. Accordingly, if:

 

(i)            
the Company does not file a Registration Statement by the Filing Deadline;

 

(ii)           
a Registration Statement is not declared effective by the Commission on or before the applicable Effectiveness Deadline;

 

(iii)          
the Company extends any Suspension Period beyond 45 days during any consecutive 12-month period; or

 

    5

     

    

 

(iv)          
a Registration Statement is filed and declared effective but, during the applicable Effectiveness Period, a Registration
Statement is not effective for any reason or the Prospectus contained therein is not available for use for any reason, including
by reason of its withdrawal or termination pursuant to Section 3(e), or, other than by reason of a Suspension Period as provided
in Section 2(b), will fail to be usable for its intended purpose without such disability being cured within ten (10) Business Days
by an effective post-effective amendment to such Registration Statement, a supplement to the Prospectus, a report filed with the
Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act that cures such failure or the effectiveness of a
Subsequent Form S-3, and either (x) the Company fails for any reason to satisfy the requirements of Rule 144(c)(1), including,
without limitation, the failure to satisfy the current public information requirement under Rule 144(c); or (y) the Company fails
to satisfy any condition set forth in Rule 144(i)(2) as a result of which any of the Holders are unable to sell Registrable Securities
without restriction under Rule 144 (including, without limitation, volume restrictions) (each such event referred to in foregoing
clauses (i) through (iv), a “Registration Default”), then in such event as partial relief for the damages
to any Holder by reason of any such delay in or reduction of its ability to sell the Registrable Securities and not as a penalty
(which remedy will not be exclusive of any other remedies available at law or equity), the Company hereby agrees to pay to each
Holder, subject to Section 2(d), aggregate additional interest (“Additional Interest”) equal to 0.50%
per annum during the 90- day period immediately following the occurrence of any Registration Default and shall increase by 0.50%
per annum during each subsequent 90-day period, provided that in no event shall the Additional Interest exceed 2.000% per annum,
on all outstanding Notes (and all outstanding Conversion Shares to the extent Conversion Shares have been issued with respect to
any Notes prior to the occurrence of the Registration Default and such Conversion Shares remain Registrable Securities); provided
that any payment on Conversion Shares will be calculated based on the principal amount of the Notes as a result of conversion of
which such Conversion Shares have been issued; provided further that any such Additional Interest will cease to accrue to Holders
hereunder when any such Registration Default will cease, be remedied or be cured.

 

(d)          
Holders’ Agreements. It will be a condition of each Holder’s rights under this Agreement, and each Holder
agrees, as follows:

 

(i)           
Cooperation & Selling Holder Questionnaire. Such Holder will cooperate with the Company by, with reasonable promptness,
supplying information and executing documents relating to such selling Holder or the securities of the Company owned by such selling
Holder in connection with such registration which are customary for offerings of this type or is required by applicable laws or
regulations, including but not limited to furnishing to the Company a completed questionnaire in the form attached to this Agreement
as Annex B (a “Selling Holder Questionnaire”). The Company will not be required to include the Registrable
Securities of a Holder in a Registration Statement and will not be required to pay any Additional Interest or other damages under
Section 2(c) to any Holder who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least five (5)
Business Days prior to the applicable Filing Deadline.

 

(ii)          
Undertakings. Such selling Holder will enter into any undertakings and take such other action relating to the conduct
of the proposed offering which the Company may reasonably request as being necessary to insure compliance with federal and state
securities laws and the rules or other requirements of FINRA.

 

(iii)          
Shelf Sales. In connection with and as a condition to the Company’s obligations with respect to any shelf Registration
Statement, each Holder covenants and agrees that it will not offer or sell any such Registrable Securities under the Registration
Statement until the Registration Statement has been declared effective by the Commission and such Holder has provided a written
notice to the Company of such proposed sale. The Company and the Holders acknowledge and agree that in no way shall this clause
limit Holder’s ability to sell securities without using the Registration Statement.

 

(iv)          
Discontinuance of Sales. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt
of a Suspension Notice or a Discontinuance Notice from the Company, such Holder will forthwith discontinue any offers and sales
of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the supplemented
Prospectus and/or amended Registration Statement or until it is advised in writing (the “Advice”) by
the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional
or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.
The Company and the Holders acknowledge and agree that in no way shall this clause limit Holder’s ability to sell securities
without using the Registration Statement.

 

    6

     

    

 

(e)          
Demand Underwriting Registration Rights. 

 

(i)          
Right to Demand Underwriting Registration. Subject to the other provisions of this Section (2)(e), Holders will have
the right, exercisable by written notice satisfying the requirements of Section (2)(e)(ii) (a “Demand Registration
Notice”) to the Company by any one or more Holders whose aggregate As-Converted Conversion Share Ownership Percentage
exceeds fifty percent (50%) (such Holders, the “Demanding Notice Holders”), to require the Company to
register, under the Securities Act, an underwritten public offering (a “Demand Underwritten Offering”)
of Registrable Securities in accordance with this Section 2(e); provided, however, that:

 

		(1)	no Demand Registration Notice may be delivered, or will be effective if:

 

		(A)	a prior Demand Underwritten Offering is pending or in process, and is not withdrawn, at the time
such Demand Registration Notice is delivered;

 

		(B)	the Company has already effected two (2) Demand Underwritten Offering (excluding Block Trades)
under this Section 2(e)(i);

 

		(C)	the Company has already effected two (2) Block Trades under this Section 2(e)(i);

 

		(D)	it is delivered during a Suspension Period; or

 

		(E)	the aggregate market value of the Registrable Securities of such Holder(s) to be included in the
requested Demand Underwritten Offering is less than seven million five hundred thousand dollars ($7,500,000) (unless such Registrable
Securities constitute all of the Registrable Securities then outstanding and relating to the Notes that was issued pursuant to
the NPA).

 

(ii)           
Contents of Demand Registration Notice. Each Demand Registration Notice Sent by any Demanding Notice Holder(s) must
state the following:

 

(1)          
the name of, and contact information for, each such Demanding Notice Holder(s) and the number of Registrable Securities
held by each such Demanding Notice Holder that are outstanding were issued pursuant to the NPA;

 

(2)          
the desired date of the Offering Launch Time for the requested Demand Underwritten Offering, which desired date cannot (without
the Company’s consent, which will not be unreasonably withheld or delayed) be earlier than ten (10) Business Days after the
date such Demand Registration Notice is delivered to the Company;

 

(3)          
the number of Registrable Securities that are proposed to be sold by each such Demanding Notice Holder; and

 

		(4)	if the intended method of disposition is a Block Trade.

 

(iii)          
Participation by Holders Other Than the Demanding Notice Holder(s). If the Company receives a Demand Registration
Notice sent by one or more Demanding Notice Holders but not by all Holders, then:

 

(1)            the Company will, within one (1) Business Day, send a copy of
such Demand Registration Notice to each Holder other than such Demanding Notice Holders; and

 

    7

     

    

 

(2)               
subject to Section 2(e)(vii), the Company will use its commercially reasonable efforts to include, in the related Demand
Underwritten Offering, Registrable Securities of any such Holder that has requested such Registrable Securities to be included
in such Demand Underwritten Offering pursuant to a joinder notice that complies with the next sentence.

 

		(A)	To include any of its Registrable Securities in such Demand Underwritten Offering, a Holder must
deliver to the Company, no later than the first (1st) Business Day after the date on which Company sent a copy of such Demand Registration
Notice pursuant to subsection (1) above, a written instrument, executed by such Holder, joining in such Demand Registration Notice,
which instrument contains the information set forth in Section 2(e)(ii)(5) with respect to such Holder.

 

(iv)         
Certain Procedures Relating to Demand Underwritten Offering.

 

(1)          
Obligations and Rights of the Company. Subject to the other terms of this Agreement, upon its receipt of a Demand
Registration Notice, the Company will (A) designate a Demand Registration Statement, in accordance with the definition of such
term and this Section 2(e), for the related Demand Underwritten Offering; and (B) use its commercially reasonable efforts to effect
such Demand Underwritten Offering in accordance with the reasonable requests set forth in such Demand Registration Notice or the
reasonable requests of the Holder(s) of a majority of the Registrable Securities included in such Demand Underwritten Offering
(the “Demand Underwritten Offering Majority Holders”), and cooperate in good faith with the Demand Underwritten
Offering Majority Holders in connection therewith. Notwithstanding anything to the contrary in this Agreement, the Company will
not be obligated to effect, or take any actions in respect of, any Demand Underwritten Offering (i) during a Suspension Period
or at any time when the securities proposed to be sold pursuant to such Demand Underwritten Offering are subject to any lock-up
agreement (including pursuant to a prior Demand Underwritten Offering) that has not been waived or released, (ii) after the Company
has already effected two (2) Demand Underwritten Offerings pursuant to this Agreement, or (iii) after the Company has already effected
two (2) Block Trades pursuant to this Agreement. The Company will be entitled to rely on the authority of the Demand Underwritten
Offering Majority Holders of any Demand Underwritten Offering to act on behalf of all Holders that have requested any securities
to be included in such Demand Underwritten Offering.

 

(2)          
Designation of the Underwriting Syndicate. The Managing Underwriters, and any other underwriter, for any Demand Underwritten
Offering will be selected by the applicable Demand Underwritten Offering Majority Holders with the approval of the Company (which
will not be unreasonably withheld or delayed).

 

		(3)	Authority of the Demand Underwritten Offering Majority Holders. The Demand Underwritten
Offering Majority Holders for any Demand Underwritten Offering will have the following rights with respect to such Demand Underwritten
Offering, which rights, if exercised, will be deemed to have been exercised on behalf of all Holders that have requested any securities
to be included in such Demand Underwritten Offering:

 

(A)            
in consultation with the Managing Underwriters for such Demand Underwritten Offering, to determine the Offering Launch Time,
which date must comply with limitations thereon set forth in Section 2(e)(ii)(4);

 

    8

     

    

 

(B)             
to determine the structure of the offering, provided such structure is be reasonably acceptable to the Company;

 

(C)            
to negotiate any related underwriting agreement and it terms, including the amount of securities to be sold by the applicable
Holders pursuant thereto and the offering price of, and underwriting discount for, such securities; provided, however,
that the Company will have the right to negotiate in good faith all of its representations, warranties and covenants, and indemnification
and contribution obligations, set forth in any such underwriting agreement; and

 

(D)            
withdraw such Demand Underwritten Offering by proving written notice of such withdrawal to the Company.

 

(4)        
Confidentiality. Each Holder agrees to treat as confidential information, its delivery or receipt of any Demand Registration
Notice and the information contained therein, including the related Demand Underwritten Offering.

 

(v)          
Conditions Precedent to Inclusion of a Holder’s Registrable Securities. Notwithstanding anything to the contrary
in this Section 2(e), the right of Holder to include any of its Registrable Securities in any Demand Underwritten Offering will
be subject to the following conditions:

 

(1)          
the execution and delivery, by such Holder or it is duly authorized representative or power of attorney, of any related
underwriting agreement and such other agreements or instruments (including customary “lock-up” agreements, custody
agreements and powers of attorney), if any, as may be reasonably requested by the Managing Underwriters for such Demand Underwritten
Offering; and

 

(2)          
the provision, by such Holder no later than the Business Day immediately after the request therefor, of any information
reasonably requested by the Company or such Managing Underwriters in connection with such Demand Underwritten Offering.

 

(vi)         
Priority of Securities in Demand Underwritten Offerings. If the total number of securities requested to be included
in a Demand Underwritten Offering pursuant to this Section 2(e) exceeds the Maximum Successful Underwritten Offering Size for such
Demand Underwritten Offering, then:

 

(1)           
the number of securities to be included in such Demand Underwritten Offering will be reduced to an amount that does not
exceed the Maximum Successful Underwritten Offering Size; and

 

		(2)	to effect such reduction,

 

(A)             
if the number of Registrable Securities of Holders and other persons that have duly requested such Registrable Securities
to be included in such Demand Underwritten Offering in accordance with this Section 2(e) (or in the case of other persons, pursuant
to “piggyback rights” evidenced by another agreement) exceeds such Maximum Successful Underwritten Offering Size, then
number of Registrable Securities to be included in such Demand Underwritten Offering will be allocated first to the Holders pro
rata based on the total number of Registrable Securities so requested by each such Holder to be included in such Demand Underwritten
Offering and, thereafter to other persons.

 

    9

     

    

 

(f)           
Piggyback Registrations. Without limiting any obligation of the Company, if (i) there is not an effective Registration
Statement covering all of the Registrable Securities, if the Prospectus contained therein is not available for use, or if Rule
144 is not available with respect to the Registrable Securities and (ii) the Company shall determine to prepare and file with the
Commission a registration statement or offering statement relating to an offering for its own account or the account of others
under the Securities Act of any of its equity or equity-linked securities (other than on Form S-4 or Form S-8 (each as promulgated
under the Securities Act) or their then equivalents relating to equity or equity-linked securities to be issued solely in connection
with any acquisition of any entity or business (or a business combination subject to Rule 145 under the Securities Act) or equity
or equity-linked securities issuable in connection with the Company’s stock option or other employee benefit plans), or a
dividend reinvestment or similar plan or rights offering, then the Company shall deliver to each Holder a written notice of such
determination and, if within fifteen (15) calendar days after the date of the delivery of such notice, any such Holder shall so
request in writing, the Company shall include in such registration statement or offering statement all or any part of such Registrable
Securities that such Holder requests to be registered; provided, however, the Company shall not be required to register any Registrable
Securities pursuant to this Section 2(f) that are the subject of a then-effective Registration Statement. The Company may postpone
or withdraw the filing or the effectiveness of a piggyback registration at any time in its sole discretion. The Company shall not
grant piggyback registration rights to any holders of its Common Stock or securities that are convertible into its Common Stock
that are senior to the rights of the Holders set forth in this Section 2(f).

 

		3.	Registration Procedures. In connection with the Company’s obligations to effect a
registration pursuant to Section 2(a), the Company and, as applicable, the Holders, will do the following:

 

(a)           
FINRA Cooperation. The Company and the Holders will cooperate and assist in any filings required to be made with
FINRA.

 

(b)           
Right to Review Prior Drafts. Not less than ten (10) Business Days prior to the filing of a Registration Statement
or any related Prospectus or any amendment or supplement thereto, the Company will furnish to each Holder copies of the “Selling
Securityholders” and “Plan of Distribution” sections of such documents (together with
drafts of the Registration Statement or any related Prospectus or any amendment or supplement thereto) in the form in which the
Company proposes to file them, which sections and documents will be subject to the review of each such Holder. Each Holder will
provide comments, if any, within five (5) Business Days after the date such materials are provided. The Company will not file
a Registration Statement, any Prospectus or any amendments or supplements thereto in which the “Selling Securityholders”
or the “Plan of Distribution” sections thereof differ in any material respect from the disclosure received
from a Holder in its Selling Holder Questionnaire (as amended or supplemented) or otherwise differ in any material respect from
the drafts previously received by such Holder. Each Holder whose Registrable Securities are to be sold pursuant to a Demand Underwritten
Offering in accordance with Section 2(e) will be afforded the same rights set forth in this Section 3(b) with respect to any Registration
Statement or Prospectus or any amendment or supplement thereto which names such Holder.

 

(c)           
Right to Copies. The Company will furnish to each Holder and the Managing Underwriters, if any, without charge,
(i) at least one (1) conformed copy of each Registration Statement and each amendment thereto and all exhibits to the extent requested
by such Holder (excluding those previously furnished or incorporated by reference) promptly after the filing of such documents
with the Commission, except if such documents are available on EDGAR; and (ii) as many copies of each Prospectus or Prospectuses
(including each form of prospectus) and each amendment or supplement thereto as such Holder may reasonably request. The Company
hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders or Managing
Underwriters, as applicable, in connection with the offering and sale of the Registrable Securities covered by such Prospectus
and any amendment or supplement thereto.

 

    10

     

    

 

(d)           
Notices. The Company will notify each Holder covered by the Registration Statement as promptly as reasonably practicable:
(A) when the Prospectus or any prospectus supplement or post-effective amendment has been filed, and with respect to the Registration
Statement or any post-effective amendment, when the same has become effective; (B) of any request by the Commission for any amendments
or supplements to the Registration Statement or the Prospectus or for additional information; (C) of the issuance by the Commission
of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose;
(D) if, at any time prior to the closing contemplated by the NPA, it becomes aware that the representations and warranties of
the Company contained in such agreement cease to be true and correct; (E) of the receipt by the Company of any notification with
respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; (F) of the happening of any event which it believes may make any statement made
in the Registration Statement, the Prospectus or any document incorporated therein by reference untrue, or of any material misstatement
or omission, and which requires the making of any changes in the Registration statement, the Prospectus or any document incorporated
therein by reference in order to make the statements therein not misleading; (G) upon the occurrence of a Suspension Period (items
(C) through and including (G) being a “Discontinuance Notice”); and (H) upon the conclusion of a Suspension
Period. In addition, during the pendency of any Demand Underwritten Offering pursuant to Section 2(e), but other than during a
Suspension Period, the Company will provide notice to each Holder whose Registrable Securities are to be sold in such offering
pursuant to the Registration Statement used in connection with the Demand Underwritten Offering, which Holders will be afforded
the same notice set forth in clauses (A) through (H) of this Section 3(d) relating to such Registration Statement.

 

(e)            
Withdrawal of Suspension Orders. The Company will use its reasonable best efforts to respond as promptly as reasonably
possible to any comments received from the Commission with respect to any Registration Statement or any amendment thereto and
to obtain the withdrawal of any order suspending the effectiveness of the Registration Statement or the suspension of the qualification
of the Registrable Securities for sale in any jurisdiction, or to prevent any such suspension.

 

(f)            
Supplements & Amendments. Subject to Sections 2(a) and 2(e), if required, based on the advice of the Company’s
counsel, the Company will prepare a supplement or post-effective amendment to a Registration Statement, the related Prospectus
or any document incorporated therein by reference or file any other required document or, if necessary, renew or refile a Registration
Statement prior to its expiration, so that, as thereafter delivered to the purchasers of the Registrable Securities, (A) the Prospectus
will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein
not misleading; (B) such Registration Statement remains continuously effective as to the applicable Registrable Securities for
its applicable Effectiveness Period; (C) the related Prospectus may be supplemented by any required prospectus supplement, and
as so supplemented may be filed pursuant to Rule 424 and (D) the Prospectus will be supplemented, if necessary, to update the
disclosure of the number of shares that each Holder intends to sell, reflecting prior resales in accordance with guidance of the
staff of the Commission (as such guidance may be substituted for, amended or supplemented by the staff of the Commission after
the date of this Agreement). Furthermore, subject to a Holder’s compliance with its obligations under Section 2(d)(i), the
Company will take such actions as are required to name such Holder as a selling Holder in a Registration Statement or any supplement
thereto and to include (to the extent not theretofore included) in such Registration Statement the Registrable Securities identified
in such Holder’s Selling Holder Questionnaire.

 

(g)           
Listing. The Company will use its reasonable best efforts to cause all Shares and Conversion Shares that constitute
Registrable Securities covered by the Registration Statement to be listed on each securities exchange on which identical securities
issued by the Company are then listed if requested by the Holder thereof and, if not so listed, to be approved for listing on
the national securities exchange on which the Company’s Common Stock is then listed.

 

    11

     

    

 

(h)           
Transfer Agent & Registrar. The Company will provide and cause to be maintained a transfer agent and registrar
for all Registrable Securities covered by such Registration Statement from and after a date not later than the Effective Date
of such Registration Statement.

 

(i)            
Certificates. The Company will cooperate with the Holders to facilitate the timely preparation and delivery of any
certificates representing Registrable Securities to be delivered to a transferee pursuant to any Registration Statement, which
certificates will be free of all restrictive legends, and to enable such Registrable Securities to be in such denominations and
registered in such names as any such Holders may reasonably request.

 

(j)             
CUSIPs. The Company, if necessary, will use its best efforts to provide a CUSIP number for the Registrable Securities,
not later than the Effective Date of the Registration Statement.

 

(k)            
[Reserved.]

 

(l)             
Legal Counsel. Holders will have the right to select one legal counsel, at the Company’s expense pursuant
to Section 4, to review any Registration Statement or Prospectus prepared pursuant to Section 2 or this Section 3, which will
be such counsel as designated by the Holders of a majority of the Registrable Securities then outstanding. The Company will reasonably
cooperate with such legal counsel’s reasonable requests in performing their obligations under this Agreement.

 

(m)          
Blue Sky. The Company will, prior to any public offering of Registrable Securities, use its reasonable best efforts
to register or qualify or cooperate with the selling Holders or Managing Underwriters, in the case of a Demand Underwritten Offering,
in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or blue sky laws (“Blue Sky”) of all jurisdictions
within the United States that the selling Holders or Managing Underwritings, in the case of a Demand Underwritten Offering, request
in writing be covered, to keep each such registration or qualification (or exemption therefrom) effective during the applicable
Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions
of the Registrable Securities covered by any Registration Statement, including in connection with a Demand Underwritten Offering;
provided, that the Company will not be required to qualify generally to do business in any jurisdiction where it is not then so
qualified or to become subject to any material tax in any such jurisdiction where it is not then so subject.

 

(n)           
Subsequent Form S-3. If, at the time of filing of a Registration Statement, the Company is not eligible to use Form
S-3 for transactions involving secondary offerings and the Company is not otherwise eligible to incorporate by reference prospectively
into such Registration Statement, then at such time as the Company becomes eligible to register transactions involving secondary
offerings on Form S-3, the Company may, in its sole discretion, file in accordance with the procedures outlined in this Section
3, including but not limited to all required notices to the Holders, an additional Registration Statement on Form S-3 to cover
resales pursuant to Rule 415 of the Registrable Securities (a “Subsequent Form S-3”), and, when such
Subsequent Form S-3 has been filed with the Commission, the Company may, concurrently with its filing of a request for acceleration
of effectiveness of such Subsequent Form S-3, withdraw or terminate the original Registration Statement; provided, however, that
nothing in this Section 3(n) will be interpreted to limit the Company’s obligations pursuant to Section 2(a).

 

(o)           
Certain Covenants Relating to Underwritten Offerings. The following covenants will apply, in each case to the extent
applicable, in connection with any Demand Underwritten Offering:

 

(i)            
Underwriting Agreement and Related Matters. The Company will (1) execute and deliver any customary underwriting agreement
or other agreement or instrument reasonably requested by the Managing Underwriters for such offering; (2) use its commercially
reasonable efforts to cause such customary legal opinions, comfort letters, “lock-up” agreements and officers’
certificates to be delivered in connection therewith; and (3) cooperate in good faith with such Managing Underwriters in connection
with the disposition of Registrable Securities pursuant to such offering.

 

    12

     

    

 

(ii)           
Marketing and Roadshow Matters. The Company will cooperate in good faith with the Managing Underwriters for such
offering in connection with any marketing activities relating to such offering.

 

(iii)          
FINRA Matters. The Company will cooperate and assist in any filings required to be made with FINRA in connection
with such offering.

 

		4.	Registration Expenses.

 

All fees and expenses
incident to the performance of or compliance with this Agreement by the Company will be borne by the Company whether or not any
Registrable Securities are sold pursuant to a Registration Statement including, without limitation: (i) all registration and filing
fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market
on which the Common Stock is then listed for trading, (B) related to compliance with applicable state securities or Blue Sky laws
and (C) incurred in connection with the preparation or submission of any filing with FINRA); (ii) printing expenses (including,
without limitation, expenses of printing certificates for Registrable Securities and of printing Prospectuses); (iii) messenger,
telephone and delivery expenses; (iv) fees and disbursements of counsel for the Company and counsel pursuant to Section 3(l); (v)
Securities Act liability insurance, if the Company so desires such insurance; (vi) fees and expenses of all other persons retained
by the Company in connection with the consummation of the transactions contemplated by this Agreement and (vii) all of the Company’s
own internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense
of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities
exchange as required hereunder; provided, however, that each selling Holder will pay (i) all underwriting discounts, commissions,
fees and expenses and all transfer taxes with respect to the Registrable Securities sold by such selling Holder; (ii) any fees
and expenses of legal counsel other than the counsel selected pursuant to Section 3(l) and (iii) all other expenses incurred by
such selling Holder and incidental to the sale and delivery of the shares to be sold by such Holder.

 

		5.	Indemnification.

 

(a)           
Indemnification by the Company. The Company will, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, partners, members and shareholders of each Holder and each person who controls any
Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the directors and officers
of any such controlling persons, to the fullest extent permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys’ fees)
and expenses (collectively, “Losses”), as incurred, arising out of or based upon, in the case of the
Registration Statement or in any amendments thereto, any untrue or alleged untrue statement of a material fact contained therein
or any omission or alleged omission to state therein a material fact required to be stated therein to make the statements not misleading,
or in the case of any Prospectus or form of prospectus, or in any amendment or supplement thereto, or in any preliminary prospectus,
any untrue or alleged untrue statement of a material fact contained therein or any omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, except to the extent, but only to the extent, that such untrue statements or omissions (1)
are made in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Holder expressly
for use in a Registration Statement, or to the extent that such information relates to such Holder or such Holder’s proposed
method of distribution of Registrable Securities and was reviewed and approved in writing by such Holder for use in the Registration
Statement, such Prospectus or such form of Prospectus (it being understood and agreed that the only such information furnished
to the Company by or on behalf of any Holder consists of the information described in Annex A hereto, as may be amended in accordance
with the provisions of this Agreement, for this purpose) or (2) resulted from the use by any Holder of an outdated or defective
Prospectus after the Company has notified such Holder in writing that such Prospectus is outdated or defective and prior to the
receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the
receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have
been corrected.

 

    13

     

    

 

(b)          
Indemnification by Holders. Each Holder will, severally and not jointly, indemnify and hold harmless the Company, its
directors, officers, partners, members and shareholders and each person who controls the Company (within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act) and the directors and officers of such controlling person, in each
case to the fullest extent permitted by applicable law from and against all Losses, as incurred, arising solely out of or based
upon, in the case of the Registration Statement or in any amendments thereto, any untrue or alleged untrue statement of a material
fact contained therein or any omission or alleged omission to state therein a material fact required to be stated therein to make
the statements not misleading, or in the case of any Prospectus or form of prospectus, or in any amendment or supplement thereto,
or in any preliminary prospectus, any untrue or alleged untrue statement of a material fact contained therein or any omission or
alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading to the extent, but only to the extent, that such untrue statements
or omissions (1) are made in reliance upon and in conformity with written information furnished to the Company by or on behalf
of any Holder expressly for use in a Registration Statement or Prospectus, or to the extent that such information relates to such
Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and approved in writing
by such Holder for use in the Registration Statement or Prospectus (it being understood and agreed that the only such information
furnished to the Company by or on behalf of any Holder consists of the information described in Annex A hereto, as may be amended
in accordance with the provisions of this Agreement, for this purpose) or (2) resulted from the use by such Holder of an outdated
or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and
prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following
the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would
have been corrected; provided, however, that the obligation to indemnify will be several and not joint and in no event will the
liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by any such
selling Holder upon the sale of the Registrable Securities under the Registration Statement giving rise to such indemnification
obligation.

 

(c)          
Conduct of Indemnification Proceedings. In order for a Person (the “Indemnified Party”) to
be entitled to any indemnification provided for under this Agreement in respect of, arising out of or involving a claim or demand
made by any Person against the Indemnified Party (a “Claim”), such Indemnified Party must notify the
indemnifying party (“Indemnifying Party”) in writing, and in reasonable detail, of the Claim as promptly
as reasonably possible after receipt by such Indemnified Party of notice of the Claim; provided, however, that failure to give
such notification on a timely basis shall not affect the indemnification provided hereunder except to the extent the Indemnifying
Party shall have been actually materially prejudiced as a result of such failure. Thereafter, the Indemnified Party shall deliver
to the Indemnifying Party, promptly after the Indemnified Party’s receipt thereof, copies of all notices and documents (including
court filings and related papers) received by the Indemnified Party relating to the Claim.

 

    14

     

    

 

If a Claim is made
against an Indemnified Party, the Indemnifying Party shall be entitled to participate in the defense thereof and, if it so chooses
and acknowledges its obligation in writing to indemnify the Indemnified Party therefor, to assume at its cost the defense thereof
with counsel selected by the Indemnifying Party and reasonably satisfactory to the Indemnified Party and to settle such suit, action,
claim or proceeding in its discretion with an unconditional full release of the Indemnified Party and no admission of fault, liability,
culpability or a failure to act by or on behalf of the Indemnified Party. Notwithstanding any acknowledgment made pursuant to the
immediately preceding sentence, the Indemnifying Party shall continue to be entitled to assert any limitation to the amount of
Losses for which the Indemnifying Party is responsible pursuant to its indemnification obligations. Should the Indemnifying Party
so elect to assume the defense of a Claim, the Indemnifying Party shall not be liable to the Indemnified Party for legal expenses
subsequently incurred by the Indemnified Party in connection with the defense thereof unless (i) the Indemnifying Party has materially
failed to defend, contest or otherwise protest in a timely manner against Claims or (ii) such Indemnified Party reasonably objects
to such assumption on the grounds that there are defenses available to it which are different from or in addition to the defenses
available to such Indemnifying Party and, as a result, a conflict of interest exists. Subject to the limitations in the preceding
sentence, if the Indemnifying Party assumes such defense, the Indemnified Party shall have the right to participate in the defense
thereof and to employ counsel, at its own expense, separate from the counsel employed by the Indemnifying Party, it being understood,
however, that the Indemnifying Party shall control such defense. The Indemnifying Party shall be liable for the fees and expenses
of counsel employed by the Indemnified Party for any period during which the Indemnifying Party has not assumed the defense thereof.
If the Indemnifying Party chooses to defend any Claim, all the parties hereto shall cooperate in the defense or prosecution of
such Claim. Such cooperation shall include the retention and (upon the Indemnifying Party’s request) the provision to the
Indemnifying Party of records and information which are reasonably relevant to such Claim, and making employees available on a
mutually convenient basis to provide additional information and explanation of any material provided hereunder. Whether or not
the Indemnifying Party shall have assumed the defense of a Claim, the Indemnified Party shall not admit any liability with respect
to, or settle, compromise or discharge, such Claim without the Indemnifying Party’s prior written consent (which consent
shall not be unreasonably withheld).

 

The obligations of
the Company and the Holders under this Section 5 shall survive completion of any offering of Registrable Securities pursuant to
a Registration Statement and the termination of this Agreement. The Indemnifying Party’s liability to any such Indemnified
Party hereunder shall not be extinguished solely because any other Indemnified Party is not entitled to indemnity hereunder.

 

(d)           
Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason
of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, will contribute to
the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect
the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and
Indemnified Party will be determined by reference to, among other things, whether any action in question, including any untrue
or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or
relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a
party as a result of any Losses will be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable
attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the indemnification provided for in Section 5(a) or 5(b) was available
to such party in accordance with its terms. The parties hereto agree that it would not be just and equitable if contribution pursuant
to this Section 5 were determined by pro rata allocation or by any other method of allocation that does not take into account the
equitable considerations referred to in this Section 5. Notwithstanding the provisions of this Section 5, no Holder will be required
to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from
the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

 

    15

     

    

 

(e)           
Other. The indemnity and contribution agreements contained in this Section 5 are in addition to any liability that the
Indemnifying Parties may have to the Indemnified Parties.

 

		6.	Miscellaneous.

 

(a)           
Notices. All notices or other communications hereunder will be in writing and will be given by (i) personal delivery,
(ii) courier or other delivery service which obtains a receipt evidencing delivery, (iii) registered or certified mail (postage
prepaid and return receipt requested) or (iv) facsimile or similar electronic device, to such address as may be designated from
time to time by the relevant party, and which will initially be:

 

(i)          
in the case of the Company:

 

Senseonics Holdings, Inc.

24051 Seneca Meadows Parkway

Germantown, MD 20876

Facsimile: (301) 515-0988

Attention: Chief Financial Officer

 

With a copy to:

 

Cooley LLP

11951 Freedom Drive

Reston, VA 20190

Facsimile: (703) 456-8100

Attention: Christian E. Plaza

 

(ii)         
in the case of the Purchaser, to the address set forth below each such Purchaser’s name on the signature page attached
hereto.

 

Notices to Holders
shall be provided to the address specified on such Holder’s Selling Holder Questionnaire. All notices and other communications
will be deemed to have been given (i) if delivered by the United States mail, three (3) Business Days after mailing (five (5) Business
Days if delivered to an address outside of the United States), (ii) if delivered by a courier or other delivery service, one (1)
Business Day after dispatch (two (2) Business Days if delivered to an address outside of the United States) and (iii) if personally
delivered or sent by facsimile or similar electronic device, upon receipt by the recipient or its agent or employee (which, in
the case of a notice sent by facsimile or similar electronic device, will be the time and date indicated on the transmission confirmation
receipt). No objection may be made by a party to the manner of delivery of any notice actually received in writing by an authorized
agent of such party.

 

    16

     

    

 

(b)            
Governing Law; Jurisdiction; Jury Trial; etc. This Agreement shall be governed by, and construed in accordance with, the
internal laws of the State 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 brought in an inconvenient forum or that the venue of such suit,
action or proceeding is improper. 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 to such party at the address for such notices
to it under this Agreement and agrees that such service will constitute good and sufficient service of process and notice
thereof. Nothing contained herein will be deemed to limit in any way any right to serve process in any manner permitted by
law. Each party hereby irrevocably waives any right it may have, and agrees not to request, a jury trial for the adjudication
of any dispute hereunder or in connection with or arising out of this Agreement or any transaction contemplated hereby.

 

(c)          
Remedies. In the event of a breach by the Company of its obligations under this Agreement, each 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 Agreement. The Company agrees that monetary damages would not be adequate compensation for any loss incurred
by reason of a breach by it of any of the provisions of this Agreement and hereby waives the defense in any action for specific
performance that a remedy at law would be adequate.

 

(d)         
Complete Agreement; Modifications. This Agreement and any documents referred to herein or executed contemporaneously
herewith constitute the parties’ entire agreement with respect to the subject matter hereof and supersede all agreements,
representations, warranties, statements, promises and understandings, whether oral or written, with respect to the subject matter
hereof. This Agreement may be amended, altered or modified only by a writing signed by the Company and the Holders of a majority
of the Registrable Securities then outstanding.

 

(e)          
Additional Documents. Each party hereto agrees to execute any and all further documents and writings and to perform
such other actions which may be or become necessary or expedient to effectuate and carry out this Agreement.

 

(f)           
Third-Party Beneficiaries. None of the provisions of this Agreement will be for the benefit of, or enforceable by, any
third-party beneficiary, except with respect to the Holders.

 

(g)         
Successors and Assigns. Except as provided herein to the contrary, this Agreement will be binding upon and inure to
the benefit of the parties, their respective successors and permitted assigns.

 

(h)         
Waivers Strictly Construed. With regard to any power, remedy or right provided herein or otherwise available to any
party hereunder (a) no waiver or extension of time will be effective unless expressly contained in a writing signed by the waiving
party and (b) no alteration, modification or impairment will be implied by reason of any previous waiver, extension of time, delay
or omission in exercise, or other indulgence.

 

(i)          
Severability. The validity, legality or enforceability of the remainder of this Agreement will not be affected even
if one or more of the provisions of this Agreement will be held to be invalid, illegal or unenforceable in any respect.

 

(j)           
Attorneys’ Fees. Should any litigation be commenced (including any proceedings in a bankruptcy court) between
the parties hereto or their representatives concerning any provision of this Agreement or the rights and duties of any person or
entity hereunder, the party or parties prevailing in such proceeding will be entitled, in addition to such other relief as may
be granted, to the attorneys’ fees and court costs incurred by reason of such litigation.

 

(k)          
Headings. The Section headings in this Agreement are inserted only as a matter of convenience, and in no way define,
limit, extend or interpret the scope of this Agreement or of any particular Section.

 

(l)           
Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed
an original, but all of which together will constitute one and the same instrument.

 

[Remainder of Page Intentionally
Left Blank, Signature Pages to Follow]

 

    17

     

    

 

IN WITNESS WHEREOF, the parties
have executed this Resale Registration Rights Agreement as of the date first written above.

 

	 	SENSEONICS
    HOLDINGS, INC.
	 	 
	 	 
	 	By:	 /s/ Tim Goodnow
	 	Name:   	Timothy T. Goodnow
	 	Title:	 President and CEO

 

[Signature Page to Resale
Registration Rights Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, the parties have executed this Resale
Registration Rights Agreement as of the date first written above.

 

	 	PURCHASER:
	 	 
	 	PHC
    HOLDINGS CORPORATION
	 	 
	 	By: 	/s/ Michael Kloss
	 	Name:  	 Michael Kloss
	 	Title: 	President and Chief Executive Officer

 

[Signature Page to Resale
Registration Rights Agreement]

 

     

     

    

 

PLAN OF DISTRIBUTION

 

We are registering
the Securities covered by this prospectus on behalf of the Selling Securityholders. All costs, expenses and fees connected with
the registration of these Securities will be borne by us. Any brokerage commissions and similar expenses connected with selling
the Securities will be borne by the Selling Securityholders. The Selling Securityholders may offer and sell the Securities covered
by this prospectus from time to time in one or more transactions. The term “Selling Securityholders”
includes pledgees, donees, transferees and other successors-in-interest who may acquire Securities through a pledge, gift, partnership
distribution or other non-sale related transfer from the Selling Securityholders. The Selling Securityholders will act independently
of the Company in making decisions with respect to the timing, manner and size of each sale. These transactions include:

 

		·	through one or more underwriters or dealers in a public offering and sale by them, whether individually
or through an underwriting syndicate led by one or more managing underwriters;

 

		·	in “at the market offerings” within the meaning of Rule 415(a)(4) under the Securities
Act, to or through a market maker or into an existing trading market, on an exchange or otherwise;

 

		·	directly to a limited number of purchasers or to a single purchaser;

 

		·	through agents;

 

		·	by delayed delivery contracts or by remarketing firms;

 

		·	ordinary brokerage transactions and transactions in which the broker solicits purchasers;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its own account pursuant
to this prospectus;

 

		·	exchange or over-the-counter distributions in accordance with the rules of the exchange or other
market;

 

		·	block trades in which the broker-dealer attempts to sell the Securities as agent but may position
and resell a portion of the block as principal to facilitate the transaction;

 

		·	transactions in options, swaps or other derivatives that may or may not be listed on an exchange;

 

		·	a combination of any such method of sale; or

 

		·	any other method permitted pursuant to applicable law.

 

In connection with
distributions of the Securities or otherwise, the Selling Securityholders may:

 

		·	sell the Securities:

 

		·	in negotiated transactions;

 

		·	in one or more transactions at a fixed price or prices, which may be changed from time to time;

 

     

     

    

 

		·	at market prices prevailing at the times of sale;

 

		·	at prices related to such prevailing market prices; or

 

		·	at negotiated prices;

 

		·	sell the Securities:

 

		·	on a national securities exchange;

 

		·	in the over-the-counter market; or

 

		·	in transactions otherwise than on an exchange or in the over-the-counter market, or in combination;

 

		·	sell the Securities short and/or deliver the Securities to close out short positions;

 

		·	enter into option or other transactions with broker-dealers or other financial institutions which
require the delivery to them of Securities covered by this prospectus, which they may in turn resell; and

 

		·	pledge Securities to broker-dealers or other financial institutions, which, upon a default, they
may in turn resell.

 

The Selling Securityholders
may also resell all or a portion of the Securities in open market transactions in reliance upon Rule 144 under the Securities Act
of 1933, as amended, or the Securities Act, as permitted by that rule, Section 4(a)(1) under the Securities Act, if available,
or any other exemption from the registration requirements that become available, rather than under this prospectus.

 

If underwriters are
used in the sale of any Securities, such Securities will be acquired by the underwriters for their own account and may be resold
from time to time in one or more transactions described above. Securities may be either offered to the public through underwriting
syndicates represented by managing underwriters or directly by underwriters. We may use underwriters with whom we have a material
relationship. As applicable, we will describe in each accompanying prospectus supplement the name of the underwriter(s) and the
nature of any such relationship(s).

 

If a dealer is used
in an offering of Securities, the dealer may purchase the securities, as principal. The dealer may then resell the Securities to
the public at varying prices to be determined by the dealer at the time of sale.

 

Securities may be sold
directly or through agents designated from time to time. We will name any agent involved in the offering and sale of such shares
and we will describe any commissions paid to the agent in the prospectus supplement. Unless the prospectus supplement states otherwise,
the agent will act on a best-efforts basis for the period of its appointment.

 

Underwriters, dealers
and agents may be entitled to indemnification by us against certain civil liabilities, including liabilities under the Securities
Act, or to contribution with respect to payments made by the underwriters, dealers or agents, under agreements between us and the
underwriters, dealers and agents.

 

Underwriters who participate
in the distribution of Securities may be granted an option to purchase additional Securities in connection with the distribution.

 

    2

     

    

 

Underwriters, dealers
or agents may receive compensation in the form of discounts, concessions or commissions from us or our purchasers, as their agents
in connection with the sale of securities. These underwriters, dealers or agents may be considered to be underwriters under the
Securities Act. As a result, discounts, commissions or profits on resale received by the underwriters, dealers or agents may be
treated as underwriting discounts and commissions. Each accompanying prospectus supplement will identify any such underwriter,
dealer or agent and describe any compensation received by them from us. Any initial public offering price and any discounts or
concessions allowed or re-allowed or paid to dealers may be changed from time to time.

 

In connection with
sales of Securities, the Selling Securityholders may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of Securities in the course of hedging in positions they assume. The Selling Securityholders
may also sell Securities short and the Selling Securityholders may deliver Securities covered by this prospectus to close out short
positions and to return borrowed Securities in connection with such short sales. The Selling Securityholders may also loan or pledge
Securities to broker-dealers that in turn may sell such Securities, to the extent permitted by applicable law. The Selling Securityholders
may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or
more derivative securities which require the delivery to such broker-dealer or other financial institution of Securities offered
by this prospectus, which Securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as
supplemented or amended to reflect such transaction).

 

The Selling Securityholders
may, from time to time, pledge or grant a security interest in some or all of the Securities owned by them and, if they default
in the performance of their secured obligations, the pledgees or secured parties may offer and sell the Securities from time to
time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the
Securities Act, amending, if necessary, the list of Selling Securityholders to include the pledgee, transferee or other successors
in interest as Selling Securityholders under this prospectus. The Selling Securityholders may also may transfer and donate Securities
in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial
owners for purposes of this prospectus.

 

Any underwriter may
engage in over-allotment transactions, stabilizing transactions, short-covering transactions and penalty bids in accordance with
Regulation M under the Exchange Act of 1934.

 

Underwriters, broker-dealers
or agents who may become involved in the sale of Securities may engage in transactions with, and perform other services for, us
in the ordinary course of their business for which they receive compensation.

 

In effecting sales,
the Selling Securityholders may engage broker-dealers or agents, who may in turn arrange for other broker-dealers to participate.
Broker-dealers or agents may receive commissions, discounts or concessions from the Selling Securityholders and/or from the purchasers
of Securities for whom the broker-dealers may act as agents or to whom they sell as principal, or both. The compensation to a particular
broker-dealer may be in excess of customary commissions. To our knowledge, there is currently no plan, arrangement or understanding
between any Selling Securityholders and any broker-dealer or agent regarding the sale of any Securities by the Selling Securityholders.

 

The Selling Securityholders,
any broker-dealers or agents and any participating broker-dealers that act in connection with the sale of the Securities covered
by this prospectus may be “underwriters” under the Securities Act with respect to those Securities and will be subject
to the prospectus delivery requirements of that Act. Any profit that the Selling Securityholders realize, and any compensation
that any broker-dealer or agent may receive in connection with any sale, including any profit realized on resale of Securities
acquired as principal, may constitute underwriting discounts and commissions. If the Selling Securityholders are deemed to be underwriters,
the Selling Securityholders may be subject to certain liabilities under statutes including, but not limited to, Section 11, 12
and 17 of the Securities Act and Section 10(b) and Rule 10b-5 under the Exchange Act.

 

    3

     

    

 

The securities laws
of some states may require the Selling Securityholders to sell the Securities in those states only through registered or licensed
brokers or dealers. These laws may also require that we register or qualify the Securities for sale in those states unless an exemption
from registration and qualification is available and the Selling Securityholders and we comply with that exemption. In addition,
the anti-manipulation rules of Regulation M under the Securities Exchange Act of 1934 may apply to sales of Securities in the market
and to the activities of the Selling Securityholders and their affiliates. Regulation M may restrict the ability of any person
engaged in the distribution of the Securities to engage in market-making activities with respect to the Securities. All of the
foregoing may affect the marketability of the Securities and the ability of any person to engage in market-making activities with
respect to the Securities.

 

If any Selling Securityholder
notifies us that he has entered into any material arrangement with a broker-dealer for the sale of Securities through a block trade,
special offering, exchange distribution, over-the-counter distribution or secondary distribution, or a purchase by a broker or
dealer, we will file any necessary supplement to this prospectus to disclose:

 

		·	the number of Securities involved in the arrangement;

 

		·	the terms of the arrangement, including the names of any underwriters, dealers or agents who purchase
Securities, as required;

 

		·	the proposed selling price to the public;

 

		·	any discount, commission or other underwriting compensation;

 

		·	the place and time of delivery for the Securities being sold;

 

		·	any discount, commission or concession allowed, reallowed or paid to any dealers; and

 

		·	any other material terms of the distribution of Securities.

 

In addition, if the
Selling Securityholder notifies us that a donee, pledgee, transferee or other successor-in-interest of the Selling Securityholder
intends to sell more than [ ] Securities, we will file a supplement to this prospectus.

 

    4

     

    

 

SENSEONICS HOLDINGS, INC.

 

SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

 

The undersigned beneficial
owner of common stock, $0.001 par value per share (the “Common Stock”) and/or securities, of Senseonics Holdings,
Inc. (the “Company”) understands that the Company has filed or intends to file with the Securities and Exchange
Commission (the “Commission”) a Registration Statement for the registration and resale of the Registrable Securities,
in accordance with the terms of the Registration Rights Agreement, dated as of August 9, 2020 (the “Registration Rights
Agreement”), among the Company and the Purchaser (as defined therein). A copy of the Registration Rights Agreement is
available from the Company upon request at the address set forth below. All capitalized terms used and not otherwise defined herein
will have the meanings ascribed thereto in the Registration Rights Agreement.

 

The undersigned hereby
provides the following information to the Company and represents and warrants that such information is accurate:

 

		1.	Name.

 

		(a)	Full Legal Name of Selling Securityholder
	 	 	 
	 	 	 

 

		(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities
Listed in Item 3 below are held:
	 	 	 
	 	 	 

 

		(c)	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly
alone or with others has power to vote or dispose of the securities covered by the questionnaire):
	 	 	 
	 	 	 

 

		2.	Address for Notices to Selling Securityholder:

 

	Name:	 
	 	 
	Address:	 
	 	 
	 	 
	Telephone:	 
	 	 
	Fax:	 
	 	 
	Contact Person:	 

 

		3.	Beneficial Ownership of Registrable Securities:

 

		(a)	Type and Amount of Registrable Securities Beneficially Owned:
	 	 	 
	 	 	 

 

    5

     

    

 

		4.	Broker-Dealer Status:

 

		(a)	Are you a broker-dealer?

 

Yes  ̈
 No  ̈ 

 

Note: If yes, the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

		(b)	Are you an affiliate of a broker-dealer?

 

Yes  ̈
 No  ̈ 

 

		(c)	If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities
in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements
or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes  ̈
 No  ̈ 

 

Note: If no, the Commission’s
staff has indicated that you should be identified as an underwriter in the Registration Statement.

 

		5.	Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder.

 

Except as set forth below in
this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable
Securities listed above in Item 3.

 

Type and Amount of Other Securities
Beneficially Owned by the Selling Securityholder:

 

	 	 
	 	 
	 	 

 

		6.	Relationships with the Company:

 

Except as set forth
below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more
of the equity securities of the undersigned) has held any position or office or has had any other material relationship with the
Company (or its predecessors or affiliates) during the past three years.

 

	 	State any exceptions here:	 
	 	 
	 	 

 

The undersigned agrees
to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof and prior to the Effective Date for the Registration Statement.

 

By signing below, the
undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion
of such information in the Registration Statement and the related prospectus. The undersigned understands that such information
will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related
prospectus.

 

    6

     

    

 

IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person
or by its duly authorized agent.

 

	Dated:	Beneficial Owner:
	 	 
	 	 
	 	By:	 
	 	Name:	       
	 	Title:	 

 

PLEASE FAX A COPY OF THE COMPLETED
AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

 

Senseonics
Holdings, Inc.

24051 Seneca Meadows Parkway

Germantown, MD 20876

Facsimile: (301) 515-0988

Attention: Chief Financial Officer

 

    7

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