Document:

Transfer Restriction Agreement

 
EXHIBIT 10.2

 
 
TRANSFER RESTRICTION AGREEMENT 
OF DORCHESTER MINERALS MANAGEMENT GP
LLC 
AND DORCHESTER MINERALS MANAGEMENT LP 
 
February 1, 2003 
 
 
 

 
TABLE OF
CONTENTS 
 

	 	  	 	  	 	  	 PAGE

	
	 I.
	  	 DEFINITIONS
	  	 1

	
	 	  	 Section 1.1.
	  	 Definitions
	  	 1

	
	 II.
	  	 RESTRICTIONS ON TRANSFER
	  	 4

	
	 	  	 Section 2.1.
	  	 General Restriction on Transfer
	  	 4

	
	 	  	 Section 2.2.
	  	 No Separate Transfers of Company Ownership and Partnership Ownership
Interests
	  	 4

	
	 	  	 Section 2.3.
	  	 Securities Laws Restrictions
	  	 5

	
	 	  	 Section 2.4.
	  	 Continuation of Restrictions After Transfer
	  	 5

	
	 III.
	  	 PERMITTED TRANSFERS
	  	 5

	
	 	  	 Section 3.1.
	  	 Permitted Affiliate Transfers
	  	 5

	
	 	  	 Section 3.2.
	  	 Permitted Familial Transfers
	  	 5

	
	 	  	 Section 3.3.
	  	 Pledges and Security Interests
	  	 6

	
	 IV.
	  	 PERMITTED SALES SUBJECT TO RIGHT OF FIRST REFUSAL
	  	 6

	
	 	  	 Section 4.1.
	  	 Sale of Ownership Interests
	  	 6

	
	 	  	 Section 4.2.
	  	 Notice of Sale
	  	 6

	
	 	  	 Section 4.3.
	  	 Right of First Refusal
	  	 6

	
	 	  	 Section 4.4.
	  	 Exercise of Option
	  	 6

	
	 	  	 Section 4.5.
	  	 Allocation of Interest Among Remaining Holders
	  	 7

	
	 	  	 Section 4.6.
	  	 Closing of Sale
	  	 7

	
	 	  	 Section 4.7.
	  	 Failure to Exercise Option
	  	 7

	
	 V.
	  	 PURCHASE OPTIONS
	  	 7

	
	 	  	 Section 5.1.
	  	 Purchase Events
	  	 7

	
	 	  	 Section 5.2.
	  	 Notice of Sale
	  	 9

	
	 	  	 Section 5.3.
	  	 Purchase Option
	  	 9

	
	 	  	 Section 5.4.
	  	 Exercise of Purchase Option
	  	 9

	
	 	  	 Section 5.5.
	  	 Allocation of Interest Among Remaining Holders
	  	 9

	
	 	  	 Section 5.6.
	  	 Closing of Sale
	  	 9

	
	 	  	 Section 5.7.
	  	 Failure to Exercise Option
	  	 9

	
	 	  	 Section 5.8.
	  	 Purchase Price
	  	 10

 

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TABLE OF CONTENTS 
(CONTINUED) 
 

	 	  	 	  	 	  	 PAGE

	
	 	  	 Section 5.9.
	  	 Procedure for Appraisal and Determination of Fair Market Value
	  	 10

	
	 	  	 Section 5.10.
	  	 Effect on Seller's Interest
	  	 10

	
	 	  	 Section 5.11.
	  	 Applicability to Transferees
	  	 11

	
	 VI.
	  	 TAKE ALONG RIGHT
	  	 11

	
	 	  	 Section 6.1.
	  	 Transactions Covered
	  	 11

	
	 	  	 Section 6.2.
	  	 Notice
	  	 11

	
	 	  	 Section 6.3.
	  	 Election to Participate
	  	 11

	
	 	  	 Section 6.4.
	  	 Title
	  	 12

	
	 VII.
	  	 OTHER PROVISIONS APPLICABLE TO TRANSFERS
	  	 12

	
	 	  	 Section 7.1.
	  	 Waiver of Rights to Object
	  	 12

	
	 VIII.
	  	 NOTICES
	  	 12

	
	 	  	 Section 8.1.
	  	 Methods of Giving Notice
	  	 12

	
	 	  	 Section 8.2.
	  	 Waiver of Notice
	  	 12

	
	 IX.
	  	 MISCELLANEOUS
	  	 12

	
	 	  	 Section 9.1.
	  	 Execution in Counterparts
	  	 12

	
	 	  	 Section 9.2.
	  	 Address and Notice
	  	 12

	
	 	  	 Section 9.3.
	  	 Further Assurances
	  	 14

	
	 	  	 Section 9.4.
	  	 Titles and Captions
	  	 14

	
	 	  	 Section 9.5.
	  	 Number and Gender of Pronouns
	  	 14

	
	 	  	 Section 9.6.
	  	 Entire Agreement
	  	 14

	
	 	  	 Section 9.7.
	  	 Amendment
	  	 14

	
	 	  	 Section 9.8.
	  	 Agreement Binding
	  	 14

	
	 	  	 Section 9.9.
	  	 Waiver
	  	 14

	
	 	  	 Section 9.10.
	  	 Remedies
	  	 15

	
	 	  	 Section 9.11.
	  	 GOVERNING LAW
	  	 15

	
	 	  	 Section 9.12.
	  	 DISPUTE RESOLUTION.
	  	 15

	
	 	  	 Section 9.13.
	  	 Waiver
	  	 17

	
	 	  	 Section 9.14.
	  	 U.S. Dollars
	  	 18

 

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TRANSFER
RESTRICTION AGREEMENT 
OF DORCHESTER MINERALS MANAGEMENT GP LLC 
AND DORCHESTER MINERALS MANAGEMENT LP 
 
This Transfer Restriction Agreement (the “Agreement”) effective as of 12:02 a.m. February 1, 2003 (the “Effective
Date”), is entered into by and among Dorchester Minerals Management LP, a Delaware limited partnership (the “Partnership”), Dorchester Minerals Management GP LLC, a Delaware limited liability company (the “Company”), SAM
Partners, Ltd., a Texas limited partnership (“SAM”), Vaughn Petroleum, Ltd., a Texas limited partnership (“Vaughn”), Smith Allen Oil & Gas, Inc., a Texas corporation (“SAOG”), P.A. Peak Limited Partnership, a Texas
limited partnership (“Peak LP”) and Yelar Partners L.L.P., a Delaware limited liability partnership (“Yelar”). Each of SAM, Vaughn, SAOG, Peak LP and Yelar is a “Holder “ and, collectively, they are sometimes referred
to as the “Holders.” 
 
W I T N E S S E T
H 
 
WHEREAS, the Holders are the members of the
Company and the limited partners of the Partnership of which the Company is the general partner; 
 
WHEREAS, the Amended and Restated Limited Liability Company Agreement of Dorchester Minerals Management GP LLC (the “LLC Agreement”) and the Amended and Restated Limited Partnership Agreement
of Dorchester Minerals Management LP (“Limited Partnership Agreement”), each of which has been executed and delivered by the Holders contemporaneously with this Agreement, each contemplates that the Holders, in their capacities as members
of the Company and limited partners of the Partnership, will become parties to this Agreement providing for certain restrictions upon the transfer of, and certain rights to purchase and obligations to sell, ownership interests held by the Holders in
the Company and limited partnership interests held by the Holders in the Partnership; 
 
NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree upon the terms and conditions set forth herein: 
 
I. DEFINITIONS 
 
Section 1.1. Definitions. The following terms shall have the following meanings when used in this Agreement: 
 
“AAA” means the American Arbitration Association and the office thereof located in Dallas, Texas. 
 
“Acceptance Notice” shall mean a notice by a
Remaining Holder to a Selling Holder that the Remaining Holder is exercising its right to purchase Ownership Interests of the Selling Holder pursuant to Article IV or Article V, as applicable. 
 

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“Affiliate” shall mean, with respect to any Person, (i) any other Person or Group of Persons beneficially owning eighty percent (80%) or more of the outstanding equity ownership interests of such Person, (ii) any other
Person eighty percent (80%) or more of the outstanding equity ownership interests of which are beneficially owned by such Person or (iii) any other Person eighty percent (80%) or more of the outstanding equity ownership interests of which are
beneficially owned by a third Person or Group of Persons who beneficially own eighty percent (80%) or more of the outstanding voting securities of such Person. 
 
“Affiliate Transfer” shall have the meaning set forth in Section 3.1 of the Agreement. 
 
“Agreement” shall mean this Transfer Restriction
Agreement. 
 
“Beneficially own,”
“beneficially owned” and “beneficial ownership” shall mean voting power which includes the power to vote, or to direct the voting of, a security and investment power, which includes the power to dispose or to direct the
disposition of, a security. 
 
“Business
Day” shall mean any day other than Saturday or Sunday or any other day upon which banks in Dallas, Texas are permitted or required by law to close. 
 
“Company” shall have the meaning set forth in the Preamble to this Agreement. 
 
“Company Ownership Interest” shall mean the member
interest in the Company held by a Holder. 
 
“Effective Date” shall have the meaning set forth in the preamble to this Agreement. 
 
“Electing Participant” shall have the meaning set forth in Section 6.3 of this Agreement. 
 
“Electing Purchasers” shall mean the Remaining
Holders who elect to participate in the purchase of a Selling Holder’s Ownership Interest pursuant to Article IV or Article V, as applicable. 
 
“Familial Transfer” shall have the meaning set forth in Section 3.2 of this Agreement. 
 
“Family Members” shall mean as to any individual
only such individual’s spouse, son(s), daughter(s), grandchildren, mother, father, aunt(s), uncle(s), niece(s) or nephew(s) and shall include any Person so related by adoption if adopted before age eighteen (18). 
 
“Group of Persons” shall mean not more than five (5)
Persons. 
 
“Holder” or
“Holders” shall mean SAM, Vaughn, SAOG, Peak LP, Yelar and any assignee of all or any part of their respective interests in the Company or the Partnership. 
 
“Holder Consent” shall mean (i) as to a proposed transfer to another Holder, approval by both (A)
Partners owning a majority of the Partnership Ownership Interest (measured by Partnership Ownership Percentage) and (B) Members owning a majority of the Company Ownership Interest (measured by Company Ownership Percentage) and (ii) as to a proposed
transfer to a Person other than another Holder, approval by both (A) Partners owning a majority 
 

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of the Partnership Ownership Interest (measured by Partnership Ownership Percentage) owned by Partners not involved in the proposed transfer
and (B) Members owning a majority of the Company Ownership Interest (measured by Company Ownership Percentage) owned by Members not involved in the proposed transfer. Holder Consent may be given or withheld in the sole discretion of the Members and
Partners. 
 
“LLC Agreement” shall have
the meaning set forth in the Preamble to this Agreement. 
 
“Limited Partnership Agreement” shall have the meaning set forth in the Preamble to this Agreement. 
 
“Majority Seller” shall have the meaning set forth in Section 6.1 hereof. 
 
“Member” or “Members” shall mean SAM,
Vaughn, SAOG, Peak LP, Yelar and any assignee of all or any part of their respective interests in the Company who is admitted to the Company as a Member in conformity with the provisions of the LLC Agreement. 
 
“Offered Interest” shall mean a Selling
Holder’s Ownership Interest that is subject to purchase under Article IV or Article V, as applicable. 
 
“Option Period” shall mean the sixty (60) day period specified in Section 4.3 or Section 5.3, as applicable. 
 
“Ownership Interests” of a Holder shall mean,
collectively, the Partnership Ownership Interest and the Company Ownership Interest held by such Holder. 
 
“Partner” or “Partners” shall mean SAM, Vaughn, SAOG, Peak LP, Yelar and any assignee of all or any part of their
respective interests in the Partnership who is admitted to the Partnership as a Partner in conformity with the provisions of the Limited Partnership Agreement. 
 
“Partnership” shall have the meaning set forth in the Preamble to this Agreement. 
 
“Partnership Ownership Interest” shall mean the
limited partnership interest in the Partnership held by a Holder. 
 
“Partnership Ownership Percentage” shall mean the percentage of the limited partnership interest in the Partnership held by a Holder and shall mean 20.5% for Vaughn, 20.5% for SAM, 20.0% for SAOG, 19.5% for Peak LP
and 19.5% for Yelar, until adjusted in accordance with the Limited Partnership Agreement. 
 
“Person” shall mean an individual person, partnership, limited partnership, limited liability company, trust, corporation or other entity or organization. 
 
“Pro Rata Portion” shall mean a portion of an
Offered Interest represented by a fraction, the numerator of which is the Proportionate Share of the purchasing Holder and the denominator of which is the total of the Proportionate Shares of all the purchasing Holders. 
 

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“Proportionate Share” shall mean the “Ownership Percentage” (as determined in accordance with the LLC Agreement) of a Holder divided by the total “Ownership Percentage” (as determined in accordance with
the LLC Agreement) of all Holders. 
 
“Purchase Event” shall have the meaning set forth in Section 5.1 hereof. 
 
“Purchase Event Notice” shall have the meaning set forth in Section 5.2 hereof. 
 
“Remaining Holders” shall mean all Holders other
than the Selling Holder or, in the case of Article VI, other than the Holder or Holders comprising the Majority Seller. 
 
“RFR Notice” shall have the meaning set forth in Section 4.2 hereof. 
 
“Selling Holder” shall mean a Holder whose Ownership
Interest is the subject of a sale under Article IV or a purchase option under Article V. 
 
“Selling Party” shall have the meaning set forth in Section 6.3 hereof. 
 
“Subject Interest” shall have the meaning set forth in Section 6.2 hereof. 
 
“Take Along Notice” shall have the meaning set forth
in Section 6.2 hereof. 
 
“Take Along Option
Period” shall have the meaning set forth in Section 6.3 hereof.  
 
“Third Appraiser” shall have the meaning set forth in Section 5.9 hereof. 
 
II. RESTRICTIONS ON TRANSFER 
 
Section 2.1. General Restriction on Transfer. Except as expressly provided to the contrary in this Agreement, no Holder may assign,
sell or otherwise transfer by operation of law or otherwise, any of its right, title or interest or any portion thereof of such Holder’s Ownership Interest unless such Holder shall first obtain Holder Consent and comply with the requirements of
Article IV hereof. Any purported or attempted assignment, sale or transfer of all or any part of a Holder’s Ownership Interest made in violation of this Agreement shall be null and void. 
 
Section 2.2. No Separate Transfers of Company Ownership and
Partnership Ownership Interests. The provisions of this Section 2.2 shall apply to all assignments, sales or other transfer of Ownership Interests, whether or not permitted under any other provision of this Agreement. It is the intent of the
parties hereto that assignments, sales and other transfers of Company Ownership Interests and Partnership Ownership Interests be made only as a unit so that the ownership of the Company Ownership Interests and the Partnership Ownership Interests are
held in the same relative proportions by the Holders or other owners thereof. Accordingly, no Holder may assign, sell or otherwise transfer all or any portion of a Company Ownership Interest or a Partnership Ownership Interest to any Person,
including, without limitation, pursuant to an assignment, sale or other transfer permitted under other provisions of this Agreement, unless the Holder also simultaneously assigns, sells or transfers to the same Person the same relative portion of
his respective Partnership Ownership Interest or Company Ownership Interest. 
 

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Section 2.3.
Securities Laws Restrictions. Notwithstanding any other provision of this Agreement, no transfer of an Ownership Interest may be made if the transfer would violate any federal or state securities laws. The Company or the Partnership may
require evidence satisfactory to it in its reasonable discretion of compliance with such laws. 
 
Section 2.4. Continuation of Restrictions After Transfer. In the event of any permitted transfer of an Ownership Interest pursuant to this Agreement, the interest so transferred shall remain
subject to all terms and provisions of this Agreement, including this Section 2.4, and the transferee shall be deemed, by accepting the interest so transferred, to have assumed all the liabilities and unperformed obligations, under this Agreement or
otherwise, which are appurtenant to the interest so transferred; shall hold such interest subject to all unperformed obligations of the transferor Holder; and shall agree in writing to the foregoing if requested by the Company or any Holder.

 
III. PERMITTED TRANSFERS 
 
Section 3.1. Permitted Affiliate Transfers.
Notwithstanding Section 2.1 hereof, but subject to Sections 2.2 and 2.3 and Article V hereof, without the consent of the other Holders and without compliance with Articles IV or VI, any Holder may transfer any or all of its Ownership Interest to:

 
(i) any Affiliate of such
Holder; or 
 
(ii) any liquidating
trust or other trust if a Person or Group of Persons who beneficially own all of the equity ownership interests in the Holder are collectively the beneficiaries of eighty percent (80%) or more of the assets of such trust. 
 
A transfer permitted under this Section 3.1 is referred to herein as an
“Affiliate Transfer”. 
 
Section 3.2.
Permitted Familial Transfers. Notwithstanding Section 2.1 hereof, but subject to Sections 2.2 and 2.3 and Article V hereof, without the consent of the other Holders and without compliance with Articles IV or VI, any Holder may transfer any or
all of its Ownership Interest to: 
 
(i) any Family Member of such Holder or of a Person who is the beneficial owner of a majority of the equity ownership interests of such Holder; 
 
(ii) any partnership, limited partnership, limited liability company, corporation or other entity or organization eighty
percent (80%) or more of the equity ownership interests of which are beneficially owned, collectively, by one or more Family Member(s) of such Holder or of a Person who is the beneficial owner of a majority of the equity ownership interests of such
Holder; or 
 
(iii) any trust, if
one or more Family Members of such Holder or of a Person who is the beneficial owner of a majority of the equity ownership interests in such Holder are collectively the beneficiaries of eighty percent (80%) or more of the assets of such trust.

 

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The provisions of this Section
3.2 shall not be applicable to transfers that are also subject to Section 5.1(x) hereof. A transfer permitted under this Section 3.2 is referred to herein as a “Familial Transfer”. 
 
Section 3.3. Pledges and Security Interests.
Notwithstanding Section 2.1 hereof, but subject to Sections 2.2, 2.3 and Article V hereof, without the consent of the other Holders and without compliance with Articles IV and VI, any Holder may pledge or grant a security interest in its Ownership
Interest to a bank or other lending institution to secure an obligation for borrowed money created in a bona fide financing transaction (a “Pledge”) provided that the pledgee or holder of the security interest shall agree in writing, for
the benefit of the other Holders, (i) that the Ownership Interest that is the subject of such pledge or security interest is subject to this Agreement, (ii) to give each Member not less than sixty (60) days prior written notice of any proposed
foreclosure, sale, taking or other disposition of any Ownership Interest pursuant to, as a result of or in connection with such Pledge, and (iii) that the rights of the Members under Article V hereof, including, without limitation, Sections 5.1(xii)
and 5.11 thereof, shall apply to any such proposed foreclosure, sale, taking or other disposition and to the Ownership Interest subject to such Pledge. 
 
IV. PERMITTED SALES SUBJECT TO RIGHT OF FIRST REFUSAL 
 
Section 4.1. Sale of Ownership Interests. If the Selling Holder desires to effect a Sale, as
hereinafter defined, of all or a part of its Ownership Interest to any Person other than pursuant to Sections 3.1 or 3.2 hereof, then, in addition to obtaining Holder Consent pursuant to Section 2.1, the Selling Holder shall comply with the
provisions of this Article IV. For purposes of this Agreement, the term “Sale” shall mean any transfer for value of any Ownership Interests, directly or indirectly, including, without limitation, any such transfer pursuant to a
transaction, or a series of related transactions, as a consequence of which any Ownership Interests are assigned or transferred to an Affiliate of the transferor of such Ownership Interests, which Affiliate simultaneously or subsequently engages in
any business combination with a Person which is not an Affiliate of the original transferor of such Ownership Interest. No Selling Holder shall be permitted to make any Sale pursuant to the provisions of this Article IV prior to December 31, 2010.

 
Section 4.2. Notice of Sale. The Selling
Holder must give written notice (the “RFR Notice”) to all Remaining Holders of the specific terms and provisions of the proposed sale, including therewith copies of all relevant documents and other information pertaining to the proposed
transaction. 
 
Section 4.3. Right of First
Refusal. The delivery of the RFR Notice shall automatically grant to the Remaining Holders an option to purchase the Ownership Interest or portion thereof being offered for sale (an “Offered Interest”) on the same terms and provisions
specified therein for a period of ninety (90) days from the date of the RFR Notice (an “Option Period”). 
 
Section 4.4. Exercise of Option. The Remaining Holders shall give written notice to the Selling Holder prior to the expiration of
the Option Period (an “Acceptance Notice”), if they desire to exercise their option to purchase the Offered Interest. 
 

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Section 4.5.
Allocation of Interest Among Remaining Holders. The Acceptance Notice shall specify the portion of the Offered Interest that each Remaining Holder who elects to participate (an “Electing Purchaser”) in the purchase desires to
purchase. The Electing Purchasers, collectively, may not purchase less than all of the Offered Interest. If the Electing Purchasers cannot agree upon the portion of the Offered Interest that each shall purchase, each Electing Purchaser may send a
separate Acceptance Notice agreeing to purchase its Pro Rata Portion of the Offered Interest. In that case, each Electing Purchaser shall be entitled to purchase its Pro Rata Portion of the Company Ownership Interest and Partnership Ownership
Interest comprising the Offered Interest. 
 
Section 4.6. Closing of Sale. The closing of the sale of the Offered Interest to the Electing Purchasers shall take place at the principal place of business of the Company ten (10) days after the end of the Option Period (or,
if such day is not a Business Day, the following Business Day), or at such other place and time as agreed to by the Selling Holder and the Electing Purchasers. 
 
Section 4.7. Failure to Exercise Option. Subject to Section 2.5 hereof, if the right of first refusal option under this Article IV
is not exercised within the Option Period as to all of the Offered Interest, or if the Electing Purchasers default on their obligation to purchase all of the Offered Interest, the Selling Holder may sell or transfer all but not less than all of the
Offered Interest within ten (10) days thereafter to the prospective purchaser named in the RFR Notice at a price and on terms no more favorable to such purchaser than described in the RFR Notice, during which time such transfer shall be considered a
permitted transfer hereunder and the prospective purchaser a permitted transferee hereunder. The Selling Holder shall not otherwise sell or transfer the Offered Interest to any Person without again complying with the terms of this Agreement.

 
V. PURCHASE OPTIONS 
 
Section 5.1. Purchase Events. In the event that any of
the following (each a “Purchase Event”) shall have occurred to or in respect of a Selling Holder, the Remaining Holders shall have the right upon the terms set forth in this Article V to purchase the entire Ownership Interest of the
Selling Holder (or, in the case of a Purchase Event pursuant to Section 5.1(x) below, such portion of the Selling Holder’s Ownership Interest as is assigned, sold, or otherwise transferred as described in Section 5.1(x)): 
 
(i) the Selling Holder shall make an
assignment for the benefit of creditors, commence (as the debtor) a case in bankruptcy, or commence (as the debtor) any proceeding under any other insolvency law; or 
 
(ii) a case in bankruptcy or any other proceeding under any other insolvency law is commenced
against the Selling Holder (as the debtor) and is consented to by the Selling Holder or remains undismissed for sixty (60) days, or the Selling Holder consents to or admits the material allegations against it in any such case or proceeding; or

 

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(iii) a trustee, receiver, agent, liquidator or sequestrator (however named) is appointed with respect to the Selling Holder (as the debtor) and is consented to by the Selling Holder or remains undismissed for sixty (60) days, or the
Selling Holder consents to or admits the material allegations against it in any such case or proceeding; or 
 
(iv) a trustee, receiver, agent, liquidator or sequestrator (however named) is appointed or authorized to take charge of
all or substantially all of the property of the Selling Holder for the purpose of enforcing a lien against such property or for the purpose of general administration of such property for the benefit of creditors and such appointment or authorization
is consented to by the Selling Holder or is not overturned within ninety (90) days; or 
 
(v) the Selling Holder shall suffer any writ of attachment or execution or any similar process to be issued or levied
against the interests of the Selling Holder in the Ownership Interest which is not released, stayed, bonded or vacated within ninety (90) days after its issue or levy; or 
 
(vi) the Selling Holder shall fail to perform any of its obligations under this Agreement in
a material respect and such failure continues for a period of at least thirty (30) days after written notice thereof from the Company, the Partnership or any Holder; or 
 
(vii) any attempted assignment or hypothecation by the Selling Holder of any of its rights or
interest in the Company, the LLC Agreement, the Partnership, the Limited Partnership Agreement or this Agreement, except as expressly permitted by this Agreement; or 
 
(viii) the Selling Holder shall commence to dissolve or wind-up and liquidate the assets of
its business otherwise than in connection with a transfer permitted under Section 3.1 or 3.2; or 
 
(ix) the Selling Holder shall become deceased or be declared legally incompetent to administer his affairs and either an
executor, administrator or guardian of such Selling Holder’s estate has not been appointed within ninety (90) days of such event or such Selling Holder’s interest is not transferred pursuant to a Familial Transfer within one (1) year of
such event; or 
 
(x) as a result
of a divorce, separation or other domestic relations or family law proceeding an order is entered purporting to assign, transfer or divide ownership of, or to require the Selling Holder to assign, sell or otherwise transfer, all or any interest in
Selling Holder’s Ownership Interest, and either such order is not overturned within ninety (90) days or Selling Holder has not otherwise obtained sole ownership of the Ownership Interest within such period; or 
 
(xi) the Selling Holder or any Affiliate
thereof, by entry of a final judgment, order or decree of a court or governmental agency having proper 
 

8 

jurisdiction, shall be declared guilty of a felony involving moral turpitude, fraud or wrongdoing in connection with any business activity.

 
(xii) any Person to whom a
pledge or security interest has been granted pursuant to Section 3.3 hereof gives notice of any proposed foreclosure, sale, taking or other disposition of any Ownership Interest of the Selling Holder or otherwise initiates, or attempts to initiate,
any exercise of rights of foreclosure, sale, taking or other disposition with respect to any Ownership Interest of the Selling Holder. 
 
Section 5.2. Notice of Sale. As soon as reasonably practicable following the occurrence of a Purchase Event, the Selling Holder
shall give written notice (the “Purchase Event Notice”) of the Purchase Event to all Remaining Holders. If the Selling Holder shall fail or refuse to give the Purchase Event Notice, the Company may, but shall have no obligation to, give
the Purchase Event Notice. 
 
Section 5.3.
Purchase Option. During the sixty (60) day period following receipt of the Purchase Event Notice, the Remaining Holders may elect to exercise their right to purchase the Selling Holder’s Ownership Interest (an “Offered
Interest”) under this Section 5.3 (an “Option Period”). Then upon the expiration of the Option Period such right to purchase the Selling Holder’s Ownership Interest hereunder shall terminate, unless and until another Purchase
Event shall occur with respect to the Selling Holder at which time the provisions of this Article V shall again be applicable to such Selling Holder’s Ownership Interest. 
 
Section 5.4. Exercise of Purchase Option. The Remaining Holders shall give written notice to the
Selling Holder prior to the expiration of the Option Period (an “Acceptance Notice”), if they desire to exercise their option to purchase the Offered Interest. 
 
Section 5.5. Allocation of Interest Among Remaining Holders. The Acceptance Notice shall specify the
portion of the Offered Interest that each Remaining Holders who elects to participate (an “Electing Purchaser”) in the purchase shall purchase. The Electing Purchasers, collectively, may not purchase less than all of the Offered Interest.
If the Electing Purchasers cannot agree upon the portion of the Offered Interest that each shall purchase, each Electing Purchasers may send a separate Acceptance Notice agreeing to purchase its Pro Rata Portion of the Offered Interest. In that
case, each Electing Purchaser shall be entitled to purchase its Pro Rata Portion of the Company Ownership Interest and Partnership Ownership Interest comprising the Offered Interest. 
 
Section 5.6. Closing of Sale. The closing of the sale of the Offered Interest to the Electing
Purchasers shall take place at the principal place of business of the Company thirty (30) days after the end of (i) the Option Period (or, if such day is not a Business Day, the following Business Day), or (ii) such longer period as may be required
to complete the appraisal under Section 5.9, or at such other place and time as agreed to by the Selling Holder and the Electing Purchaser. 
 
Section 5.7. Failure to Exercise Option. If the purchase option under this Article V is not exercised within the Option Period as
to all of the Offered Interest, or if the Electing 
 

9 

Purchasers default on their obligation to purchase all of the Offered Interest, the Selling Holder shall not otherwise sell or transfer any
of the Offered Interest to any Person without again complying with the terms of this Agreement. 
 
Section 5.8. Purchase Price. The amount of the purchase price for the Selling Holder’s Ownership Interest (unless agreed upon by the Selling Holder and the Remaining Holders electing to
participate in the purchase) shall be determined in accordance with Section 5.9 hereof. 
 
Section 5.9. Procedure for Appraisal and Determination of Fair Market Value. Unless the Electing Purchasers and Selling Holder shall mutually agree upon the value for the Offered Interest, the
value of the Offered Interest shall be determined by appraisal hereunder. The appraised value of the Offered Interest shall be determined within thirty (30) days after selection, by a single independent appraiser selected by agreement between the
Electing Purchasers and Selling Holder (or its estate or representative) and such appraiser in turn may rely on other experts. If the Electing Purchasers and Selling Holder (or its estate or representative) cannot agree on a single independent
appraiser within thirty (30) days after the delivery of the Acceptance Notice by the Electing Purchasers to the Selling Holder, then the Electing Purchasers, as a group, and the Selling Holder (or its estate or representative) shall each designate
an independent appraiser, which appraisers shall meet within ten (10) days after their designation and proceed to determine the value of the Offered Interest within thirty (30) days of such initial meeting. If, during such thirty (30) day period,
the two appraisers cannot reach agreement on the value of the Offered Interest, then, if the higher appraisal does not equal or exceed 105% of the lower appraisal, the arithmetic average of the appraisals designated by the appraisers shall be deemed
to be the value of the Offered Interest; provided, however, that if the higher appraisal exceeds 105% of the lower appraisal, then the appraisers shall jointly appoint a third appraiser (the “Third Appraiser”) within ten (10) days after
the expiration of such thirty (30) day period, whereupon the appraisal that is neither the highest nor the lowest of the three (3) appraisals shall be deemed to be the value of the Offered Interest and be binding and conclusive on the parties
hereto. If any appraiser shall fail, refuse or become unable to act, a new appraiser shall be appointed in his place following the same method as was originally followed with respect to the appraiser to be replaced. If a single independent appraiser
is selected by agreement between the Electing Purchasers, as a group, and the Selling Holder (or its estate or representative), the fees and expenses of such appraiser shall be borne equally by such parties; if the Electing Purchasers, as a group,
and the Selling Holder (or its estate or representative) each designate appraisers, the fees and expenses of each such designated appraiser shall be borne by the party designating same; and if a Third Appraiser is designated, the fees and expenses
of such Third Appraiser shall be borne equally by the Electing Purchasers and the Selling Holder (or its estate or representative). Any appraiser designated to serve in accordance with this Section 5.9 shall be independent of the party designating
such appraiser. The determination of the value of the Offered Interest hereunder shall be conclusive on all parties. At any time during or following the determination of the value of the Offered Interest by any appraiser, the Electing Purchasers may
elect to terminate their exercise of the option to purchase the Offered Interest, but in that case, the Electing Purchasers shall pay the fees and expenses of the appraiser selected by the Selling Holder and Third Appraiser, as well as its own
appraiser. 
 
Section 5.10. Effect on
Seller’s Interest. Without limiting the generality of any other provision of this Agreement, upon the sale of the Offered Interest under this Article V, the 
 

10 

Selling Holder, without further action, will have no rights in the Partnership or the Company or against the Partnership or the Company or
any Member or Partner other than the right to receive payment for the Offered Interest in accordance with this Article. 
 
Section 5.11. Applicability to Transferees. The rights of the Remaining Holders under this Article V shall not be affected or
diminished by any assignment, sale or transfer of an Ownership Interest effected in connection with any Purchase Event or any order purporting to effect or to require any such assignment, sale or transfer, and any such Ownership Interest shall
remain subject to the provisions of this Agreement irrespective of any such assignment, sale or transfer, whether or not completed, and the assignee, purchaser or transferee shall take subject to the provisions of this Agreement and shall be bound
thereby to the same extent as the Selling Holder. 
 
VI. TAKE ALONG RIGHT 
 
Section 6.1. Transactions Covered. In the event that one or more Holders who collectively hold a majority of the Ownership Interests (“Majority Seller”) propose to transfer all or any part of its or their Ownership
Interests constituting majority of all the Ownership Interests in a single transaction or a series of related transactions to any Person other than pursuant to an Affiliate Transfer, a Familial Transfer or a Pledge, then such Holder or Holders shall
first comply with this Article VI in addition to compliance with Article IV hereof. 
 
Section 6.2. Notice. The Majority Seller shall give written notice (the “Take Along Notice”) to each Remaining Holder, contemporaneously with the RFR Notice under Section 4.2 and, to
the extent not specified therein, identifying that portion of the Majority Seller’s Ownership Interest which it desires to transfer (the “Subject Interest”), the intended method of the transfer, the price the Majority Seller desires
to receive for the Subject Interest, the proposed transfer date, and all other pertinent terms thereof, including, if known, the identity of any proposed buyer or buyers of the Subject Interest. 
 
Section 6.3. Election to Participate. Any Remaining
Holder may elect to participate in the contemplated transfer by delivering a written notice to the Majority Seller, within sixty (60) days (the “Take-Along Option Period”) after receipt of the Take Along Notice, specifying that portion of
the Remaining Holder’s Ownership Interest (which may be all of such Ownership Interest) which such Remaining Holder elects to sell. Each such Remaining Holder who so elects (an “Electing Participant”) shall have the right to transfer
in the contemplated transaction, at the same price and on the same terms, all or any portion of its Ownership Interest, except as limited in the following sentence. If the Electing Participants and the Majority Seller (singularly, a “Selling
Party”, and collectively, the “Selling Parties”) in the aggregate elect to sell a larger portion of the Ownership Interest than the proposed buyer or buyers wish to purchase, then each Selling Party shall be entitled to sell to such
buyer or buyers that percentage of its Ownership Interest which is equal to the percentage of the Ownership Interest to be so purchased by such buyer or buyers from all the Selling Parties multiplied by a fraction the numerator of which is the
percentage of the Ownership Interest such Selling Party has specified in its notice under the first sentence of this Section that it elects to sell (without reference to the limitation imposed by this sentence) and the denominator of which is the
aggregate percentage of the Ownership Interests 
 

11 

all of such Selling Parties elect to sell (without reference to the limitation imposed by this sentence). 
 
Section 6.4. Title. The Ownership Interest proposed to
be transferred by each Majority Seller and Electing Participant shall be transferred free and clear of all liens, claims and encumbrances of any kind (other than those imposed by federal and state securities laws, this Agreement, the LLC Agreement
or the Limited Partnership Agreement). 
 
VII.
OTHER PROVISIONS APPLICABLE TO TRANSFERS 
 
Section 7.1. Waiver of Rights to Object. All Holders acknowledge that the methods provided for in this Agreement for determining the price of an Offered Interest, a Subject Interest or an Ownership Interest are fair as to
dates used, notices, terms and in all other respects, and are administratively and in substance superior to other methods. Each Holder waives any right that it may have to use any other method to determine the value of any Offered Interest, a
Subject Interest or an Ownership Interest in connection with this Agreement. 
 
VIII. NOTICES 
 
Section 8.1. Methods of Giving Notice. Whenever any notice is required to be given to any Holder under the provisions of any applicable law or this Agreement, it shall be given in writing and delivered personally or
delivered by facsimile communication to such Holder at such address (and at such member facsimile) as appears on the books of the Company, and such notice shall be deemed to be given at the time the recipient actually receives the notice in the case
of personal delivery or the sender receives electronic confirmation of delivery with respect to any notice given by facsimile communication. 
 
Section 8.2. Waiver of Notice. Whenever any notice is required to be given to any Holder under the provisions of any applicable law
or this Agreement, a waiver thereof in writing signed by the person or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. 
 
IX. MISCELLANEOUS 
 
Section 9.1. Execution in Counterparts. This Agreement
may be executed in counterparts, all of which taken together shall be deemed one original. 
 
Section 9.2. Address and Notice. The address of each Holder for all purposes shall be as follows: 
 
If to Vaughn: 
3738 Oak Lawn Ave., Suite 101 
Dallas, Texas 75219 
Attention: Benny D. Duncan 
Telecopy No.: (214) 522-7433 
 

12 

 
With copies
to: 
Joe Dannenmaier 
Thompson & Knight L.L.P. 
1700 Pacific Avenue, Suite 3300 
Dallas, Texas 75201 
Telecopy No.: (214) 969-1751 
 
If
to SAM: 
3738 Oak Lawn Ave., Suite 300 
Dallas, Texas 75219 
Attention: H. C. Allen, Jr. 
Telecopy No.: (214) 559-0301 
 
With copies to: 
Joe Dannenmaier 
Thompson & Knight L.L.P. 
1700 Pacific Avenue, Suite 3300 
Dallas, Texas 75201 
Telecopy No.: (214) 969-1751 
 
If to SAOG: 
3738 Oak Lawn Ave., Suite 300 
Dallas, Texas 75219 
Attention: William Casey McManemin 
Telecopy No.: (214) 559-0301 
 
With copies to: 
Joe Dannenmaier 
Thompson & Knight L.L.P. 
1700 Pacific Avenue, Suite 3300 
Dallas, Texas 75201 
Telecopy No.: (214) 969-1751 
 
If to Peak LP: 
1919 S. Shiloh Rd. 
Suite 600 – LB48 
Garland, Texas 75042 
Attention: Preston A. Peak 
Telecopy No.: (972) 864-9095 
 
With copies to: 
Bryan E. Bishop 
LOCKE LIDDELL & SAPP LLP 
2200 Ross Avenue, Suite 2200 
Dallas, Texas 75201-6776 
Telecopy No.: (214) 740-8800 
 

13 

 
If to Yelar:

1919 S. Shiloh Rd. 
Suite 600 – LB48 
Garland, Texas 75042 
Attention: James E. Raley 
Telecopy No.: (972) 864-9095 
 
With copies to: 
Bryan E. Bishop 
LOCKE LIDDELL & SAPP LLP 
2200 Ross Avenue, Suite 2200 
Dallas, Texas 75201-6776 
Telecopy No.: (214) 740-8800 
 
or such other address or addresses of which any Holders shall have given the
other Holders notice. Any notice shall be in accordance with Section 8.1. 
 
Section 9.3. Further Assurances. Each Holder hereby covenants and agrees to execute and deliver such instruments as may be reasonably requested by any other Holder to convey any interest or to take any other action
required or permitted under this Agreement. 
 
Section 9.4. Titles and Captions. All article, section, or subsection titles or captions contained in this Agreement or the table of contents hereof are for convenience only and shall not be deemed part of the context of this
Agreement. 
 
Section 9.5. Number and Gender of
Pronouns. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the Person or Persons may require. 
 
Section 9.6. Entire Agreement. This Agreement, together with the LLC Agreement and the Limited
Partnership Agreement, contains the entire understanding between and among the Holders and supersedes any prior understandings and agreements between and among them respecting the subject matter of this Agreement. 
 
Section 9.7. Amendment. This Agreement may be amended
or modified only by a written document executed by all the Holders. 
 
Section 9.8. Agreement Binding. This Agreement shall be binding upon the heirs, executors, administrators, successors, and assigns of the Holders. 
 
Section 9.9. Waiver. No failure by any Holder to insist upon the strict performance of any covenant,
duty, agreement, or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, agreement, term, or condition. Any Holder by the issuance of
written notice may, but shall be under no obligation to, waive any of its rights or any conditions to its obligations hereunder, or any duty, obligation or covenant of any other Holder. No waiver shall affect or alter the remainder of this Agreement
but each and every covenant, agreement, term, and 
 

14 

condition of this Agreement shall continue in full force and effect with respect to any other then existing or subsequent breach thereof.

 
Section 9.10. Remedies. The rights and
remedies of the Holders set forth in this Agreement shall not be mutually exclusive or exclusive of any right, power or privilege provided by law or in equity or otherwise and the exercise of one or more of the provisions hereof shall not preclude
the exercise of any other provisions hereof or of any legal, equitable or other right. Each of the Holders confirms that damages at law may be an inadequate remedy for a breach or threatened breach of any provision hereof. The respective rights and
obligations hereunder shall be enforceable by specific performance, injunction, or other equitable remedy, but nothing herein contained is intended to, or shall limit or affect any rights at law or by statute or otherwise of any Holder aggrieved as
against another Holder for a breach or threatened breach of any provision hereof, it being the intention of this section to make clear the agreement of the Holder that the respective rights and obligations of the Holders hereunder shall be
enforceable in equity as well as at law or otherwise. 
 
Section 9.11. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED, ENFORCED, AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF DELAWARE (WITHOUT REGARD TO ITS CHOICE OF LAW PRINCIPLES). 
 
Section 9.12. DISPUTE RESOLUTION. 
 
(a) NEGOTIATION. THE PARTIES SHALL
ATTEMPT TO RESOLVE ANY DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TERMINATION, BREACH, OR VALIDITY OF THIS AGREEMENT, PROMPTLY BY GOOD FAITH NEGOTIATION AMONG EXECUTIVES WHO HAVE AUTHORITY TO RESOLVE THE CONTROVERSY. ANY PARTY MAY
GIVE THE OTHER PARTIES WRITTEN NOTICE OF ANY DISPUTE NOT RESOLVED IN THE NORMAL COURSE OF BUSINESS. WITHIN 10 DAYS AFTER DELIVERY OF THE NOTICE, THE RECEIVING PARTY SHALL SUBMIT TO THE OTHERS A WRITTEN RESPONSE. THE NOTICE AND THE RESPONSE SHALL
INCLUDE (A) A STATEMENT OF THE PARTIES’ CONCERNS AND PERSPECTIVES ON THE ISSUES IN DISPUTE, (B) A SUMMARY OF SUPPORTING FACTS AND CIRCUMSTANCES AND (C) THE IDENTITY OF THE EXECUTIVE WHO WILL REPRESENT THAT PARTY AND OF ANY OTHER PERSON WHO WILL
ACCOMPANY THE EXECUTIVE. WITHIN 15 DAYS AFTER DELIVERY OF THE ORIGINAL NOTICE, THE EXECUTIVES OF THE PARTIES SHALL MEET AT A MUTUALLY ACCEPTABLE TIME AND PLACE, AND THEREAFTER AS OFTEN AS THEY REASONABLY DEEM NECESSARY, TO ATTEMPT TO RESOLVE THE
DISPUTE. ALL NEGOTIATIONS PURSUANT TO THIS CLAUSE AND CLAUSE (B) BELOW ARE CONFIDENTIAL AND SHALL BE TREATED AS COMPROMISE AND SETTLEMENT NEGOTIATIONS FOR PURPOSES OF APPLICABLE RULES OF EVIDENCE. 
 
(b) MEDIATION. IF A DISPUTE HAS NOT
BEEN RESOLVED BY DISCUSSION BETWEEN OR AMONG THE PARTIES WITHIN 20 DAYS OF THE DISPUTING PARTNERS’ NOTICE, ANY PARTY MAY BY NOTICE TO THE 
 

15 

OTHER PARTIES WITH WHOM SUCH DISPUTE EXISTS REQUIRE MEDIATION OF THE DISPUTE, WHICH NOTICE SHALL IDENTIFY THE NAMES OF NO FEWER THAN THREE
(3) POTENTIAL MEDIATORS. EACH PARTY AMONG WHOM THE DISPUTE EXISTS WILL IN GOOD FAITH ATTEMPT TO AGREE UPON A MEDIATOR AND AGREES TO PARTICIPATE IN MEDIATION OF THE DISPUTE IN GOOD FAITH. IF THE PARTIES ARE UNABLE TO AGREE UPON A MEDIATOR WITHIN
FIFTEEN (15) DAYS AFTER SUCH NOTICE, THE PARTIES AGREE TO PROCEED TO MEDIATION UNDER THE COMMERCIAL MEDIATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION IN EFFECT ON THE DATE OF THIS AGREEMENT. IF SUCH DISPUTE SHALL NOT HAVE BEEN RESOLVED BY
MEDIATION WITHIN THE TIME PERIOD SPECIFIED N SUBSECTION (C) BELOW, ARBITRATION MAY BE INITIATED PURSUANT TO SUBSECTION (C) BELOW. ALL EXPENSES OF THE MEDIATOR SHALL BE EQUALLY SHARED BY THE PARTIES AMONG WHOM THE DISPUTE EXISTS. 
 
(c) BINDING ARBITRATION. 
 
(i) ANY DISPUTE ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE BREACH, TERMINATION, OR VALIDITY OF THE AGREEMENT WHICH HAS NOT BEEN RESOLVED BY MEDIATION WITHIN 30 DAYS OF THE INITIATION OF SUCH PROCEDURE, OR WHICH HAS NOT BEEN RESOLVED PRIOR TO THE TERMINATION OF MEDIATION, SHALL BE
RESOLVED BY ARBITRATION IN ACCORDANCE WITH THE COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) IN EFFECT ON THE DATE OF THIS AGREEMENT. IF A PARTY TO A DISPUTE FAILS TO PARTICIPATE IN MEDIATION, THE OTHERS MAY
INITIATE ARBITRATION BEFORE EXPIRATION OF THE ABOVE PERIOD. IF THE AMOUNT OF THE CLAIM ASSERTED BY ANY PARTY IN THE ARBITRATION EXCEEDS $1,000,000, THE PARTNERS AGREE THAT THE AMERICAN ARBITRATION ASSOCIATION OPTIONAL PROCEDURES FOR LARGE, COMPLEX
COMMERCIAL DISPUTES WILL BE APPLIED TO THE DISPUTE. 
 
(ii) THE AAA SHALL SUGGEST A PANEL OF ARBITRATORS, EACH OF WHOM SHALL BE KNOWLEDGEABLE WITH RESPECT TO THE SUBJECT MATTER OF THE DISPUTE. ARBITRATION SHALL BE BEFORE A SOLE ARBITRATOR IF THE DISPUTING PARTNERS AGREE ON THE
SELECTION OF A SOLE ARBITRATOR. IF NOT, ARBITRATION SHALL BE BEFORE THREE INDEPENDENT AND IMPARTIAL ARBITRATORS, ALL OF WHOM SHALL BE APPOINTED BY THE AAA IN ACCORDANCE WITH ITS RULES. 
 
(iii) THE PLACE OF ARBITRATION SHALL BE DALLAS, TEXAS. 
 

16 

 
(iv) THE ARBITRATOR(S) ARE NOT EMPOWERED TO AWARD DAMAGES IN EXCESS OF COMPENSATORY DAMAGES. 
 
(v) THE AWARD RENDERED BY THE ARBITRATORS SHALL BE IN WRITING AND SHALL INCLUDE A STATEMENT OF THE FACTUAL BASES AND THE
LEGAL CONCLUSIONS RELIED UPON BY THE ARBITRATORS IN MAKING SUCH AWARD. THE ARBITRATORS SHALL DECIDE THE DISPUTE IN COMPLIANCE WITH THE APPLICABLE SUBSTANTIVE LAW AND CONSISTENT WITH THE PROVISIONS OF THE AGREEMENT, INCLUDING LIMITS ON DAMAGES. THE
AWARD RENDERED BY THE ARBITRATOR(S) SHALL BE FINAL AND BINDING, AND JUDGMENT UPON THE AWARD MAY BE ENTERED BY ANY COURT HAVING JURISDICTION THEREOF. 
 
(vi) ALL MATTERS RELATING TO THE ENFORCEABILITY OF THIS ARBITRATION AGREEMENT AND ANY AWARD RENDERED PURSUANT TO THIS
AGREEMENT SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT, 9 U.S.C. § 1-16. THE ARBITRATOR(S) SHALL APPLY THE SUBSTANTIVE LAW OF THE STATE OF DELAWARE, EXCLUSIVE OF ANY CONFLICT OF LAW RULES. 
 
(vii) EACH PARTNER IS REQUIRED TO CONTINUE TO
PERFORM ITS OBLIGATIONS UNDER THIS CONTRACT PENDING FINAL RESOLUTION OF ANY DISPUTE ARISING OUT OF OR RELATING TO THIS CONTRACT, UNLESS TO DO SO WOULD BE IMPOSSIBLE OR IMPRACTICABLE UNDER THE CIRCUMSTANCES. 
 
(viii) NOTHING IN THIS SECTION 9.12 SHALL
LIMIT THE PARTNERS’ RIGHTS TO OBTAIN PROVISIONAL, ANCILLARY OR EQUITABLE RELIEF FROM A COURT OF COMPETENT JURISDICTION. 
 
(d) EXPENSES. EACH PARTY SHALL PAY ITS OWN EXPENSES OF ARBITRATION AND THE EXPENSES OF THE ARBITRATORS SHALL BE EQUALLY SHARED;
PROVIDED, HOWEVER, IF IN THE OPINION OF THE ARBITRATORS ANY CLAIM BY EITHER PARTY HEREUNDER OR ANY DEFENSE OR OBJECTION THERETO BY THE OTHER PARTY WAS UNREASONABLE AND NOT MADE IN GOOD FAITH, THE ARBITRATORS MAY ASSESS, AS PART OF THE AWARD, ALL OR
ANY PART OF THE ARBITRATION EXPENSE (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES) OF THE OTHER PARTY AND OF THE ARBITRATORS AGAINST THE PARTY RAISING SUCH UNREASONABLE CLAIM, DEFENSE, OR OBJECTION. NOTHING HEREIN SET FORTH SHALL
PREVENT THE PARTIES FROM SETTLING ANY DISPUTE BY MUTUAL AGREEMENT AT ANY TIME. 
 
Section 9.13. WAIVER. EACH HOLDER WAIVES ANY RIGHT THAT THE HOLDER MAY HAVE TO COMMENCE ANY ACTION IN ANY COURT WITH RESPECT TO ANY DISPUTE AMONG THE HOLDERS RELATING TO OR ARISING UNDER THIS

 

17 

AGREEMENT OR THE RIGHTS OR OBLIGATIONS OF ANY HOLDER HEREUNDER, OTHER THAN AN ACTION BROUGHT TO ENFORCE THE ARBITRATION PROVISIONS OF SECTION
9.12 HEREOF. THE HOLDERS AGREE THAT ANY SUCH ACTION SHALL BE BROUGHT (AND VENUE FOR ANY SUCH ACTION SHALL BE APPROPRIATE) IN DALLAS, TEXAS. 
 
Section 9.14. U.S. Dollars. Any reference in this Agreement to “dollars,” “funds” or “sums” or any
amounts denoted with a “$” shall be references to United States dollars. 
 
[Following are the signature pages.] 
 

18 

 
IN WITNESS
WHEREOF, the undersigned parties have executed this Agreement effective as of 12:02 a.m. on the 1st day of February,
2003. 
 

	 The Company

	
	 DORCHESTER MINERALS MANAGEMENT GP LLC,

	 	 	 a Delaware limited liability company

	
	 	 	 By:
	 	 /s/    WILLIAM CASEY MCMANEMIN        

	 	 	 	 	 Name: /s/ William Casey McManemin
 Title: Chief Executive Officer

 

	 The Partnership

	
	 DORCHESTER MINERALS MANAGEMENT LP,

	 	 	 a Delaware limited partnership

	
	 By:
	 	 DORCHESTER MINERALS MANAGEMENT GP LLC, its general partner

	
	 	 	 By:
	 	 /S/    WILLIAM CASEY
MCMANEMIN        

	 	 	 	 	 Name: William Casey McManemin
Title: Chief Executive
Officer

 

	 The Holders

	
	 SAM PARTNERS, LTD.

	
	 By:
	 	 Sam Partners Management, Inc., its general partner

	
	 	 	 By:
	 	 /S/    H.C. ALLEN,
JR.        

	 	 	 	 	 H. C. Allen, Jr., Secretary

 

	 VAUGHN PETROLEUM, LTD.

	
	 By:
	 	 VPL (GP), LLC, its general partner

	
	 	 	 By:
	 	 /S/    ROBERT C.
VAUGHN        

	 	 	 	 	 Name: Robert C. Vaughn
Title: Manager

 

19 

	 SMITH ALLEN OIL & GAS, INC.

	
	 By:
	 	 /S/    WILLIAM
CASEY MCMANEMIN        

	 	 	 William Casey McManemin, Vice President

 

	 PRESTON A. PEAK LIMITED PARTNERSHIP

	
	 By:
	 	 Peak GP LLC, its General Partner

	
	 	 	 By:
	 	 /S/    PRESTON A.
PEAK        

	 	 	 	 	 Preston A. Peak, Manager

 

	 YELAR PARTNERS, L.L.P.

	
	 By:
	 	 YELAR LLC, its General Partner

	
	 	 	 By:
	 	 /S/    JAMES E.
RALEY        

	 	 	 	 	 James E. Raley, Manager

 

20Registration Rights Agreement

EXHIBIT 10.3 
 
REGISTRATION RIGHTS AGREEMENT 
 
This Registration Rights Agreement (this “Agreement”) is made and entered into as of January 31,
2003, by and among DORCHESTER MINERALS, L.P., a Delaware limited partnership (the “Company”), and the parties listed on Annex A hereto (each, a “Holder” and collectively, the “Holders”); 
 
W I T N E S S E T H: 
 
WHEREAS, the Company, Dorchester Hugoton, Ltd., Republic
Royalty Company, Spinnaker Royalty Company, L.P. and certain other parties are parties to that certain Combination Agreement, dated as of December 13, 2001 (the “Combination Agreement”), pursuant to which Dorchester Hugoton, Ltd.,
Republic Royalty Company and Spinnaker Royalty Company, L.P. have agreed to combine their business and properties into the Company (the “Combination”); and 
 
WHEREAS, in connection with the Combination, the Holders will receive LP Units as the
Merger Consideration; 
 
WHEREAS, the Company
has agreed to register the LP Units as set forth herein; and 
 
WHEREAS, capitalized terms not defined herein have the meaning given to them in the Combination Agreement; 
 
NOW, THEREFORE, in consideration of the premises and the mutual terms, covenants and conditions herein contained, and intending to be
legally bound hereby, the parties hereto hereby agree as follows: 
 
The Company and the Holders covenant and agree as follows: 
 
1. Definitions. For purposes of this Agreement: 
 
(a) The term “Best Efforts” means a Person’s reasonable best efforts without the incurrence of unreasonable expense.

 
(b) The term “Commission” means the
Securities and Exchange Commission. 
 
(c) The term
“Expenses” means all expenses incident to the Company’s performance of or compliance with Section 2.1 or 2.2, including, without limitation, all registration, filing and National Association of Securities Dealers fees, all fees and
expenses of complying with securities or blue sky laws, all word processing, duplicating and printing expenses, messenger and delivery expenses, the fees and disbursements of counsel for the Company and of its independent public accountants,
including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance, the reasonable fees and disbursements of special counsel to the Holders selected by the Requisite Threshold,
premiums and other costs of policies of insurance against liabilities arising out of the public offering of the Registrable Securities being registered and any fees and disbursements of underwriters 

customarily paid by issuers or sellers of securities; provided, however, that “Expenses” shall not include underwriting discounts
and commissions. 
 
(d) The term “Person”
means an individual, partnership, corporation, limited liability company, trust or unincorporated organization, or government or agency or political subdivision thereof. 
 
(e) The terms “register,” “registered” and “registration” refer to a
registration of securities effected by preparing and filing a registration statement or similar document in compliance with the Securities Act (as defined below), and the declaration or ordering of effectiveness of such registration statement or
document. 
 
(f) The term “Registrable
Securities” means the LP Units received by a Holder pursuant to the Combination Agreement. As to any Registrable Security, once issued such security shall cease to be a Registrable Security when (i) it has been effectively registered under the
Securities Act and disposed of in accordance with the registration statement covering it, (ii) it is sold pursuant to Rule 144 or Rule 145 (or any similar provisions then in force) under the Securities Act or in a private transaction in which the
Holder’s rights under this Agreement are not assigned. 
 
(g) The term “Requisite Threshold” means any holder or holders of an aggregate of at least fifty-one percent (51%) of all Registrable Securities. 
 
(h) The term “Securities Act” means the Securities Act of 1933, as amended, and the term
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 
2. Registration. 
 
2.1 Registration on Request. 
 
(a) From time to time after six (6) months from the date of the closing of the Combination, upon the written request of the Requisite Threshold that the Company effect the registration under the Securities Act of at least twenty-five
percent (25%) of the Registrable Securities held by the requesting party or parties and specifying the intended method of disposition thereof and whether or not such requested registration is to be an underwritten offering, the parties hereto agree
as follows: 
 
(i) the Company will promptly give
written notice of such requested registration to all other holders of Registrable Securities, if any; and 
 
(ii) promptly after the performance of any obligations imposed under clause (i) of this Section 2.1(a), and subject to the limitations
set forth in Section 2.1(c) and Section 3, the Company will use its Best Efforts to effect the registration under the Securities Act of the Registrable Securities that the Company has been requested to register by the Requisite Threshold and the
other holders of Registrable Securities by written request given to the Company within thirty (30) days after the giving of such written notice by the Company (which request shall specify the intended method of disposition of such Registrable
Securities) and to qualify the securities subject to such registration under the securities laws of such states as the 

 

2 

Requisite Threshold shall reasonably request, all to the extent requisite to permit the disposition (in accordance with the intended methods
thereof as aforesaid) of the Registrable Securities to be registered and cause such registration to remain effective for a period of not less than one hundred eighty (180) days following its effective date or such shorter period as shall terminate
when all Registrable Securities covered by such registration statement have been sold. In the case of a shelf registration statement on Form S-3 or any successor form under the Securities Act for an offering to be made on a continuous basis pursuant
to Rule 415 under the Securities Act, the Company shall cause such registration to remain effective for a period of not less than one (1) year following its effective date or such shorter period as shall terminate when all of the Registrable
Securities covered by such registration statement have been sold. The Company shall not be required to qualify the securities subject to such registration in any jurisdiction where, as a result thereof, the Company would become subject to general
service of process or to taxation or to qualification to do business as a foreign corporation or partnership doing business in such jurisdiction solely as a result of such qualification. 
 
(b) Registration Statement Form. Subject to Section 2.1(c), registrations under this Section 2.1 shall
be on such appropriate registration form of the Commission as shall be reasonably selected by the Company and reasonably acceptable to the Requisite Threshold and as shall permit the disposition of such Registrable Securities in accordance with the
intended method or methods of disposition specified in the request for such registration, provided that not more than two (2) registrations under this Section 2.1 shall be a shelf registration statement on Form S-3 or any successor form under the
Securities Act for an offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act. The Company shall not be obligated to effect any such shelf registration on Form S-3, pursuant to this Section 2.2 if Form S-3 is not
available for such offering by the Holders. 
 
(c) Limitations with respect to Requested Registrations. 
 
(i) The Company shall have no obligation to take or continue any action to effect a requested registration under this Section 2.1 after the Company has effected four (4) registrations that are
requested pursuant to this Section 2.1; provided that, a registration requested pursuant to this Section 2.1 shall not be deemed to have been effected (1) unless a registration statement with respect thereto has been declared effective for a period
of at least ninety (90) days, (2) if after a registration statement has become effective, such registration is terminated by any stop order, injunction or other order or requirement of the Commission or other governmental agency or court, or (3) if
the conditions to closing specified in the purchase agreement or underwriting agreement entered into in connection with such registration are not satisfied, other than as a result of the voluntary termination of such offering by the Requisite
Threshold. 
 
(ii) Notwithstanding the foregoing,
if the Company shall furnish, to the Holders requesting a registration statement pursuant to this Section 2.1, a certificate signed by the Chief Executive Officer of the Company stating that, in the good faith judgment of the Board of Managers of
the Company, a postponement would be in the best interests of the Company and its partners due to a pending transaction, investigation or other event, then the Company shall have the right to defer such filing for a period of not more than ninety
(90) days following receipt of the request (made pursuant to Section 2.1(a) hereof) of the Requisite Threshold. 
 

3 

 
(d)
Selection of Underwriters. If a requested registration pursuant to this Section 2.1 involves an underwritten offering, the underwriter or underwriters thereof shall be selected by the Requisite Threshold and reasonably acceptable to the
Company. 
 
(e) Priority in Requested
Registrations. If a requested registration pursuant to this Section 2.1 involves an underwritten offering, and the managing underwriter(s) shall advise the Company that, in its opinion, the number of securities requested to be included in such
registration exceeds the number that can be sold in such offering within a price range acceptable to the Requisite Threshold, the Company will include in such registration the number of Registrable Securities that the Company is so advised can be
sold in such offering, pro-rata among the Registrable Securities requested to be included in such registration. 
 
2.2 Piggyback Registration. The holders of Registrable Securities are entitled to “piggyback” (i) on a registration by
the Partnership for an offering of equity securities of the Partnership for cash (other than an offering relating solely to an employee benefit plan) and (ii) on a registration requested by the General Partner and its Affiliates pursuant to demand
registration rights, provided that the party exercising the demand registration may, at any time, abandon or delay any such registration initiated by it. If the proposed offering upon which the holders of Registrable Securities exercise their
piggyback rights shall be an underwritten offering, then, in the event that the managing underwriter or managing underwriters of such offering advise the Partnership and the Holders electing to exercise piggyback rights in writing that in their
opinion the inclusion of all of such Holder’s Partnership Securities would adversely and materially affect the success of the offering, the securities that shall be included in such offering shall be allocated among the Partnership or the
parties exercising demand registration rights, as applicable, and the Holders exercising piggyback registration rights in proportion to the total number of securities that the Partnership or the parties exercising demand registration rights, as
applicable, propose to register in relation to the total number of Registrable Securities that the Holders exercising piggyback registration rights propose to register. 
 
2.3 Termination of Registration Rights. The Holders will have no rights to request registration under
this Section 2 after the later of (i) December 31, 2010 or (ii) two (2) years following the withdrawal or removal of Dorchester Minerals Management LP as the general partner of the Company. 
 
3. Registration Procedures. 
 
(a) The Company will use its Best Efforts to furnish to each
Holder requesting registration pursuant to this Agreement a copy of the requisite registration statement, each amendment and supplement to such registration statement and a reasonable number of copies of the prospectus included in such registration
statement (including each preliminary prospectus), as each such Holder may reasonably request in order to facilitate such Holder’s disposition of its securities covered by such registration statement. 
 
(b) The Company represents and covenants that any registration
statement covering sales of Registrable Securities by a Holder pursuant to this Agreement will not contain an untrue statement of fact or omit to state any material fact required to be stated in the prospectus or that is necessary to make the
statements in the prospectus, in light of the circumstances then existing, not misleading. The Company will use its Best Efforts to notify the 

 

4 

Holders requesting registration pursuant to this Agreement, at any time when a prospectus relating to the requisite registration statement is
required to be delivered under the Securities Act (within the period that the Company is required to keep such registration statement effective), of the happening of any event as a result of which the prospectus included in the requisite
registration statement (as then in effect) contains an untrue statement of a material fact or omits to state any material fact required to be stated in the prospectus or that is necessary to make the statements in the prospectus, in light of the
circumstances then existing, not misleading. The Company will prepare (and, as soon as reasonably practicable, file) a supplement or amendment to that prospectus so that, as thereafter delivered to the purchasers of those securities covered by such
registration statement, that prospectus will not contain an untrue statement of a material fact or omit to state any material fact required to be stated in the prospectus or that is necessary to make the statements in the prospectus, in light of the
circumstances then existing, not misleading. However, if the Board of Managers of the Company determines in its good faith judgment that filing any supplement or amendment to such registration statement to keep such registration statement available
for use by such Holders for resales of the securities covered by such registration statement would require the Company to disclose material information that the Company has a bona fide business purpose for preserving as confidential, then, upon the
Company’s notice to each Holder (the “Suspension Notice”), the Company’s obligation to supplement or amend such registration statement will be suspended. That suspension will remain in effect until the Company notifies such
Holders in writing that the reasons for suspending those obligations no longer exist and the Company amends or supplements such registration statement as may be required. The Company does not have the right to delay filing any supplement or
amendment for more than thirty (30) consecutive days or sixty (60) days (including consecutive and non-consecutive days). As soon as a Holder receives a Suspension Notice from the Company under this Section 3(b), that Holder will immediately
discontinue disposing of securities covered by such registration statement until that Holder receives copies of the supplemented or amended prospectus referred to in this Section 3(b). At the Company’s requests, each Holder will deliver to the
Company all copies of the prospectus covering such securities current at the time of that request. 
 
(c) After receiving notice of any stop order issued or threatened by the Commission with respect to the requisite registration statement,
the Company will use its Best Efforts to (i) advise the Holders and (ii) take all actions required to prevent the Commission from entering that stop order or and to remove it if it has been entered. 
 
(d) The Company will use its Best Efforts to cause all
securities included in the requisite registration statement to be listed, by the date of the first sale of such securities pursuant to such registration statement, on the principal securities exchange that the Company’s LP Units are then listed
on. The Company agrees to facilitate the delivery of the Registrable Securities upon any sale by a Holder pursuant to this Agreement. The Company agrees to enter into customary underwriting agreements (which may require representations, covenants or
indemnification), cooperate in any due diligence conducted by underwriters, and deliver or cause to be delivered to the Holders and the underwriters, if any, any certificates, opinions or comfort letters customarily required. 
 
(e) Each Holder will sell its Registrable Securities
registered in accordance with Section 2 in compliance the prospectus delivery requirements under the Securities Act. 
 

5 

 
(f) The
Company may require the Holders to furnish to the Company information regarding the Holders and the distribution of the securities covered by the requisite registration statement as the Company may from time to time request in writing. Each Holder
represents and covenants that any such information provided by such Holder with respect to a registration statement covering Registrable Securities by such Holder pursuant to this Agreement will not contain an untrue statement of fact or omit to
state any material fact required to be stated in the prospectus regarding the Holder or that is necessary to make the statements in the prospectus regarding the Holder, in light of the circumstances then existing, not misleading. Each Holder will
(i) notify the Company as promptly as practicable of any inaccuracy or change in information that Holder previously furnished to the Company or of the occurrence of any event that would cause any prospectus relating to such securities to (A) contain
an untrue statement of a material fact regarding that Holder or its resale of such securities or (B) omit to state any material fact regarding that Holder or its resale of such securities required to be stated in that prospectus or necessary to make
the statements in that prospectus not misleading in light of the circumstances then existing and (ii) promptly furnish to the Company any additional information so that the prospectus will not contain, with respect to that Holder or its distribution
of such securities, an untrue statement of a material fact or omit to state a material fact required to be stated in it or necessary to make the statements in that prospectus, in light of the circumstances then existing, not misleading.

 
4. Expenses. Except as set forth in
Section 6, the Company will pay all Expenses of the Holders in connection with any registration pursuant to Section 2, other than underwriting discounts or commissions. 
 
5. Market-Standoff Agreement 
 
(a) Market-Standoff Period; Agreement. In connection with the first follow-on offering of the
Company’s securities by the Company for cash after the closing date of the Combination and upon request of the Company or managing underwriter(s) of such offering of the Company’s securities, each Holder agrees not to sell, make any short
sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written consent of the Company or the managing underwriter(s), as the case
may be, for such period of time (not to exceed one hundred eighty (180 days) from the date of such request by the Company or the managing underwriter(s) and to execute an agreement reflecting the foregoing as may be requested by the managing
underwriter(s) at the time of the Company’s follow-on offering. The managing underwriter(s) are intended third party beneficiaries of this Section 5 and shall have the right, power and authority to enforce the provisions of this Section 5 as
though they were a party hereto. 
 
(b)
Limitations. The obligations described in Section 5(a) shall not apply to a registration relating solely to employee benefit plans, or to a registration relating solely to a transaction pursuant to Rule 145 under the Securities Act.

 
(c) Stop-Transfer Instructions. In order
to enforce the foregoing covenants, the Company may impose stop-transfer instructions with respect to the Registrable Securities of each Holder. 
 

6 

 
(d)
Transferees Bound. Each Holder agrees that it will not transfer securities of the Company unless each transferee agrees in writing to be bound by all of the provisions of this Section 6. 
 
6. Indemnification. In the event any Registrable
Securities are included in a registration statement under this Agreement: 
 
(a) To the extent permitted by law, the Company will indemnify and hold harmless the Holder, the officers and directors of the Holder, each Person that serves as an investment manager of the Holder
with respect to the Registrable Securities and each other Person, if any, who controls the Holder within the meaning of Section 15 of the Securities Act (each, an “Indemnified Party” and, collectively, the “Indemnified Parties”),
against any losses, claims, damages, liabilities or expenses, joint or several, to which any such Indemnified Party may become subject under the Securities Act or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement under which such Registrable Securities were registered under the Securities
Act pursuant hereto, or any post-effective amendment thereof, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading, or (ii) any untrue statement or
alleged untrue statement of a material fact contained in any preliminary prospectus, if used prior to the effective date of the registration statement and not corrected in the final prospectus, or contained in the final prospectus (as amended or
supplemented, if the Company shall have filed with the Commission any amendment thereof or supplement thereto), or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements
therein not misleading; and will reimburse any such Indemnified Party for any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such loss, claim, damage, liability or expense;
provided, however, that the indemnity agreement contained in this Section 6(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or expense if such settlement is effected without the consent of the Company
(which consent shall not be unreasonably withheld); and provided further that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon any such untrue
statement or omission or alleged untrue statement or omission which has been made in said registration statement, preliminary prospectus, prospectus or amendment or supplement or omitted therefrom in reliance upon and in conformity with information
furnished in writing to the Company by the Holder specifically for use in the preparation thereof. 
 
(b) Promptly after receipt by an Indemnified Party under this Section 6 of notice of the commencement of any action (including any
governmental action), such Indemnified Party will, if a claim in respect thereof is to be made against the Company under this Section 6, notify the Company in writing of the commencement thereof and the Company shall have the right to participate
in, and, to the extent the Company so desires, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an Indemnified Party shall have the right to retain its own counsel, with the fees and expenses
to be paid by the Company, if representation of such Indemnified Party by the counsel retained by the Company would be inappropriate due to actual or potential differing interests between such Indemnified Party and any other party represented by
such counsel in such proceeding. The 

 

7 

failure to so notify the Company within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend
such action, shall relieve the Company of any liability to the Indemnified Party under this Section 6, but the omission so to notify the Company will not relieve it of any liability that it may have to any Indemnified Party otherwise than under this
Section 6. 
 
(c) If the indemnification provided
for in this Section 6 from the Company is unavailable to an Indemnified Party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to herein, then the Company, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by the Company as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the Company and Indemnified Parties in connection with
the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of the Company and Indemnified Parties shall 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 to state a material fact, has been made by, or relates to information supplied by, the Company or Indemnified
Parties, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred
to above shall be deemed to include, subject to the limitations set forth in Section 6 hereof, any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. 
 
The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations referred to in the immediately preceding paragraph. 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. 
 
7. Reports Under Exchange Act. With a view to making
available to the Holder the benefits of Rule 144 and Rule 145 under the Securities Act and any other rule or regulation of the Commission that may at any time permit the Holder to sell securities of the Company to the public without registration,
the Company agrees to: 
 
(a) file with the
Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act, and the rules and regulations adopted by the Commission thereunder; and 
 
(b) furnish to the Holder such information as may be
reasonably requested in availing the Holder of any rule or regulation of the Commission that permits the sale of any securities without registration. 
 
8. Assignment of Registration Rights. The right to cause the Company to register Registrable Securities pursuant to this Agreement
may be assigned, in whole or in part, by the Holder to not more than four (4) Persons without the prior written consent of the Company. 
 

8 

 
9.
Condition to the Obligation of the Parties. The effectiveness of this Agreement and the respective obligations of each party to effect the transactions contemplated by this Agreement shall be subject to the fulfillment of the condition that
the Combination shall have been consummated in accordance with the terms of the Combination Agreement. 
 
10. Notices. All notices and other communications provided for or permitted hereunder shall be made in writing and shall be deemed
to have been duly given or made if (i) delivered personally, (b) expedited delivery service or (c) certified or registered mail, postage prepaid. Any such notice shall be deemed given upon its receipt at the following address: 
 

	 	(a)	 	If to a Holder, initially at 

 
c/o Energy Trust, LLC 
551 Fifth Avenue, 37th Floor 
New York, New York 10176

Fax: (212) 557-0876 
 
and thereafter at such other address, notice of which is given to the Company in accordance with this Section
10; and 
 

	 	(b)	 	If to the Company, initially at 

 
Dorchester Minerals, L.P. 
c/o Dorchester Minerals Management GP LLC 
3738 Oak Lawn
Avenue, Suite 300 
Dallas, Texas 75219 
Attention: William Casey McManemin 
Fax: (214) 559-0301 
 
and thereafter at such other address, notice of which is given in accordance with this Section 10. 
 
11. Counterparts. This Agreement may be executed in two
or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties
need not sign the same counterpart. 
 
12.
Entire Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement. No provision of this
Agreement will be construed as the basis for any liability of the Company in connection with the Combination Agreement or any of the transactions contemplated thereby (other than the registration of the Registrable Securities pursuant to this
Agreement). 
 
13. Governing Law;
Jurisdiction. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW REQUIRING 

 

9 

THE APPLICATION OF THE LAW OF ANOTHER STATE, EXCEPT TO THE EXTENT THE DGCL EXPRESSLY APPLIES TO A PARTICULAR MATTER. 
 
14. Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof (which may be generally or in a particular instance and either retroactively or
prospectively) may not be given, except pursuant to a writing signed by the Company and the holders of at least a majority of the Registrable Securities. 
 
[SIGNATURES APPEAR ON FOLLOWING PAGE] 
 

10 

 
IN WITNESS
WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written. 
 
Company: 
 

	 Dorchester Minerals, L.P.

	
	 By:
	 	 Dorchester Minerals Management LP,
its general partner

	
	 By:
	 	 Dorchester Minerals Management GP LLC, its general partner

	
	 By:
	 	 /s/    WILLIAM CASEY
MCMANEMIN        

	 	 	 William Casey McManemin, Chief Executive Officer

 
Holders: 
 
Energy Trust, LLC, on behalf of each Holder listed on Annex A as its 
investment manager

 

	 By:
	 	 /s/    PATRICK H.
SWEARINGEN        

	 	 	 Name: Patrick H. Swearingen

	 	 	 Title: Director

 
ANNEX
A 
 
List of Holders 
 
Lucent Technologies, Inc. Master Pension Trust 
 
AT&T Long Term Investment Trust 
 
Delta Master Trust 
 
Boeing Company Employee Retirement Plans Master Trust

 
Bell Atlantic Master Trust 
 
Kodak Retirement Income Plan Trust 
 
Eastman Retirement Assistance Plan Trust

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