Document:

xog_Ex10_1

		
			Exhibit 10.1
		

		
			 
		

		
			 
		

		
			 
		

		
			COMMON STOCK SUBSCRIPTION AGREEMENT
		

		
			by and among
		

		
			EXTRACTION OIL & GAS, INC.
		

		
			and
		

		
			THE PURCHASERS NAMED ON SCHEDULE A HERETO
		

		
			 
		

		
			 
		

		
			

		 

 

		

			 

		

		

		
			 
		

		
			TABLE OF CONTENTS
		

		
			 
		

		
			ARTICLE I
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						DEFINITIONS

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 1.1

					
					
						Definitions

					
1 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE II

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						AGREEMENT TO SELL AND PURCHASE

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 2.1

					
					
						Sale and Purchase

					
4 
				
	
					
						Section 2.2

					
					
						Closing

					
4 
				
	
					
						Section 2.3

					
					
						Each Purchaser’s Conditions

					
4 
				
	
					
						Section 2.4

					
					
						Company’s Conditions

					
5 
				
	
					
						Section 2.5

					
					
						Deliveries by the Company

					
5 
				
	
					
						Section 2.6

					
					
						Purchaser Deliveries

					
6 
				
	
					
						Section 2.7

					
					
						Independent Nature of Purchasers’ Obligations and Rights

					
6 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE III

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						REPRESENTATIONS AND WARRANTIES OF THE COMPANY

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 3.1

					
					
						Existence

					
7 
				
	
					
						Section 3.2

					
					
						Capitalization

					
7 
				
	
					
						Section 3.3

					
					
						Subsidiaries

					
7 
				
	
					
						Section 3.4

					
					
						No Conflict

					
8 
				
	
					
						Section 3.5

					
					
						Authority

					
8 
				
	
					
						Section 3.6

					
					
						Approvals

					
8 
				
	
					
						Section 3.7

					
					
						Compliance with Laws

					
8 
				
	
					
						Section 3.8

					
					
						Periodic Reports

					
9 
				
	
					
						Section 3.9

					
					
						Internal Accounting Controls

					
9 
				
	
					
						Section 3.10

					
					
						Litigation

					
10 
				
	
					
						Section 3.11

					
					
						No Material Adverse Effect

					
10 
				
	
					
						Section 3.12

					
					
						Certain Fees

					
10 
				
	
					
						Section 3.13

					
					
						No Side Agreements

					
10 
				
	
					
						Section 3.14

					
					
						No General Solicitation; No Advertising

					
10 
				
	
					
						Section 3.15

					
					
						No Registration Required

					
11 
				
	
					
						Section 3.16

					
					
						No Integration

					
11 
				
	
					
						Section 3.17

					
					
						Investment Company Status

					
11 
				
	
					
						Section 3.18

					
					
						Foreign Corrupt Practices Act, OFAC and AML.

					
11 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE IV

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 4.1

					
					
						Existence

					
12 
				
	
					
						Section 4.2

					
					
						Authorization, Enforceability

					
12 
				
	
					
						Section 4.3

					
					
						No Breach

					
12 
				
	
					
						Section 4.4

					
					
						Certain Fees

					
12 
				

		
			 
		

		
			
		

		

		 

		

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						Section 4.5

					
					
						No Side Agreements

					
12 
				
	
					
						Section 4.6

					
					
						Investment

					
13 
				
	
					
						Section 4.7

					
					
						Nature of Purchaser.

					
13 
				
	
					
						Section 4.8

					
					
						Restricted Securities

					
13 
				
	
					
						Section 4.9

					
					
						Reliance Upon such Purchaser’s Representations and Warranties

					
14 
				
	
					
						Section 4.10

					
					
						Short Selling

					
14 
				
	
					
						Section 4.11

					
					
						Legend; Restrictive Notation

					
14 
				
	
					
						Section 4.12

					
					
						Ownership of Securities

					
14 
				
	
					
						Section 4.13

					
					
						Company Information

					
14 
				
	
					
						Section 4.14

					
					
						Placement Agent Reliance

					
15 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE V

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						COVENANTS

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 5.1

					
					
						Taking of Necessary Action

					
15 
				
	
					
						Section 5.2

					
					
						Non-Public Information

					
15 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE VI

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						INDEMNIFICATION

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 6.1

					
					
						Indemnification by the Company

					
16 
				
	
					
						Section 6.2

					
					
						Indemnification by Purchasers

					
16 
				
	
					
						Section 6.3

					
					
						Indemnification Procedure

					
16 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE VII

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						MISCELLANEOUS

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 7.1

					
					
						Interpretation and Survival of Provisions

					
17 
				
	
					
						Section 7.2

					
					
						Survival of Provisions

					
17 
				
	
					
						Section 7.3

					
					
						No Waiver; Modifications in Writing.

					
18 
				
	
					
						Section 7.4

					
					
						Binding Effect; Assignment.

					
18 
				
	
					
						Section 7.5

					
					
						Confidentiality

					
18 
				
	
					
						Section 7.6

					
					
						Communications

					
18 
				
	
					
						Section 7.7

					
					
						Removal of Legend

					
19 
				
	
					
						Section 7.8

					
					
						Entire Agreement

					
20 
				
	
					
						Section 7.9

					
					
						Governing Law

					
20 
				
	
					
						Section 7.10

					
					
						Execution in Counterparts

					
20 
				
	
					
						Section 7.11

					
					
						Termination.

					
21 
				
	
					
						Section 7.12

					
					
						Recapitalization, Exchanges, Etc

					
21 
				
	
					
						Schedule A —

					
					
						List of Purchasers and Commitment Amounts

					
					
						 

				
	
					
						Schedule B —

					
					
						Notice and Contact Information

					
					
						 

				
	
					
						Schedule C —

					
					
						Subsidiaries

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Exhibit A —

					
					
						Form of Opinion of Vinson & Elkins L.L.P.

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

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			COMMON STOCK SUBSCRIPTION AGREEMENT
		

		
			 
		

		
			This COMMON STOCK SUBSCRIPTION AGREEMENT, dated as of December 12, 2016 (this “Agreement”), is by and among EXTRACTION OIL & GAS, INC., a Delaware corporation (the “Company”), and each of the purchasers listed on Schedule A hereof (each a “Purchaser” and collectively, the “Purchasers”).
		

		
			 
		

		
			WHEREAS, the Company desires to issue and sell to the Purchasers, and each Purchaser desires to purchase from the Company, certain shares of the Company’s common stock, par value $0.01 per share (the “Common Shares”) in accordance with the provisions of this Agreement; and
		

		
			 
		

		
			WHEREAS, the Company and the Purchasers will enter into a registration rights agreement (the “Registration Rights Agreement”), pursuant to which the Company will provide the Purchasers with certain registration rights with respect to the Common Shares acquired pursuant hereto.
		

		
			 
		

		
			NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and each of the Purchasers, severally and not jointly, hereby agree as follows:
		

		
			 
		

		
			ARTICLE I
		

		
			 
		

		
			DEFINITIONS
		

		
			 
		

		
			Section 1.1      Definitions. As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated:
		

		
			 
		

		
			“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.
		

		
			 
		

		
			“Agreement” has the meaning set forth in the introductory paragraph.
		

		
			 
		

		
			“Common Stock” has the meaning specified in Section 3.2.
		

		
			 
		

		
			“Closing” has the meaning specified in Section 2.2.
		

		
			 
		

		
			“Closing Date” has the meaning specified in Section 2.2.
		

		
			 
		

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

		
			 
		

		
			“Company” has the meaning set forth in the introductory paragraph.
		

		
			 
		

		
			“Company Financial Statements” has the meaning specified in Section 3.9.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			 
		

		
			“Company Options” means options to purchase shares of the Company’s Common Stock granted pursuant to the Company Stock Plan.
		

		
			 
		

		
			“Company Restricted Stock” means shares of the Company’s Common Stock (including performance-based vesting) subject to vesting and granted pursuant to the Company Stock Plan.
		

		
			 
		

		
			“Company RSU” means any restricted stock unit (including performance-based restricted stock units) with respect to the Company’s Common Stock granted pursuant to the Company Stock Plan.
		

		
			 
		

		
			“Common Share Price” means $18.25.
		

		
			 
		

		
			“Common Shares” has the meaning specified in the recitals.
		

		
			 
		

		
			“Company SEC Documents” has the meaning specified in Section 3.8.
		

		
			 
		

		
			“Company Stock Plan” means the Company’s 2016 Long Term Incentive Plan.
		

		
			 
		

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

		
			 
		

		
			“GAAP” has the meaning specified in Section 3.9.
		

		
			 
		

		
			“Governmental Authority” means, with respect to a particular Person, any country, state, county, city and political subdivision in which such Person or such Person’s Property is located or that exercises valid jurisdiction over any such Person or such Person’s Property, and any court, agency, department, commission, board, bureau or instrumentality of any of them and any monetary authority that exercises valid jurisdiction over any such Person or such Person’s Property. Unless otherwise specified, all references to Governmental Authority herein with respect to the Company mean a Governmental Authority having jurisdiction over the Company, its Subsidiaries or any of their respective Properties.
		

		
			 
		

		
			“Indemnified Party” has the meaning specified in Section 6.3.
		

		
			 
		

		
			“Indemnifying Party” has the meaning specified in Section 6.3.
		

		
			 
		

		
			“Law” means any federal, state, local or foreign order, writ, injunction, judgment, settlement, award, decree, statute, law, rule or regulation.
		

		
			 
		

		
			“Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. For the purpose of this Agreement, a Person shall be deemed to be the owner of any Property that it has acquired or holds subject to a conditional sale agreement, or leases under a financing lease or 
		

		
			
		

		
			

		 

		

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			other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing.
		

		
			 
		

		
			“Material Adverse Effect”  has the meaning specified in Section 3.1.
		

		
			 
		

		
			“NASDAQ” means the NASDAQ Stock Capital Market LLC.
		

		
			 
		

		
			“Operative Documents” means, collectively, this Agreement and the Registration Rights Agreement, and any amendments, supplements, continuations or modifications thereto.
		

		
			 
		

		
			“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other form of entity.
		

		
			 
		

		
			“Placement Agent Engagement Letter” means that certain Placement Agent Engagement Letter dated December 6, 2016 between the Company and the Placement Agents.
		

		
			 
		

		
			“Placement Agents” means Credit Suisse Securities (USA) LLC, Barclays Capital Inc., Goldman, Sachs & Co. and the other placement agents listed on Schedule I to the Placement Agent Engagement Letter.
		

		
			 
		

		
			“Preferred Stock” has the meaning specified in Section 3.2.
		

		
			 
		

		
			“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.
		

		
			 
		

		
			“Purchase Price” means, with respect to a particular Purchaser, the amount set forth opposite such Purchaser’s name under the column titled “Purchase Price” set forth on Schedule A hereto.
		

		
			 
		

		
			“Purchased Shares” means, with respect to a particular Purchaser, the number of Common Shares equal to the aggregate Purchase Price set forth opposite such Purchaser’s name under the column titled “Purchase Price” set forth on Schedule A hereto divided by the Common Share Price.
		

		
			 
		

		
			“Purchaser” and “Purchasers” have the meanings set forth in the introductory paragraph.
		

		
			 
		

		
			“Purchaser Related Parties” has the meaning specified in Section 6.1.
		

		
			 
		

		
			“Registration Rights Agreement” has the meaning set forth in the recitals hereto.
		

		
			 
		

		
			“Representatives” of any Person means the Affiliates, officers, directors, managers, employees, agents, counsel, accountants, investment bankers, investment advisers and other representatives of such Person.
		

		
			 
		

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

		
			
		

		
			

		 

		

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			“Short Sales” means, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and forward sale contracts, options, puts, calls, short sales, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements, and sales and other transactions through non-U.S. broker dealers or foreign regulated brokers.
		

		
			 
		

		
			“Subsidiary” has the meaning set forth in Rule 405 of the rules and regulations promulgated under the Securities Act.
		

		
			 
		

		
			ARTICLE II
		

		
			 
		

		
			AGREEMENT TO SELL AND PURCHASE
		

		
			 
		

		
			Section 2.1      Sale and Purchase. Subject to the terms and conditions hereof, the Company hereby agrees to issue and sell to each Purchaser and each Purchaser hereby agrees, severally and not jointly, to purchase from the Company, its respective Purchased Shares, and each Purchaser agrees, severally and not jointly, to pay the Company the Common Share Price for each Purchased Share.
		

		
			 
		

		
			Section 2.2      Closing. Pursuant to the terms of this Agreement, the consummation of the purchase and sale of the Purchased Shares hereunder (the “Closing”) shall take place at the offices of Vinson & Elkins L.L.P., 1001 Fannin, Suite 2500, Houston, Texas 77002 at 9:00 a.m. (Central Time) on December 15, 2016, or at such other time as the Company and Purchasers representing a majority of the aggregate Purchase Prices determine (the date of such closing, the “Closing Date”). The parties agree that the Closing may occur via delivery of facsimiles or photocopies of the Operative Documents and the closing deliverables contemplated hereby and thereby. Unless otherwise provided herein, all proceedings to be taken and all documents to be executed and delivered by all parties at the Closing will be deemed to have been taken and executed simultaneously, and no proceedings will be deemed to have been taken nor documents executed or delivered until all have been taken.
		

		
			 
		

		
			Section 2.3      Each Purchaser’s Conditions. The obligation of each Purchaser to consummate the purchase of its Purchased Shares shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions (any or all of which may be waived by a particular Purchaser on behalf of itself in writing with respect to its Purchased Shares, in whole or in part, to the extent permitted by applicable Law):
		

		
			 
		

		
			(a)         the Company shall have performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by the Company on or prior to the Closing Date;
		

		
			 
		

		
			(b)         (i) the representations and warranties of the Company (A) set forth in Sections 3.1,  3.2 and 3.5 and (B) contained in this Agreement that are qualified by materiality or a Material Adverse Effect shall be true and correct when made and as of the Closing Date and (ii) all other representations and warranties of the Company shall be true and correct in all material respects when made and as of the Closing Date, in each case as though made at and as 
		

		
			
		

		
			

		 

		

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			of the Closing Date (except that representations and warranties made as of a specific date shall be required to be true and correct as of such date only);
		

		
			 
		

		
			(c)         the NASDAQ shall have authorized, upon official notice of issuance, the listing of the Purchased Shares;
		

		
			 
		

		
			(d)         no notice of delisting from the NASDAQ shall have been received by the Company with respect to the Common Stock; and
		

		
			 
		

		
			(e)         the Company shall have delivered, or caused to be delivered, to such Purchaser at the Closing, the Company’s closing deliveries described in Section 2.5.
		

		
			 
		

		
			Section 2.4         Company’s Conditions. The obligation of the Company to consummate the issuance and sale of the Purchased Shares to each Purchaser shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions with respect to such Purchaser (any or all of which may be waived by the Company in writing, in whole or in part, to the extent permitted by applicable Law):
		

		
			 
		

		
			(a)         the representations and warranties of such Purchaser contained in this Agreement that are qualified by materiality shall be true and correct when made and as of the Closing Date and all other representations and warranties of such Purchaser shall be true and correct in all material respects as of the Closing Date (except that representations of such Purchaser made as of a specific date shall be required to be true and correct as of such date only);
		

		
			 
		

		
			(b)         such Purchaser shall have performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by that Purchaser on or prior to the Closing Date; and
		

		
			 
		

		
			(c)         such Purchaser shall have delivered, or caused to be delivered, to the Company at the Closing such Purchaser’s closing deliveries described in Section 2.6.
		

		
			 
		

		
			Section 2.5          Deliveries by the Company. Upon the terms and subject to the conditions of this Agreement, at the Closing, the Company will deliver (or cause to be delivered) the following:
		

		
			 
		

		
			(a)         at the option of each Purchaser (which such option is exercisable by notice to the Partnership at least two (2) days prior to the Closing Date), either (i) evidence of issuance of a certificate evidencing the Purchased Shares or the Purchased Shares credited to book-entry accounts maintained by the Company’s transfer agent, or (ii) physical certificates (the “Certificates”) representing the Purchased Shares purchased by such Purchaser, duly executed on behalf of the Company and registered in the name of such Purchaser (or its nominee) and delivered to the address specified by such Purchaser, in each case bearing the legend or restrictive notation set forth in Section 4.11, free and clear of any Liens, other than transfer restrictions under applicable federal and state securities laws;
		

		
			 
		

		
			(b)         a certificate of the Secretary of State of the State of Delaware, dated a recent date, to the effect that the Company is in good standing;
		

		
			
		

		
			

		 

		

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			(c)         a cross receipt executed by the Company and delivered to such Purchaser certifying that it has received the Purchase Price from such Purchaser as of the Closing Date;
		

		
			 
		

		
			(d)         the Registration Rights Agreement with respect to the Purchased Shares, which shall have been duly executed by the Company;
		

		
			 
		

		
			(e)         an opinion addressed to the Purchasers from Vinson & Elkins L.L.P., legal counsel to the Company, dated as of the Closing, in the form and substance attached hereto as Exhibit A; and
		

		
			 
		

		
			(f)         a certificate of the Secretary or Assistant Secretary of the Company, certifying as to (1) the Certificate of Incorporation of the Company and the Bylaws of the Company, (2) board resolutions authorizing the execution and delivery of the Operative Documents and the consummation of the transactions contemplated thereby, including the issuance of the Purchased Shares and (3) the incumbency of the officers authorized to execute the Operative Documents, setting forth the name and title and bearing the signatures of such officers.
		

		
			 
		

		
			Section 2.6         Purchaser Deliveries. Upon the terms and subject to the conditions of this Agreement, each Purchaser is delivering (or causing to be delivered) the following:
		

		
			 
		

		
			(a)        the Purchase Price payable by such Purchaser in accordance with Schedule A, by wire transfer of immediately available funds;
		

		
			 
		

		
			(b)        a Form W-9, or W-8-IMY, as applicable, executed by such Purchaser;
		

		
			 
		

		
			(c)        the Registration Rights Agreement with respect to the Purchased Shares, which shall have been duly executed by such Purchaser; and
		

		
			 
		

		
			(d)        a cross-receipt executed by such Purchaser and delivered to the Company certifying that such Purchaser has received the Purchased Shares from the Company on the Closing Date.
		

		
			 
		

		
			Section 2.7        Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Operative Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Operative Document. Nothing contained herein or in any other Operative Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Operative Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Operative Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. The failure or waiver of performance by any Purchaser does not excuse performance by any other Purchaser.
		

		
			
		

		
			

		 

		

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			ARTICLE III
		

		
			 
		

		
			REPRESENTATIONS AND WARRANTIES OF THE COMPANY
		

		
			 
		

		
			The Company represents and warrants to each Purchaser as follows:
		

		
			 
		

		
			Section 3.1          Existence. The Company has been duly incorporated, is validly existing and in good standing as a corporation under the laws of the State of Delaware and is duly qualified to do business and in good standing as a foreign corporation in all other jurisdictions in which its ownership or lease of property or the conduct of its businesses requires such qualification, except where the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the condition (financial or otherwise), results of operations, properties, business or prospects of the Company taken as a whole (a “Material Adverse Effect”). The Company has all power and authority necessary to own or hold its properties and to conduct the businesses in which it is engaged as described in the Company SEC Documents. The Company does not own or control, directly or indirectly, any corporation, association or other entity other than the subsidiaries listed on Schedule C hereto (“Subsidiaries”).
		

		
			 
		

		
			Section 3.2        Capitalization. The authorized capital stock of the Company consists of (i) 50,000,000 shares of preferred stock, par value $0.01 per share (“Preferred Stock”), and (ii) 900,000,000 shares of common stock, par value $0.01 per share (“Common Stock”). As of the close of business on December 9, 2016, there were (i) 146,793,564 shares of Common Stock outstanding not counting shares of Company Restricted Stock, (ii) 185,280 shares of Preferred Stock outstanding, (iii) no shares of Common Stock subject to outstanding awards of Company Restricted Stock, (iv) 2,987,500 shares of Common Stock subject to outstanding awards of Company RSUs, and (v) 4,500,000 shares of Common Stock subject to outstanding awards of Company Options. 
		

		
			 
		

		
			Section 3.3        Subsidiaries. Each of the Subsidiaries has been duly incorporated or formed, as applicable, and is existing and in good standing under the laws of the jurisdiction of its incorporation or formation, as applicable, with power and authority (corporate or other) to own its properties and conduct its business as described in the Company SEC Documents; and each Subsidiary is duly qualified to do business as a foreign corporation or other entity in good standing in all other jurisdictions listed on Schedule C hereto in which its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be duly qualified or in good standing would not, individually or in the aggregate, have a Material Adverse Effect; all of the issued and outstanding capital stock or limited liability company interest, as applicable, of each Subsidiary has been duly authorized and validly issued and, in the case of any such corporation, is fully paid and nonassessable; and the capital stock or limited liability company interests, as applicable, of each Subsidiary owned by the Company, directly or indirectly, is owned free from liens, encumbrances and defects, other than those arising under the Credit Agreement, dated as of September 24, 2014, by and among Extraction Oil & Gas Holdings, LLC, as borrower, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, as heretofore amended, restated, modified or supplemented, or as otherwise would not individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
		

		
			
		

		
			

		 

		

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			Section 3.4         No Conflict. The execution, delivery and performance of this Agreement and the issuance and sale of the Purchased Shares will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, impose any lien, charge or encumbrance upon any property or assets of the Company or its Subsidiaries, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement, license, lease or other agreement or instrument to which the Company or its Subsidiaries is a party or by which the Company or its Subsidiaries is bound or to which any of the property or assets of the Company or its Subsidiaries is subject, (ii) result in any violation of the provisions of the charter or by-laws (or similar organizational documents) of the Company or its Subsidiaries, or (iii) result in any violation of any statute or any judgment, order, decree, rule or regulation of any court or governmental agency or body having jurisdiction over the Company or its Subsidiaries or their properties or assets, except, with respect to clauses (i) and (iii), conflicts, breaches, defaults or violations that would not reasonably be expected to have a Material Adverse Effect.
		

		
			 
		

		
			Section 3.5        Authority. Each of the Operative Documents has been or will be validly executed and delivered by the Company and, assuming due authorization, execution and delivery by each Purchaser or its Affiliate, as applicable (if either such Purchaser or its Affiliate is a party thereto),  constitutes, or will constitute, the legal, valid and binding obligations of the Company enforceable in accordance with its terms, except as such enforceability may be limited by (A) by applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles (whether considered in a proceeding at law or in equity) relating to enforceability and (B) public policy, applicable law relating to fiduciary duties and indemnification and an implied covenant of good faith and fair dealing.
		

		
			 
		

		
			(b)       The Purchased Shares have been duly authorized and, when the Purchased Shares have been delivered and paid for in accordance with this Agreement on the Closing Date, such Purchased Shares will be validly issued, fully paid and nonassessable, free and clear of all Liens (except for restrictions on transfer imposed by applicable securities laws and except for liens created by the Purchasers); the stockholders of the Company have no preemptive rights with respect to the Purchased Shares; and none of the outstanding shares of capital stock of the Company have been issued in violation of any preemptive or similar rights of any security holder.
		

		
			 
		

		
			Section 3.6       Approvals. No consent, approval, authorization or order of, or filing, registration or qualification with any court or governmental agency or body having jurisdiction over the Company or any of its properties or assets is required for the consummation of the transactions contemplated by this Agreement, except for (i) such as have been, or prior to the Closing Date, will be, obtained or made, (ii) such consents, approvals, authorizations, orders, filings, registrations or qualifications as may be required under state securities or Blue Sky laws in connection with the purchase and distribution of Purchased Shares, each of which has been obtained and is in full force and effect and (iii) for such consents that, if not obtained, have not or would not, in the aggregate reasonably be expected to have a Material Adverse Effect.
		

		
			 
		

		
			Section 3.7      Compliance with Laws. Neither the Company nor its Subsidiaries is (i) in violation of its charter or by-laws (or similar organizational documents), (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in 
		

		
			
		

		
			

		 

		

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			the due performance or observance of any term, covenant, condition or other obligation contained in any indenture, mortgage, deed of trust, loan agreement, license or other agreement or instrument to which it is a party or by which it is bound or to which any of its properties or assets is subject or (iii) in violation of any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over it or its property or assets, except in the case of clauses (ii) and (iii), to the extent any such conflict, breach, violation or default would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
		

		
			 
		

		
			Section 3.8         Periodic Reports. All forms, registration statements, reports, schedules and statements required to be filed by the Company under the Exchange Act or the Securities Act (all such documents, including the exhibits thereto, prior to the date hereof, collectively the  “Company SEC Documents”) have been filed with the Commission on a timely basis. The Company SEC Documents, including, without limitation, any audited or unaudited financial statements and any notes thereto or schedules included therein (the “Company Financial Statements”), at the time filed (or in the case of registration statements, solely on the dates of effectiveness) (except to the extent corrected by a subsequent Company SEC Document) (a) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, (b) complied as to form in all material respects with the applicable requirements of the Exchange Act and the Securities Act, as the case may be, (c) complied as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto, (d) with respect to the Company Financial Statements, were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10‐Q of the Commission) and (e) with respect to the Company Financial Statements, fairly present (subject in the case of unaudited statements to normal and recurring audit adjustments) in all material respects the financial condition, results of operations and cash flows of the entities purported to be shown thereby, at the dates and for the periods indicated. PricewaterhouseCoopers LLP is an independent registered public accounting firm with respect to the Company and has not resigned or been dismissed as independent registered public accountants of the Company as a result of or in connection with any disagreement with the Company on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures.
		

		
			 
		

		
			Section 3.9        Internal Accounting Controls. There is and has been no failure on the part of the Company and any of the Company’s directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated in connection therewith applicable to the Company. The Company maintains a system of internal controls, including, but not limited to, disclosure controls and procedures, internal controls over accounting matters and financial reporting, an internal audit function and legal and regulatory compliance controls that are sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accounting for assets is compared with the existing assets at reasonable intervals and appropriate 
		

		
			
		

		
			

		 

		

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			action is taken with respect to any differences. Except as described or disclosed in the SEC Documents, since the date of the most recent balance sheet of the Company and its Subsidiaries reviewed or audited by PricewaterhouseCoopers LLP, (i) the Company has not been advised of or become aware of (A) any material weakness in the design or operation of internal controls that could adversely affect the ability of the Company or its Subsidiaries to record, process, summarize and report financial data, or any material weaknesses in internal controls, and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the internal controls of the Company and each of its Subsidiaries; and (ii) there have been no significant changes in internal controls or in other factors that could significantly affect internal controls, including any corrective actions with regard to significant deficiencies and material weaknesses.
		

		
			 
		

		
			Section 3.10         Litigation. Except as described or disclosed in the Company SEC Documents, there are no legal or governmental proceedings pending to which the Company or its Subsidiaries is a party or of which any property or assets of the Company or its Subsidiaries is the subject that would, in the aggregate, reasonably be expected to have a Material Adverse Effect or would, in the aggregate, reasonably be expected to have a material adverse effect on the performance by the Company of the performance of its obligations under this Agreement or the consummation of any of the transactions contemplated hereby. To the Company’s knowledge, no such proceedings are threatened or contemplated by Governmental Authorities or others.
		

		
			 
		

		
			Section 3.11         No Material Adverse Effect. Since September 30, 2016, no event or circumstance has occurred that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.
		

		
			 
		

		
			Section 3.12         Certain Fees. Other than as described in the Placement Agent Engagement Letter, no fees or commissions are or will be payable by the Company to brokers, finders, or investment bankers with respect to the sale of any of the Purchased Shares or the consummation of the transaction contemplated by this Agreement.  The Company agrees that it will indemnify and hold harmless the Purchaser from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by the Company in connection with the sale of the Purchased Shares or the consummation of the transactions contemplated by this Agreement.
		

		
			 
		

		
			Section 3.13         No Side Agreements. There are no agreements by, among or between the Company or any of its Affiliates, on the one hand, and any Purchaser or any of their Affiliates, on the other hand, with respect to the transactions contemplated hereby other than the Operative Documents nor promises or inducements for future transactions between or among any of such parties.
		

		
			 
		

		
			Section 3.14        No General Solicitation; No Advertising. The Company has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act
		

		
			
		

		
			

		 

		

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			Section 3.15         No Registration Required. Assuming the accuracy of the representations and warranties of each Purchaser contained in Article IV, the issuance and sale of the Purchased Shares pursuant to this Agreement is exempt from registration requirements of the Securities Act, and neither the Company nor, to the knowledge of the Company, any authorized Representative acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption.
		

		
			 
		

		
			Section 3.16         No Integration. Neither the Company nor any of its Affiliates have, directly or indirectly through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in the Securities Act of 1933, as amended) that is or will be integrated with the sale of the Purchased Shares in a manner that would require registration under the Securities Act.
		

		
			 
		

		
			Section 3.17         Investment Company Status. The Company is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
		

		
			 
		

		
			Section 3.18         Foreign Corrupt Practices Act, OFAC and AML.  
		

		
			 
		

		
			(a)         None of the Company or any of its Subsidiaries, nor, to the knowledge of the Company, any of their directors, officers, agents or employees, has in the past five (5) years (i) violated or is in violation of any provision of the United States Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), or similar law of a jurisdiction in which the Company or any of its Subsidiaries conduct their business and to which they are lawfully subject or (ii) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment. No part of the proceeds from the issuance and sale of the Purchased Shares pursuant to this Agreement will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of any provision of the FCPA.
		

		
			 
		

		
			(b)         Neither the Company nor any of its Subsidiaries, nor, to the knowledge of the Company, any director, officer, agent, employee or Affiliate of the Company or any of its Subsidiaries, is currently subject to any comprehensive U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”), and the Company will not knowingly directly or indirectly use the proceeds from the issuance and sale of the Purchased Shares pursuant to this Agreement or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person, for the purpose of financing the activities of any Person currently subject to any U.S. sanctions administered by OFAC.
		

		
			 
		

		
			(c)         The Company is in compliance in all material respects with the provisions of the USA PATRIOT Act.  On or prior to the Closing Date, the Company has provided to the Purchasers all information related to the Company (including names, addresses and tax identification numbers (if applicable)) reasonably requested in writing by the Purchasers not less than ten (10) Business Days prior to the Closing Date and mutually agreed to be required under “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, to be obtained by the Purchasers.
		

		
			
		

		
			

		 

		

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			ARTICLE IV
		

		
			 
		

		
			REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
		

		
			 
		

		
			Each Purchaser, severally and not jointly, hereby represents and warrants to the Company that:
		

		
			 
		

		
			Section 4.1         Existence. Such Purchaser is duly organized and validly existing and in good standing under the Laws of its jurisdiction of organization, with all requisite power and authority to own, lease, use and operate its Properties and to conduct its business as currently conducted.
		

		
			 
		

		
			Section 4.2         Authorization, Enforceability. Such Purchaser has all necessary corporate, limited liability company or partnership power and authority to execute, deliver and perform its obligations under this Agreement and the Registration Rights Agreement and to consummate the transactions contemplated thereby, and the execution, delivery and performance by such Purchaser of this Agreement and the Registration Rights Agreement has been duly authorized by all necessary action on the part of such Purchaser; and this Agreement and the Registration Rights Agreement constitute the legal, valid and binding obligations of such Purchaser, enforceable in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and similar laws affecting creditors’ rights generally or by general principles of equity, including principles of commercial reasonableness, fair dealing and good faith.
		

		
			 
		

		
			Section 4.3         No Breach. The execution, delivery and performance of this Agreement and the Registration Rights Agreement by such Purchaser and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (a) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any material agreement to which such Purchaser is a party or by which such Purchaser is bound or to which any of the property or assets of such Purchaser is subject, (b) conflict with or result in any violation of the provisions of the organizational documents of such Purchaser, or (c) violate any statute, order, rule or regulation of any court or governmental agency or body having jurisdiction over such Purchaser or the property or assets of such Purchaser, except in the cases of clauses (a) and (c), for such conflicts, breaches, violations or defaults as would not prevent the consummation of the transactions contemplated by this Agreement and the Registration Rights Agreement.
		

		
			 
		

		
			Section 4.4         Certain Fees. No fees or commissions are or will be payable by such Purchaser to brokers, finders, or investment bankers with respect to the purchase of any of the Purchased Shares or the consummation of the transaction contemplated by this Agreement. 
		

		
			 
		

		
			Section 4.5         No Side Agreements. There are no other agreements by, among or between such Purchaser and any of its Affiliates, on the one hand, and the Company or any of its Affiliates, on the other hand, with respect to the transactions contemplated hereby other than the Operative Documents nor promises or inducements for future transactions between or among any of such parties.
		

		
			
		

		
			

		 

		

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			Section 4.6         Investment. The Purchased Shares are being acquired for such Purchaser’s own account, the account of its Affiliates, or the accounts of clients for whom such Purchaser exercises discretionary investment authority (all of whom such Purchaser hereby represents and warrants are “accredited investors” within the meaning of Rule 501(a) of Regulation D promulgated by the Commission pursuant to the Securities Act), not as a nominee or agent, and with no present intention of distributing the Purchased Shares or any part thereof, and such Purchaser has no present intention of selling or granting any participation in or otherwise distributing the same in any transaction in violation of the securities laws of the United States or any state, without prejudice, however, to such Purchaser’s right at all times to sell or otherwise dispose of all or any part of the Purchased Shares under a registration statement under the Securities Act and applicable state securities laws or under an exemption from such registration available thereunder (including, without limitation, if available, Rule 144 promulgated thereunder). If such Purchaser should in the future decide to dispose of any of the Purchased Shares, the Purchaser understands and agrees (a) that it may do so only in compliance with the Securities Act and applicable state securities law, as then in effect, including a sale contemplated by any registration statement pursuant to which such securities are being offered, or pursuant to an exemption from the Securities Act, and (b) that stop-transfer instructions to that effect will be in effect with respect to such securities.
		

		
			 
		

		
			Section 4.7         Nature of Purchaser.
		

		
			 
		

		
			(a)         Such Purchaser represents and warrants to the Company that, (i) it is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated by the Commission pursuant to the Securities Act and (ii) by reason of its business and financial experience it has such knowledge, sophistication and experience in making similar investments and in business and financial matters generally so as to be capable of evaluating the merits and risks of the prospective investment in the Purchased Shares, is able to bear the economic risk of such investment and, at the present time, would be able to afford a complete loss of such investment.
		

		
			 
		

		
			(b)         Such Purchaser or its Representatives have been furnished with materials relating to the business, finances and operations of the Company and relating to the offer and sale of the Purchased Shares that have been requested by such Purchaser. Such Purchaser or its Representatives has been afforded the opportunity to ask questions of the Company or its Representatives. Neither such inquiries nor any other due diligence investigations conducted at any time by such Purchaser or its Representatives shall modify, amend or affect such Purchaser’s right (i) to rely on the Company’s representations and warranties contained in Article III above or (ii) to indemnification or any other remedy based on, or with respect to the accuracy or inaccuracy of, or compliance with, the representations, warranties, covenants and agreements in this Agreement. Such Purchaser understands and acknowledges that its purchase of the Purchased Shares involves a high degree of risk and uncertainty. Such Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its investment in the Purchased Shares.
		

		
			 
		

		
			Section 4.8         Restricted Securities. Such Purchaser understands that the Purchased Shares are characterized as “restricted securities” under the federal securities Laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and 
		

		
			
		

		
			

		 

		

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			that under such Laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, such Purchaser represents that it is knowledgeable with respect to Rule 144 of the Commission promulgated under the Securities Act.
		

		
			 
		

		
			Section 4.9         Reliance Upon such Purchaser’s Representations and Warranties. Such Purchaser understands and acknowledges that the Purchased Shares are being offered and sold in reliance on a transactional exemption from the registration requirements of federal and state securities laws, and that the Company is relying in part upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth in this Agreement in (i) concluding that the issuance and sale of the Purchased Shares is a “private offering” and, as such, is exempt from the registration requirements of the Securities Act and (ii) determining the applicability of such exemptions and the suitability of such Purchaser to purchase the Purchased Shares.
		

		
			 
		

		
			Section 4.10         Short Selling. Such Purchaser has not engaged in any Short Sales involving Common Shares owned by it between the time it first began discussions with the Company about the transaction contemplated by this Agreement and the date of execution of this Agreement.
		

		
			 
		

		
			Section 4.11         Legend; Restrictive Notation. Such Purchaser understands that the certificates evidencing the Purchased Shares or the book-entry account maintained by the transfer agent evidencing ownership of the Purchased Shares, as applicable, will bear the following legend or restrictive notation:
		

		
			 
		

		
			“THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT OR THE ISSUER HAS RECEIVED DOCUMENTATION REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER SUCH ACT.”
		

		
			 
		

		
			Section 4.12         Ownership of Securities. Other than as previously disclosed in writing to the Company, such Purchaser and its Affiliates do not, as of the date hereof, own five percent or more of the Company’s issued and outstanding capital stock.
		

		
			 
		

		
			Section 4.13         Company Information. Such Purchaser acknowledges and agrees that the Company has provided or made available to such Purchaser (through EDGAR, the Company’s website or otherwise) all Company SEC Documents, as well as all press releases or investor presentations issued by the Company through the date of this Agreement that are included in a filing by the Company on Form 8-K or clearly posted on the Company’s website.
		

		
			
		

		
			

		 

		

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			Section 4.14         Placement Agent Reliance. Such Purchaser agrees that the Placement Agents may rely upon the representations and warranties made by such Purchaser to the Company in Sections 4.6, 4.7 and 4.9 of this Agreement.
		

		
			 
		

		
			ARTICLE V
		

		
			 
		

		
			COVENANTS
		

		
			 
		

		
			Section 5.1         Taking of Necessary Action. Each of the parties hereto shall use its commercially reasonable efforts promptly to take or cause to be taken all action and promptly to do or cause to be done all things necessary, proper or advisable under applicable Law and regulations to consummate and make effective the transactions between the Company and the Purchasers contemplated by this Agreement related specifically to the acquisition of the Purchased Shares. Without limiting the foregoing, each of the Company and each Purchaser shall use its commercially reasonable efforts to make all filings and obtain all consents of Governmental Authorities that may be necessary or, in the reasonable opinion of the other parties, as the case may be, advisable for the consummation of the transactions contemplated by the Operative Documents. Each Purchaser acknowledges its obligations under applicable state and federal securities laws, rules and regulations and the rules and regulations of the NASDAQ. The Company shall promptly and accurately respond, and shall use its commercially reasonable efforts to cause its transfer agent to respond, to reasonable requests for information (which is otherwise not publicly available) made by a Purchaser or its auditors relating to the actual holdings of such Purchaser or its accounts; provided that, the Company shall not be obligated to provide any such information that could reasonably result in a violation of applicable law or conflict with the Company’s insider trading policy or a confidentiality obligation of the Company.
		

		
			 
		

		
			Section 5.2         Non-Public Information. On or before 9:00 a.m., New York local time, on the Business Day immediately following the date hereof, the Company shall issue a press release (the “Press Release”) announcing the entry into this Agreement and describing the terms of the transactions contemplated by the Operative Documents and any other material, nonpublic information that the Company may have provided any Purchaser at any time prior to the issuance of the Press Release. On or before the fourth Business Day following the date hereof, the Company shall file a Current Report on Form 8-K with the Commission describing the terms of the transactions contemplated by the Operative Documents, and including as an exhibit to such Current Report on Form 8-K the Operative Documents, in the form required by the Exchange Act. 
		

		
			 
		

		
			Section 5.3         Most Favored Nation. On or prior to the date hereof and during the 90-day period immediately following the date hereof, other than as disclosed in the Company SEC Documents, the Company has not and will not offer to sell any Common Shares for cash in any unregistered offering on terms, including price, that are more favorable to the purchaser of such Common Shares than the terms, including price, on which the Purchasers will purchase the Purchased Shares pursuant hereto. 
		

		
			 
		

		
			
		

		
			

		 

		

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			ARTICLE VI
		

		
			 
		

		
			INDEMNIFICATION
		

		
			 
		

		
			Section 6.1         Indemnification by the Company. The Company agrees to indemnify each Purchaser and its Representatives (collectively, “Purchaser Related Parties”) from costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of the Company contained herein, provided that such claim for indemnification relating to a breach of the representations or warranties is made prior to the expiration of such representations or warranties to the extent applicable; and provided further, that no Purchaser Related Party shall be entitled to recover special, consequential or punitive damages under this Section 6.1.
		

		
			 
		

		
			Section 6.2         Indemnification Procedure. Promptly after any Purchaser Related Party (hereinafter, the “Indemnified Party”) has received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third person, which the Indemnified Party believes in good faith is an indemnifiable claim under this Agreement, the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”) written notice of such claim or the commencement of such action, suit or proceeding, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure. Such notice shall state the nature and the basis of such claim to the extent then known. The Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to the Indemnified Party, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include, but shall not be limited to, furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession or control. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability; provided, however, that the Indemnified Party shall be entitled (i) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party has failed to assume the defense or employ counsel reasonably acceptable to the Indemnified Party or (B) if the defendants in any such action include both the 
		

		
			
		

		
			

		 

		

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			Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable defenses available to the Indemnified Party that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Party. The remedies provided for in this Section 6 are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise.
		

		
			 
		

		
			ARTICLE VII
		

		
			 
		

		
			MISCELLANEOUS
		

		
			 
		

		
			Section 7.1         Interpretation and Survival of Provisions. Article, Section, Schedule, and Exhibit references are to this Agreement, unless otherwise specified. All references to instruments, documents, contracts, and agreements are references to such instruments, documents, contracts, and agreements as the same may be amended, supplemented, and otherwise modified from time to time, unless otherwise specified. The word “including” shall mean “including but not limited to.” Whenever any party has an obligation under the Operative Documents, the expense of complying with that obligation shall be an expense of such party unless otherwise specified. Whenever any determination, consent, or approval is to be made or given by any Purchaser, such action shall be in such Purchaser’s sole discretion unless otherwise specified in this Agreement. If any provision in the Operative Documents is held to be illegal, invalid, not binding, or unenforceable, such provision shall be fully severable and the Operative Documents shall be construed and enforced as if such illegal, invalid, not binding, or unenforceable provision had never comprised a part of the Operative Documents, and the remaining provisions shall remain in full force and effect. The Operative Documents have been reviewed and negotiated by sophisticated parties with access to legal counsel and shall not be construed against the drafter.
		

		
			 
		

		
			Section 7.2         Survival of Provisions. The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing for a period of twelve (12) months following the Closing Date regardless of any investigation made by or on behalf of the Company or any Purchaser. All indemnification obligations of the Company and the Purchasers pursuant to this Agreement and the provisions of Article VI shall remain operative and in full force and effect unless such obligations are expressly terminated in a writing by the parties, regardless of any purported general termination of this Agreement.
		

		
			
		

		
			

		 

		

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			Section 7.3         No Waiver; Modifications in Writing.
		

		
			 
		

		
			(a)         Delay. No failure or delay on the part of any party in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise.
		

		
			 
		

		
			(b)         Amendments and Waivers. Except as otherwise provided herein, no amendment, waiver, consent, modification, or termination of any provision of this Agreement or any other Operative Document shall be effective unless signed by each of the parties hereto or thereto affected by such amendment, waiver, consent, modification, or termination. Any amendment, supplement or modification of or to any provision of this Agreement or any other Operative Document, any waiver of any provision of this Agreement or any other Operative Document, and any consent to any departure by the Company from the terms of any provision of this Agreement or any other Operative Document shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is specifically required by this Agreement, no notice to or demand on the Company in any case shall entitle the Company to any other or further notice or demand in similar or other circumstances.
		

		
			 
		

		
			Section 7.4         Binding Effect; Assignment.
		

		
			 
		

		
			(a)         Binding Effect. This Agreement shall be binding upon the Company, the Purchasers, and their respective successors and permitted assigns. Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties to this Agreement and their respective successors and permitted assigns.
		

		
			 
		

		
			(b)         Assignment of Rights. All or any portion of the rights and obligations of any Purchaser under this Agreement may be transferred by such Purchaser to any Affiliate of such Purchaser without the consent of the Company by delivery of an agreement to be bound and a revised Schedule A. No portion of the rights and obligations of any Purchaser under this Agreement may be transferred by such Purchaser to a non-Affiliate without the written consent of the Company (which consent shall not be unreasonably withheld by the Company).
		

		
			 
		

		
			Section 7.5         Confidentiality. Notwithstanding anything herein to the contrary, to the extent that any Purchaser has executed or is otherwise bound by a confidentiality agreement in favor of the Company, such Purchaser shall continue to be bound by such confidentiality agreement until the earlier of such time as (i) the public dissemination of the Press Release pursuant to Section 5.2 and (ii) the termination of any such confidentiality agreement by its terms.
		

		
			 
		

		
			Section 7.6         Communications. All notices and demands provided for hereunder shall be in writing and shall be given by registered or certified mail, return receipt requested, telecopy, air courier guaranteeing overnight delivery or personal delivery to the following addresses:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						(a)

					
					
						If to any Purchaser:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						To the respective address listed on Schedule B hereof

				

		
			 
		

		
			
		

		
			

		 

		

			18

		

 

		

			 

		

		

		
			 
		

			
					
						(b)

					
					
						If to Extraction Oil & Gas, Inc.:

					
						 

					
						370 17th Street, Suite 5300
Denver, Colorado 80202
Attention: General Counsel
Facsimile: 713.871.0388
Email: echrist@extractionog.com

					
						 

					
						with a copy to:

					
						 

					
						Vinson & Elkins L.L.P.
1001 Fannin Street
Suite 2500
Houston, TX 77002-6760
Attention: Douglas E. McWilliams 
Facsimile: 713.615.5725
Email: dmcwilliams@velaw.com

					
						and

					
						 

					
						Vinson & Elkins L.L.P.
1001 Fannin Street
Suite 2500
Houston, TX 77002-6760
Attention: Julian J. Seiguer 
Facsimile: 713.615.5862
Email: jseiguer@velaw.com

				

		
			 
		

		
			or to such other address as the Company or such Purchaser may designate in writing. All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; when notice is sent to the sender that the recipient has read the message, if sent by electronic mail; upon actual receipt if sent by certified mail, return receipt requested, or regular mail, if mailed; when receipt acknowledged, if sent via facsimile; and upon actual receipt when delivered to an air courier guaranteeing overnight delivery.
		

		
			 
		

		
			Section 7.7         Removal of Legend. In connection with a sale of the Purchased Shares by a Purchaser in reliance on Rule 144, the applicable Purchaser or its broker shall deliver to the transfer agent and the Company a broker representation letter providing to the transfer agent and the Company any information the Company deems necessary to determine that the sale of the Purchased Shares is made in compliance with Rule 144, including, as may be appropriate, a certification that the Purchaser is not an Affiliate of the Company and regarding the length of time the Purchased Shares have been held. Upon receipt of such representation letter, the Company shall promptly direct its transfer agent to remove the notation of a restrictive legend in such Purchaser’s certificates evidencing the Purchased Shares or the book-entry account maintained by the transfer agent, including the legend referred to in Section 4.11, and the 
		

		
			
		

		
			

		 

		

			19

		

 

		

			 

		

		

		
			Company shall bear all costs associated therewith. After a registration statement under the Securities Act permitting the public resale of the Purchased Shares has become effective or any Purchaser or its permitted assigns have held the Purchased Shares for one year, if the book-entry account of such Purchased Shares still bears the notation of the restrictive legend referred to in Section 4.11, the Company agrees, upon request of the Purchaser or permitted assignee, to take all steps necessary to promptly effect the removal of the legend described in Section 4.11 from the Purchased Shares, and the Company shall bear all costs associated therewith, regardless of whether the request is made in connection with a sale or otherwise, so long as such Purchaser or its permitted assigns provide to the Company any information the Company deems reasonably necessary to determine that the legend is no longer required under the Securities Act or applicable state laws, including (if there is no such registration statement) a certification that the holder is not an Affiliate of the Company (and a covenant to inform the Company if it should thereafter become an Affiliate and to consent to the notation of an appropriate restriction) and regarding the length of time the Purchased Shares have been held.
		

		
			 
		

		
			Section 7.8         Entire Agreement. This Agreement, the other Operative Documents and the other agreements and documents referred to herein are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein or the other Operative Documents with respect to the rights granted by the Company or any of its Affiliates or any Purchaser or any of its Affiliates set forth herein or therein. This Agreement, the other Operative Documents and the other agreements and documents referred to herein or therein supersede all prior agreements and understandings between the parties with respect to such subject matter.
		

		
			 
		

		
			Section 7.9         Governing Law. This Agreement, and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement), will be construed in accordance with and governed by the laws of the State of Delaware without regard to principles of conflicts of laws. Any action against any party relating to the foregoing shall be brought in any federal or state court of competent jurisdiction located within the State of Delaware, and the parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of any federal or state court located within the State of Delaware over any such action. The parties hereby irrevocably waive, to the fullest extent permitted by applicable Law, any objection that they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.
		

		
			 
		

		
			Section 7.10         Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.
		

		
			
		

		
			

		 

		

			20

		

 

		

			 

		

		

		
			Section 7.11         Termination.  
		

		
			 
		

		
			(a)         Notwithstanding anything herein to the contrary, this Agreement shall automatically terminate at any time at or prior to the Closing if a statute, rule, order, decree or regulation shall have been enacted or promulgated, or if any action shall have been taken by any Governmental Authority of competent jurisdiction that permanently restrains, permanently precludes, permanently enjoins or otherwise permanently prohibits the consummation of the transactions contemplated by this Agreement or makes the transactions contemplated by this Agreement illegal.
		

		
			 
		

		
			(b)         Notwithstanding anything herein to the contrary, this Agreement may be terminated at any time by any Purchaser (with respect to the obligations of such Purchaser) or the Company, upon written notice to the other party, if the Closing shall not have occurred on or before December 30, 2016 (the “Outside Date”); provided, however, that the right to terminate this Agreement under this Section 7.11(b) shall not be available to any party whose (i) breach of any provision of this Agreement, (ii) failure to comply with their obligations under this Agreement or (iii) actions not taken in good faith, shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to the Outside Date or the failure of a condition in Section 2.3 or Section 2.4 to be satisfied at such time;
		

		
			 
		

		
			(c)         In the event of the termination of this Agreement as provided in this Section 7.11, (i) this Agreement shall forthwith become null and void and (ii) there shall be no liability on the part of any party hereto, except as set forth in Article VI of this Agreement and except with respect to the requirement to comply with any confidentiality agreement in favor of the Company; provided that nothing herein shall relieve any party from any liability or obligation with respect to any willful breach of this Agreement.
		

		
			 
		

		
			Section 7.12         Recapitalization, Exchanges, Etc. Affecting the Common Stock. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all equity interests of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution of, the Common Stock, and shall be appropriately adjusted for combinations, recapitalizations and the like occurring after the date of this Agreement and prior to the Closing.
		

		
			 
		

		
			[Signature pages follow]
		

		
			 
		

		
			 
		

		
			

		 

		

			21

		

 

		

			 

		

		

		
			 
		

		
			IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written.
		

		
			 
		

			
					
						

					
					
						 

					
					
						 

				
	
					
						 

					
					
						EXTRACTION OIL & GAS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Russell T. Kelley, Jr.

				
	
					
						 

					
					
						 

					
					
						Russell T. Kelley, Jr.

				
	
					
						 

					
					
						 

					
					
						Chief Financial Officer

				

		
			 
		

		
			
		

		

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ZP MASTER UTILITY FUND, LTD.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stuart J. Zimmer

				
	
					
						 

					
					
						Name:

					
					
						Stuart J. Zimmer

				
	
					
						 

					
					
						Title:

					
					
						Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						P ZIMMER, LTD.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stuart J. Zimmer

				
	
					
						 

					
					
						Name:

					
					
						Stuart J. Zimmer

				
	
					
						 

					
					
						Title:

					
					
						CEO of Investment Manager, Zimmer Partners, LP

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						MAGNETAR EQUITY OPPORTUNITIES MASTER FUND LTD

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Magnetar Financial LLC, its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Michael Turro

				
	
					
						 

					
					
						Name:

					
					
						Michale Turro

				
	
					
						 

					
					
						Title:

					
					
						Chief Compliance Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						MTP EQUITY FUND LTD

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						MTP Energy Management LLC, its Investment Adviser

				
	
					
						 

					
					
						By:

					
					
						Magnetar Financial LLC, its Sole Member

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Michael Turro

				
	
					
						 

					
					
						Name:

					
					
						Michale Turro

				
	
					
						 

					
					
						Title:

					
					
						Chief Compliance Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						LUMINUS ENERGY PARTNERS MASTER FUND, LTD.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jeffery Wade

				
	
					
						 

					
					
						Name:

					
					
						Jeffery Wade

				
	
					
						 

					
					
						Title:

					
					
						General Counsel

				

		
			 
		

		
			
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						O’CONNOR GLOBAL FUNDAMENTAL MARKET NEUTRAL LONG/SHORT (LEVERED) MASTER LIMITED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						UBS O’Connor LLC, its investment advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Joseph Workman

				
	
					
						 

					
					
						Name:

					
					
						Joseph Workman

				
	
					
						 

					
					
						Title:

					
					
						Deputy General Counsel

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jeff Richmond

				
	
					
						 

					
					
						Name:

					
					
						Jeff Richmond

				
	
					
						 

					
					
						Title:

					
					
						Executive Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						O’CONNOR GLOBAL FUNDAMENTAL MARKET NEUTRAL LONG/SHORT MASTER LIMITED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						UBS O’Connor LLC, its investment advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Joseph Workman

				
	
					
						 

					
					
						Name:

					
					
						Joseph Workman

				
	
					
						 

					
					
						Title:

					
					
						Deputy General Counsel

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jeff Richmond

				
	
					
						 

					
					
						Name:

					
					
						Jeff Richmond

				
	
					
						 

					
					
						Title:

					
					
						Executive Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						O’CONNOR GLOBAL MULTI-STRATEGY ALPHA MASTER LIMITED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						UBS O’Connor LLC, its investment advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Joseph Workman

				
	
					
						 

					
					
						Name:

					
					
						Joseph Workman

				
	
					
						 

					
					
						Title:

					
					
						Deputy General Counsel

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jeff Richmond

				
	
					
						 

					
					
						Name:

					
					
						Jeff Richmond

				
	
					
						 

					
					
						Title:

					
					
						Executive Director

				

		
			 
		

		
			
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						NINETEEN77 GLOBAL MULTI-STRATEGY ALPHA (LEVERED) MASTER LIMITED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						UBS O’Connor LLC, its investment advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Joseph Workman

				
	
					
						 

					
					
						Name:

					
					
						Joseph Workman

				
	
					
						 

					
					
						Title:

					
					
						Deputy General Counsel

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jeff Richmond

				
	
					
						 

					
					
						Name:

					
					
						Jeff Richmond

				
	
					
						 

					
					
						Title:

					
					
						Executive Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						VARIABLE INSURANCE PRODUCTS FUND II: CONTRAFUND PORTFOLIO

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Colm Hogan

				
	
					
						 

					
					
						Name:

					
					
						Colm Hogan

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						FIDELITY PURITAN TRUST: FIDELITY BALANCED FUND

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Colm Hogan

				
	
					
						 

					
					
						Name:

					
					
						Colm Hogan

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						VARIABLE INSURANCE PRODUCTS FUND III: BALANCED PORTFOLIO

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Colm Hogan

				
	
					
						 

					
					
						Name:

					
					
						Colm Hogan

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				

		
			 
		

		
			
		

		
			

		 

		

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			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						FIDELITY ADVISOR SERIES I: FIDELITY ADVISOR BALANCED FUND

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Colm Hogan

				
	
					
						 

					
					
						Name:

					
					
						Colm Hogan

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						FIDELITY U.S. SMALL/MID CAP CORE INSTITUTIONAL TRUST, BY ITS MANAGER FIDELITY INVESTMENTS CANADA ULC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Colm Hogan

				
	
					
						 

					
					
						Name:

					
					
						Colm Hogan

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						FIDELITY U.S. SMALL/MID CAP EQUITY INVESTMENT TRUST, BY ITS MANAGER FIDELITY INVESTMENTS CANADA ULC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Colm Hogan

				
	
					
						 

					
					
						Name:

					
					
						Colm Hogan

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						FIAM SMALL-MID CAP CORE COMMINGLED POOL

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By: Fidelity Institutional Asset Management Trust Company as Trustee

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dana Rancourt

				
	
					
						 

					
					
						Name:

					
					
						Dana Rancourt

				
	
					
						 

					
					
						Title:

					
					
						Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						FIAM SMALL-MID CAP CORE II COMMINGLED POOL

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Fidelity Institutional Asset Management Trust Company as Trustee

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dana Rancourt

				
	
					
						 

					
					
						Name:

					
					
						Dana Rancourt

				
	
					
						 

					
					
						Title:

					
					
						Director

				

		
			 
		

		
			
		

		
			

		 

		

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			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						FIAM SMALL/MID CAP CORE FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By: FIAM LLC as Investment Manager

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dana Rancourt

				
	
					
						 

					
					
						Name:

					
					
						Dana Rancourt

				
	
					
						 

					
					
						Title:

					
					
						Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						FIDELITY U.S. SMALL/MID CAP CORE FUND – SERIES I

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By: FIAM LLC as Sub Advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dana Rancourt

				
	
					
						 

					
					
						Name:

					
					
						Dana Rancourt

				
	
					
						 

					
					
						Title:

					
					
						Director

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Investor: Neuberger Berman‎

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Henry Ramallo

				
	
					
						 

					
					
						Name:

					
					
						Henry Ramallo

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Marvin Schwartz

				
	
					
						 

					
					
						Name:

					
					
						Marvin Schwartz

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ALYESKA MASTER FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jason A. Bragg

				
	
					
						 

					
					
						Name:

					
					
						Jason A. Bragg

				
	
					
						 

					
					
						Title:

					
					
						CFO of Alyeska Investment Group, L.P.
(investment manager of Alyeska Master Fund, L.P.)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						ALYESKA MASTER FUND 2, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jason A. Bragg

				
	
					
						 

					
					
						Name:

					
					
						Jason A. Bragg

				
	
					
						 

					
					
						Title:

					
					
						CFO of Alyeska Investment Group, L.P.
(investment manager of Alyeska Master Fund, L.P.)

				

		
			 
		

		
			
		

		
			

		 

		

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						ASSOCIATED BRITISH FOOD PENSION SCHEME

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT GLOBAL MASTER FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT TOTAL RETURN MASTER FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						PACIFIC COAST INVESTMENT FUND LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				

		
			 
		

		
			
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						MERCER QIF FUND PLC – MERCER INVESTMENT FUND I

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Sub-Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						LLOYDS BANK PENSION SCHEME NO. 1

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						LLOYDS BANK PENSION SCHEME NO. 2

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT MULTI-ASSET CREDIT FUND LTD.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				

		
			 
		

		
			
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT MULTI-STRATEGY CREDIT MASTER FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT ORANGE SCF LP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						ROYAL MAIL PENSION FUND

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT SCF 0166 LP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				

		
			 
		

		
			
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						BEACH POINT SCF I LP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT SCF IV LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT SCF MULTI-PORT LP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BEACH POINT SCF VII LTD.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				

		
			 
		

		
			
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						BEACH POINT SCF X LP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Beach Point Capital Management LP its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Carl Goldsmith

				
	
					
						 

					
					
						Name:

					
					
						Carl Goldsmith

				
	
					
						 

					
					
						Title:

					
					
						Co-Chief Investment Officer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BLACKROCK CREDIT ALPHA MASTER FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						BlackRock Financial Management, Inc., in its capacity as investment advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Christopher Biasotti

				
	
					
						 

					
					
						Name:

					
					
						Christopher Biasotti

				
	
					
						 

					
					
						Title:

					
					
						Managing Director

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						CA 534 OFFSHORE FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						BlackRock Financial Management, Inc., in its capacity as investment advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Christopher Biasotti

				
	
					
						 

					
					
						Name:

					
					
						Christopher Biasotti

				
	
					
						 

					
					
						Title:

					
					
						Managing Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BLACKROCK MULTI-STRATEGY MASTER FUND LIMITED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						BlackRock Institutional Trust Company, N.A., its Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Christopher Biasotti

				
	
					
						 

					
					
						Name:

					
					
						Christopher Biasotti

				
	
					
						 

					
					
						Title:

					
					
						Managing Director

				

		
			 
		

		
			
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						THE OBSIDIAN MASTER FUND

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						BlackRock Financial Management Inc., its Investment Advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Christopher Biasotti

				
	
					
						 

					
					
						Name:

					
					
						Christopher Biasotti

				
	
					
						 

					
					
						Title:

					
					
						Managing Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						TORTOISE DIRECT OPPORTUNITIES FUND, LP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						TORTOISE DIRECT OPPORTUNITIES GP LLC, its General Partner

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Kyle Krueger

				
	
					
						 

					
					
						Name:

					
					
						Kyle Krueger

				
	
					
						 

					
					
						Title:

					
					
						Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						TORTOISE ENERGY INDEPENDENCE FUND, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						TORTOISE CAPITAL ADVISORS, L.L.C. as its Investment Advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Brian Kessens

				
	
					
						 

					
					
						Name:

					
					
						Brian Kessens

				
	
					
						 

					
					
						Title:

					
					
						Managing Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						TORTOISE NORTH AMERICA ENERGY INDEPENDENCE FUND

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						TORTOISE CAPITAL ADVISORS, L.L.C. as its Investment Advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Brian Kessens

				
	
					
						 

					
					
						Name:

					
					
						Brian Kessens

				
	
					
						 

					
					
						Title:

					
					
						Managing Director

				

		
			 
		

		
			
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						TORTOISE SELECT OPPORTUNITIES FUND

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						TORTOISE CAPITAL ADVISORS, L.L.C. as its Investment Advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Brian Kessens

				
	
					
						 

					
					
						Name:

					
					
						Brian Kessens

				
	
					
						 

					
					
						Title:

					
					
						Managing Director

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						AROSA OPPORTUNISTIC FUND LP

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Arosa Capital Management Opportunistic GP II LLC, its general partner

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Till Bechtolsheimer

				
	
					
						 

					
					
						Name:

					
					
						Till Bechtolsheimer

				
	
					
						 

					
					
						Title:

					
					
						Managing Member

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						MF MOORE ET INVESTMENTS, LP

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Moore Capital Management, LP, its 

				
	
					
						 

					
					
						 

					
					
						Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ James Danza

				
	
					
						 

					
					
						Name:

					
					
						James Danza

				
	
					
						 

					
					
						Title:

					
					
						Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						HUDSON BAY MASTER FUND

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ George Antonopoulos

				
	
					
						 

					
					
						Name:

					
					
						George Antonopoulos

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						HIGHBRIDGE INTERNATIONAL LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Highbridge Capital Management as Trading Advisor

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Jonathan Dorfman

				
	
					
						 

					
					
						Name:

					
					
						Jonathan Dorfman

				
	
					
						 

					
					
						Title:

					
					
						Portfolio Manager

				

		
			 
		

		
			
		

		

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						MSD ENERGY INVESTMENTS, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Marcello Liguori

				
	
					
						 

					
					
						Name:

					
					
						Marcello Liguori

				
	
					
						 

					
					
						Title:

					
					
						Authorized Signatory

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						CVI INVESTMENTS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						Heights Capital Management, Inc., its authorized Agent

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ J. Brad Alles

				
	
					
						 

					
					
						Name:

					
					
						J. Brad Alles

				
	
					
						 

					
					
						Title:

					
					
						Investment Manager

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PENNANT MASTER FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						Pennant General Partner, L.L.C.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dominique Giafaglione

				
	
					
						 

					
					
						Name:

					
					
						Dominique Giafaglione

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PENNANT WINDFARM MASTER FUND, L.P.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						Pennant General Partner, L.L.C.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Dominique Giafaglione

				
	
					
						 

					
					
						Name:

					
					
						Dominique Giafaglione

				
	
					
						 

					
					
						Title:

					
					
						Chief Financial Officer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						COHEN & STEERS REAL ASSETS FUND, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Tina M. Payne

				
	
					
						 

					
					
						Name:

					
					
						Tina M. Payne

				
	
					
						 

					
					
						Title:

					
					
						Secretary 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						COHEN & STEERS GLOBAL INCOME BUILDER, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Tina M. Payne

				
	
					
						 

					
					
						Name:

					
					
						Tina M. Payne

				
	
					
						 

					
					
						Title:

					
					
						Secretary

				

		
			 
		

		
			 
		

		
			

		 

		

			Signature Page to

		

		

			Common Stock Subscription Agreement

		

 

		

			 

		

		

		
			Schedule A – List of Purchasers and Commitment Amounts
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Purchaser

					
					
						    

					
					
						Shares of
Common Stock

					
					
						    

					
					
						Purchase Price

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						ZP Master Utility Fund, Ltd.

					
					
						 

					
4,966,876 
					
					
						 

					
					
						$

					
90,645,487.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						P Zimmer Ltd.

					
					
						 

					
513,124 
					
					
						 

					
					
						$

					
9,364,513.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Magnetar Equity Opportunities Master Fund, Ltd.

					
					
						 

					
547,945 
					
					
						 

					
					
						$

					
10,000,000.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						MTP Energy Fund, Ltd.

					
					
						 

					
3,561,644 
					
					
						 

					
					
						$

					
65,000,003.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Luminus Energy Partners Master Fund, Ltd.

					
					
						 

					
2,000,000 
					
					
						 

					
					
						$

					
36,500,000.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						O'Connor Global Fundamental Market Neutral Long/Short (Levered) Master Limited

					
					
						 

					
132,000 
					
					
						 

					
					
						$

					
2,409,000.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						O'Connor Global Fundamental Market Neutral Long/Short Master Limited

					
					
						 

					
20,000 
					
					
						 

					
					
						$

					
365,000.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						O'Connor Global Multi-Strategy Alpha Master Limited

					
					
						 

					
1,524,000 
					
					
						 

					
					
						$

					
2,7813,000.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Nineteen77 Global Multi-Strategy Alpha (Levered) Master Limited

					
					
						 

					
324,000 
					
					
						 

					
					
						$

					
5,913,000.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Variable Insurance Products Fund II:  Contrafund Portfolio

					
					
						 

					
591,781 
					
					
						 

					
					
						$

					
10,800,003.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Fidelity Puritan Trust:  Fidelity Balanced Fund

					
					
						 

					
648,821 
					
					
						 

					
					
						$

					
11,840,983.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Variable Insurance Products Fund III:  Balanced Portfolio

					
					
						 

					
76,712 
					
					
						 

					
					
						$

					
1,399,994.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Fidelity Advisor Series I:  Fidelity Advisor Balanced Fund

					
					
						 

					
52,603 
					
					
						 

					
					
						$

					
960,004.75 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Fidelity U.S. Small/Mid Cap Core Institutional Trust,  by its manager Fidelity Investments Canada ULC

					
					
						 

					
17,534 
					
					
						 

					
					
						$

					
319,995.50 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Fidelity U.S. Small/Mid Cap Equity Investment Trust by its manager Fidelity Investments Canada ULC

					
					
						 

					
11,452 
					
					
						 

					
					
						$

					
208,999.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						FIAM Small-Mid Cap Core Commingled Pool 

					
					
						 

					
136,877 
					
					
						 

					
					
						$

					
2,498,005.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						FIAM Small-Mid Cap Core II Commingled Pool

					
					
						 

					
154,411 
					
					
						 

					
					
						$

					
2,818,000.75 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						FIAM Small/Mid Cap Core Fund, LP  

					
					
						 

					
25,260 
					
					
						 

					
					
						$

					
460,995.00 
					
					
						 

				

		
			 
		

		

		 

		

			Schedule A – 1

		

 

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Purchaser

					
					
						    

					
					
						Shares of
Common Stock

					
					
						    

					
					
						Purchase Price

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Fidelity U.S. Small/Mid Cap Core Fund - Series I 

					
					
						 

					
37,973 
					
					
						 

					
					
						$

					
693,007.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Neuberger Berman

					
					
						 

					
1,510,000 
					
					
						 

					
					
						$

					
27,557,500.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Aleyska Master Fund, L.P.

					
					
						 

					
783,000 
					
					
						 

					
					
						$

					
14,289,750.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Alyeska Master Fund 2, L.P.

					
					
						 

					
567,000 
					
					
						 

					
					
						$

					
10,347,750.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Associated British Foods Pension Scheme 

					
					
						 

					
54,605 
					
					
						 

					
					
						$

					
996,541.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point Global Master Fund, L.P. 

					
					
						 

					
58,495 
					
					
						 

					
					
						$

					
1,067,533.75 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point Total Return Master Fund, L.P. 

					
					
						 

					
273,588 
					
					
						 

					
					
						$

					
4,992,981.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Pacific Coast Investment Fund LLC 

					
					
						 

					
18,436 
					
					
						 

					
					
						$

					
336,457.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Mercer QIF Fund PLC - Mercer Investment Fund I

					
					
						 

					
28,247 
					
					
						 

					
					
						$

					
515,507.75 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Lloyds Bank Pension Scheme No.1 

					
					
						 

					
77,528 
					
					
						 

					
					
						$

					
1,414,886.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Lloyds Bank Pension Scheme No.2 

					
					
						 

					
33,068 
					
					
						 

					
					
						$

					
603,491.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point Multi Asset Credit Fund, Ltd. 

					
					
						 

					
125,676 
					
					
						 

					
					
						$

					
2,293,587.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point Multi-Strategy Credit Master Fund, L.P. 

					
					
						 

					
44,219 
					
					
						 

					
					
						$

					
806,996.75 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point Orange SCF LP 

					
					
						 

					
18,317 
					
					
						 

					
					
						$

					
334,285.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Royal Mail Pension Fund

					
					
						 

					
47,020 
					
					
						 

					
					
						$

					
858,115.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point SCF 0166 LP 

					
					
						 

					
14,502 
					
					
						 

					
					
						$

					
264,661.50 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point SCF I LP 

					
					
						 

					
71,569 
					
					
						 

					
					
						$

					
1,306,134.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point SCF IV LLC 

					
					
						 

					
34,480 
					
					
						 

					
					
						$

					
629,260.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point SCF Multi-Port LP 

					
					
						 

					
82,740 
					
					
						 

					
					
						$

					
15,100,05.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point SCF VII Ltd.

					
					
						 

					
46,649 
					
					
						 

					
					
						$

					
851,344.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Beach Point SCF X LP 

					
					
						 

					
20,861 
					
					
						 

					
					
						$

					
380,713.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						BlackRock Credit Alpha Master Fund, L.P.

					
					
						 

					
385,359 
					
					
						 

					
					
						$

					
7,032,801.75 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						CA 534 Offshore Fund, L.P.

					
					
						 

					
132,597 
					
					
						 

					
					
						$

					
2,419,895.25 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						BlackRock Multi-Strategy Master Fund Limited

					
					
						 

					
41,436 
					
					
						 

					
					
						$

					
75,6207.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						The Obsidian Master Fund

					
					
						 

					
190,608 
					
					
						 

					
					
						$

					
3,478,596.00 
					
					
						 

				

		
			 
		

		
			 
		

		

		 

		

			Schedule A – 2

		

 

		

			 

		

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Purchaser

					
					
						    

					
					
						Shares of
Common Stock

					
					
						    

					
					
						Purchase Price

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Tortoise Direct Opportunities Fund, LP

					
					
						 

					
513,828 
					
					
						 

					
					
						$

					
9,377,361.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Tortoise Energy Independence Fund, Inc.

					
					
						 

					
208,446 
					
					
						 

					
					
						$

					
3,804,139.50 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Tortoise North American Energy Independence Fund

					
					
						 

					
4,696 
					
					
						 

					
					
						$

					
85,702.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Tortoise Select Opportunity  Fund

					
					
						 

					
23,030 
					
					
						 

					
					
						$

					
420,297.50 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Arosa Opportunitic Fund LP

					
					
						 

					
700,000 
					
					
						 

					
					
						$

					
12,775,000.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						MF Moore ET Investments, LP

					
					
						 

					
700,000 
					
					
						 

					
					
						$

					
12,775,000.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Hudson Bay Master Fund LTD

					
					
						 

					
735,000 
					
					
						 

					
					
						$

					
13,413,750.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Highbridge International, LLC

					
					
						 

					
650,000 
					
					
						 

					
					
						$

					
11,862,500.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						MSD Energy Investments, L.P.

					
					
						 

					
550,000 
					
					
						 

					
					
						$

					
10,037,500.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						CVI Investments, Inc.

					
					
						 

					
475,000 
					
					
						 

					
					
						$

					
8,668,750.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Pennant Master Fund, LP

					
					
						 

					
46,000 
					
					
						 

					
					
						$

					
839,500.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Pennant Windward Master Fund, LP

					
					
						 

					
254,000 
					
					
						 

					
					
						$

					
4,635,500.00 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Cohen & Steers Real Assets Fund, Inc.

					
					
						 

					
63,015 
					
					
						 

					
					
						$

					
1,150,023.75 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Cohen & Steers Global Income Builder, Inc.

					
					
						 

					
115,067 
					
					
						 

					
					
						$

					
2,099,972.75 
					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			Schedule A – 3

		

 

		

			 

		

		

		
			Schedule B – Notice and Contact Information
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Purchaser

					
					
						    

					
					
						Contact Information

				
	
					
						ZP Master Utility Fund, Ltd.

					
					
						 

					
					
						c/o Zimmer Partners, LP
888 Seventh Avenue, 23rd Floor New York, NY 10106
Attn: Barbara Buerger
212-440-0749
bburger@zimmerpartners.com
copy to: mpressman@zimmerpartners.com

					
						 

				
	
					
						P Zimmer, Ltd.

					
					
						 

					
					
						c/o Zimmer Partners, LP
888 Seventh Avenue, 23rd Floor
New York, NY 10106
Attn: Barbara Buerger
212-440-0749
bburger@zimmerpartners.com

					
						 

				
	
					
						Magnetar Equity Opportunities Master Fund Ltd

					
					
						 

					
					
						copy to: mpressman@zimmerpartners.com
Magnetar Equity Opportunities Master Fund Ltd
1603 Orrington Ave, 13th Floor
Evanston, IL 60201
Attn: Chief Legal Officer
Email: MTP_Notices@magnetar.com
Allocation: $10.0 million 

				
	
					
						MTP Energy Fund Ltd

					
					
						 

					
					
						MTP Energy Fund Ltd
1603 Orrington Ave, 13th Floor
Evanston, IL 60201
Attn: Chief Legal Officer
Email: MTP_Notices@magnetar.com
Allocation: $65.0 million 

					
						 

				
	
					
						Luminus Energy Partners Fund, Ltd.

					
					
						 

					
					
						Luminus Management, LLC
Attn: Operations 
1700 Broadway, 38th Floor
New York, NY 10019
(212) 615-3450

					
						 

				
	
					
						O’Connor Global Fundamental Market Neutral Long/Short (Levered) Master Limited

					
					
						 

					
					
						c/o UBS O'Connor LLC
One North Wacker Drive, Floor 32
Chicago, IL 60606
Attn: General Counsel
Ol-oconnor-legal-notifications@ubs.com

					
						 

				
	
					
						O’Connor Global Fundamental Market Neutral Long/Short Master Limited

					
					
						 

					
					
						c/o UBS O'Connor LLC
One North Wacker Drive, Floor 32
Chicago, IL 60606
Attn: General Counsel
Ol-oconnor-legal-notifications@ubs.com

					
						 

				
	
					
						O’Connor Global Multi-Strategy Alpha Master Limited

					
					
						 

					
					
						c/o UBS O'Connor LLC
One North Wacker Drive, Floor 32
Chicago, IL 60606
Attn: General Counsel
Ol-oconnor-legal-notifications@ubs.com

					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			Schedule B – 1

		

 

		

			 

		

		

		
			 
		

			
					
						Purchaser

					
					
						    

					
					
						Contact Information

				
	
					
						Nineteen77 Global Multi-Strategy Alpha (Levered) Master Limited

					
					
						 

					
					
						c/o UBS O'Connor LLC
One North Wacker Drive, Floor 32
Chicago, IL 60606
Attn: General Counsel
Ol-oconnor-legal-notifications@ubs.com

					
						 

				
	
					
						Variable Insurance Products Fund II:  Contrafund Portfolio

					
					
						 

					
					
						Brown Brothers Harriman & Co.
525 Washington Blvd
Jersey City NJ 07310
Attn: Michael Lerman 15th Floor 
Corporate Actions 
Email: michael.lerman@bbh.com 

					
						Fax number: 617 772-2418

					
						 

				
	
					
						Fidelity Puritan Trust:  Fidelity Balanced Fund

					
					
						 

					
					
						The Northern Trust Company
Attn: Trade Securities Processing, C-1N
801 South Canal Street
Chicago, IL 60607
Ref:  Fidelity Puritan Trust:  Fidelity Balanced Fund a/c F57088
Email: NTINQUIRY@NTRS.COM

					
						Fax number: 312-557-5417

					
						 

				
	
					
						Variable Insurance Products III: Balanced Fund

					
					
						 

					
					
						M.Gardiner & Co
C/O JPMorgan Chase Bank, N.A
P.O. Box 35308
Newark, NJ  07101-8006
Email:  Fidelity.crcs@jpmorgan.com
Jpmorganinformation.services@jpmorgan.com

					
						Fax number: 469-477-1510

					
						 

				
	
					
						Fidelity Advisor Series I: Fidelity Advisor Balanced Fund

					
					
						 

					
					
						M.Gardiner & Co
C/O JPMorgan Chase Bank, N.A
P.O. Box 35308
Newark, NJ  07101-8006
Email:  Fidelity.crcs@jpmorgan.com
Jpmorganinformation.services@jpmorgan.com

					
						Fax number: 469-477-1510

					
						 

				
	
					
						Fidelity U.S. Small/Mid Cap  Core Institutional Trust

					
					
						 

					
					
						State Street Bank & Trust
PO Box 5756
Boston, Massachusetts 02206
Attn: THISBE + CO FBO Fidelity U.S. Small/Mid Cap Core Institutional Trust
Email: SSBCORPACTIONS@StateStreet.com

					
						Fax number: 617-988-9110

					
						 

				
	
					
						Fidelity U.S. Small/Mid Cap Equity Investment Trust

					
					
						 

					
					
						State Street Bank & Trust
PO Box 5756
Boston, Massachusetts 02206
Attn: THISBE + CO FBO Fidelity U.S. Small/Mid Cap Equity Investment Trust
Email: SSBCORPACTIONS@StateStreet.com

					
						Fax number: 617-988-9110

					
						 

				

		
			 
		

		
			 
		

		

		 

		

			Schedule B – 2

		

 

		

			 

		

	
					
						

					
						Purchaser

					
					
						    

					
					
						Contact Information

				
	
					
						Fidelity U.S. Small/Mid Cap Core Fund - Series I

					
					
						 

					
					
						State Street Bank & Trust
PO Box 5756
Boston, Massachusetts 02206
Attn: SPUME + CO FBO Fidelity U.S. Small/Mid Cap Core Fund - Series I
Email: SSBCORPACTIONS@StateStreet.com

					
						Fax number: 617-988-9110

					
						 

				
	
					
						FIAM Small-Mid Cap Core Commingled Pool

					
					
						 

					
					
						State Street Bank & Trust
PO Box 5756
Boston, Massachusetts 02206
Attn: FLAPPER + CO FBO FIAM Small-Mid Cap Core Commingled Pool
Email: SSBCORPACTIONS@StateStreet.com

					
						Fax number: 617-988-9110

					
						 

				
	
					
						FIAM Small-Mid Cap Core II Commingled Pool

					
					
						 

					
					
						State Street Bank & Trust
PO Box 5756
Boston, Massachusetts 02206
Attn: FLAPPER + CO FBO FIAM Small-Mid Cap Core II Commingled Pool
Email: SSBCORPACTIONS@StateStreet.com

					
						Fax number: 617-988-9110

					
						 

				
	
					
						FIAM Small/Mid Cap Core Fund, LP

					
					
						 

					
					
						State Street Bank & Trust
PO Box 5756
Boston, Massachusetts 02206
Attn: FLAPPER + CO FBO  FIAM Small/Mid Cap Core Fund, LP
Email: SSBCORPACTIONS@StateStreet.com

					
						Fax number: 617-988-9110

					
						 

				
	
					
						Marvin Schwartz

					
					
						 

					
					
						(212) 476-5805 and (917) 453-3037

					
						 

				
	
					
						Henry Ramallo

					
					
						 

					
					
						(212) 476-9208

					
						 

				
	
					
						Alyeska Master Fund, LP

					
					
						 

					
					
						Brent Cunningham
77 West Wacker, suite 700

					
						Chicago, IL 60601

					
						 

				
	
					
						Alyeska Master Fund 2, LP

					
					
						 

					
					
						Brent Cunningham
77 West Wacker, suite 700

					
						Chicago, IL 60601

					
						 

				
	
					
						Associated British Foods Pension Scheme

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com

					
						Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point Global Master Fund, L.P.

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

					
						 

				

		
			
		

		
			

		 

		

			Schedule B – 3

		

 

		

			 

		

		

		
			 
		

			
					
						Purchaser

					
					
						    

					
					
						Contact Information

				
	
					
						Beach Point Total Return Master Fund, L.P.

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

					
						 

				
	
					
						Pacific Coast Investment Fund LLC

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

					
						 

				
	
					
						Mercer QIF Fund PLC - Mercer Investment Fund 1

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com

					
						Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point SCF I LP

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com 
Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point SCF IV LLC

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com

					
						Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point SCF Multi-Port LP

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com 
Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point SCF VIII Ltd.

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com 
Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point SCF X LP

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com 
Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point Multi-Asset Credit Fund Ltd.

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com 
Operations@beachpointcapital.com

					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			Schedule B – 4

		

 

		

			 

		

		

		
			 
		

			
					
						Purchaser

					
					
						    

					
					
						Contact Information

				
	
					
						Lloyds Bank Pension Scheme No.1

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

					
						 

				
	
					
						Lloyds Bank Pension Scheme No.2

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point Multi-Strategy Credit Master Fund

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point Orange SCF LP

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

					
						 

				
	
					
						Royal Mail Pension Plan

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

					
						 

				
	
					
						Beach Point SCF 0166 LP

					
					
						 

					
					
						Mail: c/o Beach Point Capital
Management 1620 26th Street STE 6000N
Santa Monica, CA 90404
Email: PSheffield@beachpointcapital.com
Operations@beachpointcapital.com

				
	
					
						BlackRock Credit Alpha Master Fund L.P.

					
					
						 

					
					
						Attn: Office of General Counsel / Michelle Galvez Blackrock 40 E 52nd St New York, NY 1002
Tel: 212-810-3681 /LegalTransactions@blackrock.com

					
						 

				
	
					
						CA 534 Offshore Fund, Ltd

					
					
						 

					
					
						Attn: Office of General Counsel / Michelle Galvez Blackrock 40 E 52nd St New York, NY 1002
Tel: 212-810-3681 /LegalTransactions@blackrock.com

					
						 

				
	
					
						BlackRock Multi-Strategy Master Fund Limited

					
					
						 

					
					
						Attn: Office of General Counsel / Michelle Galvez Blackrock 40 E 52nd St New York, NY 1002
Tel: 212-810-3681 /LegalTransactions@blackrock.com

					
						 

				
	
					
						The Obsidian Master Fund

					
					
						 

					
					
						Attn: Office of General Counsel / Michelle Galvez Blackrock 40 E 52nd St New York, NY 1002
Tel: 212-810-3681 /LegalTransactions@blackrock.com

					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			Schedule B – 5

		

 

		

			 

		

		

		
			 
		

			
					
						Purchaser

					
					
						    

					
					
						Contact Information

				
	
					
						Tortoise Direct Opportunities Fund

					
					
						 

					
					
						Ryan Channell
11550 Ash Street, Suite 300
Leawood, KS 66211
rchannell@tortoiseadvisors.com
913-890-2161

					
						 

				
	
					
						Tortoise Energy Independence Fund, Inc.

					
					
						 

					
					
						Ryan Channell
11550 Ash Street, Suite 300
Leawood, KS 66211
rchannell@tortoiseadvisors.com
913-890-2161

					
						 

				
	
					
						Tortoise North American Energy Independence Fund

					
					
						 

					
					
						Ryan Channell
11550 Ash Street, Suite 300
Leawood, KS 66211
rchannell@tortoiseadvisors.com
913-890-2161

					
						 

				
	
					
						Tortoise Select Opportunities Fund

					
					
						 

					
					
						Ryan Channell
11550 Ash Street, Suite 300
Leawood, KS 66211
rchannell@tortoiseadvisors.com
913-890-2161

					
						 

				
	
					
						Arosa Opportunities Fund LP

					
					
						 

					
					
						120 West 45th St, Suite 3700
New York, NY 10036
Attention: Jonathan Feiler
Email: Jonathan.feiler@arosacapital.com
Phone: 212-218-0565

					
						 

				
	
					
						MF Moore ET Investments, LP

					
					
						 

					
					
						c/o Moore Capital Management, LP
11 Times Square 
New York, New York 10036
Attn: Legal Department
Telephone: 212-782-7151 and 212-782-6044
Email: legal.notices@moorecap.com and loans@moorecap.com

					
						 

				
	
					
						Hudson Bay Master Fund

					
						 

					
					
						 

					
					
						Hudson Bay Master fund LTD
777 3rd ave 30th floor New York, NY 10017
Email: investments@hudsonbaycapital.com
Attn.: George Antonopoulos
Phone 646-825-2178

					
						 

				
	
					
						Highbridge International LLC

					
					
						 

					
					
						Jon Dorfman
Highbridge Capital Management
40 West 57th Street
New York, NY 10019
(212)287-4672
Jdorfman@highbridge.com

					
						 

				
	
					
						MSD Energy Investments, L.P.

					
					
						 

					
					
						MSD Energy Investments, L.P.
645 Fifth Avenue, 21st Floor
New York, NY 10022
Attention: Marcello Liguori

					
						 

				

		
			
		

		
			

		 

		

			Schedule B – 6

		

 

		

			 

		

		

		
			 
		

			
					
						Purchaser

					
					
						    

					
					
						Contact Information

				
	
					
						CVI Investments, Inc.

					
					
						 

					
					
						c/o Heights Capital Management, Inc.
Brad.Alles@sig.com and  Martin.Kobinger@sig.com

					
						 

				
	
					
						Pennant Master Fund, L.P.

					
					
						 

					
					
						c/o Pennant Capital Management, LLC
1 DeForest Avenue
Summit, New Jersey 07901
Attn: Dominic Giafaglione, Chief Financial Officer
(dominic@pennantcapital.com)
Copy to: Laura DeVito, General Counsel/CCO
(laura@pennantcapital.com)

					
						 

				
	
					
						Pennant Windward Master Fund, L.P.

					
					
						 

					
					
						c/o Pennant Capital Management, LLC
1 DeForest Avenue
Summit, New Jersey 07901
Attn: Dominic Giafaglione, Chief Financial Officer
(dominic@pennantcapital.com)
Copy to: Laura DeVito, General Counsel/CCO 
(laura@pennantcapital.com)

					
						 

				
	
					
						Cohen & Steers Real Assets Fund, Inc.

					
					
						 

					
					
						c/o Cohen & Steers Capital Management, Inc., 280 Park Ave, New York, NY 10017,
tel 212-832-3232, attn: Tina M. Payne, Secretary.

					
						 

				
	
					
						Cohen & Steers Global Income Builder, Inc.

					
					
						 

					
					
						c/o Cohen & Steers Capital Management, Inc., 280 Park Ave, New York, NY 10017,
tel 212-832-3232, attn: Tina M. Payne, Secretary.

				

		
			 
		

		
			 
		

		
			

		 

		

			Schedule B – 7

		

 

		

			 

		

		

		
			 
		

		
			Schedule C – Subsidiaries
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name

					
					
						    

					
					
						Jurisdiction of Organization

					
					
						    

					
					
						Foreign Qualifications

					
					
						 

				
	
					
						7N, LLC

					
					
						 

					
					
						Delaware

					
					
						 

					
					
						Colorado,

					
					
						 

				
	
					
						XTR Midstream, LLC

					
					
						 

					
					
						Delaware

					
					
						 

					
					
						Colorado, Wyoming

					
					
						 

				
	
					
						Extraction Finance Corp.

					
					
						 

					
					
						Delaware

					
					
						 

					
					
						None

					
					
						 

				
	
					
						Mountaintop Minerals, LLC

					
					
						 

					
					
						Delaware

					
					
						 

					
					
						Colorado

					
					
						 

				
	
					
						8 North, LLC

					
					
						 

					
					
						Delaware

					
					
						 

					
					
						Colorado, Wyoming

					
					
						 

				
	
					
						XOG Services, LLC

					
					
						 

					
					
						Delaware

					
					
						 

					
					
						Colorado, Texas, Wyoming

					
					
						 

				
	
					
						XOG Services, Inc.

					
					
						 

					
					
						Colorado

					
					
						 

					
					
						None

					
					
						 

				
	
					
						Elevation Midstream LLC

					
					
						 

					
					
						Delaware

					
					
						 

					
					
						Colorado

					
					
						 

				
	
					
						Bison Exploration, LLC

					
					
						 

					
					
						Delaware

					
					
						 

					
					
						Colorado

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			Schedule C – 1

		

 

		

			 

		

		

		
			Exhibit A
		

		
			 
		

		
			Form of Opinion of Vinson & Elkins L.L.P.
		

		
			 
		

		
			Capitalized terms used but not defined herein have the meanings assigned to such terms in the Common Stock Subscription Agreement (the “Purchase Agreement”). The Company shall furnish to the Purchasers at the Closing an opinion of Vinson & Elkins L.L.P., counsel for the Company, addressed to the Purchasers and dated the Closing Date in form satisfactory to the Purchasers, stating that:
		

		
			 
		

		
			1.The Company has been duly incorporated and is validly existing as a corporation, and is in good standing under the laws of the State of Delaware, with the corporate power and authority to own or lease, as the case may be, and to operate its properties and conduct the businesses in which it is currently engaged; and is duly qualified to do business as a foreign corporation and is in good standing in the States of Colorado, Texas and Wyoming.
		

		
			 
		

		
			2.The Purchased Shares have been duly authorized in accordance with the Company’s Certificate of Incorporation and Bylaws and, when issued and delivered by the Company to the Purchasers upon payment therefor in accordance with the Purchase Agreement, will be validly issued, fully paid and non-assessable.
		

		
			 
		

		
			3.Assuming the accuracy of the representations and warranties of the Purchasers and the Company contained in the Purchase Agreement, and the representations and warranties of the Placement Agents in the Placement Agent Engagement Letter, the offer, issuance and sale of the Purchased Shares by the Company to the Purchasers solely in the manner contemplated by the Purchase Agreement are exempt from the registration requirements of the Securities Act; provided that such counsel will express no opinion as to any subsequent sale.
		

		
			 
		

		 

		

			Exhibit A – 1ex10-1.htm

  

	 	
CONFIDENTIAL TREATMENT REQUESTED
	
Exhibit 10.1

	 	 	 
	 	 	 
	 	MANUFACTURING AND SUPPLY AMENDMENT	 

 

This Manufacturing and Supply Amendment (“Manufacturing Amendment”) is made effective as of December 9, 2016 (the “Manufacturing Amendment Effective Date”), between Nuvectra Corporation having an office at 5830 Granite Parkway, Suite 1100, Plano, TX 75024 (“Client”) and Minnetronix, Inc., having an office at 1635 Energy Park Drive, St. Paul, MN 55108 (“Minnetronix”).

 

WHEREAS, Client, which was formerly known as QIG Group, LLC, and Minnetronix entered into a Business Agreement, dated April 30, 2009 (the “2009 Agreement”), as modified by letter agreement between the parties dated June 29, 2009 (“Letter Agreement”) and First Amendment to Business Agreement, made and entered into as of April 10, 2010 (the “First Amendment” and collectively, with the Letter Agreement and the 2009 Agreement, the “Business Agreement”) as supplemented and amended by the Manufacturing and Quality Addendum dated August 1, 2013 (the “Manufacturing Addendum”). 

 

WHEREAS, as described in Section 1 below, the parties are amending the Business Agreement and Manufacturing Addendum with respect to the manufacturing of the Products described herein with this Manufacturing Amendment.

 

WHEREAS, the parties each desire to amend the Manufacturing Addendum for Minnetronix to supply certain products and services to Client.

 

NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.     Structure of Documents for Manufacturing. The parties agree that this Manufacturing Amendment supplements and, where stated, modifies the Manufacturing Addendum, (which in turn continues to supplement and modify the Business Agreement). For all Purchase Orders placed under this Manufacturing Agreement, the “Manufacturing Agreement” is comprised of (and will be interpreted in the following order): (a) Product Specifications agreed to by the parties; (b) the applicable Purchase Order quantity, description of Products and delivery dates (as may be adjusted as set forth in this Manufacturing Amendment and excluding boilerplate terms and conditions); (c) this Manufacturing Amendment; (d) the Manufacturing Addendum (as modified as set forth herein); (e) the applicable terms of the Business Agreement (as modified as set forth in the Manufacturing Addendum and herein); and (f) the Quality Agreement. The foregoing sentence supersedes and replaces, with respect to Purchase Orders placed hereunder, conflicting language on order of interpretation in Sections 2.1(a) and 9.16 of the Business Agreement and Section 4 of the Manufacturing Addendum. Any capitalized terms used and not defined in this Manufacturing Amendment shall be as defined in the Manufacturing Addendum and/or Business Agreement. Except to the extent specifically supplemented and modified by this Manufacturing Amendment and the remaining terms of the Manufacturing Addendum, the terms of the Business Agreement shall remain in full force and effect.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

1

 

 

 

2.     Manufacturing Terms. The entirety of Sections 1 and 3 of the Manufacturing Addendum are hereby deleted and replaced with the terms in Section 3 of this Manufacturing Amendment except for Section 1.l.i. of the Manufacturing Addendum which shall remain in full force and effect. For clarification, the amendments to the Business Agreement contained in Section 1.l.i. of the Manufacturing Addendum shall continue to apply to this Manufacturing Agreement (including this Manufacturing Amendment and all Purchase Orders placed hereunder) except that for Minnetronix’ indemnification obligations under the Manufacturing Agreement in no event will Minnetronix’ aggregate liability exceed Three Million Dollars ($3,000,000).

 

3.     Changes to Manufacturing Terms. Subject to the terms and conditions in the Manufacturing Agreement, Client will purchase Products from Minnetronix and Minnetronix will supply the Products (as defined below) to Client as set forth below. 

 

a. Products. A description of the Products and Components to be manufactured by Minnetronix and purchased by Client, together with additional terms specifically applicable to such Products and Components, such as lead time requirements and various other commercial terms, will be set forth in Schedules to this Manufacturing Amendment (Schedule A describes the initial Products). The parties may, from time to time, add new Products by executing a new Schedule or executing addenda and/or amendments to a prior Schedule. Revision numbers for the Product may change from time to time through Seller's Engineering Change Order (“ECO”) system.

 

b. Specifications. Specifications for the Products will be supplied by Client or Client’s agent and agreed upon in writing by Minnetronix, or will be otherwise established and accepted by Client and Minnetronix via Minnetronix' ECO process. Neither Minnetronix nor any Product shall be expected or required to perform outside of the Specifications.

 

c. Initiation Terms. Client agrees that it will provide its required 6 month notice to Integer, Inc., f/k/a Greatbatch, Inc. (“Integer”) that it intends to exercise its right to terminate Integer’s supply of the Products under the Supply Agreement between Client and Integer dated March 14, 2016 (the “Integer Supply Agreement”) and Client agrees to provide such notice no later than December 9, 2016. Upon receiving written notice from Client that it has initiated its separation from Integer as Client’s supplier for the Products, Minnetronix agrees it will commence the PCBA alternative sourcing project(s) required to achieve the process changes needed to achieve the Table A Pricing set forth on Schedule A. Minnetronix agrees that the work under such project will be for no charge with respect to the alternative sourcing of, and transfer to, a supplier for the PCBAs used in the Products in Schedule A, including creating the documentation required for regulatory filings to the FDA for the process changes to be made to such Products as they exist on the Manufacturing Amendment Effective Date to replace the PCBA supplier contemplated to accomplish the Table A Pricing (as defined in Schedule A). Other than Minnetronix’ costs to set up the alternative sourcing as described above, the submission of the necessary FDA and regulatory filings to achieve the Table A Pricing (as defined on Schedule A), will be at Client’s expense. Further details are set forth in Schedule A under “Alternative Source Project Summary and Pricing Terms”.

 

Minnetronix further agrees to coordinate with Client to complete and compile any required FDA or other regulatory submissions as needed to implement such Minnetronix process changes and the parties agree to work together in good faith to complete such submission in a timely manner. Client agrees it will promptly review and file the regulatory submission with the FDA following Minnetronix’ delivery of the completed file to Client. If Client believes the regulatory submission is incomplete or inadequate, it will promptly notify Minnetronix and the parties will continue to work together to complete the regulatory submission. The PCBA alternative sourcing project is expected to be completed within six months or sooner from the Manufacturing Amendment Effective Date. 

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

2

 

 

 

d. Purchase Orders.

 

i. Client will order Products by issuing to Minnetronix a Purchase Order describing the Products to be manufactured and delivery dates and that corresponds to the applicable pricing set forth in Schedule A. The parties shall agree in writing on the Purchase Order, including the order quantity, delivery schedule, and the Specifications contained thereon, as set forth above, prior to the commencement of any work related to such Purchase Order. Agreement may be evidenced by an order acknowledgement. Provided that such Purchase Order and Specifications are accepted by Minnetronix, Minnetronix shall manufacture for Client the Products or Components identified in such Purchase Order, subject to the terms and conditions of the Manufacturing Agreement. The Product functional and quality control testing to be performed to verify the Product’s conformance to the Specifications at the time of delivery will be as per the testing procedures in the Specifications. Concurrent with execution of this Manufacturing Addendum, the parties have agreed to Purchase Order #___, which is valid and binding on the parties contingent on expiration of the exclusivity obligations between Client and Integer under the Integer Supply Agreement (“Initial Purchase Order”). Client shall deliver written notice to Minnetronix of when such exclusivity expires or is terminated. On expiration or termination of Client’s exclusivity obligations with Integer, the contingency shall be deemed automatically removed, the [***] month delivery period of the Initial Purchase Order shall commence (with original shipment dates commencing at the start of such [***] month delivery period for purposes of subsection (iii) below), Client shall deliver an [***] month forecast per the terms of subsection (iii) below, and the Initial Purchase Order shall be deemed outstanding for purposes of the safety stock requirements herein. 

 

ii. Commencement of work related to any Purchase Order issued hereunder is done so under the terms of the Manufacturing Agreement. Any additional or different terms sent by Client to Minnetronix in writing, either together with or apart from a Purchase Order, or sent from Minnetronix to Client in writing, shall be excluded unless signed by both parties as an amendment to this Manufacturing Amendment.

 

iii. Client will place one or more Purchase Orders with Minnetronix representing Client's firm commitment for Products to be delivered as specified on the respective Purchase Order. Once a Purchase Order is agreed by the parties, such pricing, as described on Schedule A, will be available for up to [***] months from the date of agreement (“[***] month delivery period”) and Client will be required to take delivery of all Products over such [***] month delivery period. Client shall place Purchase Orders at the minimum quantities as set forth in the pricing tiers described on Schedule A. Upon the placement of a Purchase Order for the minimum commitment to be delivered within the [***] month delivery period, Client shall provide to Minnetronix a binding [***] month forecast for such Purchase Order subject to the permitted tolerances set forth in the table for applicable quantities at delivery dates.  Such forecast shall be updated by Client and provided to Minnetronix on a monthly basis and adjustments to the delivery quantities in the original Purchase Order will be permitted by Minnetronix only within the percentage allowances set forth below:

 

 

	
Calendar Days Before Original 

PO Shipment Date
	
Units % change 

Allowance from 

Original PO

	
[***]
	
[***]%

	
[***]
	
+/- [***]%

	
[***]
	
+/- [***]%

	
> [***]
	
+/- [***]%

  

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

3

 

 

The binding portion of such forecast updates will be deemed to modify the Purchase Order, provided however, that the parties agree that (A) such forecast updates shall not decrease the original Purchase Order quantity below the number of units of Products agreed in the original Purchase Order and Minnetronix shall be permitted to deliver, and Client shall purchase, any remaining units under the original Purchase Order during the [***] month delivery period, (B) in no event shall the forecast updates exceed [***]% of the original Purchase Order number of units of Product within the [***] month delivery period, and (C) no changes to the forecast will be allowed during the [***] days prior to the completion of the original [***] month delivery period.

 

iv. Minnetronix will make reasonable efforts to accommodate schedule change requests subject to Component availability and capacity at Minnetronix’ sole discretion. Aggressive schedule increases will be accommodated to the best of Minnetronix’ ability. Minnetronix may use forecasts to purchase long lead-time items and to achieve price breaks due to order size. Forecasts and Purchase Orders may be combined to make best effort purchasing decisions. Minnetronix will be responsible for analysis for obsolete components and will manage its “last time buys”, as appropriate in order to avoid any supply disruptions to Client, but Client will be responsible for paying for such components per the terms below.

 

e. Price; Deposit; Changes to Payment Terms; Additional Charges. 

(i)     The applicable price (“Price”) for the Products under the Platform (as defined below) is as described on Schedule A and is subject to the terms set forth therein and below. 

(ii)     For the first [***] of each of the PPC and PoP Products and for the first [***] of each of the CP, PFT, EPG and Coil Products ordered by Client hereunder, the Price for the Products shall be the Table B Pricing (collectively the “Initial Products”). If Client does not order and take delivery of all of the Initial Products during the calendar year 2017, then Minnetronix may charge, and Client will pay, a monthly storage fee for the Initial Products at the rate of [***]% times the aggregate Price for the balance of the Initial Products not delivered hereunder until delivery (which may be waived by Minnetronix if Client issues a second Purchase Order for additional Products hereunder). Such fee shall be payable monthly in arrears. For all other Products ordered hereunder, the Price shall be the Table A Pricing; provided, however, that:

	 	
(A)
	
if the alternative source for the PCBA supplier is not completed within 6 months of the Manufacturing Amendment Effective Date and such delay is solely caused by Client, then the Table B Pricing shall apply until the alternative source for the PCBA supplier is completed and approved by the FDA, after which Minnetronix will use commercially reasonable efforts to convert the Price for the Products to the Table A Pricing promptly (taking into account Committed Inventory and other commitments made under the Table B Pricing). 

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

4

 

 

(iii)     The Price is subject to change for different Products models as described in Schedule A. Minnetronix will manage suppliers, parts specifications, and other associated documentation for the Products in Minnetronix’ internal systems. 

(iv)     A deposit equal to [***]% of the value of the initial [***] month delivery period for the Initial Purchase Order issued by Client (i.e. Price times number of units) shall be paid by Client within [***] days following the date such Initial Purchase Order becomes effective as described in Section 3(d)(i) above. Minnetronix agrees that such deposit will be netted against the final payment due to Minnetronix under the Manufacturing Agreement. Minnetronix further agrees that Client will also receive a credit against the initial Purchase Order for any functional EPG boards that the Client delivers to Minnetronix for use for the Products under such Purchase Order, provided that such credit will not exceed the number of EPG board units described in the initial Purchase Order between Client and Minnetronix.

(v)     Notwithstanding the terms of Section 4.2 of the Business Agreement, (A) Client shall deliver payment in full to Minnetronix within 60 days after the invoice date, and (B) in the event that full payment is not made within 90 days after the invoice date, Minnetronix may cease all efforts on the manufacturing Services and the Products and refer the account to a collection agency. If Client breaches any of its payment obligations hereunder and fails to cure within 10 days the foregoing payment terms shall be deemed terminated and payment shall instead be due as set forth in Section 4.2 of the Business Agreement for the remainder of the term of the Manufacturing Agreement. 

(vi)     Additional Charges.

(A)     Any nonrecurring engineering (“NRE”) fees that may be incurred by Minnetronix (e.g., development of travelers, ECO generation/approval/release, additional assembly procedures, additional assembly drawings, and parts and assembly information entry into the Minnetronix’ manufacturing system) will be recharged to Client in accordance with Section 4.6 of the Business Agreement. All required supplier NREs will be recharged to Client in accordance with Section 4.3 of the Business Agreement.

(B)     Extensive troubleshooting and repair of design-related issues encountered during production and testing will be at Client’s expense in accordance with Section 4.6 of the Business Agreement.

(C)     Client-owned equipment, if any, shall be calibrated and maintained as required at Client’s expense in accordance with Section 4.3 of the Business Agreement.

(D)     Minnetronix will provide standard assembly and test equipment. Any non-standard test equipment or fixtures will be provided by or purchased by Client.

(E)     Any out of pocket expenses in excess of $2,000 per month are subject to pre-approval of Client. 

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

5

 

 

f. Exclusivity. Client agrees that, subject only to the exclusivity in the Integer Supply Agreement until it expires or is terminated, Minnetronix will be the exclusive external supplier for Client’s current Products meaning the Client’s current existing external device platform (the “Platform”). The Platform is defined as a product that uses the current hardware in use as of the date of this Manufacturing Amendment, but may have different software based on specific therapies, including minor software changes or improvements for the current “Algovita spinal cord stimulation system” and the “Virtis sacral nerve stimulation system.” Minor hardware and/or software modifications, including but not limited to the following: to improve or modify functionality, improve manufacturing yields, replace obsolete/end-of-life components, or ensure compliance with quality or regulatory standards; would be considered part of the Platform. Next generation Products or Platforms would be devices that have a significant change in form factor and/or significant change in function from the Platform. Notwithstanding the above, but subject to the termination provisions of the Manufacturing Agreement, Client retains the right to in-source and manufacture the Platform internally (but not through use of a third party including any affiliate), and may have any next generation external devices manufactured by itself or by a third party. The foregoing shall be deemed to replace Section 8.2(e) of the Business Agreement for the Manufacturing Agreement.

 

g. Minnetronix Changes to the Specifications or Manufacturing Location. Minnetronix shall not implement any change to any of the Specifications without the prior written consent of Client, except as follows: Minnetronix may make minor revisions without such consent. A minor revision is defined below. Prior to making any “major revision” to a Product assembly or sub-assembly (i.e., any change that may affect the form, fit or function of a Product), Minnetronix will request Client’s consent to such major revision by issuing an ECO to Client. At a minimum, Client’s approval of an ECO issued by Minnetronix with respect to the top level assembly of a Product will be required prior to release of the Product to production. Client’s execution of an ECO shall be deemed to constitute Client’s approval of the revision subject to such ECO, together with all Components and Specifications that are incorporated into the assembly or sub-assembly that is the subject of such ECO. Minnetronix will provide all documentation reasonably requested by Client in connection with its review of any ECO presented by Minnetronix. Minnetronix will give Client [***] months prior written notice of any change in manufacturing location for the Products, and the opportunity to make a “last time purchase” from such old manufacturing location under the terms of subsection r. below.

 

h. Product Documentation. With each shipment of Product, Minnetronix will provide to Client a Certificate of Compliance verifying each Product’s compliance with the applicable Specifications.

 

i. Packaging & Delivery. Each Product will be packaged to (i) comply with the requirements of the carrier, (ii) comply with Client’s Specifications and (c) comply with all applicable laws, rules and regulations. Delivery is FOB Minnetronix manufacturing facility. Client assumes and agrees to bear all risk of damage or loss to the Products after shipment from Minnetronix’ facility (the FOB point). Minnetronix shall select freight carrier of its choosing unless otherwise specified by Client in the Purchase Order. Costs for packaging not included in the BOM or Specifications are not included in the Price.

 

j. Configuration Management. Minnetronix uses a product revision format that indicates different levels of product release. All revisions have a format of [major revision]-[minor revision]. Major revisions (i.e., changes that may affect the form, fit or function of a Product) are less than “1” (e.g., .01, .02, .5, etc.) prior to production release and are “001” or greater (e.g., 001, 002, etc.) after production release. Minor revisions (i.e., changes that do not affect the form, fit or function of a Product) start with alpha characters beginning at “a” after each major revision change and are incremented for each minor revision change (e.g., a, b, c, etc.) All Products provided at a revision level of 001-a or higher (e.g., 001-a, 001-b, 002-a, etc.) shall be considered production units (“Production Units”). All Products provided at a revision less than 001-a (e.g., .01-a, .01-b, .5-a, etc.) shall be considered prototypes or pre-production units (“Engineering Units”). Any Engineering Units provided by Minnetronix may not meet regulatory standards for medical equipment or software and are not intended for human use unless specifically manufactured for that purpose and expressly indicated as such by Minnetronix to Client. ANY AND ALL ENGINEERING UNITS MANUFACTURED AND DELIVERED BY MINNETRONIX HEREUNDER ARE PROVIDED “AS IS”.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

6

 

 

 

k. Outsourcing. Minnetronix may not change the subcontractor or vendor of any material or service used in the Products that are manufactured by Minnetronix in a manner that would trigger a regulatory change without the prior written consent of Client. Minnetronix will be responsible for the acts and omissions of any subcontractor to the extent Minnetronix would be liable under the Business Agreement if it had committed such acts and omissions itself.

 

l. Returned Product.

 

	 	
i.
	
All Products that Client deems to be non-conforming shall be returned to Minnetronix after acquiring and including a Minnetronix Return Material Authorization (“RMA”) number and paperwork indicating the details of the unit being returned with a serial or lot number and a description of the problem. An RMA number is available on request from the Minnetronix Quality Department.

 

	 	
ii.
	
Client shall pay for freight for Product return to and from Minnetronix (except for warranty returns). Minnetronix shall use a shipping method of the same or better expediency to that which Client returned Product to Minnetronix.

 

	 	
iii.
	
Client agrees to supply Minnetronix with a Certificate of Decontamination, when applicable, along with all returned Product certifying that it is free of all toxic and biohazard materials. If no such certificate is provided, Minnetronix may perform decontamination services as needed.

 

	 	
iv.
	
In-warranty repairs shall be performed in accordance with the Manufacturing Agreement. Minnetronix agrees to perform out-of warranty depot repair, upgrade, and troubleshooting services as requested by Client. All repairs, troubleshooting, field upgrades, and field service work performed by Client will be at Client’s sole expense.

 

m. Books, Records and Traceability. Minnetronix must keep true, accurate and complete books, records, reports and accounts in connection with the Products provided under the Manufacturing Agreement, and Minnetronix must keep these for such period of time as required by applicable law, rule or regulation, but in no event less than fifteen years immediately following the termination of the Manufacturing Agreement. Without limiting Client’s rights below, Client may send one or more of its representatives to inspect Minnetronix’ business operations, including, but not limited to, manufacturing and warehouse facilities, records, and reports at any time during regular business hours with at least one week’s notice to Minnetronix and no more than once annually. Minnetronix will make available to Client immediately after receipt and for a period of fifteen years immediately following the termination of the Manufacturing Agreement, inspection reports, notices, claims, and audits by any regulatory or governmental authority affecting or relating to Minnetronix’ business or the Product. Traceability requirements include, but are not limited to the following:

 

	 	
i.
	
All Components are traced by lot at a minimum;

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

7

 

  

	 	
ii.
	
Critical Components are traced according to Client documentation as set forth at the time of qualification;

 

	 	
iii.
	
Process information is traced to the sub-assembly. At a minimum, this includes operator performing the operation and date performed, shift (as applicable), manufacturing instructions used, identification of equipment used, BOM/design revision and configuration, resolution of any discrepancies, and record of any rework performed; and

 

	 	
iv.
	
Raw material sourced directly by Minnetronix trace-ability to original material manufacturing lot.

 

n. Covenants and Warranty.

 

	 	
i.
	
Client Responsibility. Client shall be solely responsible for the design of the Products and for the Products’ safety and efficacy for their indications and intended uses. Subject to the last sentence of this Section, Client shall bear any financial or other responsibility for Product deficiencies discovered by Client or Minnetronix. It is Client’s sole responsibility to review, validate, and approve the Product design, any Engineering Units Minnetronix provides, and to ensure that any resulting Product is tested, manufactured, packaged, labeled (including adequate warnings), sold and/or used in a safe, careful, and effective manner. Client is also responsible for obtaining and maintaining any necessary approvals, including any FDA, UL, CE, CSA, FCC or other approvals. Notwithstanding the foregoing, nothing in this Section is intended to limit, and in no event shall this Section be deemed to modify, the express indemnification obligations of Minnetronix set forth in the Manufacturing Agreement (for clarity, in the Manufacturing Addendum which modifies the Business Agreement) and the express Product warranty provisions set forth below in this Manufacturing Amendment, respectively.

 

	 	
ii.
	
Minnetronix Responsibility. Minnetronix’ procurement, assembly and test responsibility is limited to providing a Product that is “built to print” according to written Specifications provided to Minnetronix by Client and agreed upon by Minnetronix, or as otherwise agreed to by Client via Minnetronix’ ECO process. Client shall have ten (10) business days from arrival of the Products at Client’s shipping address to receive and inspect the Products to determine if there is any shortage, damage or discrepancy. Client shall report any shortage, damage or discrepancy within such period to Minnetronix and furnish such written evidence or other documentation as Minnetronix may deem appropriate. If Minnetronix is responsible for such shortage, damage or discrepancy, Minnetronix shall, at Client’s option and as Client’s sole remedy: (a) promptly deliver additional or substitute Products to Client in accordance with the delivery procedures set forth herein (but at Minnetronix’ expense for shipment); or (b) provide a credit for the amounts paid to Minnetronix for the damaged or defective Products. Client shall dispose of the rejected Products as directed by Minnetronix. 

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

8

 

  

	 	
iii.
	
Minnetronix Warranty. Subject to the terms of this Section, Minnetronix warrants to Client that each Production Unit of Product, for a period one year from the date of delivery to Client (the “Warranty Period”), shall: (a) conform in all respects to all of the Specifications to the extent verified by Minnetronix through the testing and inspection procedures defined in the Device Master Record for such Product or otherwise established and agreed to by Client via Seller’s ECO system as of the date of shipment of such Production Unit; and (b) be free from all defects in workmanship. Minnetronix shall have no responsibility or obligation to Client under warranty claims with respect to Products that have been subjected to abuse, misuse, accident, alteration or neglect. In addition, the foregoing warranties do not apply to any third party software or any other third party components or Client components (including Components) that are embedded or incorporated into the Products, provided that Minnetronix shall assign to Client any warranties received from such third parties (to the extent assignable). The parties have identified which Components as of the Manufacturing Amendment Effective Date do not have warranties assignable to Client in Schedule B hereto. During the Warranty Period and only during the Warranty Period, Minnetronix’ responsibility shall, at Minnetronix’ sole option, and as Client’s sole and exclusive remedy and Minnetronix’ exclusive liability except for Minnetronix’ indemnification obligation in Section 7.1(b) of the Business Agreement (as modified per the terms of the Manufacturing Addendum), be limited to (i) the labor costs for work performed by Minnetronix at Minnetronix’ facility or replacement of the Product (including labor to assemble Components that are defective, although Component replacement is at Client’s expense (except that Minnetronix shall cover the replacement cost for Components rendered unrecoverable due to defects in workmanship by Minnetronix)) plus domestic ground shipment to and from Client’s facility or (ii) a credit for the amounts paid to Minnetronix for the damaged or defective Products. Minnetronix will assist Client in obtaining replacement defective Components at Client’s expense. In all cases, costs not related to warranty repair or replacement shall be borne by Client. Client is obligated to train and instruct its employees and any potential users of the Products with regard to their safe and proper use. Except for Minnetronix’ indemnification obligation in Section 7.1(b) of the Business Agreement (as modified per the terms of the Manufacturing Addendum), Minnetronix shall have no liability for any injury to the operator or subject of the Products’ application regardless of the reason for the injury (including, but not limited to, inappropriate therapy, use, or Product malfunction). Notwithstanding the foregoing, with respect to any Products that have been subject to off-label use, Minnetronix’ indemnification obligation in Section 7.1(b) of the Business Agreement (as modified per the terms of the Manufacturing Addendum) shall not apply.

 

o. Quality Agreement. Minnetronix and Nuvectra have entered into a separate Quality Agreement, effective on the date that the Initial Purchase Order becomes effective, that includes additional quality requirements (“Quality Agreement”).

 

p. Audits. Upon reasonable prior written notice of at least two weeks and during normal business hours and no more than once annually, Client, any of its duly authorized representatives and any regulatory or governmental agency, including, but not limited to, the FDA and any competent regulatory authority or notification body of Client, will have access to and the right to inspect or audit any Product’s design and any manufacturing, packaging, labeling, testing, shipping or quality processes and associated documentation. In addition, Client may audit Minnetronix’ manufacturing and quality systems. Such audits may include examination of Minnetronix’ manufacturing and quality control processes, and manufacturing and quality control records to ensure compliance. Further, Client requires a 30-day response to all audit findings, a 60-day closure timeline for major findings, and a one (1) year closure timeline for all minor findings.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

9

 

 

q. Product Quality or Performance Issues.

 

	 	
i.
	
Minnetronix will use commercially reasonable efforts to resolve at Client’s request any Product quality or performance issues that arise during the term of the Manufacturing Agreement at Client’s sole expense (except to the extent the warranty remedies apply). These efforts will be tracked in a quality system such as Corrective Action and Preventive Action framework that is compliant with industry standards including, but not limited to, IS0-9001. Upon request by Client, such efforts may include making appropriate Minnetronix personnel available (at Minnetronix’ expense) at the Minnetronix and/or Client facilities where such Product quality or performance issues are identified and/or need to be addressed. Upon request by Client, Minnetronix will promptly provide Client with all information requested by Client on the quality or performance issue and Minnetronix’ corrective actions. Minnetronix shall be responsible for the costs of complaint/failure investigations, should such investigation show the fault was due to a manufacturing error. Minnetronix shall complete all failure analysis within 30 days of receiving a device for analysis. The cost of analysis for any investigation exceeding this timeline will be paid by Minnetronix, regardless of the cause of the failure, unless prior agreement to extend the investigation is reached.

 

	 	
ii.
	
Each party must provide the other party with written notification within ten business days after such party obtains knowledge of any actual or potential problems relating to the performance of any Product or any Components used in the Product so that Client may explore whether investigation into the experienced problem as it may relate to Product already shipped or in process is necessary. Minnetronix will fully cooperate with all reasonable requests made by Client as to any such investigation, which will be at Client’s sole expense.

 

r. Discontinuance of Supply & Last Time Purchase. If either party terminates the Manufacturing Agreement as permitted therein or Minnetronix chooses to discontinue the supply of any Product, Client will have the right to a last time purchase from Minnetronix of the Product in a quantity ordered by Client but which may not exceed the aggregate amount for the next six months as set forth in the most recent forecast.

 

s. Component Scheduling. Minnetronix shall maintain scheduling control over Components ordering and their delivery scheduling according to Minnetronix’ production scheduling processes. Minnetronix will issue purchase orders, or otherwise place orders, for all Components to support Client’s Purchase Orders throughout the term of the Manufacturing Agreement. Minnetronix will commit to longer-term buys on an exception basis as reasonably requested by Client, and, provided that all such requests are issued in writing to Minnetronix by Client, all such buys shall be deemed a binding forecast.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

10

 

 

t. Termination. In the event that either party terminates the Manufacturing Agreement (and/or any outstanding Purchase Order) as permitted herein, the following terms shall apply to Committed Inventory and finished Products purchased or committed to as a result of the Purchase Order or the forecasts delivered by Client to Minnetronix, and also for all Committed Inventory and finished Products not yet shipped affected by part obsolescence, changes due to ECOs or the end of Product life:

 

	 	
i.
	
Minnetronix will make reasonable good faith efforts to return unneeded Components to its suppliers, at Client’s expense; and

 

	 	
ii.
	
Minnetronix will return all Client-owned inventory to Client, at Client’s expense; and

 

	 	
iii.
	
Client will be responsible for the following costs: 

 

(A) Minnetronix’ Price for finished Products and actual costs associated with non-returnable or non-cancelable inventory including inventory that has been rendered non-returnable due to work performed in accordance with the Manufacturing Agreement and associated Purchase Orders, provided that any such materials cannot be used by Minnetronix in connection with the production of other items for Client or any other customer of Minnetronix within 1 month from the date of termination; and

(B) Minnetronix’ actual costs associated with returnable or cancelable inventory.

 

	 	
iv.
	
Upon payment by Client of the amounts set forth above, Client shall own the inventory and components, and Minnetronix shall deliver such inventory and components to Client in accordance herewith on an AS IS basis (except for completed Production Units which shall be subject to the warranty herein).

 

	 	
v.
	
Minnetronix’ “actual costs” include labor, overhead and other out-of-pocket expenses incurred in the purchasing, receiving, inspecting, testing, assembling, storing, counting, shipping, handling, canceling, returning, or otherwise managing or processing the Components and inventory and their suppliers.

 

u. Excess/Scrap Components. Subject to the terms of Schedule A for EPG boards, the costs of scrap and/or non-conforming material incurred during normal production activities shall be borne by Minnetronix. The cost of scrapped and/or excess Components shall be borne by Client in the event of part obsolescence, changes due to ECOs or the end of Product life. This is intended, for example, to cover Components that are no longer needed for the Product due to ECOs, or end of the Product manufacturing at Minnetronix. Additionally, Client is responsible for excess Components that are purchased due to minimum buy quantities from the Product Component suppliers. Excess parts may be transferred to Client upon completion of the production orders. Minnetronix shall invoice such amounts and payment is due per Section 4.2 of the Business Agreement.

 

v. Safety Stock. 

 

	 	
i.
	
When there is an outstanding Purchase Order under the Manufacturing Agreement, Minnetronix commits it will hold or make safety stock inventory for the duration of the Purchase Order to fulfill such Purchase Order as follows. 

	 	
ii.
	
Minnetronix will perform a lead time analysis on the raw materials and Components for the work-in-process goods to be held in safety stock and deliver a plan to Client recommending a mix of such materials for the work-in-process goods to be held in safety stock. Upon agreement of the parties to such mix, Minnetronix shall hold safety stock of such mix of materials for [***] ([***]) weeks of work-in-process goods calculated by dividing the [***] month Purchase Order total dollar amount by [***], and multiplying the quotient by [***]. The resulting dollar amount shall be the basis for determining how much work-in-process goods will be held in safety stock. 

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

11

 

  

	 	
iii.
	
Minnetronix agrees that such safety stock will also include [***] ([***]) weeks worth of finished goods, calculated for each Product by dividing the [***] month Purchase Order total quantity of such Product ordered by [***], and multiplying the quotient by [***] (such safety stock of finished goods is the “Consignment Inventory”).

	 	
A.
	
Minnetronix will develop a Consignment Inventory plan to cover how often Client will draw upon the Consignment Inventory during the [***] month delivery period. Upon the parties’ agreement to such plan (the “Consignment Inventory Plan”), and periodically per the Consignment Inventory Plan, Minnetronix will manufacture and deliver to Client’s location at Blaine, Minnesota the Consignment Inventory under the Purchase Order. 

	 	
B.
	
Upon delivery of the Consignment Inventory, Client shall complete the inspection and acceptance pursuant to Section 3.n.ii of this Manufacturing Amendment but title shall be retained by Minnetronix until transfer to Client as set forth below. Upon acceptance, Client shall track the Consignment Inventory using a monthly inventory report in a form to be mutually agreed by Client and Minnetronix; copies of the monthly inventory report shall be furnished to Minnetronix monthly. 

	 	
C.
	
The Consignment Inventory shall be:

	 	
1.
	
held at Client’s location on consignment, 

	 	
2.
	
identified as the property of Minnetronix,

	 	
3.
	
segregated from other goods, and 

	 	
4.
	
stored in an area in Client’s facility separate from and not mingled with other goods of Client or of any third party. 

	 	
D.
	
The Consignment Inventory shall be kept free of all liens, claims, encumbrances and interests of third parties and, without limiting the foregoing, Client will not sell, transfer, assign, pledge, grant a security interest in or otherwise encumber or allow any third party to obtain an interest in any Consignment Inventory. 

	 	
E.
	
While on consignment with Client, and except with respect to damage, destruction or loss to the Consignment Inventory caused by Client’s acts or omissions, risk of loss for the replacement value of the Consignment Inventory shall remain with Minnetronix and Minnetronix shall be responsible for insuring the Consignment Inventory for its replacement value. In the event of any destruction, damage or loss to any Consignment Inventory during consignment by Client, Client shall immediately notify Minnetronix. Client shall have insurance covering its own acts and omissions.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

12

 

 

	 	
F.
	
Client shall draw from the Consignment Inventory within the scope of the then current Purchase Order pursuant to the Consignment Inventory Plan with the timing such that the then-current Consignment Inventory is not removed until replacement Consignment Inventory has been accepted pursuant to Section 3.n.ii of this Manufacturing Amendment (unless the Purchase Order has been fulfilled). Upon such acceptance of the replacement Consignment Inventory, the then-current Consignment Inventory shall be deemed delivered to Client, title thereof shall pass to Client, and the warranty in Section 3.n.iii of this Manufacturing Amendment shall commence for such Consignment Inventory. Client shall deliver Minnetronix written notice of this date for purposes of tracking the Warranty Period (if Client fails to deliver such notice the Warranty Period shall be deemed to commence on the date the replacement Consignment Inventory is delivered to Client).

	 	
G.
	
Minnetronix or any of its duly authorized representatives shall have access to and the right to reasonably perform routine audits on the Consignment Inventory upon at least five (5) business days’ prior written notice at least quarterly.

	 	
iv.
	
Client agrees that it will pay the cost or Price (depending on whether work in process or finished goods) for any scrapped or obsolete goods held in safety stock by Minnetronix or on consignment at Client. 

 

4.     Term and Termination.

 

a.      Term. The term of the Manufacturing Agreement will commence on the Manufacturing Amendment Effective Date and, unless terminated earlier in accordance with the Manufacturing Agreement, will continue in full force and effect for so long as the exclusivity applies in Section 3.f of this Manufacturing Amendment. As agreed by the parties, Minnetronix will continue to fulfill any outstanding Purchase Orders issued by Client prior to any termination of the Manufacturing Agreement, and the delivery of any Product pursuant to such Purchase Orders will be governed by all of the terms and conditions of the Manufacturing Agreement.

 

b.      Termination. The Manufacturing Agreement may only be terminated by either party upon a material breach of the Manufacturing Agreement by the other party after giving such other party written notice specifying the nature of and the basis for the material breach and providing such other party a 60 day opportunity to cure the material breach. The terms of Section 8.2(b) of the Business Agreement shall not apply to this Manufacturing Agreement. If Client terminates this Manufacturing Agreement as permitted in this Section 4(b), the exclusivity under Section 3.f. shall also terminate on the effective date of termination of the Manufacturing Agreement. Either party may only terminate a Purchase Order (i) upon a material breach of the Purchase Order by the other party after giving such other party written notice specifying the nature of and the basis for the material breach and providing such other party a 60 day opportunity to cure the material breach, or (ii) by giving written notice to the other party if such other party has given notice as to an event of force majeure in accordance with Section 9.6 of the Business Agreement and such other party has suspended its performance hereunder for more than [***] ([***]) days in any six month period. For clarity, there is no right to cancel a Purchase Order for convenience hereunder.

 

c.     Minnetronix Discontinuation. Minnetronix may discontinue supply of any Product being manufactured by Minnetronix under the Manufacturing Agreement by giving Client at least eighteen (18) months prior written notice, provided that Client shall have the option to make a “last time buy” as set forth above.

 

d.     Effect of Termination. For clarification, the terms of Section 8.3 of the Business Agreement shall apply on termination of the Manufacturing Agreement.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

13

 

 

5.     Engagement Fee. In order to compensate Minnetronix for the risks of entering into a new supply arrangement with a customer of Client’s size; for the costs incurred by Minnetronix for storing and administering inventory for Client under the Business Agreement and Manufacturing Addendum prior to the Manufacturing Amendment Effective Date; and for likely delays before any sales of Product can commence, Client shall provide Minnetronix a non-refundable engagement fee of Eight Hundred Thousand Dollars ($800,000) payable as follows: (a) Two Hundred Thousand Dollars ($200,000) due on the Manufacturing Amendment Effective Date; and (b) Two Hundred Thousand Dollars ($200,000) due on each of the three-, six- and nine-month anniversaries of the Manufacturing Amendment Effective Date. As of the Manufacturing Amendment Effective Date, Minnetronix has a quantity of PCBA boards and other raw materials in inventory that could be used to perform hereunder in the event they are not used prior to the effective date of the Initial Purchase Order. If Minnetronix sells any additional units of products which consume such PCBA boards and other raw materials in inventory, after the Manufacturing Amendment Effective Date, and receives payment therefor, then the foregoing fee will be proportionately reduced by the number of such products sold. For example, if 50% of such products are sold the fee will be reduced by 50%. 

 

6.     Disclosure. If either party is required to file the Manufacturing Agreement (in whole or in part) with any Governmental or Regulatory Authority, then prior to any such filing, the party that is required to file the Manufacturing Agreement (the “Filing Party”) will (i) if legally permissible, provide the other party with advance notice of such required disclosure and confer with the other party about such requirement and (ii) limit the disclosure of commercially sensitive information to the extent that the Filing Party reasonably determines is compliant with the requirements of the Governmental or Regulatory Authority. “Governmental or Regulatory Authority” means any federal, state, municipal, local or foreign government, any political subdivision thereof or any court, administrative or regulatory agency, department, instrumentality, body or commission or other governmental or quasi-governmental authority, agency or entity, tribunal, arbitrator, commission, official, or other instrumentality of the United States or any state, county, city, or other political subdivision or any hospital accrediting agency, domestic or foreign.

 

 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

14

 

 

IN WITNESS WHEREOF, the parties have executed this Manufacturing Amendment as of the Manufacturing Amendment Effective Date.

 

 

Nuvectra Corporation

 

By: /s/ Scott F. Drees______

 

Name: Scott F. Drees

 

Title: Chief Executive Officer

 

 

 

Minnetronix, Inc.

 

By: /s/ Richard A. Nazarian

 

Name: Richard A. Nazarian

 

Title: President and CEO

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

15

 

 

SCHEDULE A

PRICING TERMS

 

The following Pricing is the “Table A Pricing”:

 

	
Price per Volume Breaks- High Volume Products

	  	
[***]
	
[***]
	
[***]
	
[***]+

	
[***]
	
$[***]
	
$[***]
	
$[***]
	
$[***]

	
[***]
	
$[***]
	
$[***]
	
$[***]
	
$[***]

	
Price per Volume Breaks- Low Volume Products

	
[***]
	
[***]
	
[***]+
	  
	  	
$[***]
	
$[***]
	  
	
[***]
	
[***]
	
[***]+
	  
	  	
$[***]
	
$[***]
	  
	
[***]
	
[***]
	
[***]
	
[***]+

	  	
$[***]
	
$[***]
	
$[***]

	
[***]
	
[***]
	
[***]
	
[***]+

	  	
$[***]
	
$[***]
	
$[***]

 

 

The following pricing is the “Table B Pricing”:

 

	
Table B Pricing

	
Product
	
Price
	
Minimum Pcs

	
[***]
	
$[***]
	
[***]

	
[***]
	
$[***]
	
[***]

	
[***]
	
$[***]
	
[***]

	
[***]
	
$[***]
	
[***]

	
[***]
	
$[***]
	
[***]

	
[***]
	
$[***]
	
[***]

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

16

 

 

	
PPC
	
Patient Programmer & Charger / Patient System Kit

	
PoP
	
Pocket Programmer Kit

	
CP
	
Clinician Programmer Kit

	
PFT
	
Patient Feedback Tool Kit

	
EPG
	
External Pulse Generator Kit

	
Coil
	
Charging Paddle Kit

 

Additional Pricing Terms:

 

	
☐
	
Purchase Orders cannot be aggregated to achieve pricing breaks. Additional pricing discounts based on minimum quantity order shall be provided on subsequent Purchase Orders that meet the minimum order quantities pursuant to the terms above. (i.e. No incremental discounts shall be provided should Client have forecast changes that result in volumes beyond the original pricing tier of the Purchase Order). These subsequent Purchase Orders may be placed prior to the conclusion of the [***] month delivery period described in Section 3.d of this Manufacturing Amendment, if the original order quantity has been met.

 

	
☐
	
Pricing will be effective for other Client neuromodulation models based on the current Platform provided minimum Purchase Order minimum commitments as set forth above are met and such devices remain substantially equivalent from a hardware, assembly, and testing perspective to the initial Products hereunder. Any volume from such new models shall be included in any volume calculations and count towards minimum quantities. Other Product changes and different models will be at Prices agreed by the parties.

	 	
o
	
The parties agree that any cost increases resulting from changes to the existing product design shall be passed through to Client. The parties agree that any cost savings resulting from changes to the existing product design shall be split by Client and Minnetronix [***]/[***].

 

	
☐
	
Additional volume discounts through year 2020 may be possible pending Minnetronix supplier negotiations and such discounts will be split by Client and Minnetronix [***]/[***] if Minnetronix is successful in negotiating such discounts.

 

	
☐
	
With respect to any Component that is not sourced directly by Minnetronix (in other words it is sourced by or through Client), including ASIC chips, Printed Materials and Batteries, the following shall apply:

	 	
▪
	
If Minnetronix material costs for the above Components increases or decreases more than [***]%, then the above prices, as applicable, will be adjusted accordingly.

	 	
▪
	
Client agrees to provide all required equipment and training to support the supply chain management transition for EPG boards. Delivery of such equipment will be as agreed by the parties. Client retains ownership of provided equipment, and Minnetronix may use it to perform hereunder. Client shall insure and maintain such equipment. On termination of the Manufacturing Agreement and all Purchase Orders Minnetronix will return such equipment to Client.

	 	
☐
	
Client will fund the transfer, training, and qualification of such Components at engineering rates that are congruent to its ongoing development projects with Minnetronix as of the date of this Manufacturing Amendment pursuant to a Statement of Work under the Business Agreement. 

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

17

 

  

	 	
☐
	
Upon the completed transfer of the EPG board tester, the rate of validation testing failures for EPG boards due to errors caused by the tester shall be no greater than [***]%. Any failures beyond this yield requirement shall be paid by Client and product rework or additional testing will be negotiated in good faith for future Purchase Orders.

	 	
☐
	
Alternatively, Client may choose to provide previously tested EPG boards to Minnetronix. In this case, the EPG price will be the Table B Pricing as shown in the table “Table B Pricing” rather than the Table A Pricing (if it ever applies) and Minnetronix will issue a credit to Client for the cost of such EPG boards.

 

Alternative Source Project Summary and Pricing Terms:

	
☐
	
In order to move from Table B Pricing to Table A Pricing, Minnetronix will perform the following: (All PCBA revisions currently in process by the parties are already assumed in the Table A Pricing tables outlined above on this Schedule A).

 

	 	
o
	
Minnetronix will use commercially reasonable efforts to qualify an alternative source supplier for PCBAs on all Products, as applicable. 

 

	 	
o
	
All such alternative source project expenses, including but not limited to the testing equipment transfer or duplication, will be assessed and funded by Minnetronix except as set forth in Section 3.c. of the Manufacturing Amendment and below.

 

	 	
o
	
The parties agree that the alternative-sourcing project will incorporate all mutually approved board revisions.

 

	 	
o
	
Minnetronix’ commitment on such alternative source project expenses is limited to actions necessary to establish an alternative-source of PCBAs.

 

	 	
▪
	
Additional or other design changes related to the PCBAs and related Client external devices/Products shall be covered under a separate Statement of Work.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

18

 

 

Appendix B
Warranties

 

Warranties that Minnetronix receives from its suppliers will be passed through to Nuvectra to the extent permissible.

 

In general, Minnetronix’ third party suppliers of PCBA boards provide time-bound warranties with respect to workmanship and custom components; off-the-shelf components typically are not included under Minnetronix’ third party supplier warranties, and would therefore not be covered by the warranty in Section 3(n)(iii) of this Manufacturing Amendment.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

19

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