Document:

STOCK PURCHASE AGREEMENT

 

dated

 

June 21, 2013

 

by and among

 

Prime Acquisition Corp., a Cayman Islands
company,

 

as Parent

 

Prime BHN Luxembourg S.àr.l., a Luxembourg
company,

 

as LuxCo

 

BHN LLC, a New York limited liability company

 

as BHN

 

Seba S.r.l., an Italian limited liability
company,

 

as Company

 

and Francesco Rotondi and Luca Massimo Failla,

 

as the Sellers,

 

    	 

    	 

    

TABLE OF CONTENTS

 

	ARTICLE I DEFINITIONS 	1
	 	 
	ARTICLE II TERMS AND CONDITIONS OF THE PURCHASE AND SALE 	8
	2.1	 	Exchange	8
	2.2	 	Exchange Consideration	8
	2.3	 	Delivery of the Exchange Shares	8
	2.4	 	Closing	8
	2.5	 	Board of Directors	8
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND SELLERS 	9
	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT, LUXCO AND BHN 	9
	 	 
	ARTICLE V COVENANTS OF COMPANY AND SELLERS PENDING CLOSING 	9
	5.1	 	Conduct of the Business	9
	5.2	 	Access to Information	11
	5.3	 	Notices of Certain Events	12
	5.4	 	Exclusivity	12
	5.5	 	Annual Financial Statements	13
	5.6	 	SEC Filings	13
	5.7	 	Financial Information	13
	 	 	 	 
	ARTICLE VI COVENANTS OF Company and SELLERS 	14
	6.1	 	Confidentiality	14
	6.2	 	Injunctive Relief	14
	6.3	 	Best Efforts to Obtain Consents	14
	6.4	 	Financial Reporting	14
	 	 	 	 
	ARTICLE VII COVENANTS OF PARENT, LUXCO and BHN 	15
	7.1	 	Registration Statement	15
	7.2	 	Dividend	15
	7.3	 	Listing on NASDAQ	15
	7.4	 	Guaranty	15
	7.5	 	Side Letter	15
	 	 	 	 
	ARTICLE VIII COVENANTS OF ALL PARTIES HERETO 	16
	8.1	 	Best Efforts; Further Assurances	16
	8.2	 	Confidentiality of Transaction	16
	8.3	 	Business Combination Tender Offer	16
	 	 	 	 
	ARTICLE IX CONDITIONS TO CLOSING 	16
	9.1	 	Condition to the Obligations of the Parties	16
	9.2	 	Conditions to Obligations of Parent, LuxCo and BHN	17
	9.3	 	Conditions to Obligations of Sellers and Company	19

 

 

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TABLE OF CONTENTS (CONTINUED)

 

 

	 	 	 	 
	ARTICLE X INDEMNIFICATION 	20
	10.1	 	Indemnification of Parent, LuxCo and BHN	20
	10.2	 	Indemnification of Sellers	20
	10.3	 	Procedure	21
	10.4	 	Periodic Payments	23
	10.5	 	Right of Set Off	23
	10.6	 	Payment of Indemnification	23
	10.7	 	Insurance	23
	10.8	 	Survival of Indemnification Rights	23
	 	 	 	 
	ARTICLE XI DISPUTE RESOLUTION 	24
	11.1	 	Arbitration	24
	11.2	 	Waiver of Jury Trial; Exemplary Damages	25
	11.3	 	Attorneys’ Fees	25
	 	 	 	 
	ARTICLE XII TERMINATION 	26
	12.1	 	Termination Without Default; Expenses	26
	12.2	 	Termination Upon Default	26
	12.3	 	Survival	27
	 	 	 	 
	ARTICLE XIII MISCELLANEOUS 	27
	13.1	 	Notices	27
	13.2	 	Amendments; No Waivers; Remedies	29
	13.3	 	Arms’ Length Bargaining; no Presumption Against Drafter	29
	13.4	 	Publicity	29
	13.5	 	Expenses	30
	13.6	 	No Assignment or Delegation	30
	13.7	 	Governing Law	30
	13.8	 	Counterparts; Facsimile Signatures	30
	13.9	 	Entire Agreement	30
	13.10	 	Severability	30
	13.11	 	Construction of Certain Terms and References; Captions	30
	13.12	 	Further Assurances	31
	13.13	 	Third Party Beneficiaries	31
	13.14	 	Waiver.	31
	13.15	 	Sellers Representative.	32
	 	 	 	 

 

 

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STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE AGREEMENT
(the “Agreement”), dated as of June 21, 2013, by and among Prime Acquisition Corp., a Cayman Islands company
(“Parent”), Prime BHN Luxembourg S.àr.l., a Luxembourg company and wholly-owned subsidiary of Parent
(“LuxCo”), BHN LLC, a New York limited liability company (“BHN”), Seba S.r.l., an Italian
limited liability company (the “Company”), Francesco Rotondi, an individual, and Giuseppe Pantaleo, an individual
(the “Sellers”).

 

WITNESSETH:

 

		A.	Parent was created specifically to acquire a target business within a set timeframe. Parent concluded
its initial public offering on March 25th, 2011. It raised $36 million from investors and a private placement from its
founders of about $1.6388 million;

 

		B.	In order to exploit certain investment opportunities in southern Europe, Parent has recently incorporated
LuxCo to serve as European investment platform to, among other things, invest in real estate assets located in southern Europe
from several Sellers listed on Schedule I; and

 

		C.	The Sellers presently owns all of the issued and outstanding Units of the Company;

 

		D.	The Company is the sole owner of the real properties and/or the lessees under the financial lease
agreements (a copy of which is attached as Exhibit A) relating to the real properties described in Exhibit B hereto.

 

		E.	Pursuant to Section 13.15, the Sellers desire to appoint Francesco Rotondi as their true and lawful
agent and attorney-in-fact (the “Representative”).

 

The parties
accordingly agree as follows:

 

ARTICLE
I

DEFINITIONS

 

The following terms, as used herein, have
the following meanings:

 

1.1             
“2012 Period” is defined in Section 3.17 of Exhibit 3.

 

1.2             
“Action” means any legal action, suit, claim, investigation, hearing or proceeding, including any audit, claim
or assessment for Taxes or otherwise.

 

    	 

    	 

    

 

 

1.3             
“Additional Agreements” means the Voting Agreement, the Registration Rights Agreement, the Transaction Value
Agreement, the Escrow Agreement, the Pledge Agreement, the Stockholders Agreement, and the Deed.

 

1.4             
“Additional Parent SEC Documents” is defined in Section 4.11 of Exhibit 4.

 

1.5             
“Affiliate” means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled
by, or under common Control with such Person.

 

1.6             
“Arbitrator” is defined in Section 11.1(a).

 

1.7             
“Authority” means any governmental, regulatory or administrative body, agency or authority, any court or judicial
authority, any arbitrator, or any public, private or industry regulatory authority, whether international, national, Federal, state,
or local.

 

1.8             
“Basket” is defined in Section 10.1.

 

1.9             
“BHN” is defined in the Preamble.

 

1.10         
“BHN Termination Fee” is defined in Section 7.5.

 

1.11         
“Books and Records” means all books and records, ledgers, employee records, customer lists, files, correspondence,
and other records of every kind (whether written, electronic, or otherwise embodied) owned or used by a Person or in which a Person’s
assets, the Business or its transactions are otherwise reflected, other than stock books and minute books.

 

1.12         
“Business Day” means any day other than a Saturday, Sunday or a legal holiday on which commercial banking institutions
in New York, U.S.A. or Milan, Italy are authorized to close for business.

 

1.13         
“Business” means the Real Property, contracts, liabilities and assets relating to the Real Property, as identified
in Exhibits A and B.

 

1.14         
“Change in Cash” means a number equal to the Company’s cash and cash equivalents on the date that is three
Business Days prior to the Closing Date, minus the Company’s cash and cash equivalents on date hereof, each calculated in
accordance with IFRS.

 

1.15         
“Closing Date” is defined in Section 2.4.

 

1.16         
“Closing” is defined in Section 2.4.

 

1.17         
“Company” is defined in the Recitals.

 

1.18         
“Contract Subject to Consent” has the meaning provided in Section 3.6 of Exhibit 3.

 

1.19         
“Contracts” means the Leases, the loan agreements and all contracts, agreements, leases (including equipment
leases, car leases and capital leases), licenses, commitments, client contracts, statements of work (SOWs), sales and purchase
orders and similar instruments, oral or written relating to the Business, to which the Company is a party or by which any of the
Real Property is bound, including any agreement entered into by the Company in compliance with Section 5.1 after the signing hereof
and prior to the Closing, and all rights and benefits thereunder, including all rights and benefits thereunder with respect to
all cash and other property of third parties under the Sellers’ or the Company’s dominion or control.

 

 

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1.20         
“Control” of a Person means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of voting securities, by contract, or otherwise. “Controlled”,
“Controlling” and “under common Control with” have correlative meanings. Without limiting the foregoing
a Person (“Controlled Person”) shall be deemed Controlled by (a) any other Person (“10% Owner”) (i) owning
beneficially, as meant in Rule 13d-3 under the Exchange Act, securities entitling such Person to cast 10% or more of the votes
for election of directors or equivalent governing authority of the Controlled Person or (ii) entitled to be allocated or receive
10% or more of the profits, losses, or distributions of the Controlled Person; (b) an officer, director, general partner, partner
(other than a limited partner), manager, or member (other than a member having no management authority that is not a 10% Owner
) of the Controlled Person; or (c) a spouse, parent, lineal descendant, sibling, aunt, uncle, niece, nephew, mother-in-law, father-in-law,
sister-in-law, or brother-in-law of an Affiliate of the Controlled Person or a trust for the benefit of an Affiliate of the Controlled
Person or of which an Affiliate of the Controlled Person is a trustee.

 

1.21         
“Deed” means that certain notarized deed pursuant to which the Units are transferred (subject to the provisions
of the Pledge Agreement) from Sellers to Parent and LuxCo pursuant to Italian Laws.

 

1.22         
“Enterprise Value” means EUR 13,600,000.

 

1.23         
“Environmental Laws” is defined in Section 3.25 of Exhibit 3.

 

1.24         
“Escrow Agreement”, means that certain escrow agreement by and among Parent, Luxco, Sellers and Escrow Agent
(as defined therein).

 

1.25         
“Exchange Shares” is defined in Section 2.2.

 

1.26         
“Excluded Persons” is defined in Section 5.4.

 

1.27         
“Exchange Rate” means the average exchange rate at which Euros may be exchanged into US Dollars for the 20 days
preceding the third Business Day prior to the Closing Date, as set forth on the Reuters world currency webpage.

 

1.28         
“Fair Market Value” means, with respect to shares of Parent’s Common Stock:

 

(1) if Parent’s
Common Stock is traded on a national securities exchange, the Fair Market Value shall be deemed to be the closing price on the
trading day prior to any applicable date; or

 

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(2) if Parent’s
Common Stock is traded over-the-counter, the Fair Market Value shall be deemed to be the last sales price on the trading day prior
to any applicable date; or

 

(3) if neither
(1) nor (2) is applicable, the Fair Market Value of Parent’s Common Stock shall be at the commercially reasonable price per
share which the Company could obtain from a willing third-party buyer for shares of Parent’s Common Stock sold by the Company,
from authorized but unissued shares, as determined in good faith by the Parent’s board of directors.

 

1.29         
“Financial Statements” is defined in Section 3.7(a) of Exhibit 3.

 

1.30         
“Guarantees” means the guarantees by Sellers or Sellers’ Affiliates securing repayment of the Company’s
Indebtedness, a list of which is set forth in Schedule 3.7.

 

1.31         
“Hazardous Material” means: (a) any material, substance, chemical, waste, product, derivative, compound, mixture,
solid, liquid, mineral or gas, in each case, whether naturally occurring or manmade, that is hazardous, acutely hazardous, toxic,
or words of similar import or regulatory effect under Environmental Laws; and (b) any petroleum or petroleum-derived products,
radon, radioactive materials or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam insulation,
and polychlorinated biphenyls.

 

1.32         
“IFRS” means the International Financial Reporting Standards.

 

1.33         
“Indebtedness” means with respect to any Person, (a) all obligations of such Person for borrowed money, or with
respect to deposits or advances of any kind (including amounts by reason of overdrafts and amounts owed by reason of letter of
credit reimbursement agreements) including with respect thereto, all interests, fees and costs, (b) all obligations of such Person
evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other
title retention agreements relating to property purchased by such Person, (d) all obligations of such Person issued or assumed
as the deferred purchase price of property or services (other than accounts payable to creditors for goods and services incurred
in the ordinary course of business), (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has
an existing right, contingent or otherwise, to be secured by) any lien or security interest on property owned or acquired by such
Person, whether or not the obligations secured thereby have been assumed, (f) all obligations of such Person under leases required
to be accounted for as capital leases under IFRS, (g) all guarantees by such Person and (h) any agreement to incur any of the same.

 

1.34         
“Indemnifiable Loss Limit” is defined in Section 10.1.

 

1.35         
“Indemnification Notice” is defined in Section 10.3.

 

1.36         
“Indemnified Party” is defined in Section 10.3.

 

1.37         
“Indemnifying Parties” is defined in Section 10.3.

 

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1.38         
“Law” means any domestic or foreign, Federal, state, municipality or local law, statute, ordinance, code, rule,
or regulation or common law.

 

1.39         
“Leases” means the leases with respect to the Real Property space leased by Company as set forth on Schedule
3.12 attached hereto, together with all fixtures and improvements erected on the premises leased thereby.

 

1.40         
“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance
of any kind in respect of such asset, and any conditional sale or voting agreement or proxy, including any agreement to give any
of the foregoing.

 

1.41         
“Liabilities” means any Company’s liabilities, obligations or commitments of any nature whatsoever, accrued
or unaccrued, matured or unmatured or otherwise, as they would be adequately reflected or reserved against in accordance with IFRS,
as of the date that is three Business Days prior to the Closing Date.

 

1.42         
“Loss(es)” is defined in Section 10.1.

 

1.43         
“LuxCo Indemnitees” is defined in Section 10.1.

 

1.44         
“LuxCo” is defined in the Preamble.

 

1.45         
“Material Adverse Change” and “Material Adverse Effect” mean, with respect to the parties hereto,
any change, event or effect that individually or when taken together with all other changes, events and effects (financial or otherwise)
that have occurred prior to the date of determination, is or is reasonably likely to be material and adverse to the operations,
assets, liabilities, business or financial condition of the parties hereto or the Company’s Property owned thereby; provided,
however, without prejudicing whether any other matter qualifies as a Material Adverse Change, any matter involving a loss or payment
in excess of $1,500,000 by the parties hereto shall constitute a Material Adverse Change with respect to the parties hereto, per
se.

 

1.46         
“Maximum Tender Condition” is defined in Section (a) of Exhibit 8.

 

1.47         
“Money Laundering Laws” is defined in Section 3.30 of Exhibit 3.

 

1.48         
“OFAC” is defined in Section 3.31 of Exhibit 3.

 

1.49         
“Offer to Purchase” is defined in Section (c) of Exhibit 8.

 

1.50         
“Order” means any decree, order, judgment, writ, award, injunction, rule or consent of or by an Authority.

 

1.51         
“Outside Closing Date” is defined in Section 12.1(a).

 

1.52         
“Parent Common Stock” means the common stock, $0.001 par value per share, of Parent.

 

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1.53         
“Parent” is defined in the Recitals.

 

1.54         
“Permits” is defined in Section 3.14 of Exhibit 3.

 

1.55         
“Permitted Liens” means (i) all defects, exceptions, restrictions, easements, rights of way and encumbrances
disclosed in policies of title insurance which have been made available to LuxCo; (ii) mechanics’, carriers’, workers’,
repairers’ and similar Liens arising or incurred in the ordinary course of business that are not material to the Business
operations and financial condition of the Company so encumbered and that are not resulting from a breach, default or violation
by Sellers or the Company of any Contract or Law to the extent applicable to the relevant assets; (iii) zoning, entitlement and
other land use and environmental regulations by any Authority, provided that such regulations have not been violated, and (iv)
the mortgages, or comparable security interests over the Business’ real estate assets, pursuant to Italian laws, listed on
Schedule II.

 

1.56         
“Person” means an individual, corporation, partnership (including a general partnership, limited partnership
or limited liability partnership), limited liability company, association, trust or other entity or organization, including a government,
domestic or foreign, or political subdivision thereof, or an agency or instrumentality thereof.

 

1.57         
“Pledge Agreement” means that certain notarized agreement by and among Parent, LuxCo and Company pursuant to
which the Units are being pledged in favor of the Sellers in pursuance to Italian laws, in the form of Exhibit C hereto;

 

1.58         
“Pre-Closing Period” means any period that ends on or before the Closing Date, or with respect to a period that
includes but does not end on the Closing Date, the portion of such period through and including the day of the Closing.

 

1.59         
“Prospectus” is defined in Section 13.5.

 

1.60         
“Real Property Investigation Period” means the period ending on 9:00 a.m. Central European Time (CET) on June
28, 2013.

 

1.61         
“Real Property” means, collectively, all real properties and interests therein (including the right to use pursuant
to financial lease agreements), together with all buildings, fixtures, trade fixtures, plant and other improvements located thereon
or attached thereto; all rights arising out of use thereof (including air, water, oil and mineral rights); and all subleases, franchises,
licenses, permits, easements and rights-of-way which are appurtenant thereto.

 

1.62         
“Registration Rights Agreement” means the agreement in substantially the same form and substance as that certain
registration rights agreement entered into in connection with Parent’s initial public offering pursuant to its prospectus,
dated March 24, 2011, which was consummated on March 30, 2011, modified as necessary to provide for Sellers’ registration
rights as provided in this Agreement and the Transaction Value Agreement.

 

1.63         
“Representative” is defined in the Recitals.

 

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1.64         
“Restrictive Covenants” is defined in Section 6.2.

 

1.65         
“SEC” means the Securities and Exchange Commission.

 

1.66         
“Sellers Indemnitees” is defined in Section 10.2.

 

1.67         
“Sellers(s)” is defined in the Recitals.

 

1.68         
“Side Letter” is defined in Section 7.5.

 

1.69         
“Stock Certificate” is defined in Section 2.2.

 

1.70         
“Stockholders Agreement” means that certain stockholders agreement by and among Prime, LuxCo and Sellers pursuant
to which the Company shall not take, without Sellers’ prior written consent, the actions listed in Exhibit F hereto.

 

1.71         
“Tangible Assets” means all tangible personal property and interests therein, including machinery, computers
and accessories, furniture, office equipment, communications equipment, vehicles, automobiles, trucks, forklifts and other vehicles
owned/leased by the Company as it relates to the Business and other tangible property other than the Real Property, including the
items listed on Schedule 3.15;

 

1.72         
“Tax Franchise Payment” means the payment of that certain tax franchise which Sellers shall make to the Italian
Tax Authorities on June 28, 2013 in reliance upon the consummation of the transactions contemplated by this Agreement and the Additional
Agreements.

 

1.73         
“Tax Return” means any return, information return, declaration, claim for refund or credit, report or any similar
statement, and any amendment thereto, including any attached schedule and supporting information, whether on a separate, consolidated,
combined, unitary or other basis, that is filed or required to be filed with any Taxing Authority in connection with the determination,
assessment, collection or payment of a Tax or the administration of any Law relating to any Tax.

 

1.74         
“Tax(es)” means any tax and duty required by law to be paid and imposed by any national or local taxing authorities,
including income tax, property tax, capital gain tax, value added tax, stamp duty and registration and similar taxes and Taxes
shall be construed accordingly.

 

1.75         
“Taxing Authority” means any government, state, region or municipality or any governmental, state, social or
other fiscal, revenue, customs or excise authority, body or official or other authority competent to impose, assess or collect
any liability relating to Taxes.

 

1.76         
“Third-Party Claim” is defined in Section 10.3.

 

1.77         
“Transaction Value Agreement” means that certain transaction value agreement by and between Parent, LuxCo and
Sellers, in the form of Exhibit D hereto;

 

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1.78         
“Trust Account” has the meaning provided in Section 13.14.

 

1.79         
“Units” means all of the outstanding units, or “quota”, of the Company.

 

1.80         
“Voting Agreement” is defined in Section 2.5.

 

ARTICLE
II

TERMS AND CONDITIONS OF THE PURCHASE AND SALE

 

2.1             
Exchange. Upon the terms and subject to the conditions of this Agreement, at the Closing, Parent shall acquire
from Sellers and Sellers shall convey, transfer, assign and deliver to Parent the Units, free and clear of all Liens. Immediately
subsequent to the Closing, Parent shall transfer the Units to LuxCo, in exchange for shares of LuxCo.

 

2.2             
Exchange Consideration.The consideration for the Units shall be represented by stock certificates (the “Stock
Certificates”) representing a number of shares of Parent’s Common Stock (the “Exchange Shares”) equal to:(a)
the Enterprise Value, plus the Change in Cash, minus Liabilities, multiplied by (b) the Exchange Rate, divided by (c) 10.

 

2.3             
Delivery of the Exchange Shares. The Stock Certificates representing the Exchange Shares shall be delivered
by Parent (which, at Parent’s convenience, may be delivered within 3 Business Days after the Closing Date) to the Representative
at its address for notices in accordance with Section 13.1. The Stock Certificates shall bear the legend set forth on Schedule
2.3. No certificates or scrip representing fractional shares of the Exchange Shares will be issued, and such fractional share interests
will not entitle the owner thereof to vote or to any rights of a stockholder of Parent. Any fractional shares will be rounded to
the nearest whole share.

 

2.4             
Closing. Subject to the terms and conditions of this Agreement, the closing of the purchase and sale of the
Units (the “Closing”) shall take place no later than 2 Business Days after the last of the conditions to Closing set
forth in Article IX have been satisfied or waived (the date and time at which the Closing is actually held being the “Closing
Date”). At the Closing:

 

(a)               
Parent shall deliver an irrevocable instruction to its transfer agent relating to the issuance of the Exchange Shares in
accordance with Section 2.3.

 

(b)              
Sellers and Parent shall execute the Deed and the Pledge Agreement before an Italian Notary Public.

 

(c)               
Parent shall transfer the Units to LuxCo.

 

2.5             
Board of Directors. Immediately after the Closing, Parent’s board of directors will consist of seven
(7) directors. BHN shall designate six (6) persons to the Parent’s board of directors, of which three (3) designees shall
qualify as an independent director under the Exchange Act, and the rules of any applicable securities exchange, who are expected
to initially be (a) Martin Major, (b) Mark Horan, and (c) Marco De Franceschini. Parent shall designate one (1) person to the Parent’s
board of directors to serve for one (1) year from the Closing, who shall initially be William Yu. The parties to this Agreement
shall enter into a voting agreement in form and substance satisfactory to the parties thereof relating to nominations to the Parent’s
board of directors in accordance with this Section 2.5 (the “Voting Agreement”).

 

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ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF

THE COMPANY AND SELLERS

 

Except as set forth
in the corresponding section of the disclosure schedules referred to in Exhibit 3, each of Company and Sellers, jointly and severally,
hereby represents and warrants to Parent and LuxCo that each of the representations and warranties set forth in Exhibit 3, is true,
correct and complete as of the date of this Agreement and as of the Closing Date, provided that Sellers shall deliver to Parent
and LuxCo the Schedules referred to in Exhibit 3 as soon as they are available after the date hereof, subject to subsequent updates
and modifications, but in no event later than June 24, 2013.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF PARENT, LUXCO AND BHN

 

Except as set forth in
the corresponding section of the disclosure schedules delivered to Company and Sellers concurrently herewith, each of Parent, LuxCo
and BHN, jointly and severally, hereby represents and warrants to Company and Sellers that each of the representations and warranties
set forth in Exhibit 4 is true, correct and complete as of the date of this Agreement and as of the Closing Date.

 

ARTICLE
V

COVENANTS OF COMPANY AND SELLERS PENDING CLOSING

 

Company and Sellers covenant
and agree that:

 

5.1             
Conduct of the Business.

 

(a)               
From the date hereof through the Closing Date, Company shall conduct the Business only in the ordinary course, consistent
with past practices, and shall not enter into any material transactions without the prior written consent of LuxCo, and shall use
its best efforts to preserve intact the business relationships with employees, clients, suppliers, tenants, financing banks and
other third parties. Without limiting the generality of the foregoing, from the date hereof until and including the Closing Date,
without LuxCo’s prior written consent, with respect to the Business, Company shall not:

 

(i)                
amend, waive any provision of, terminate prior to its scheduled expiration date, or otherwise compromise in any way, any
Contract, or any other right or asset of Company;

 

(ii)              
modify, amend or enter into any contract, deed, agreement, lease, license or commitment, which (A) is with respect to Real
Property, (B) extends for a term of one year or more or (C) obligates the payment of more than $150,000 (individually or in the
aggregate);

 

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(iii)            
make any capital expenditures in excess of $150,000 (individually or in the aggregate);

 

(iv)            
sell, lease, license or otherwise dispose of any of Company’s assets, including without limitation the Real Property,
or assets covered by any Contract except (i) pursuant to existing contracts or commitments disclosed herein and (ii) in the ordinary
course of business consistent with past practice;

 

(v)              
pay, declare or promise to pay any dividends or other distributions with respect to its capital stock, or pay, declare or
promise to pay any other payments to the Sellers or any Affiliate of Company;

 

(vi)            
authorize any salary increase of more than 10% for any employee making an annual salary of greater than $50,000 or in excess
of $80,000 in the aggregate on an annual basis or change the bonus or profit sharing policies of the Company.

 

(vii)          
obtain or incur any loan or other Indebtedness, including drawings under the Company’s existing lines of credit;

 

(viii)        
suffer or incur any Lien on any of the Company’s assets, including without limitation the Real Property, except for
Permitted Liens;

 

(ix)            
suffer any damage, destruction or loss of property related to any of Company’s assets, including without limitation
Real Property, whether or not covered by insurance;

 

(x)              
delay, accelerate or cancel any receivables or Indebtedness owed to Company;

 

(xi)            
allow Company to be acquired by any other Person;

 

(xii)          
suffer any insurance policy protecting any of the Company’s assets, including without limitation the Real Property,
to lapse; or

 

(xiii)        
make any change in its accounting principles or methods or write down the value of any Inventory or assets, including without
limitation the Real Property;

 

(xiv)        
extend any loans other than travel or other expense advances to employees in the ordinary course of business not to exceed
$8,000 individually or $50,000 in the aggregate;

 

(xv)          
effect or agree to any change in any practices or terms, including payment terms, with respect to customers, suppliers or
tenants;

 

    	10

    	 

    

(xvi)        
hire any employees, consultants or advisors;

 

(xvii)      
make or change any material Tax election or change any annual Tax accounting periods; or

 

(xviii)    
agree to do any of the foregoing.

 

(b)              
Sellers and Company shall not (i) take or agree to take any action that might make any representation or warranty of Company
hereunder inaccurate or misleading in any respect at, or as of any time prior to, the Closing Date or (ii) omit to take, or agree
to omit to take, any action necessary to prevent any such representation or warranty from being inaccurate or misleading in any
respect at any such time.

 

5.2             
Access to Information.

 

(a)               
From the date hereof until and including the Closing Date, Company shall (a) continue to give LuxCo and Parent and their
legal counsel and other representatives full access to the offices and properties of the Business, (b) furnish to LuxCo and Parent,
their legal counsel and other representatives such information relating to the Business as such Persons may request and (c) cause
the employees, legal counsel, accountants and representatives of Company to cooperate with LuxCo and Parent in their investigation
of the Business; provided that no investigation pursuant to this Section (or any investigation prior to the date hereof) shall
affect any representation or warranty given by Company; provided, that such access shall be in a manner that does not interfere
with the normal business operations of the Company.

 

(b)              
If requested by LuxCo or Parent, Company shall arrange for representatives of LuxCo or Parent to meet with or speak to the
representatives of the lessees of the Real Property.

 

(c)               
LuxCo or Parent may, promptly after it executes this Agreement and continuing through the Real Property Investigation Period,
at their discretion, order a title search (or comparable search) with the appropriate cadastral offices and land registries (or
comparable register offices), and conduct such investigations of the Real Property as LuxCo or Parent deem necessary to evaluate
the Real Property, including, without limitation, deeds, leases, contracts, engineering, licenses, permits, approvals, physical
inspections and all other reasonable information and matters which LuxCo or Parent deem advisable, provided, that such investigation
shall be conducted in a manner that does not interfere with the normal business operations of the Company or Company’s tenants.
LuxCo and Parent shall have the right to enter upon and pass through the Real Property during normal business hours to physically
inspect the same at such times and in such manners as reasonably requested by Parent or LuxCo. Company shall reasonably cooperate
with LuxCo and Parent in connection with LuxCo’s and Parent’s reviews and investigations of the Real Property, including
by giving LuxCo and Parent reasonable access to the Real Property and making available to LuxCo and Parent copies of all files,
documentation, plans, specifications, Records, Books, leases and other materials relating to the Real Property in the possession
or within the control of Company for the purpose of conducting such investigations.

 

    	11

    	 

    

5.3             
Notices of Certain Events. Company shall promptly notify LuxCo of:

 

(a)               
any notice or other communication from any Person alleging or raising the possibility that the consent of such Person is
or may be required in connection with the transactions contemplated by this Agreement or that the transactions contemplated by
this Agreement might give rise to any Action or other rights by or on behalf of such Person or result in the loss of any rights
or privileges of Company (or LuxCo or Parent, Post-Closing) to any such Person or create any Lien on any of the Business’
assets, including without limitation the Real Property;

 

(b)              
any notice or other communication from any Authority in connection with the transactions contemplated by this Agreement
or the Additional Agreements;

 

(c)               
any Actions commenced or threatened against, relating to or involving or otherwise affecting Company or any of the Business’
assets, including without limitation the Real Property, or that relate to the consummation of the transactions contemplated by
this Agreement or the Additional Agreements;

 

(d)              
the occurrence of any fact or circumstance which constitutes or results, or could be expected to constitute or result in
a Material Adverse Change; and

 

(e)               
the occurrence of any fact or circumstance which constitutes or results, or could be expected to constitute or result in
any representation made hereunder by Company to be false or misleading in any respect or to omit or fail to state a material fact.

 

5.4             
Exclusivity. Neither Company nor anyone acting on its behalf is currently involved, directly or indirectly,
in any activity which is intended to, nor for so long as this Agreement is in effect, shall Company or anyone acting on its behalf
directly or indirectly, (a) encourage, solicit, initiate or participate in discussions or negotiations with, or provide any information
to or cooperate in any manner with any Person, other than Parent, LuxCo, BHN or their Affiliates (collectively “Excluded
Persons”), or an officer, partner, employee or other representative of an Excluded Person, concerning the sale of all or
any part of the Business (other than in the ordinary course of business), whether such transaction takes the form of a sale of
stock, assets, merger, consolidation, or issuance of debt securities or making of a loan or otherwise or any joint venture or partnership
or (b) otherwise solicit, initiate or encourage the submission (or attempt to submit) of any inquiry or proposal contemplating
the sale of all or any part of the Business, or (c) consummate any such transaction or accept any offer or agree to engage in any
such transaction. Company shall promptly (within 24 hours) communicate to LuxCo or Parent the terms of any proposal, contract or
sale which it may receive in respect of any of the foregoing and respond to any such communication in a manner reasonably acceptable
to LuxCo or Parent. The notice of Company under this Section 5.4 shall include the identity of the person making such proposal
or offer, copies (if written) or a written description of the terms (if oral) thereof and any other such information with respect
thereto as LuxCo or Parent may reasonably request.

 

    	12

    	 

    

5.5             
Annual Financial Statements. From the date hereof through the Closing Date, within thirty (30) calendar days
following the end of each calendar month, Company shall deliver to Parent or LuxCo an unaudited summary of its earnings and an
unaudited balance sheet for the period from December 31, 2012 through the end of such calendar month and the applicable comparative
period in the preceding fiscal year, in each case accompanied by a certificate of the Chief Financial Officer, or comparable authorized
officer of Company, to the effect that all such financial statements fairly present the financial position and results of operations
of the Company as of the date or for the periods indicated, in accordance with IFRS, except as otherwise indicated in such statements
and subject to year-end audit adjustments. Such certificate shall also state that except as noted, from the December 31, 2012 through
the end of the previous month there has been no Material Adverse Effect. Company shall also promptly deliver to Parent or LuxCo
copies of any audited financial statements of Company that Company’s certified public accountants may issue.

 

5.6             
SEC Filings.

 

(a)               
Company acknowledges that:

 

(i)                
Parent will be required to file Annual Reports on Form 20-F that may be required to contain information about the transactions
contemplated by this Agreement; and

 

(ii)              
Parent will be required to file Reports of Foreign Private Issuer on Form 6-K to announce the transactions contemplated
hereby and other significant events that may occur in connection with such transactions.

 

(b)              
In connection with any filing Parent makes with the SEC that requires information about the transactions contemplated by
this Agreement to be included, Company and Sellers shall, in connection with the disclosure included in any such filing or the
responses provided to the SEC in connection with the SEC’s comments to a filing (i) cooperate with LuxCo and Parent, (ii)
respond to questions about Company or Sellers required in any filing or requested by the SEC, and (iii) provide any information
requested by Parent or Parent’s representatives in connection with any filing with the SEC.

 

5.7             
Financial Information. Company shall provide additional financial information requested by the Parent for
inclusion in any filings to be made by Parent with the SEC. If requested by LuxCo, such information must be reviewed or audited
by the auditors of Company.

 

    	13

    	 

    

ARTICLE
VI

COVENANTS OF Company and SELLERS

 

Company and Sellers covenant
and agree that:

 

6.1             
Confidentiality. Except as otherwise required by law, prior to and after the Closing, Company shall not, without
the prior written consent of LuxCo, or a person authorized thereby, disclose to any other Person or use (whether for the account
of Company or any other party) any confidential information or proprietary work product of LuxCo or Parent. In the event Company
or Sellers believes that it is required to disclose any such confidential information pursuant to applicable Laws, Company or Sellers
shall give timely written notice to LuxCo or Parent so that LuxCo or Parent may have an opportunity to obtain a protective order
or other appropriate relief. Company and Sellers shall cooperate fully in any such action by LuxCo or Parent.

 

6.2             
Injunctive Relief. If Company or Sellers breaches, or threatens to commit a breach of, any of the covenants
set forth in Sections 5.2, 5.5, 6.1, 8.2 or 13.4 (the “Restrictive Covenants”), LuxCo shall have the following rights
and remedies, which shall be in addition to, and not in lieu of, any other rights and remedies available to LuxCo by agreement
(including those set forth in Section 11.1 hereof), under law or in equity:

 

(a)               
The right and remedy to have the Restrictive Covenants specifically enforced by any court having equity jurisdiction, all
without the need to post a bond or any other security or to prove any amount of actual damage or that money damages would not provide
an adequate remedy, it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to
LuxCo and that monetary damages will not provide adequate remedy to LuxCo; and

 

(b)              
The right and remedy to require Company and Sellers, (i) to account for and pay over to LuxCo all compensation, profits,
monies, accruals, increments or other benefits derived or received by Sellers or Company or any associated party as the result
of any such breach; and (ii) to indemnify LuxCo against any other losses, damages (including special and consequential damages),
costs and expenses, including actual attorneys’ fees and court costs, which may be incurred by it and which result from or
arise out of any such breach or threatened breach.

 

6.3             
Best Efforts to Obtain Consents. Sellers and Company shall use their best efforts to obtain the consents of
each counterparty under the Contracts Subject to Consent as promptly as practicable hereafter.

 

6.4             
Financial Reporting. As soon as available, but in any event no later than June 27, 2013, the Sellers and the
Company shall deliver to Parent or LuxCo a copy of the annual audit report for the Financial Statements including a copy of the
audited consolidated balance sheet of Company as at the end of such years, and the related audited consolidated statements of income
and of cash flows for such years, setting forth in each case in comparative form the figures for the previous years. The opinion
as to such audit report of BDO S.p.A., or other independent certified public accountants registered with the Public Company Accounting
Oversight Board, shall not contain a “going concern” or similar qualification or exception, or qualification arising
out of the scope of the audit.

 

    	14

    	 

    

ARTICLE
VII

COVENANTS OF PARENT, LUXCO and BHN

 

7.1             
Registration Statement. Parent, LuxCo and BHN jointly and severally covenant and agree that from and after
the Closing, Parent shall effect the registration of the Exchange Shares in accordance with the provisions of and its obligations
under the Registration Rights Agreement. The registration statement to be filed by Parent pursuant to the Registration Rights Agreement
will be prepared by Loeb & Loeb LLP.

 

7.2             
Dividend. Parent and BHN covenant and agree that as soon as practicable after the Closing, Parent shall pay
an annualized dividend of $0.50 per share of Parent Common Stock, the payment date of which will be announced and approved by the
then Parent’s board of directors, provided funds are legally available therefor.

 

7.3             
Listing on NASDAQ. Parent covenants and agrees that it shall use its reasonable best efforts to ensure that
Parent’s shares shall continue to be listed on NASDAQ.

 

7.4             
Guaranty. Within 9 months from the Closing Date, Parent shall provide Sellers with a guaranty in substantially
the same form of those certain guarantees Sellers has executed in favor of the lenders with respect to the Real Property assets
identified in Exhibits A and B.

 

7.5             
Side Letter. BHN shall enter into a side letter agreement with Sellers (the “Side Letter”) prior
to the Closing Date, which shall provide that if Parent terminates this Agreement without there being any breach on the part of
Sellers or the Company, or Sellers terminates this Agreement for breach by Parent or LuxCo, and all of the conditions to Parent’s
obligations to consummate the Closing have been satisfied or waived by Parent (other than any such conditions which by their nature
are to be satisfied by the Closing Date), then BHN shall pay to Sellers an amount equal to the Tax Franchise Payment (the “BHN
Termination Fee”), it being understood that in no event shall BHN be required to pay the BHN Termination Fee on more than
one occasion. The BHN Termination Fee shall be payable by BHN in immediately available funds by wire transfer no later than twelve
(12) months after the date hereof. Prior to the date the BHN Termination Fee is due, BHN shall be permitted to locate an alternative
entity with which to enter into a similar transaction. If such an alternative transaction is entered into by the Sellers, BHN shall
not be required to pay the BHN Termination Fee. The Side Letter shall also provide that BHN will pay equivalent amounts if the
Sellers exercises the Call Option in accordance with Section 6 of the Transaction Value Agreement, to the extent the cash portion
of the Option Consideration described in Section 6(f) of the Transaction Value Agreement is insufficient to repay Sellers of the
Tax Franchise amount and the other costs referred to therein.

 

    	15

    	 

    

ARTICLE
VIII

COVENANTS OF ALL PARTIES HERETO

 

The parties hereto covenant
and agree that:

 

8.1             
Best Efforts; Further Assurances. Subject to the terms and conditions of this Agreement, each party shall
use its best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable
under applicable Laws, and, in the case of Company and Sellers, as reasonably requested by LuxCo or Parent, to consummate and implement
expeditiously each of the transactions contemplated by this Agreement. The parties hereto shall execute and deliver such other
documents, certificates, agreements and other writings and take such other actions as may be necessary or desirable in order to
consummate or implement expeditiously each of the transactions contemplated by this Agreement in order to transfer all of the Units
to LuxCo and to vest in LuxCo good, valid and marketable title to the Business, free and clear of all Liens.

 

8.2             
Confidentiality of Transaction. Any information (except publicly available or freely usable material obtained
from another source) respecting any party or its Affiliates will be kept in strict confidence by all other parties to this Agreement
and their agents. Except as required by Law, neither the Company, Sellers, nor any of their Affiliates, directors, officers, employees
or agents will disclose the terms of the transactions contemplated hereunder or by any Additional Agreement at any time, currently,
or on or after the Closing, regardless of whether the Closing takes place, except as required by Law or as necessary to their attorneys,
accountants and professional advisors, in which instance such Persons shall be advised of the confidential nature of the terms
of the transaction and shall themselves be required to keep such information confidential. Except as required by Law, each party
shall retain all information obtained from the other and their legal counsel on a confidential basis except as necessary to their
attorneys, accountants and professional advisors, in which instance such persons and any employees or agents of such party shall
be advised of the confidential nature of the terms of the transaction and shall themselves be required by such party to keep such
information confidential.

 

8.3             
Business Combination Tender Offer.

 

The parties hereto
covenant and agree to comply with the business combination tender offer covenants set forth in Exhibit 8.

 

ARTICLE
IX

CONDITIONS TO CLOSING

 

9.1             
Condition to the Obligations of the Parties. The obligations of all of the parties to consummate the Closing
are subject to the satisfaction of all the following conditions: (a) no provision of any applicable Law, and no Order shall prohibit
or impose any condition on the consummation of the Closing, (b) there shall not be pending any Action brought by a third-party
non-Affiliate to enjoin or otherwise restrict the consummation of the Closing, and (c) the Business Combination Tender Offer
shall have been completed and Parent shall have accepted the shares of Parent Common Stock validly tendered and not validly withdrawn
pursuant to the Tender Offer and no more than a number of shares of the Parent Common Stock equal to eighty-three percent (83%)
of the IPO Shares as defined in the Parent’s Amended and Restated Memorandum and Article of Association shall have been validly
tendered and not validly withdrawn prior to the expiration of the Business Combination Tender Offer.

 

    	16

    	 

    

9.2             
Conditions to Obligations of Parent, LuxCo and BHN. The obligation of Parent LuxCo, and BHN to consummate
the Closing is subject to the satisfaction, or the waiver at Parent, LuxCo and BHN’s sole and absolute discretion, of all
the following further conditions:

 

(a)               
Company and Sellers shall have performed in all material respects all of their obligations hereunder required to be performed
by them at or prior to the Closing Date.

 

(b)              
All of the representations and warranties of Company and Sellers contained in this Agreement, the Additional Agreements
and in any certificate or other writing delivered by Company and Sellers pursuant hereto, disregarding all qualifications and exceptions
contained therein relating to materiality or Material Adverse Effect, regardless of whether it involved a known risk, shall: (i)
be true, correct and complete at and as of the date of this Agreement, or, (ii) if otherwise specified, when made or when deemed
to have been made, and (iii) shall be true, correct and complete as of the Closing Date, in the case as (i) and (ii) with only
such exceptions as could not in the aggregate reasonably be expected to have a Material Adverse Effect.

 

(c)               
There shall have been no event, change or occurrence which individually or together with any other event, change or occurrence,
could reasonably be expected to have a Material Adverse Change or a Material Adverse Effect, regardless of whether it involved
a known risk.

 

(d)              
Parent or LuxCo shall have received a certificate signed by the Chief Executive Officer and Chief Financial Officer or comparable
title of Company to the effect set forth in clauses (a) through (c) of this Section 9.2.

 

(e)               
Parent or LuxCo shall have received letters of resignation of the directors and auditors of the Company, confirming that
such persons have no claims against the Company.

 

(f)               
Parent or LuxCo shall have received audited consolidated financial statements of Company.

 

(g)              
No court, arbitrator or other Authority shall have issued any judgment, injunction, decree or order, or have pending before
it a proceeding for the issuance of any thereof, and there shall not be any provision of any applicable Law restraining or prohibiting
the consummation of the Closing, the ownership by LuxCo of Company or the effective operation of the Business by LuxCo after the
Closing Date.

 

(h)              
Parent and LuxCo shall have received all documents they may request relating to the existence of Company and the authority
of Company and Sellers to enter into and perform under this Agreement, all in form and substance reasonably satisfactory to Parent
and LuxCo and their legal counsel, including (i) a copy of the certificate of incorporation or comparable document of formation
of Company, (ii) copies of resolutions duly adopted by the board of directors of Company authorizing this Agreement, the Additional
Agreements and the transaction contemplated hereby and thereby, (iv) a recent good standing certificate regarding Company from
the office of any appropriate Authority of each other jurisdiction in which Company is qualified to do business.

    	17

    	 

    

 

(i)                
Parent and LuxCo shall be fully satisfied, in their sole discretion which shall be exercised in good faith, with the results
of their and their representatives’ review of the Company, the (including any review of the capitalization, Real Property,
assets, processes, systems, financial condition, and prospects of the Business), provided that no such review shall affect any
representation or warranty of Company given hereunder or in any instrument related to the transactions contemplated hereby; and
provided, further, that LuxCo and Parent shall notify Sellers and the Company by 9:00 a.m. CET, on June 28, 2013, time being of
the essence, if they are not satisfied with the results of their review, in the absence of which notice this condition to Closing
shall cease to apply and shall be deemed waived by the Parent and LuxCo.

 

(j)                
LuxCo shall have received copies of the consents of all the counterparties to the Contracts Subject to Consent, in form
and substance reasonably satisfactory to LuxCo, and no such consent shall have been revoked.

 

(k)              
Company shall have delivered to LuxCo documents satisfactory to LuxCo to evidence the release of all Liens on any portion
of Company’s assets, including Real Property, and the filing of appropriate lien termination statements or comparable termination
documents, if applicable, other than the Permitted Liens.

 

(l)                
Company and Sellers shall have entered into and delivered a counterpart signature page of each Additional Agreement to which
it is a party.

 

(m)            
All the expenses borne in connection with the transactions contemplated by this Agreement, other than the expenses of each
of Sellers and Company, shall be paid at Closing.

 

(n)              
Studio Associato R&P Legal - Rossotto, Colombatto & Partners, counsel to Company shall have delivered an opinion
substantially in the form of Exhibit E hereto.

 

(o)              
Company shall have delivered to LuxCo’s satisfaction updated Schedules and all such updated schedules shall be true,
correct and complete as of the date with respect thereto set forth in the respective representation and warranty.

 

(p)              
Company and Sellers acknowledge that Parent and LuxCo have entered into agreements to purchase two other companies (the
“Other Companies”) on terms and conditions substantially similar to this Agreement. Parent and LuxCo must concurrently
close on transactions (consisting of the transactions contemplated by this Agreement and the transactions for the Other Companies)
with assets having an aggregate value of no less than $150,000,000.00.

 

    	18

    	 

    

(q)              
The parties hereto shall have purchased a directors and officers liability insurance policy for a minimum coverage amount
of $10,000,000 for Parent’s pre-transaction directors and officers, which will cover the directors and officers for a period
of at least three (3) years after the Closing. The policy will be paid for with funds made available in connection with the Closing.

 

9.3             
Conditions to Obligations of Sellers and Company. The obligations of Sellers and Company to consummate the
Closing is subject to the satisfaction, or the waiver at the Sellers’ discretion, of the following further conditions:

 

(a)               
Parent, LuxCo and BHN shall have performed in all material respects all of its obligations hereunder required to be performed
by it at or prior to the Closing Date.

 

(b)              
All of the representations and warranties of Parent, LuxCo and BHN contained in this Agreement, the Additional Agreements,
and in any certificate or other writing delivered by Parent, LuxCo or BHN pursuant hereto, disregarding all qualifications and
expectations contained therein relating to materiality or Material Adverse Effect, regardless of whether it involved a known risk,
shall be true and correct in all material respects at and as of the Closing Date, as if made at and as of such date.

 

(c)               
Company shall have received certificates signed by an authorized officer of each of Parent, LuxCo and BHN to the foregoing
effect.

 

(d)              
There shall have been no event, change, or occurrence with respect to Parent which individually or together with any other
event, change or occurrence, could reasonably be expected to have a Material Adverse Change.

 

(e)               
No court, arbitrator or other Authority shall have issued any judgment, injunction, decree or order, or have pending before
it a proceeding for the issuance of any thereof, and there shall not be any provision of any applicable Law restraining or prohibiting
the consummation of the Closing, or the public trading of Parent’s shares after the Closing Date.

 

(f)               
Each of Parent, LuxCo and BHN shall have entered into and delivered a counterpart signature page of each Additional Agreement
to which it is a party.

 

    	19

    	 

    

ARTICLE
X

INDEMNIFICATION

 

10.1         
Indemnification of Parent, LuxCo and BHN. Company and Sellers hereby agree to indemnify and hold harmless
Parent, LuxCo and BHN, each of their respective Affiliates (including without limitation Parent) and each of its and their respective
members, managers, partners, directors, officers, employees, stockholders, attorneys and agents and permitted assignees (the “LuxCo
Indemnitees”), against and in respect of any and all out-of-pocket loss, cost, payments, demand, penalty, forfeiture, expense,
liability, judgment, deficiency or damage, and diminution in value or claim (including actual costs of investigation and attorneys’
fees and other costs and expenses) (all of the foregoing collectively, “Losses”) incurred or sustained by any LuxCo
Indemnitee as a result of or in connection with (a) any breach, inaccuracy or nonfulfillment or the alleged breach, inaccuracy
or nonfulfillment of any of the representations, warranties and covenants of Company and Sellers contained herein or in any of
the Additional Agreements or any certificate or other writing delivered pursuant hereto, (b) any Actions by any third parties with
respect to the Business (including breach of contract claims, violations of warranties, trademark infringement, privacy violations,
torts or consumer complaints) for any period on or prior to the Closing Date (c) the violation of any Laws in connection with or
with respect to the operation of the Business on prior to the Closing Date, (d) any claims by any employee of Company, with respect
to any period or event occurring on or prior to the Closing Date, or relating to the termination of employee’s employment
status in connection with the transactions contemplated by this Agreement, or the termination, amendment or curtailment of any
employee benefit plans, (e) the failure of Company to pay any Taxes to any Taxing Authority or to file any Tax Return with any
Taxing Authority with respect to any period ending on or prior to the Closing Date, or (f) any sales, use, transfer or similar
Tax imposed on LuxCo or its Affiliates as a result of any transaction contemplated by this Agreement. The total payments made by
Company or Sellers to LuxCo Indemnitees with respect to Losses shall not exceed an amount equal to ten percent (10%) of the total
amount received by Sellers from the sale of the Exchange Shares and the Make-Whole Shares, as defined in the Transaction Value
Agreement (the “Indemnifiable Loss Limit”), except that the Indemnifiable Loss Limit shall not apply with respect to
any Losses relating to or arising under or in connection with breaches of Sections 3.10 of Exhibit 3 (Properties; Title to the
Company’ Assets), Section 3.19 of Exhibit 3 (Employees), Section 3.20 of Exhibit 3 (Employee Benefits and Compensation),
Section 3.21 of Exhibit 3 (Real Property) or any of clauses (b) through (f) of this Section 10.1; provided, however, LuxCo Indemnitees
shall not be entitled to indemnification pursuant to this Section 10.1. unless and until the aggregate amount of Losses to all
LuxCo Indemnitees equals at least $200,000.00 (the “Basket”), at which time, subject to the Indemnifiable Loss Limit,
LuxCo Indemnitees shall be entitled to indemnification for the total amount of such Losses. Any breach of Section 3.1 of Exhibit
3 (Corporate Existence and Power), Section 3.3 of Exhibit 3 (Authorization), Section 3.4 of Exhibit 3 (Governmental Authorization),
Section 3.10 of Exhibit 3 (Properties; Title to the Company’ Assets), Section 3.19 of Exhibit 3 (Employees), Section 3.20
of Exhibit 3 (Employee Benefits and Compensation), Section 3.21 of Exhibit 3 (Real Property) or Section 3.22 of Exhibit 3 (Tax
Matters) shall not be subject to the Basket. Notwithstanding anything set forth in this Section 10.1, (i) any amounts recovered
under Section 6.2(b), and (ii) any Losses incurred by any LuxCo Indemnitee arising out of the failure of Company and Sellers to
perform any covenant or obligation to be performed by it at or after the Closing Date, shall not, in any such case, be subject
to or applied against the Indemnifiable Loss Limit or the Basket, respectively. For the avoidance of doubt, any indemnification
payment under this Agreement shall be limited to the Exchange Shares and Make-Whole Shares, or the proceeds of the sale of such
Exchange Shares and Make-Whole Shares.

 

10.2         
Indemnification of Sellers . Parent, LuxCo and BHN, jointly and severally hereby agree to indemnify and hold
harmless Sellers, each of its Affiliates, and each of its members, managers, partners, directors, officers, employees, attorneys
and agents and permitted assignees (the “Sellers Indemnitees”) against and in respect of any Losses incurred or sustained
by any Sellers Indemnitee as a result of any breach, inaccuracy or nonfulfillment or the alleged breach, of any of the representations,
warranties and covenants of LuxCo contained herein. The total payments made by Parent, LuxCo or BHN to Sellers Indemnitees with
respect to Losses shall not exceed the Indemnifiable Loss Limit; provided, however, Sellers Indemnitees shall not be entitled to
indemnification pursuant to this Section 10.2 unless and until the aggregate amount of Losses to Sellers Indemnitees equals at
least the Basket, at which time, subject to the Indemnifiable Loss Limit, the Sellers Indemnitees shall be entitled to indemnification
for the total amount of such Losses. Notwithstanding anything set forth in this Section 10.2, any Losses incurred by any Sellers
Indemnitee arising out of the failure of Parent, LuxCo or BHN to perform any covenant or obligation to be performed by it at or
after the Closing Date including payment of the Purchase Price, shall not be subject to or applied against the Indemnifiable Loss
Limit or the Basket, respectively.

 

    	20

    	 

    

10.3         
Procedure. The following shall apply with respect to all claims by either a LuxCo Indemnitee or a Sellers
Indemnitee (together, “Indemnified Party”) for indemnification:

 

(a)               
An Indemnified Party shall give the Sellers or Parent, LuxCo and BHN, as applicable, prompt notice (an “Indemnification
Notice”) of any third-party Action with respect to which such Indemnified Party seeks indemnification pursuant to Section 10.1
or 10.2 (a “Third-Party Claim”), which shall describe in reasonable detail the Loss that has been or may be
suffered by the Indemnified Party. The failure to give the Indemnification Notice shall not impair any of the rights or benefits
of such Indemnified Party under Section 10.1 or 10.2, except to the extent such failure materially and adversely affects the ability
of Sellers or Parent, LuxCo and BHN, as applicable (any of such parties, “Indemnifying Parties”) to defend such claim
or increases the amount of such liability.

 

(b)              
In the case of any Third-Party Claims as to which indemnification is sought by any Indemnified Party, such Indemnified Party
shall be entitled, at the sole expense and liability of the Indemnifying Parties, to exercise full control of the defense, compromise
or settlement of any Third-Party Claim unless the Indemnifying Parties, within a reasonable time after the giving of an Indemnification
Notice by the Indemnified Party (but in any event within ten (10) days thereafter), shall (i) deliver a written confirmation to
such Indemnified Party that the indemnification provisions of Section 10.1 or 10.2 are applicable to such Action and the Indemnifying
Parties will indemnify such Indemnified Party in respect of such Action pursuant to the terms of Section 10.1 or 10.2 and, notwithstanding
anything to the contrary, shall do so without asserting any challenge, defense, limitation on the Indemnifying Parties liability
for Losses, counterclaim or offset, (ii) notify such Indemnified Party in writing of the intention of the Indemnifying Parties
to assume the defense thereof, and (iii) retain legal counsel reasonably satisfactory to such Indemnified Party to conduct the
defense of such Third-Party Claim.

 

(c)               
If the Indemnifying Parties assume the defense of any such Third-Party Claim pursuant to Section 10.3(b), then the Indemnified
Party shall cooperate with the Indemnifying Parties in any manner reasonably requested in connection with the defense, and the
Indemnified Party shall have the right to be kept fully informed by the Indemnifying Parties and their legal counsel with respect
to the status of any legal proceedings, to the extent not inconsistent with the preservation of attorney-client or work product
privilege. If the Indemnifying Parties so assume the defense of any such Third-Party Claim the Indemnified Party shall have the
right to employ separate counsel and to participate in (but not control) the defense, compromise, or settlement thereof, but the
fees and expenses of such counsel employed by the Indemnified Party shall be at the expense of such Indemnified Party unless (i)
the Indemnifying Parties have agreed to pay such fees and expenses, or (ii) the named parties to any such Third-Party Claim (including
any impleaded parties) include an Indemnified Party and an Indemnifying Party and such Indemnified Party shall have been advised
by its counsel that there may be a conflict of interest between such Indemnified Party and the Indemnifying Parties in the conduct
of the defense thereof, and in any such case the reasonable fees and expenses of such separate counsel shall be borne by the Indemnifying
Parties.

 

    	21

    	 

    

(d)              
If the Indemnifying Parties elect to assume the defense of any Third-Party Claim pursuant to Section 10.3(b), the Indemnified
Party shall not pay, or permit to be paid, any part of any claim or demand arising from such asserted liability unless the Indemnifying
Parties withdraw from or fail to vigorously prosecute the defense of such asserted liability, or unless a judgment is entered against
the Indemnified Party for such liability. If the Indemnifying Parties do not elect to defend, or if, after commencing or undertaking
any such defense, the Indemnifying Parties fail to adequately prosecute or withdraw such defense, the Indemnified Party shall have
the right to undertake the defense or settlement thereof, at the Indemnifying Parties’ expense. Notwithstanding anything
to the contrary, the Indemnifying Parties shall not be entitled to control, but may participate in, and the Indemnified Party (at
the expense of the Indemnifying Parties) shall be entitled to have sole control over, the defense or settlement of (x) that part
of any Third Party Claim (i) that seeks a temporary restraining order, a preliminary or permanent injunction or specific performance
against the Indemnified Party, or (ii) to the extent such Third Party Claim involves criminal allegations against the Indemnified
Party or (y) the entire Third Party Claim if such Third Party Claim would impose liability on the part of the Indemnified Party
in an amount which is greater than the amount as to which the Indemnified Party is entitled to indemnification under this Agreement.
In the event the Indemnified Party retains control of the Third Party Claim, the Indemnified Party will not settle the subject
claim without the prior written consent of the Indemnifying Party, which consent will not be unreasonably withheld or delayed.

 

(e)               
If the Indemnified Party undertakes the defense of any such Third-Party Claim pursuant to Section 10.1 or 10.2 and proposes
to settle the same prior to a final judgment thereon or to forgo appeal with respect thereto, then the Indemnified Party shall
give the Indemnifying Parties prompt written notice thereof and the Indemnifying Parties shall have the right to participate in
the settlement, assume or reassume the defense thereof or prosecute such appeal, in each case at the Indemnifying Parties’
expense. The Indemnifying Parties shall not, without the prior written consent of such Indemnified Party settle or compromise or
consent to entry of any judgment with respect to any such Third-Party Claim (i) in which any relief other than the payment of money
damages is or may be sought against such Indemnified Party, (ii) in which such Third Party Claim could be reasonably expected to
impose or create a monetary liability on the part of the Indemnified Party (such as an increase in the Indemnified Party’s
income Tax) other than the monetary claim of the third party in such Third-Party Claim being paid pursuant to such settlement or
judgment, or (iii) which does not include as an unconditional term thereof the giving by the claimant, person conducting such investigation
or initiating such hearing, plaintiff or petitioner to such Indemnified Party of a release from all liability with respect to such
Third-Party Claim and all other Actions (known or unknown) arising or which might arise out of the same facts.

    	22

    	 

    

 

10.4         
Periodic Payments. Any indemnification required by Section 10.1 or 10.2 for costs, disbursements or expenses
of any Indemnified Party in connection with investigating, preparing to defend or defending any Action shall be made by periodic
payments by the Indemnifying Parties to each Indemnified Party during the course of the investigation or defense, as and when bills
are received or costs, disbursements or expenses are incurred.

 

10.5         
Right of Set Off. In the event that Parent, LuxCo or BHN is entitled to any indemnification pursuant to this
Article X, Parent, BHN or LuxCo shall be entitled to set off any amounts owed to Sellers pursuant to Section 10.2 and/or against
the amount of such indemnification. Any such set-off will be treated as an adjustment to the Purchase Price.

 

10.6         
Payment of Indemnification. In the event that Parent, LuxCo or BHN are entitled to any indemnification pursuant
to this Article, and Parent, LuxCo or BHN are unable to set off such indemnification pursuant to Section 10.5, Sellers may pay
the amount of the indemnification (subject to the limitation set forth in Section 10.1) in shares of Parent Common Stock at Fair
Market Value. Any payments by Sellers to a LuxCo Indemnitee will be treated as an adjustment to the Purchase Price.

 

10.7         
Insurance. Any indemnification payments hereunder shall take into account any insurance proceeds or other
third party reimbursement actually received.

 

10.8         
Survival of Indemnification Rights. Except for the representations and warranties in Section 3.1 of Exhibit
3 (Corporate Existence and Power), Section 3.3 of Exhibit 3 (Authorization), Section 3.4 of Exhibit 3 (Governmental Authorization),
Section 3.10 of Exhibit 3 (Properties; Title to Company’s Assets), Section 3.15 of Exhibit 3 (Compliance with Laws), 3.19
of Exhibit 3 (Employees) Section 3.20 of Exhibit 3 (Employee Benefits and Compensation), Section 3.21 of Exhibit 3 (Real Property),
Section 3.22 of Exhibit 3 (Tax Matters), Section 3.23 of Exhibit 3 (Environmental Laws), Section 3.24 of Exhibit 3 (Finder’s
Fees), Section 4.1 of Exhibit 4 (Corporate Existence and Power), Section 4.2 of Exhibit 4 (Corporate Authorization), and Section
4. 6 of Exhibit 4 (Finders’ Fees) which shall survive until ninety (90) days after the expiration of the statute of limitations
with respect thereto (including any extensions and waivers thereof), the representations and warranties of Sellers, Company, Parent,
LuxCo and BHN shall survive until the twenty-four (24) months following the Closing. The indemnification to which any Indemnified
Party is entitled from the Indemnifying Parties pursuant to Section 10.1 or 10.2 for Losses shall be effective so long as it is
asserted prior to: (x) ninety (90) days after the expiration of the applicable statute of limitations (including all extensions
and waivers thereof), in the case of the representations and warranties referred to in the first sentence of Section 10.8 and the
breach or the alleged breach of any covenant or agreement of any Indemnifying Party; and (y) the twenty-four (24) months following
the Closing, in the case of all other representations and warranties of Sellers and Parent, LuxCo and BHN hereunder.

 

    	23

    	 

    

ARTICLE
XI

DISPUTE RESOLUTION

 

11.1         
Arbitration.

 

(a)               
The parties shall promptly submit any dispute, claim, or controversy arising out of or relating to this Agreement, or any
Additional Agreement (including with respect to the meaning, effect, validity, termination, interpretation, performance, or enforcement
of this Agreement or any Additional Agreement) or any alleged breach thereof (including any action in tort, contract, equity, or
otherwise), to binding arbitration before one arbitrator (“Arbitrator”), shall be binding, final and non-appealable
and not subject to this Section 11.1. The parties agree that binding arbitration shall be the sole means of resolving any dispute,
claim, or controversy arising out of or relating to this Agreement or any Additional Agreement (including with respect to the meaning,
effect, validity, termination, interpretation, performance or enforcement of this Agreement or any Additional Agreement) or any
alleged breach thereof (including any claim in tort, contract, equity, or otherwise).

 

(b)              
If the parties cannot agree upon the Arbitrator, the Arbitrator shall be selected by the New York, New York chapter head
of the American Arbitration Association upon the written request of either side. The Arbitrator shall be selected within thirty
(30) days of such written request.

 

(c)               
The laws of the State of New York shall apply to any arbitration hereunder. In any arbitration hereunder, this Agreement
and any agreement contemplated hereby shall be governed by the laws of the State of New York applicable to a contract negotiated,
signed, and wholly to be performed in the State of New York, which laws the Arbitrator shall apply in rendering his decision. The
Arbitrator shall issue a written decision, setting forth findings of fact and conclusions of law, within sixty (60) days after
he shall have been selected. The Arbitrator shall have no authority to award punitive or other exemplary damages.

 

(d)              
The arbitration shall be held in New York, New York in accordance with and under the then current provisions of the rules
of the American Arbitration Association, except as otherwise provided herein.

 

(e)               
On application to the Arbitrator, any party shall have rights to discovery to the same extent as would be provided under
the Federal Rules of Civil Procedure, and the Federal Rules of Evidence shall apply to any arbitration under this Agreement; provided,
however, that the Arbitrator shall limit any discovery or evidence such that his decision shall be rendered within the period referred
to in Section 11.1(c).

 

(f)               
The Arbitrator may, at his discretion and at the expense of the parties who will bear the cost of the arbitration, employ
experts to assist him in his determinations.

 

(g)              
The costs of the arbitration proceeding and any proceeding in court to confirm any arbitration award or to obtain relief
as provided in Section 6.2, as applicable (including actual attorneys’ fees and costs), shall be borne by the unsuccessful
party and shall be awarded as part of the Arbitrator’s decision, unless the Arbitrator shall otherwise allocate such costs
in such decision. The determination of the Arbitrator shall be final and binding upon the parties and not subject to appeal.

 

    	24

    	 

    

(h)              
Any judgment upon any award rendered by the Arbitrator may be entered in and enforced by any court of competent jurisdiction.
The parties expressly consent to the exclusive jurisdiction of the courts (Federal and state) in New York, New York to enforce
any award of the Arbitrator or to render any provisional, temporary, or injunctive relief in connection with or in aid of the Arbitration.
The parties expressly consent to the personal and subject matter jurisdiction of the Arbitrator to arbitrate any and all matters
to be submitted to arbitration hereunder. None of the parties hereto shall challenge any arbitration hereunder on the grounds that
any party necessary to such arbitration (including the parties hereto) shall have been absent from such arbitration for any reason,
including that such party shall have been the subject of any bankruptcy, reorganization, or insolvency proceeding.

 

(i)                
The parties shall indemnify the Arbitrator and any experts employed by the Arbitrator and hold them harmless from and against
any claim or demand arising out of any arbitration under this Agreement or any agreement contemplated hereby, unless resulting
from the willful misconduct of the person indemnified.

 

(j)                
This arbitration section shall survive the termination of this Agreement and any agreement contemplated hereby.

 

11.2         
Waiver of Jury Trial; Exemplary Damages.

 

(a)               
THE PARTIES TO THIS AGREEMENT HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVE ANY RIGHT EACH SUCH PARTY MAY HAVE TO
TRIAL BY JURY IN ANY ACTION OF ANY KIND OR NATURE, IN ANY COURT IN WHICH AN ACTION MAY BE COMMENCED, ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT OR ANY ADDITIONAL AGREEMENT, OR BY REASON OF ANY OTHER CAUSE OR DISPUTE WHATSOEVER BETWEEN OR AMONG ANY OF
THE PARTIES TO THIS AGREEMENT OF ANY KIND OR NATURE. NO PARTY SHALL BE AWARDED PUNITIVE OR OTHER EXEMPLARY DAMAGES RESPECTING ANY
DISPUTE ARISING UNDER THIS AGREEMENT OR ANY ADDITIONAL AGREEMENT.

 

(b)              
Each of the parties to this Agreement acknowledges that each has been represented in connection with the signing of this
waiver by independent legal counsel selected by the respective party and that such party has discussed the legal consequences and
import of this waiver with legal counsel. Each of the parties to this Agreement further acknowledge that each has read and understands
the meaning of this waiver and grants this waiver knowingly, voluntarily, without duress and only after consideration of the consequences
of this waiver with legal counsel.

 

11.3         
Attorneys’ Fees. The unsuccessful party to any Action arising out of this Agreement that is not resolved
by arbitration under Section 11.1 shall pay to the prevailing party all attorneys’ fees and costs actually incurred by the
prevailing party, in addition to any other relief to which it may be entitled. As used in this Section 11.3 and elsewhere
in this Agreement, “actual attorneys’ fees” or “attorneys’ fees actually incurred” means the
full and actual cost of any legal services actually performed in connection with the matter for which such fees are sought, calculated
on the basis of the usual fees charged by the attorneys performing such services, and shall not be limited to “reasonable
attorneys’ fees” as that term may be defined in statutory or decisional authority.

 

    	25

    	 

    

ARTICLE
XII

TERMINATION

 

12.1         
Termination Without Default; Expenses.

 

(a)               
In the event that the Closing of the transactions contemplated hereunder has not occurred by December 31, 2013 (the “Outside
Closing Date”), and no material breach of this Agreement by Parent, LuxCo, and BHN, on one hand, or Company and Sellers,
on the other hand, seeking to terminate this Agreement shall have occurred or have been made (as provided in Section 12.2 hereof),
each party hereto shall have the right, at its sole option, to terminate this Agreement without liability to the other side. Such
right may be exercised by each party hereto, giving written notice to the other at any time after the Outside Closing Date. Upon
receipt of such notice, neither party shall have any further obligation to the other under this Agreement, except for those obligations
that are expressly stated to survive the cancellation or termination of this Agreement. In the event this Agreement is terminated
pursuant to this Section 12(a), each party shall bear its own expenses incurred in connection with this Agreement.

 

(b)              
Parent and LuxCo shall have the right, at any time prior to the Real Property Investigation Period, time being of the essence,
to terminate this Agreement for any reason or no reason whatsoever if the results of the investigations in connection with the
Business, including the Real Property, are not satisfactory to Prime or LuxCo, in Prime’s or LuxCo's sole discretion, by
giving notice to Sellers or Company on or before the Real Property Investigation Period. Upon receipt of such notice, neither party
shall have any further obligation to the other under this Agreement, except for those obligations that are expressly stated to
survive the cancellation or termination of this Agreement. In the event this Agreement is terminated pursuant to this Section 12.1(b),
each party shall bear its own expenses incurred in connection with this Agreement.

 

12.2         
Termination Upon Default.

 

(a)               
Parent and LuxCo may terminate this Agreement by giving notice to the Sellers on or prior to the Closing Date, without prejudice
to any rights or obligations Parent or LuxCo may have, if Sellers or Company shall have materially breached any representation
or warranty or breached any agreement or covenant contained herein or in any Additional Agreement to be performed on or prior to
the Closing Date, and in either case, such breach shall not be cured by the earlier of the Outside Closing Date and ten (10) days
following receipt by the Sellers of a notice describing in reasonable detail the nature of such breach.

 

    	26

    	 

    

(b)              
The Sellers may terminate this Agreement by giving notice to Parent and LuxCo, without prejudice to any rights or obligations
Sellers or Company may have, if Parent or LuxCo shall have materially breached any of its covenants, agreements, representations,
and warranties contained herein to be performed on or prior to the Closing Date and such breach shall not be cured by the earlier
of the Outside Closing Date and ten (10) days following receipt by LuxCo of a notice describing in reasonable detail the nature
of such breach.

 

(c)               
In the event this Agreement is terminated by Parent or LuxCo pursuant to Section 12.2(a) and (b), Sellers and Company shall
be responsible for paying all of its own expenses and those of LuxCo incurred in connection with this Agreement.

 

(d)              
In the event this Agreement is terminated by the Sellers pursuant to Section 12.2(c), LuxCo shall be responsible for paying
all of its own expenses and those of Sellers or Company incurred in connection with this Agreement (provided, however, such expenses
of Sellers shall be limited to reasonable attorney’s fees of one counsel).

 

12.3         
Survival. The provisions of Section 11.3, as well as this Article XII, shall survive any termination hereof
pursuant to Article XII.

 

ARTICLE
XIII

MISCELLANEOUS

 

13.1         
Notices. Any notice hereunder shall be sent in writing, addressed as specified below, and shall be deemed
given: (a) if by hand or recognized courier service, by 4:00PM on a business day, addressee’s day and time, on the date of
delivery, and otherwise on the first business day after such delivery; (b) if by fax or email, on the date that transmission is
confirmed electronically, if by 4:00PM on a business day, addressee’s day and time, and otherwise on the first business day
after the date of such confirmation; or (c) five days after mailing by certified or registered mail, return receipt requested.
Notices shall be addressed to the respective parties as follows (excluding telephone numbers, which are for convenience only),
or to such other address as a party shall specify to the others in accordance with these notice provisions:

 

if to Parent, to:

 

Prime Acquisition Corp.

No. 322, Zhongshan East Road

Shijiazhuang

Hebei Province, 050011

People’s Republic of China

Telecopy: 650-618-2552

    	27

    	 

    

 

with a copy to (which shall not constitute notice):

Loeb & Loeb LLP

345 Park Avenue

New York, New York 10154

Attention: Mitchell S. Nussbaum, Esq.

Telecopy: +1 212.504.3013

 

if to LuxCo, to:

 

Prime BHN Luxembourg S.àr.l.

13-15 Avenue de la Liberte’, L-1931

Luxembourg

 

with a copy to (which shall not constitute notice):

Loeb & Loeb LLP

345 Park Avenue

New York, New York 10154

Attention: Mitchell S. Nussbaum, Esq.

Telecopy: +1 212.504.3013

 

if to BHN, to:

 

BHN LLC

6369 Mill Street, Suite 205

Rhinebeck, NY 12572

Telecopy: +1 845.876.8714

Attention: Marco Prete, Managing Member

 

with a copy to (which shall not constitute notice):

Reed Smith LLP

599 Lexington Avenue

New York, NY 10022

Attention: Gerald S. DiFiore

Telecopy: +1 212.521.5450

 

if to Company, Representative
or Sellers:

 

Francesco Rotondi

Viale San Gimignano n. 30

Milano, Italy 20146

Telecopy: +39.02.30.311.431

    	28

    	 

    

 

with a copy to (which shall
not constitute notice):

 

Studio Associato R&P Legal - Rossotto, Colombatto
& Partners

Piazzale Luigi Cadorna n. 4

20123 Milano

Attention: Claudio Elestici

Telecopy: +39 02 8807222

 

13.2         
Amendments; No Waivers; Remedies.

 

(a)               
This Agreement cannot be amended, except by a writing signed by each party, or terminated orally or by course of conduct.
No provision hereof can be waived, except by a writing signed by the party against whom such waiver is to be enforced, and any
such waiver shall apply only in the particular instance in which such waiver shall have been given.

 

(b)              
Neither any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction of any condition herein
nor any course of dealing shall constitute a waiver of or prevent any party from enforcing any right or remedy or from requiring
satisfaction of any condition. No notice to or demand on a party waives or otherwise affects any obligation of that party or impairs
any right of the party giving such notice or making such demand, including any right to take any action without notice or demand
not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of this Agreement shall preclude
exercise of any other right or remedy, as appropriate to make the aggrieved party whole with respect to such breach, or subsequent
exercise of any right or remedy with respect to any other breach.

 

(c)               
Except as otherwise expressly provided herein, no statement herein of any right or remedy shall impair any other right or
remedy stated herein or that otherwise may be available.

 

(d)              
Notwithstanding anything else contained herein, neither shall any party seek, nor shall any party be liable for, punitive
or exemplary damages, under any tort, contract, equity, or other legal theory, with respect to any breach (or alleged breach) of
this Agreement or any provision hereof or any matter otherwise relating hereto or arising in connection herewith.

 

13.3         
Arms’ Length Bargaining; no Presumption Against Drafter. This Agreement has been negotiated at arms-length
by parties of equal bargaining strength, each represented by counsel or having had but declined the opportunity to be represented
by counsel and having participated in the drafting of this Agreement. This Agreement creates no fiduciary or other special relationship
between the parties, and no such relationship otherwise exists. No presumption in favor of or against any party in the construction
or interpretation of this Agreement or any provision hereof shall be made based upon which Person might have drafted this Agreement
or such provision.

 

13.4         
Publicity. Except as required by law, the parties agree that neither they nor their agents shall issue any
press release or make any other public disclosure concerning the transactions contemplated hereunder without the prior approval
of the other party hereto.

 

    	29

    	 

    

13.5         
Expenses. Except as otherwise expressly set forth herein, all costs and expenses incurred in connection with
this Agreement and the transactions contemplated hereby shall be paid by the party incurring such cost or expense, provided that
all the notary public fees and expenses in connection with the Deed shall be borne by the Parent.

 

13.6         
No Assignment or Delegation. No party may assign any right or delegate any obligation hereunder, including
by merger, consolidation, operation of law, or otherwise, without the written consent of the other party. Any purported assignment
or delegation without such consent shall be void, in addition to constituting a material breach of this Agreement.

 

13.7         
Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State
of New York, without giving effect to the conflict of laws principles thereof.

 

13.8         
Counterparts; Facsimile Signatures. This Agreement may be executed in counterparts, each of which shall constitute
an original, but all of which shall constitute one agreement. This Agreement shall become effective upon delivery to each party
of an executed counterpart or the earlier delivery to each party of original, photocopied, or electronically transmitted signature
pages that together (but need not individually) bear the signatures of all other parties.

 

13.9         
Entire Agreement. This Agreement together with the Additional Agreements, sets forth the entire agreement
of the parties with respect to the subject matter hereof and thereof and supersedes all prior and contemporaneous understandings
and agreements related thereto (whether written or oral), all of which are merged herein. No provision of this Agreement or any
Additional Agreement may be explained or qualified by any agreement, negotiations, understanding, discussion, conduct or course
of conduct or by any trade usage. Except as otherwise expressly stated herein or any Additional Agreement, there is no condition
precedent to the effectiveness of any provision hereof or thereof. No party has relied on any representation from, warranty or
agreement of any person in entering into this Agreement, prior or contemporaneous or any Additional Agreement, except those expressly
stated herein or therein.

 

13.10     
Severability. A determination by a court or other legal authority that any provision that is not of the essence
of this Agreement is legally invalid shall not affect the validity or enforceability of any other provision hereof. The parties
shall cooperate in good faith to substitute (or cause such court or other legal authority to substitute) for any provision so held
to be invalid a valid provision, as alike in substance to such invalid provision as is lawful.

 

13.11     
Construction of Certain Terms and References; Captions. In this Agreement:

 

(a)               
References to particular sections and subsections, schedules, and exhibits not otherwise specified are cross-references
to sections and subsections, schedules, and exhibits of this Agreement.

 

(b)              
The words “herein,” “hereof,” “hereunder,” and words of similar import refer to this
Agreement as a whole and not to any particular provision of this Agreement, and, unless the context requires otherwise, “party”
means a party signatory hereto.

 

    	30

    	 

    

(c)               
Any use of the singular or plural, or the masculine, feminine, or neuter gender, includes the others, unless the context
otherwise requires; “including” means “including without limitation;” “or” means “and/or;”
“any” means “any one, more than one, or all;” and, unless otherwise specified, any financial or accounting
term has the meaning of the term under United States generally accepted accounting principles as consistently applied heretofore
by party.

 

(d)              
Unless otherwise specified, any reference to any agreement (including this Agreement), instrument, or other document includes
all schedules, exhibits, or other attachments referred to therein, and any reference to a statute or other law includes any rule,
regulation, ordinance, or the like promulgated thereunder, in each case, as amended, restated, supplemented, or otherwise modified
from time to time. Any reference to a numbered schedule means the same-numbered section of the disclosure schedule.

 

(e)               
If any action is required to be taken or notice is required to be given within a specified number of days following a specific
date or event, the day of such date or event is not counted in determining the last day for such action or notice. If any action
is required to be taken or notice is required to be given on or before a particular day which is not a Business Day, such action
or notice shall be considered timely if it is taken or given on or before the next Business Day.

 

(f)               
Captions are not a part of this Agreement, but are included for convenience, only.

 

(g)              
For the avoidance of any doubt, all references in this Agreement to “the knowledge or best knowledge of Sellers”,
“the knowledge or best knowledge of Company” or similar terms shall be deemed to include the actual or constructive
knowledge of any officers or any member of the Board of Directors of Sellers and Company, after reasonable inquiry.

 

13.12     
Further Assurances. Each party shall execute and deliver such documents and take such action, as may reasonably
be considered within the scope of such party’s obligations hereunder, necessary to effectuate the transactions contemplated
by this Agreement.

 

13.13     
Third Party Beneficiaries. Neither this Agreement nor any provision hereof confers any benefit or right upon
or may be enforced by any Person not a signatory hereto.

 

13.14     
Waiver. Reference is made to the final prospectus of Parent, dated March 24, 2011 (the “Prospectus”).
Sellers and Company have read the Prospectus and understand that Parent has established a trust account (“Trust Account”)
for the benefit of the public stockholders of Parent and the underwriters of the IPO pursuant to the Investment Management Trust
Agreement, dated as of March 30, 2011, between Parent and American Stock Transfer & Trust Company, as trustee. For and in consideration
of Parent and LuxCo agreeing to enter into this Agreement with Sellers and Company, each of Sellers and Company hereby agrees that
it does not have any right, title, interest or claim of any kind in or to any monies in the Trust Account and hereby agrees that
it will not seek recourse against the Trust Account for any claim it may have in the future as a result of, or arising out of,
any negotiations, contracts or agreements with Parent, LuxCo or BHN.

 

    	31

    	 

    

13.15     
Sellers Representative.

 

(a)               
Each Seller hereby appoints Francesco Rotondi, as such Seller’s representative to act as Representative for all purposes
of this Agreement and the transactions contemplated hereby, with the right, in such capacity, in his discretion, to do any and
all things and to execute any and all documents in such Stockholder’s place and stead, in any way which such Stockholder
could do if personally present, in connection with this Agreement and the transactions contemplated thereby, including the authority
on behalf of such Seller, without giving notice to such Seller, to take any of the following actions:

 

(i)                
to accept on such Seller’s behalf any amount payable to such Seller under this Agreement;

 

(ii)              
to negotiate and otherwise deal with Parent or LuxCo, in all respects;

 

(iii)            
to accept and give service of process and all other notices and other communications relating to this Agreement;

 

(iv)            
to settle any dispute relating to the terms of this Agreement;

 

(v)              
to execute any instrument or document that the Representative may determine is necessary or desirable in the exercise of
his authority under this Agreement and power-of-attorney; and

 

(vi)            
to act in connection with all matters relating to this Agreement and the transactions contemplated thereby, including the
power to employ auditors, attorneys and other Persons in connection therewith.

 

(b)              
Each Seller further agrees, as follows:

 

(i)                
Such Seller recognizes the inherent conflict of interest of Francesco Rotondi as the Representative and waives any claims
with respect thereto;

 

(ii)              
the Representative (A) shall not incur any personal liability for acting in such capacity if in doing so he acts upon advice
of counsel or otherwise acts in good faith, (B) shall not incur any personal liability for acting in such capacity in the absence
of his willful misconduct, (C) may act upon any instrument or signature believed by him to be genuine and may assume that any Person
purporting to give any notice or instruction under this Agreement or under any other related agreement or document believed by
him to be authorized has been authorized to do so (D) shall not be responsible for the investment of any payments received from
Parent for the benefit of Sellers, and (E) shall be promptly reimbursed by Sellers, pro rata for out-of-pocket expenses incurred
by him in his capacity of Representative, and such expenses shall first be satisfied from any payment paid by Parent and received
by the Representative for the benefit of Sellers, prior to distribution of such payments to Sellers; and

 

    	32

    	 

    

(iii)            
If Francesco Rotondi is unable to serve or resigns as the Representative, Sellers may appoint from among their ranks a substitute
Representative to replace Francesco Rotondi which individual shall have all the powers and authority granted to Francesco Rotondi
by this Section 13.15. Parent and LuxCo shall accept such substitute Representative without objection; provided, however, that
Francesco Rotondi shall continue to serve as the Representative until such substitute Representative has been appointed by Sellers.

 

(c)               
At and after Closing, Parent and LuxCo shall be entitled to deal exclusively with Representative on all matters relating
to this Agreement and the transactions contemplated hereby involving Sellers, or any of them, and shall be entitled to rely conclusively
(without further evidence of any kind whatsoever) on any statements made by the Representative or documents executed or purported
to be executed on behalf of any Seller by the Representative, and on any other action taken or purported to be taken on behalf
of any Seller by the Representative including the appropriate communication or delivery to Seller.

 

[The remainder of this
page intentionally left blank; signature pages to follow]

 

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IN WITNESS WHEREOF, LuxCo,
Parent, BHN, Company and Sellers have each caused this Agreement to be duly executed by their respective authorized officers as
of the day and year first above written.

 

	LUXCO:		 	 
	 	Prime BHN Luxembourg S.àr.l.	 
	 	a Luxembourg company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ William YU	 
	 	 	Name: William YU	 
	 	 	Title: Manager	 
	 	 	 	 
	 	 	 	 
	PARENT:	 		 
	 	Prime Acquisition Corp.	 
	 	a Cayman Islands company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Diana LIU	 
	 	 	Name: Diana LIU	 
	 	 	Title: CEO	 
	 	 	 	 
	BHN:	 		 
	 	BHN LLC	 
	 	a New York limited liability company	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Marco PRETE	 
	 	 	Name: Marco PRETE	 
	 	 	Title: Managing Member 	 

 

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	COMPANY:	 		 
	 	Seba S.r.l. 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Giuseppe Pantaleo	 
	 	 	Name: Giuseppe Pantaleo	 
	 	 	Title: Managing Director	 
	 	 	 	 
	SELLERS:	 
	 	/s/ Francesco Rotondi	 
	 	Francesco Rotondi	 
	 	 	 	 
	 	/s/ Luca Massimo Failla	 
	 	Luca Massimo Failla	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

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EXHIBIT 3

 

REPRESENTATIONS AND WARRANTIES OF

THE COMPANY AND SELLERS

 

3.1 Corporate Existence
and Power. Company is a limited liability company duly organized, validly existing and in good standing under and by virtue
of the Laws of Italy. Company has all power and authority, corporate and otherwise, and all governmental licenses, franchises,
Permits, authorizations, consents and approvals required to own, manage and operate its properties and assets, including without
limitation the Real Property, and to carry on the Business as presently conducted and as proposed to be conducted and to sell it,
in whole or in part, to LuxCo. Company has not taken any action, adopted any plan, or made any agreement or commitment in respect
of any merger, consolidation, sale of all or substantially all of their assets, reorganization, recapitalization, dissolution or
liquidation.

 

3.2 Units. Sellers
owns all of the outstanding Units of Company, free and clear of all Liens, except for Permitted Liens.

 

3.3 Authorization.
Company has full legal capacity, power and authority to execute and deliver this Agreement and the Additional Agreements to which
such Company is named as a party, to perform such Company’s obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. This Agreement has been, and the Additional Agreements to which Company is named as a party, will
be at Closing, duly executed and delivered by Company, and this Agreement constitutes, and such Additional Agreements are, or upon
their execution and delivery at Closing will be, valid and legally binding agreements of Sellers and the Company, enforceable against
Sellers and the Company in accordance with their respective terms.

 

3.4 Governmental
Authorization. Sellers and the Company have obtained or completed all consent, approval, license or other action by or in respect
of, or registration, declaration or filing with, any Authority regarding the execution, delivery and performance by Sellers and
the Company of this Agreement or any Additional Agreements.

 

3.5 Non-Contravention.
None of the execution, delivery or performance by Company of this Agreement or any Additional Agreement does or will (a) contravene
or conflict with the organizational or constitutive documents of the Company, (b) contravene or conflict with or constitute a violation
of any provision of any Law or Order binding upon or applicable to the Company, (c) constitute a default under or breach of (with
or without the giving of notice or the passage of time or both) or violate or give rise to any right of termination, cancellation,
amendment or acceleration of any right or obligation of Company or require any payment or reimbursement or to a loss of any material
benefit relating to the Business to which Company is entitled under any provision of any Permit, Contract or other instrument or
obligations binding upon the Company or by which any of the Business’ assets, including without limitation the Real Property,
is or may be bound or any Permit, or (d) result in the creation or imposition of any Lien on any of the Business’ assets,
including, without limitation, the Real Property.

 

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3.6 Consents.
The Contracts listed on Schedule 3.6 are the only Contracts binding upon Company, including without limitation Real Property, requiring
a consent, approval, authorization, order or other action of or filing with any Person as a result of the execution, delivery and
performance of this Agreement or any of the Additional Agreements or the consummation of the transactions contemplated hereby or
thereby (each of the foregoing, a “Contracts Subject to Consent”).

 

3.7 Financial Statements.

 

(d)              
Attached hereto as Schedule 3.7 are (i) the unaudited consolidated financial statements of Company as of and for the fiscal
years ended December 31, 2012, and 2011, consisting of the unaudited consolidated balance sheets as of such dates, the unaudited
consolidated income statements for the twelve (12) month periods ended on such dates, and the unaudited consolidated cash flow
statements for the twelve (12) month periods ended on such dates (the “Financial Statements”).

 

(e)               
The Financial Statements are complete and accurate and fairly present, in conformity with IFRS applied on a consistent basis,
the financial position of Company as of the dates thereof and the results of operations of Company for the periods reflected therein.
The Financial Statements (i) were prepared from the books and records of Company; (ii) were prepared on an accrual basis in accordance
with IFRS consistently applied; (iii) contain and reflect all necessary adjustments and accruals for a fair presentation of Company’s
financial condition as of their dates including for all warranty, maintenance, service and indemnification obligations; and (iv)
contain and reflect adequate provisions for all liabilities for all material Taxes applicable to Company with respect to the periods
then ended. Company has delivered to Parent or LuxCo complete and accurate copies of all “management letters” received
by it from its accountants and all responses during the last five (5) years by lawyers engaged by Company to inquiries from its
accountant or any predecessor accountants.

 

(f)               
Except for liabilities and obligations incurred in the ordinary course of business since December 31, 2012, there are no
liabilities, debts or obligations of any nature (whether accrued, fixed or contingent, liquidated or unliquidated, asserted or
unasserted or otherwise) relating to Company. All debts and liabilities, fixed or contingent, which should be included under IFRS
are included therein.

 

(g)              
The balance sheet included in the Financial Statements accurately reflects the outstanding Indebtedness of Company as of
the date thereof. Except as set forth on Schedule 3.7, Company does not have any Indebtedness.

 

(h)              
Schedule 3.7 sets forth a list of all Guarantees.

 

(i)                
All financial projections delivered by or on behalf of Company to Parent with respect to Company were prepared in good faith
using assumptions that each of Company and Sellers believes to be reasonable and each of Company or Sellers is not aware of the
existence of any fact or occurrence of any circumstances that is reasonably likely to have a Material Adverse Effect.

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3.8 Books and Records.

 

(a)The Books
and Records accurately and fairly, in reasonable detail, reflect the transactions and dispositions of assets of and the providing
of services by Company. Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that:

 

(i)                
transactions are executed only in accordance with management’s authorization;

 

(ii)              
all income and expense items are promptly and properly recorded for the relevant periods in accordance with the revenue
recognition and expense policies as permitted by IFRS;

 

(iii)            
access to assets is permitted only in accordance with management’s authorization; and

 

(iv)            
recorded assets are compared with existing assets at reasonable intervals, and appropriate action is taken with respect
to any differences.

 

(b)Company has
heretofore made all Books and Records available to Parent and LuxCo for their inspection, and have heretofore delivered to Parent
and LuxCo complete and accurate copies of all documents referred to in the Schedules to this Agreement or that Parent or LuxCo
otherwise has requested. All Contracts, documents, and other papers or copies thereof delivered to Parent or LuxCo by or on behalf
of Company are accurate, complete, and authentic.

 

(c)All accounts,
books and ledgers of Company have been properly and accurately kept and completed in all material respects, and there are no material
inaccuracies or discrepancies of any kind contained or reflected therein.

 

3.9 Absence of Certain
Changes.

 

(a)Since December
31, 2012, the Business has been conducted in the ordinary course consistent with past practices, and there has not been:

 

(i)any Material
Adverse Change, or in any material diminishment in the value of the Business;

 

(ii)any transaction,
Contract or other instrument entered into, or commitment made, by Company relating to the Business or any of the Business’
assets (including without limitation the acquisition or disposition of Real Property) or any relinquishment by Company of any contract
or other right, in either case other than transactions and commitments in the ordinary course of business consistent in all respects,
including kind and amount, with past practices and those contemplated by this Agreement;

 

(iii)any bonus,
salary or other compensation paid or agreed to be paid to any employee; or

 

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(iv)any creation
or other incurrence of any Lien other than Permitted Liens on any of the Company’ assets, including without limitation the
Real Property.

 

(b)Since December
31, 2012, through and including the date hereof, Company has not taken any action nor has any event occurred which would have violated
the covenants of Sellers set forth in Section 5.1 herein if such action had been taken or such event had occurred between the date
hereof and the Closing Date.

 

3.10 Properties;
Title to the Company’ Assets.

 

(a)The Tangible Assets
have no defects, are in good operating condition and repair and function in accordance with their intended uses (ordinary wear
and tear excepted) and have been properly maintained, and are suitable for their present uses and meet all specifications and warranty
requirements with respect thereto. Schedule 3.10 sets forth a complete list, setting forth a description and location, of the Tangible
Assets as of a date within five days of the date of this Agreement. All of the Tangible Assets are located at each property that
is being contributed and is part of the Business.

 

(b)Company has good,
valid and marketable title in and to, or, in the case of the Lease and the assets which are leased or licensed pursuant to Contracts,
a valid leasehold interest or license in or a right to use each of its respective assets, free and clear of all Liens other than
Permitted Liens. The Company’s assets constitute all of the assets of any kind or description whatsoever, including goodwill,
that are used or useful in the operation of the Business.

 

3.11 Litigation.
Except as set forth on Schedule 3.11, there is no Action (or any basis therefor) pending against Company or Sellers in connection
with the Business, or threatened against or affecting, Company, Sellers or any of the Business’ assets, including without
limitation the Real Property or any Contract before any court, Authority or official or which in any manner challenges or seeks
to prevent, enjoin, alter or delay the transactions contemplated hereby or by the Additional Agreements. There are no outstanding
judgments against Company or Sellers affecting or which may affect the Business. Company is not, nor has it been in the past five
(5) years, subject to any proceeding with any Authority.

 

3.12 Contracts.

 

(a)Each Contract
is a valid and binding agreement, and is in full force and effect, and neither the Company, nor, to the best knowledge of Company
or Sellers, any other party thereto, is in breach or default (whether with or without the passage of time or the giving of notice
or both) under the terms of any such Contract. Company, Sellers or any other party thereto has not assigned, delegated, or otherwise
transferred any of their rights or obligations with respect to any Contracts, or granted any power of attorney with respect thereto
or to any of the Business’ assets, including without limitation the Real Property. No Contract (i) requires Sellers to post
a bond or deliver any other form of security or payment to secure its obligations thereunder or (ii) imposes any non-competition
covenants that may be binding on, or restrict the Business or require any payments by or with respect to LuxCo or any of its Affiliates.
Company has given to LuxCo true and correct (A) copies of each written Contract and (B) written summaries of each oral Contract.

 

    	4

    	 

    

 

(b)The Contracts
constitute all the material agreements, statements of work, arrangements, understandings and other instruments in effect to which
any of the Business’ assets, including without limitation the Real Property, are bound. Schedule 3.12 lists all material
Contracts, oral or written, separately referencing the applicable subsection below in each case, including:

 

(i)all client Contracts
which have generated revenues to Company or are expected to generate revenues to Company in excess of $10,000 in any of the current
or next two (2) fiscal years or any of the two (2) preceding fiscal years of Company;

 

(ii)all Leases;

 

(iii)any other
Contract pursuant to which Company is required to pay, has paid or is entitled to receive or has received an amount in excess of
$50,000 during the current fiscal year or any one of the two preceding fiscal years;

 

(iv)all employment
Contracts, employee leasing Contracts, and consultant and sales representatives Contracts;

 

(v)all material
sales, agency, factoring, commission and distribution contracts to which Company is a party;

 

(vi)all ongoing
agreements for purchases or receipt by Sellers of media, supplies, equipment, goods or services (other than under Section 3.12(b)(iii)
or (iv));

 

(vii)all joint
venture, strategic alliance, limited liability company and partnership agreements to which Company is a party;

 

(viii)all significant
documents relating to any acquisitions or dispositions of assets, including without limitation the Real Property, by Company;

 

(ix)all material
licensing agreements, including agreements licensing Intellectual Property Rights, other than “shrink wrap” licenses;

 

(x)all secrecy,
confidentiality and nondisclosure agreements applicable to Company;

 

(xi)all contracts
relating to patents, trademarks, service marks, trade names, brands, copyrights, trade secrets and other Intellectual Property
Rights of Company;

 

(xii)all guarantees,
indemnification arrangements and other hold harmless arrangements made or provided by Company in connection with the Business,
including all ongoing agreements for repair, warranty, maintenance, service, indemnification or similar obligations;

 

(xiii)all contracts
or agreements pertaining to the Business to which Company is a party;

 

    	5

    	 

    

(xiv)all agreements
relating to real and tangible personal property, including any Real Property financial lease, sublease or space sharing, license
or occupancy agreement;

 

(xv)all material
agreements relating to the Business; and

 

(xvi)all agreements
relating to outstanding Indebtedness of Company.

 

(c)Company
is in compliance with all covenants, including all financial covenants, in all notes, indentures, bonds and other instruments or
agreements evidencing any Indebtedness.

 

3.13 Insurance.
Schedule 3.13 contains a true, complete and correct list (including the names and addresses of the insurers, the names of the Persons
if other than Company to whom such insurance policies have been issued, the expiration dates thereof, the annual premiums and payment
terms thereof, whether it is a “claims made” or an “occurrence” policy and a brief identification of the
nature of the policy) of all liability, property, workers’ compensation or comparable insurance and other insurance policies
currently in effect that insure Company and the property, assets, including without limitation the Real Property, included in the
Business. Each such insurance policy is valid and binding and in full force and effect, all premiums due thereunder have been paid
and Company has not received any notice of cancellation or termination in respect of any such policy or default thereunder. Company
believes such insurance policies, in light of the nature of the Business are in amounts and have coverage that are reasonable and
customary for Persons engaged in such business and having such assets and properties. Company has not received notice that any
insurer under any policy referred to in this Section 3.13 is denying liability with respect to a claim thereunder or defending
under a reservation of rights clause. Except as set forth on Schedule 3.13, within the last two (2) years, Company has not filed
for any claims exceeding $50,000 against any of their insurance policies. Company has not received written notice from any of its
insurance carriers or brokers that any premiums will be materially increased in the future, and does not have any reason to believe
that any insurance coverage listed on Schedule 3.13 will not be available in the future to LuxCo on substantially the same terms
as now in effect.

 

3.14 Licenses and
Permits. Schedule 3.14 correctly lists each license, franchise, permit, order or approval or other similar authorization affecting,
or relating in any way to Company, together with the name of the Authority issuing the same (the “Permits”). Such Permits
are valid and in full force and effect, and none of the Permits will, assuming the related consents related to those Contracts
subject to Consent have been obtained or waived prior to the Closing Date, be terminated or impaired or become terminable as a
result of the transactions contemplated hereby. Company has all Permits necessary for it to operate.

 

3.15 Compliance
with Laws. Except as set forth on Schedule 3.15, Company is not in violation of, has violated, and, to the best knowledge of
Company and Sellers, is neither under investigation with respect to nor has been threatened in writing to be charged with or given
notice of any violation or alleged violation of, any Law, or judgment, order or decree entered by any court, arbitrator or Authority,
domestic or foreign, nor to the best knowledge of Sellers is there any basis for any such charge and within the last 24 months
Company has not received any subpoenas by any Authority.

 

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(a)Without limiting
the foregoing paragraph, Company is not in violation of, has not violated, and to the best knowledge of Sellers and Company, is
not under investigation with respect to nor has been threatened or charged with or given notice of any violation of any provisions
of any Law applicable to Company.

 

(b)No permit,
license or registration is required in the conduct of the Business under any of the Laws described in this Section 3.15.

 

3.16 Accounts Receivable;
Loans. All accounts receivables and notes of Company whether reflected on Schedule 3.16 or otherwise, represent valid obligations
arising from lease agreements or services actually performed by Company in the ordinary course of business. Except as set forth
on Schedule 3.16, there is no contest, claim, or right of setoff in any lease agreement with tenants or in other agreements with
any maker of an account receivable or note relating to the amount or validity of such account, receivables or note. All accounts,
receivables or notes are good and collectible in the ordinary course of business. The information set forth on Schedule 3.16 separately
identifies any and all accounts, receivables or notes of Company which are owed by any Affiliate of Company or Sellers.

 

3.17 Customers;
Revenues. The list of the Company’s 10 largest customers or tenants based on revenues derived by the Company’s
customers or tenants, which together with related revenue information for the Company’s December 31, 2012 and 2011 fiscal
years, is attached hereto as Schedule 3.17 and is true and complete. Except as indicated on Schedule 3.17, Company has not been
notified, on a formal or informal basis, of the probability or actuality or otherwise have any reason to believe that any of its
customers or tenants from which Company derived revenues in excess of $100,000 in its 2011 fiscal year or in the 2012 Period (as
shown on Schedule 3.22) intends to or will cancel, substantially limit, terminate or materially modify the terms of its business
relationship with Company. Company has not received any written notice or communication from its customers or tenants to the effect
that the revenues with respect to such customers or tenants should not, for the foreseeable future after the Closing, in the aggregate
remain constant or increase from the amounts shown on Schedule 3.16 or why the practices of Company with respect to the billing
of and collections from its customers or tenants should not, for the foreseeable future after the Closing, be able to be continued
by Company on substantially the same basis.

 

3.18 Pre-payments.
Except as set forth on Schedule 3.18, Company has not received any payments with respect to lease agreements to be paid or to any
services to be rendered after the Closing.

 

3.19 Employees.
Company has no employees.

 

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3.20 Employee Benefits
and Compensation. There are no employee benefits plans maintained or contributed to by Company and with respect to which Company
could incur or could have incurred any direct or indirect, fixed or contingent liability.

 

3.21 Real Property

 

(a)Company has
good and valid (and, in the case of owned Real Property, good and marketable fee simple, or comparable right) title to, or a valid
leasehold interest in, all Real Property and personal property and other assets reflected on Exhibit B. All such properties and
assets (including leasehold interests) are free and clear of Liens except for the following (collectively referred to as “Permitted
Lien”):

 

(i)those items
set forth on Schedule 3.21(a);

 

(ii)easements,
rights of way, zoning ordinances and other similar encumbrances affecting Real Property which are not, individually or in the aggregate,
material to the Business; or

 

(iii)other than
with respect to owned Real Property, liens arising under original purchase price conditional sales contracts and equipment leases
with third parties entered into in the ordinary course of business consistent with past practice which are not, individually or
in the aggregate, material to the Business.

 

(b)Schedule 3.21
(b) lists: (i) the street address of each parcel of Real Property; (ii) if such property is leased or subleased by Company, the
landlord under the lease, the rental amount currently being paid, and the expiration of the term of such lease or sublease for
each leased or subleased property; and (iii) the current use of such property.

 

(c)With respect
to owned Real Property, Company has delivered or made available to Parent or LuxCo true, complete and correct copies of the deeds
and other comparable instruments (as duly recorded in the appropriate cadastral offices and land registries) by which Company and
Sellers acquired such Real Property, and copies of all title insurance policies, opinions, abstracts and surveys in the possession
of Sellers and Company, relating to the Real Property.

 

(d)With respect
to any Lease: (i) it is valid, binding and in full force and effect; (ii) all rents and additional rents and other sums, expenses
and charges due thereunder have been paid; (iii) the lessee has been in peaceable possession since the commencement of the original
term thereof; (iv) no waiver, indulgence or postponement of the lessee’s obligations thereunder has been granted by the lessor;
(v) there exists no default or event of default thereunder by Company or to the best knowledge of Sellers by any other party thereto;
(vi) there exists no occurrence, condition or act which, with the giving of notice, the lapse of time or the happening of any further
event or condition, would become a default or event of default by Company thereunder; and (vii) there are no outstanding claims
of breach or indemnification or notice of default or termination thereunder. The Real Property leased by Company is in a state
of maintenance and repair in all material respects adequate and suitable for the purposes for which it is presently being used,
and there are no material repair or restoration works likely to be required in connection with any of the leased Real Properties.
Company is in physical possession and actual and exclusive occupation of the whole of the leased property, none of which is subleased
or assigned to another Person.

 

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(e)Company and
Sellers do not owe any brokerage commission with respect to any Real Property.

 

3.22 Tax Matters.
Except as set forth on Schedule 3.22, Company has paid all Taxes due in connection with the Business, including without limitation
the so-called Imposta Municipale Unica (IMU). Company has duly and timely filed all Tax Returns which are required to be
filed by or with respect to it, and has paid all Taxes for which a Lien may be imposed on any of the Business’ assets which
have become due.

 

3.23 Environmental
Laws. Company has complied in all material respects with all Laws relating to pollution or the protection of the environment
or human health or Hazardous Materials (“Environmental Laws”), and there is not and there has not been at any time
any notice, demand, request for information, complaint, order, investigation, or review pending or, to the best knowledge of Company
and Sellers, threatened by any Authority with respect to any alleged violation by Company of any Environmental Law. Company has
not been requested by any Authority to pay any sum of money, or otherwise aid or take any action or refrain from taking actions,
to abate or remediate any environmental occurrence or condition (including removal of asbestos or any other potentially hazardous
substance). All Real Property is in compliance in all material respects with all Environmental Laws and no environmental site assessments
for any such Real Property have identified any violations of any Environmental Laws in connection therewith. Company has not retained
or assumed, by contract or operation of Law, any liabilities or obligations of third parties under Environmental Laws, including
any obligations of Company. Company is not aware of or reasonably anticipates, as of the Closing Date, any condition, event or
circumstance concerning the release or regulation of Hazardous Materials that might, after the Closing Date, prevent, impede or
materially increase the costs associated with the ownership, lease, operation, performance or use of the Business or assets of
Company as currently carried out.

 

3.24 Finders’
Fees. There is no investment banker, broker, finder or other intermediary which has been retained by or is authorized to act
on behalf of Company or Sellers or any of their Affiliates who might be entitled to any fee or commission from Parent, LuxCo or
any of their Affiliates upon consummation of the transactions contemplated by this Agreement.

 

3.25 Powers of Attorney
and Suretyships. Except as set forth on Schedule 3.25, Company has not general or special powers of attorney outstanding (whether
as grantor or grantee thereof) or any obligation or liability (whether actual, accrued, accruing, contingent, or otherwise) as
guarantor, surety, co-signer, endorser, co-maker, indemnitor or otherwise in respect of the obligation of any Person.

 

3.26 Other Information.
Neither this Agreement nor any of the documents or other information made available to Parent, LuxCo or their Affiliates, attorneys,
accountants, agents or representatives pursuant hereto or in connection with Parent or LuxCo’s due diligence review of Company,
Sellers, the Real Property, the Business assets or the transactions contemplated by this Agreement and the Additional Agreements
contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order
to make the statements contained therein not misleading. Company provided Parent and LuxCo all material information regarding Company,
the Business and the Real Property.

 

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3.27 Certain Business
Practices. Neither Company, nor any director, officer, agent or employee of Company (in their capacities as such) has (i) used
any funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity, (ii) made
any unlawful payment to foreign or domestic government officials or employees, to foreign or domestic political parties or campaigns
or violated any provision of the Foreign Corrupt Practices Act of 1977 or (iii) made any other unlawful payment. Neither Company,
nor any of its Subsidiaries, nor any director, officer, agent or employee of Company (nor any Person acting on behalf of any of
the foregoing, but solely in his or her capacity as a director, officer, employee or agent of Company) has, since January 1, 2000,
directly or indirectly, given or agreed to give any gift or similar benefit in any material amount to any customer, supplier, governmental
employee or other Person who is or may be in a position to help or hinder Company or assist Company in connection with any actual
or proposed transaction, which, if not given could reasonably be expected to have had an adverse effect on Company, or which, if
not continued in the future, could reasonably be expected to adversely affect the business or prospects of Company that could reasonably
be expected to subject Sellers to suit or penalty in any private or governmental litigation or proceeding.

 

3.28 Money Laundering
Laws. The operations of Company are and have been conducted at all times in compliance with laundering statutes in all applicable
jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered
or enforced by any governmental authority (collectively, the “Money Laundering Laws”), and no Action involving Company
and the Business with respect to the Money Laundering Laws is pending or, to the best knowledge of Sellers, threatened.

 

3.29 OFAC. Company
is not, or any of its directors or officers, agent, employee, affiliate or Person acting on behalf of Company is, currently identified
on the specially designated nationals or other blocked person list or otherwise currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and Company has not, directly or
indirectly, used any funds, or loaned, contributed or otherwise made available such funds to any Person, in connection with any
sales or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC or for the purpose of financing
the activities of any Person currently subject to, or otherwise in violation of, any U.S. sanctions administered by OFAC in the
last five (5) fiscal years.

 

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EXHIBIT 4

 

REPRESENTATIONS AND WARRANTIES OF PARENT,
LUXCO AND BHN

 

4.1 Corporate Existence
and Power. Parent is a company duly organized, validly existing and in good standing under the laws of the Cayman Island. LuxCo
is a company duly organized, validly existing and in good standing under the laws of Luxembourg. BHN is a company duly organized,
validly existing and in good standing under the laws of the state of New York. Parent owns all of the outstanding equity interests
in LuxCo.

 

4.2 Corporate Authorization.
The execution, delivery and performance by Parent, LuxCo and BHN of this Agreement and the Additional Agreements and the consummation
by Parent, LuxCo and BHN of the transactions contemplated hereby and thereby are within the corporate powers of Parent, LuxCo and
BHN, and have been duly authorized by all necessary corporate action on the part of Parent, LuxCo and BHN. Each of this Agreement
and the Additional Agreements have been duly executed and delivered by Parent, LuxCo and BHN and it constitutes a valid and legally
binding agreement of Parent, LuxCo and BHN, enforceable against them in accordance with its terms.

 

4.3 Parent Board
Approval. The board of directors of Parent (including any required committee or subgroup of such board) has, as of the date
of this Agreement, unanimously (i) declared the advisability of the transactions contemplated by this Agreement, (ii) determined
that the transactions contemplated hereby are in the best interests of the stockholders of Parent, and (iii) determined that the
transactions contemplated hereby constitutes a “Business Transaction” as such term is defined in Parent’s Amended
and Restated Memorandum and Article of Association. Assuming no more than a number of shares of the Parent Common Stock equal to
eighty-three percent (83%) of the “IPO Shares” as defined in the Parent’s Amended and Restated Memorandum and
Article of Association, elect to redeem their Parent Common Stock in the Tender Offer, no other action on the part of Parent’s
stockholders is required to consummate the transactions contemplated hereby and upon consummation thereof, Article 156 of Parent’s
certificate of incorporation, as amended, shall no longer be applicable. The execution, delivery and performance by Parent of this
Agreement and the Additional Agreements and the consummation by Parent of the transactions contemplated hereby and thereby are
within the corporate powers of Parent, and have been duly authorized by all necessary corporate action on the part of Parent. This
Agreement has been duly executed and delivered by Parent and it constitutes a valid and legally binding agreement of Parent, enforceable
against it in accordance with its terms.

 

4.4 Governmental
Authorization. Neither the execution, delivery nor performance by Parent and LuxCo of this Agreement requires any consent,
approval, license or other action by or in respect of, or registration, declaration or filing with, any Authority except for any
filings required to be made in connection with the Registration Rights Agreement.

 

4.5 Non-Contravention.
The execution, delivery and performance by Parent, LuxCo and BHN of this Agreement do not and will not (i) contravene or conflict
with the organizational or constitutive documents of Parent, LuxCo or BHN, or (ii) contravene or conflict with or constitute a
violation of any provision of any Law, judgment, injunction, order, writ, or decree binding upon Parent, LuxCo or BHN.

 

    	1

    	 

    

4.6 Finders’
Fees. Except for Stabilfin SRL, and Morgan Joseph TriArtisan LLC, there is no investment banker, broker, finder or other intermediary
which has been retained by or is authorized to act on behalf of Parent, LuxCo, BHN or any of their Affiliates who might be entitled
to any fee or commission from Sellers upon consummation of the transactions contemplated by this Agreement or any of the Additional
Agreements.

 

4.7 Issuance of
Shares. The Exchange Shares, when issued, will be duly authorized, validly issued, fully paid and nonassessable, free and clear
of Liens.

 

4.8 Capitalization
of Parent. The authorized capital stock of Parent consists of 50,000,000 shares of Parent Common Stock and 1,000,000 shares
of preferred stock, par value $0.001 per share, of which 1,886,028 shares of Parent Common Stock are issued and outstanding as
of the date hereof and no shares of preferred stock are issued and outstanding. 7,080,050 warrants and 60,000 options to purchase
shares of Parent Common Stock are outstanding. A unit purchase option to purchase 215,000 units (consisting of one share of Parent
Common Stock and one warrant) for $12.00 per unit is issued and outstanding. No shares of capital stock or other voting securities
of Parent are issued, reserved for issuance or outstanding. All outstanding shares of Parent Common Stock are duly authorized,
validly issued, fully paid and nonassessable and not subject to or issued in violation of any purchase option, right of first refusal,
preemptive right, subscription right or any similar right under any provision of the Companies Law (2011 Revision) of the Cayman
Islands, Parent’s organizational documents or any contract to which Parent is a party or by which Parent is bound.

 

4.9 Information
Supplied. None of the information supplied or to be supplied by Parent expressly for inclusion or incorporation by reference
in the filings with the SEC or the mailings to Parent’s stockholders and warrant holders as it relates to the Business Combination
Tender Offer will, at the date of filing or mailing, or any amendment thereto, as the case may be, contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they are made, not misleading (subject to the qualifications and limitations
set forth in the materials provided by Parent or that are included in the Parent SEC filings or mailings).

 

4.10 Trust Fund.
As of the date of this Agreement (and immediately prior to the Closing Date), Parent has (and will have
immediately prior to the Closing Date) at least $6,453,080.40 in the trust fund established by Parent for the benefit of its public
stockholders in the Trust Account, such monies invested in “government securities” (as such term is defined in the
Investment Company Act of 1940, as amended), and held in trust pursuant to the Investment Management
Trust Agreement, dated as of March 30, 2011, between Parent and American Stock Transfer & Trust Company as trustee.

 

    	2

    	 

    

4.11 Parent SEC
Documents and Parent Financial Statements. Parent has filed all forms, reports, schedules, statements and other documents,
including any exhibits thereto, required to be filed or furnished by Parent with the SEC since March 24, 2011 under the Exchange
Act or the Securities Act, together with any amendments, restatements or supplements thereto, and will file all such forms, reports,
schedules, statements and other documents required to be filed subsequent to the date of this Agreement (the “Additional
Parent SEC Documents”). Parent has made available to the Sellers copies in the form filed with the SEC of all of the following,
except to the extent available in full without redaction on the SEC’s website through EDGAR for at least two (2) days prior
to the date of this Agreement: (i) Parent’s Annual Reports on Form 20-F for each fiscal year of Parent beginning with the
first year Parent was required to file such a form, (ii) all proxy statements relating to Parent’s meetings of stockholders
(whether annual or special) held, and all information statements relating to stockholder consents, since the beginning of the first
fiscal year referred to in clause (i) above, (iii) its Reports of Foreign Private Issuer on Form 6-K filed since the beginning
of the first fiscal year referred to in clause (i) above, and (iv) all other forms, reports, registration statements and other
documents filed by Parent with the SEC since Parent’s formation (the forms, reports, registration statements and other documents
referred to in clauses (i), (ii), (iii) and (iv) above, whether or not available through EDGAR, are, collectively, the “Parent
SEC Documents”). The Parent SEC Documents were, and the Additional Parent SEC Documents will be, prepared in all material
respects in accordance with the requirements of the Securities Act, the Exchange Act, and the Sarbanes-Oxley Act, as the case may
be, and the rules and regulations thereunder. The Parent SEC Documents did not, and the Additional Parent SEC Documents will not,
at the time they were or are filed, as the case may be, with the SEC (except to the extent that information contained in any Parent
SEC Document or Additional Parent SEC Document has been or is revised or superseded by a later filed Parent SEC Document or Additional
Parent SEC Document, then on the date of such filing) 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 made therein, in the light of the circumstances
under which they were made, not misleading. From the date of the most recent Parent SEC Document there has been no Parent Material
Adverse Effect. As used in this Section 4.11, the term “file” shall be broadly construed to include any manner in which
a document or information is furnished, supplied or otherwise made available to the SEC.

 

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EXHIBIT 8

 

BUSINESS COMBINATION
TENDER OFFER

 

(a)               
Prior to the Closing Date, Prime will provide its stockholders with the opportunity to redeem their shares of Parent Common
Stock for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account, less Taxes, upon the
consummation of the transactions contemplated by this Agreement (the “Business Combination Tender Offer”).

 

(b)              
Business Combination Tender Offer Documents. Each of Parent, LuxCo, BHN, Company, and the Sellers agree to correct
promptly any information provided by it for use in the Business Combination Tender Offer Documents that shall have become false
or misleading in any material respect, and Parent further agrees to take all steps necessary to cause the Schedule TOs, as so corrected,
to be filed with the SEC, and the other Business Combination Tender Offer Documents, as so corrected, to be disseminated to holders
of Parent Common Stock, in each case as and to the extent required by applicable federal securities laws.

 

(c)               
Company Cooperation. The Company and Sellers acknowledge that a substantial portion of the filings with the SEC and
mailings to Parent’s stockholders with respect to the Business Combination Tender Offer shall include disclosure regarding
the Company and its management, operations and financial condition. Accordingly, each of the Company and the Sellers agrees to
as promptly as reasonably practical provide Parent with such information as shall be reasonably requested by Parent for inclusion
in or attachment to the Business Combination Tender Offer Documents. Each of the Company and Sellers understands that such information
shall be included in the Offer Documents and/or responses to comments from the SEC or its staff in connection therewith and mailings.
The Company shall make, and cause each Subsidiary to make, their managers, directors, officers and employees available to Parent
and its counsel in connection with the drafting of such filings and mailings and responding in a timely manner to comments from
the SEC.

 

(d)              
Other Information. None of the information supplied or to be supplied by the Company and the Sellers with respect
to the Company and the Sellers expressly for inclusion or incorporation by reference in the filings with the SEC or the mailings
to Parent’s stockholders and warrant holders as it relates to the Business Combination Tender Offer will, at the date of
filing or mailing, or any amendment thereto, as the case may be, contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they are made, not misleading (subject to the qualifications and limitations set forth in the materials provided by
the Company and the Sellers or that is included in the SEC filings or mailings).

 

    	1

    	 

    

EXHIBIT F

 

STOCKHOLDERS AGREEMENT

 

The following actions
shall be governed by the Stockholders Agreement, pursuant to which Company shall not, without Sellers’ prior written consent:

 

i.amend its articles
of association or comparable document;

 

ii.without prejudice
to paragraph (v) below regarding assets, acquire or transfer, by way of merger, contribution of assets, purchase or sale of shares
or assets (a) any interest in a company (excluding investments in liquid shares of limited liability entities made solely for cash
management purposes), or (b) any going concern;

 

iii.alter in any
way its registered share capital (through an increase, a reduction, a redemption or otherwise) or issue (or agree to issue) any
shares, securities or any options, warrants, or other rights to purchase any such shares or any securities convertible into or
exchangeable for such shares, or more generally carry out any transaction concerning the distribution of share capital, voting
rights and rights to the Company profits;

 

iv.incur additional
third party indebtedness for borrowed money, save for the utilization in the ordinary course of business of any credit lines currently
made available to the Company;

 

v.except in the
ordinary course of business, (a) sell, transfer or otherwise dispose of any fixed assets of Company or (b) accept to create any
new Lien over the properties or assets of Company;

 

vi.enter into any
contract other than in the ordinary course of business;

 

vii.make capital
expenditures, other than in the ordinary course of business;

 

viii.enter into
any sale and lease-back arrangements whatsoever, other than in the ordinary course of business;

 

ix.change the debtors
payment methods and policy, assessed on a country-by-country basis, or the issue of invoices or collection of receivables policies;

 

x.amend its accounting
methods and practices;

 

xi.launch new activities
or enter into any contract which may result in a material change in the nature or scope of the business of Company;

 

xii.enter into
any joint-venture, unlimited liability partnership or other similar arrangement with any third party; and

 

xiii.amend, modify
or waive any provision of the Pledge Agreement.

  

 

    	1Execution Version

 

ASSET PURCHASE AND SALE AGREEMENT

 

BY AND BETWEEN

 

SAMSON OIL AND GAS USA MONTANA, INC.

 

AND FORT PECK ENERGY COMPANY, LLC

 

(Sellers)

 

AND

 

SAMSON OIL AND GAS USA, INC.

 

(Guarantor)

 

AND

 

TAURUS ENERGY, LLC

 

(Buyer)

 

 

 

 

 

DATED AS OF JUNE 21, 2013

 

    	 

    	 

    

 

TABLE OF CONTENTS

  

	 	Page
	article 1 AGREEMENT FOR PURCHASE AND SALE OF ASSETS	1
	1.1	Agreement for Purchase and Sale of Assets	1
	1.2	Effective Time	1
	1.3	Joint Assets	2
	1.4	Samson Assets	2
	1.5	Excluded Assets	3
	1.6	Purchase Price for Assets	4
	article 2 TITLE MATTERS	6
	2.1	Title Review	6
	2.2	Defensible Title	6
	2.3	Permitted Encumbrances	7
	2.4	Title Defect	7
	2.5	Defect Value	7
	2.6	Notice of Title Defects	8
	2.7	Seller’s Right to Cure	8
	2.8	Title Defect Remedies	8
	2.9	Title Dispute Resolution	9
	2.10	Casualty Loss	9
	article 3 REPRESENTATIONS AND WARRANTIES	9
	3.1	Samson’s Representations and Warranties	9
	3.2	FPEC’s Representations and Warranties	12
	3.3	Buyer’s Representations and Warranties	14
	article 4 PRE-CLOSING OBLIGATIONS	15
	4.1	Encumbrances	15
	4.2	Operation of Business	16
	4.3	Consents and Filings	16
	4.4	Compliance with Laws	16
	4.5	Notification Requirements	16
	article 5 CLOSING	16
	5.1	Closing	16
	5.2	Conditions Precedent to Closing	16
	5.3	Closing Deliveries	18
	5.4	Termination	19
	5.5	Liabilities Upon Termination	19
	5.6	Environmental Remediation	21
	article 6 POST-CLOSING OBLIGATIONS	22
	6.1	Post-Closing Obligations	22
	article 7 TAX MATTERS	24
	7.1	Definitions	24
	7.2	Production Tax Liability	24
	7.3	Tax Notices, Statements and Returns	24

 

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	 	TABLE OF CONTENTS	 
	 		Page
	 	 	 
	7.4	Tax Allocation	24
	article 8 DISCLAIMERS	24
	8.1	Disclaimer; Title; Condition and Fitness of the Assets	24
	8.2	Information About the Assets	25
	article 9 MISCELLANEOUS	26
	9.1	Exhibits and Schedules	26
	9.2	Expenses	26
	9.3	Notices	26
	9.4	Amendments	27
	9.5	Headings	27
	9.6	Counterparts/Fax Signatures	28
	9.7	References	28
	9.8	Governing Law; Waiver of Jury Trial	28
	9.9	Arbitration	28
	9.10	Confidentiality	29
	9.11	Entire Agreement	29
	9.12	Indemnification	29
	9.13	Binding Effect	31
	9.14	No Third-Party Beneficiaries	31
	9.15	Survival	32
	9.16	Waiver	32
	9.17	Limitation on Damages	32
	9.18	Severability	32
	9.19	Announcements	32
	9.20	Transfer Taxes and Recording Fees	32
	9.21	Relationship of the Parties	32
	9.22	Further Assurances	32
	9.23	Samson Parent Guaranty	33
	9.24	Seller Liability	33
	9.25	Environmental Review	33

 

    	ii

    	 

    

 

SCHEDULES:

 

	Schedule 3.1(e)	Samson Lawsuits and Claims

 

	Schedule 3.1(j)	Samson Contracts

 

	Schedule 3.1(k)	Samson Consents

 

	Schedule 3.1(l)	Samson Preferential Rights

 

	Schedule 3.1(m)	Samson AMI; Farmout; JOA; Tax Partnership

 

	Schedule 3.1(n)	Samson Non-Competition

 

	Schedule 3.1(o)	Samson Lease Status

 

	Schedule 3.2(e)	FPEC Lawsuits and Claims

 

	Schedule 3.2(j)	FPEC Contracts

 

	Schedule 3.2(k)	FPEC Consents

 

	Schedule 3.2(l)	FPEC Preferential Rights

 

	Schedule 3.2(m)	FPEC AMI; Farmout; JOA; Tax Partnership

 

	Schedule 3.2(n)	FPEC Non-Competition

 

	Schedule 3.2(o)	FPEC Lease Status

 

	Schedule 3.2(p)	FPEC Advance Payments

 

EXHIBITS:

 

	Exhibit A-1	Joint Leases

 

	Exhibit A-2	Samson Leases

 

	Exhibit A-3	Excluded Assets

 

	Exhibit B	Wells

 

	Exhibit C	Form of Assignment

 

	Exhibit D-1	Joint Contracts

 

	Exhibit D-2	Samson Contracts

 

	Exhibit E	Well Equipment

 

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INDEX OF DEFINED TERMS 

 

	accredited investor	15	 	Losses	30
	Additional Remediation Amount	22	 	Marketable Title	6
	Agreement	1	 	Material Adverse Effect	9
	Allocated Value	4	 	Net Acre Prices	4
	Asset	3	 	Net Acres	4
	Assets	3	 	NRI	6
	Assignment	18	 	Operating Expenses	1
	Assumed Liabilities	23	 	Outstanding Title Defect	8
	Buyer	1	 	Overrun Estimate	21
	Buyer Basket	31	 	Parties	1
	Buyer Indemnified Parties	29	 	Party	1
	Casualty Defect	9	 	Permitted Encumbrances	7
	Closing	16	 	person	27
	Closing Date	16	 	Production Taxes	24
	Code	24	 	Records	2
	Cure Period	8	 	Remediation Date	22
	Defect Notice Date	6	 	Remediation Holdback	21
	Defect Value	7	 	Retained Liabilities	23
	Due Diligence Materials	29	 	Rule	10
	Effective Date	1	 	Samson	1
	Environmental Conditions	21	 	Samson Assets	2
	Environmental Estimate	21	 	Samson Closing Amount	5
	Excluded Assets	3	 	Samson Contracts	11
	Execution Date	1	 	Samson Default	20
	Final Remediation Cost	22	 	Samson Deposit	5
	FPEC	1	 	Samson Hydrocarbons	3
	FPEC Closing Amount	6	 	Samson Lands	2
	FPEC Contracts	13	 	Samson Leases	2
	FPEC Deposit	5	 	Samson Parent	1
	Governmental Authority	11	 	Samson Purchase Price	4
	Hydrocarbons	3	 	Samson Records	3
	Interim Period	15	 	Samson Surface Agreements	3
	Joint Assets	2	 	Securities Laws	15
	Joint Hydrocarbons	2	 	Seller Indemnified Parties	30
	Joint Lands	2	 	Sellers	1
	Joint Leases	2	 	Settlement Statement	5
	Joint Purchase Price	4	 	Surface Agreements	2
	Knowledge with respect to FPEC	12	 	Title Defect	7
	Knowledge with respect to Samson	9	 	Title Defect Notice	8
	Lands	3	 	Title Disputed Matters	9
	Lease	3	 	Wells	3
	Leases	3	 	 	 

 

    	iv

    	 

    

 

Execution Version

ASSET PURCHASE AND SALE AGREEMENT

 

This Asset Purchase
and Sale Agreement (“Agreement”), dated this 21st day of June, 2013 (the “Execution Date”),
is by and between SAMSON OIL AND GAS USA MONTANA, INC., a Colorado corporation (“Samson”), SAMSON OIL AND GAS
USA, INC., a Colorado corporation (“Samson Parent”), FORT PECK ENERGY COMPANY, LLC, a Delaware limited liability
company (“FPEC”), and TAURUS ENERGY, LLC, a Montana limited liability company (“Buyer”).
Samson and FPEC are collectively referred to herein as “Sellers” and individually as a “Seller.”
Sellers and Buyer are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

WITNESSETH

 

WHEREAS, Sellers jointly
own certain oil and gas leases covering lands in Roosevelt and Richland Counties, Montana, and associated assets as more fully
described in Section 1.3;

 

WHEREAS, Samson individually
owns certain oil and gas leases and associated assets as more fully described in Section 1.4; and

 

WHEREAS, Sellers desire
to sell to Buyer, and Buyer desires to purchase from Sellers, all of each Seller’s interest in such jointly owned leases
and associated assets, together with such leases and assets owned individually by Samson, upon the terms and conditions set forth
in this Agreement.

 

NOW, THEREFORE, for
and in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereby agree as follows:

 

article
1

AGREEMENT FOR PURCHASE AND SALE OF ASSETS

 

1.1          
Agreement for Purchase and Sale of Assets. Subject to the terms and conditions of this Agreement and the reservations
and exceptions set forth herein, Buyer agrees to purchase from Sellers, and Sellers agree to sell, assign and deliver to Buyer,
all of Sellers’ right, title and interest in and to the Assets for the consideration set forth in Section 1.6.

 

1.2          
Effective Time. The purchase and sale of the Assets shall be effective as of 7:00 a.m. (MDT) on July 1, 2013, (the
“Effective Date”); provided, if Closing occurs on or before June 30, 2013, the “Effective Date”
shall be 7:00 a.m. (MDT) on June 1, 2013. Except as expressly provided in Section 6.1 or otherwise in this Agreement, each Seller
shall remain entitled to all of the rights of ownership (including the right to all production, proceeds of production and other
proceeds) and shall remain responsible for all operating expenses and capital expenditures (including all lease bonus payments,
fees, rentals, royalties or production payments attributable to the Joint Assets) incurred in the ownership and operation of its
portion of the Joint Assets (“Operating Expenses”), in each case attributable to
the Joint Assets for the period of time prior to the Effective Date. Except as expressly provided otherwise in this Agreement,
and subject to the occurrence of the Closing, Buyer shall be entitled to all of the rights of ownership (including the right to
all production, proceeds of production, and other proceeds), and shall be responsible for all Operating Expenses, in each case
attributable to the Joint Assets beginning with the Effective Date and thereafter.

 

    	1

    	 

    

 

1.3          
Joint Assets. “Joint Assets” shall mean all of each Seller’s undivided right, title and
interest in and to the following, but reserving unto each respective Seller the Excluded Assets:

 

(a)               
The oil and gas leases (including all leasehold estates, mineral interests, royalty interests, overriding royalty interests,
net profits interests, or similar interests) specifically described in Exhibit A-1 (the “Joint Leases”)
and the lands covered thereby or pooled or unitized therewith (the “Joint Lands”);

 

(b)                    
The oil, gas, casinghead gas, coalbed methane, condensate and other gaseous and liquid hydrocarbons or any combination thereof
that may be produced and saved under the Joint Leases or lands pooled or unitized therewith (“Joint Hydrocarbons”);

 

(c)               
The unitization, pooling and communitization agreements, declarations, orders, and the units created thereby relating to
the Joint Leases and to the production of Hydrocarbons;

 

(d)              
All surface leases, permits, rights-of-way, licenses, easements and other surface use or access agreements pertaining to
the Joint Leases and Joint Lands, or used in connection with the production, gathering, treatment, processing, storing, sale or
disposal of Hydrocarbons (the “Surface Agreements”);

 

(e)               
The contracts, including the Surface Agreements, described on Exhibit D-1; and

 

(f)               
To the extent transferable and in Sellers’ possession,
all files, records and data relating to the items described in Sections 1.3(a) through (e) above, including without limitation,
(i) lease records, well records, division order records, title records (including broker runsheets and ownership reports, lessor
and/or landowner contact information abstracts of title, title opinions and memoranda, and title curative documents), correspondence
and maps, and (ii) engineering records, geological and geophysical data (including seismic data), electronic data files, technical
evaluations and interpretive data, monthly production records, electric logs, core data, pressure data, decline curves, graphical
production curves, reserve reports, appraisals and accounting records (the “Records”). Records shall not include
Sellers’ internal memoranda, notes and correspondence.

 

1.4          
Samson Assets. “Samson Assets” shall mean all of Samson’s right, title and interest in and
to the following, but reserving unto Samson the Excluded Assets:

 

(a)               
The oil and gas leases (including all leasehold estates, mineral interests, royalty interests, overriding royalty interests,
net profits interests, or similar interests) specifically described in Exhibit A-2 (the “Samson Leases”)
and the lands covered thereby or pooled or unitized therewith (the “Samson Lands”);

 

    	2

    	 

    

 

(b)              
The oil and gas wells described on Exhibit B, including all rights-of-way related thereto (the “Wells
s "”), and including all of the personal property, equipment, fixtures and improvements
used in connection therewith as described on Exhibit E; 

 

(c)               
The oil, gas, casinghead gas, coalbed methane, condensate and other gaseous and liquid hydrocarbons or any combination thereof
that may be produced and saved under the Samson Leases or lands pooled or unitized therewith (the “Samson Hydrocarbons”);

 

(d)              
The unitization, pooling and communitization agreements, declarations, orders, and the units created thereby relating to
the Samson Leases and to the production of Samson Hydrocarbons;

 

(e)               
All surface leases, permits, rights-of-way, licenses, easements and other surface use or access agreements pertaining to
the Leases and Lands, or used in connection with the production, gathering, treatment, processing, storing, sale or disposal of
Samson Hydrocarbons (the “Samson Surface Agreements”);

 

(f)               
The contracts, including the Samson Surface Agreements, described on Exhibit D-2; and

 

(g)              
To the extent transferable and in Samson’s possession, all files, records and data
relating to the items described in Sections 1.4(a) through (f) above, including without limitation, (i) well records, division
order records, title records (including broker runsheets and ownership reports, lessor and/or landowner contact information abstracts
of title, title opinions and memoranda, and title curative documents), correspondence and maps, and (ii) engineering records, geological
and geophysical data (including seismic data), electronic data files, technical evaluations and interpretive data, monthly production
records, electric logs, core data, pressure data, decline curves, graphical production curves, reserve reports, appraisals and
accounting records (the “Samson Records”). Samson Records shall not include Samson’s internal memoranda,
notes and correspondence.

 

The Joint Assets and
the Samson Assets are sometimes referred to collectively herein as the “Assets” and individually as an “Asset.”
The Joint Leases and the Samson Leases are sometimes referred to collectively herein as the “Leases” and individually
as a “Lease.” The Joint Lands and the Samson Lands are sometimes referred to individually herein as the “Lands.”
The Joint Hydrocarbons and the Samson Hydrocarbons are sometimes referred to individually herein as the “Hydrocarbons.”

 

1.5          
Excluded Assets. Each Seller hereby
expressly reserves and excepts unto such Seller all right, title and interest in and to the following (the “Excluded Assets”):

 

(a)               
all of Seller’s corporate minute books, financial records and other business records
that relate to Seller’s business generally;

 

(b)              
all such Seller’s interest in any trade credits, accounts receivable, notes receivable,
take or pay amounts receivable, and all other proceeds, income or revenues attributable to the Joint Assets with respect to any
period of time prior to the Effective Date;

 

    	3

    	 

    

 

(c)               
all such Seller’s interest in any claims and causes of action of such Seller arising
under or with respect to any contracts that are attributable to periods of time prior to the Effective Date (including claims for
adjustments or refunds);

 

(d)              
any refunds due to Seller by a third party for any over payment of lease bonus payments, fees, rentals, royalties or production
payments attributable to the Joint Assets with respect to any period of time prior to the Effective Date;

 

(e)               
all claims and rights of Seller for refunds of or loss carry forwards with respect to
(i) income or franchise taxes, or (ii) any taxes attributable to the items described in Section 1.3(a) through (e);

 

(f)               
all assets, property, or other interests set forth on Exhibit A-3; and

 

(g)              
all assets, property, or other interests of Seller not otherwise specifically identified
in Section 1.3 and Section 1.4.

 

1.6          
Purchase Price for Assets.

 

(a)               
Joint Assets. The purchase price for the Joint Assets shall be EIGHTEEN MILLION
SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($18,750,000) (the “Joint Purchase Price”), subject to adjustment pursuant
to Section 1.6(d) below. The Joint Purchase Price shall be paid at Closing by wire transfer of immediately available funds to Sellers
as follows:

 

	 	Samson:	$12,500,000	 
	 	FPEC:	$6,250,000	 

  

The Joint Purchase Price
is allocated among the Joint Leases on the basis of $417 per Net Acre (the “Net Acre Price”). The “Allocated
Value” of each Joint Lease shall be the number of Net Acres covered by the Joint Lease, multiplied by the Net
Acre Price. For purposes of this Agreement, “Net Acres” shall mean with respect to a Lease (i) the undivided
interest of the respective Seller in the leasehold estate created by the applicable Lease multiplied by (ii) the number
of acres covered by the Lease multiplied by (iii) the lessor’s percentage interest in the oil and gas mineral estate
in the Lands covered by the Lease.

 

(b)              
Samson Assets. The purchase price for the Wells shall be FIVE HUNDRED THOUSAND DOLLARS ($500,000), and the purchase
price for the Samson Leases shall be FIVE HUNDRED THIRTY THREE THOUSAND SEVEN HUNDRED SIXTY DOLLARS ($533,760.00) (collectively
the “Samson Purchase Price”), subject to adjustment pursuant to Section 1.6(d) below. The Samson Purchase Price
shall be paid to Samson at Closing by wire transfer of immediately available funds. The portion of the Samson Purchase Price attributable
to the Samson Leases is allocated among the Samson Leases on the basis of the Net Acre Price. The Allocated Value of each
Samson Lease shall be the number of Net Acres covered by the Samson Lease, multiplied by the Net Acre Price.

 

(c)               
Deposit. Concurrently with the execution of this Agreement, Buyer shall pay (i)
to Samson Parent an earnest money deposit in an amount equal to ONE HUNDRED THOUSAND DOLLARS ($100,000) (the “Samson Deposit”),
and (ii) to FPEC an earnest money deposit in an amount equal to FIFTY THOUSAND DOLLARS ($50,000) (the “FPEC Deposit”).
Each of the Samson Deposit and the FPEC Deposit shall be non-interest bearing and applied against the Samson Closing Amount and
the FPEC Closing Amount, respectively, if Closing occurs or shall be otherwise distributed in accordance with the terms of this
Agreement.

 

    	4

    	 

    

 

(d)              
Adjustments to the Purchase Price. The Joint Purchase Price and the Samson Purchase Price to be paid by Buyer at
Closing shall be adjusted, without duplication, as follows:

 

(i)                
adjusted downward by (A) the sum of all Defect Values attributable to any Outstanding Title Defects, in accordance with
Sections 2.8(a) or Section 2.8(c), as applicable, and (B) the Allocated Value of any Lease affected by a Title Defect and excluded
from the transaction pursuant to Section 2.5(b), Section 2.5(d) or Section 2.8(c);

 

(ii)              
adjusted downward by the Allocated Value of any Leases affected by an unresolved Title Disputed Matter pursuant to Section
2.9;

 

(iii)            
adjusted upward, on a lease-by-lease basis by an amount equal to $417 per Net Acre in excess of the Net Acres for such Lease
as set forth on Exhibit A-1 or Exhibit A-2, as applicable; and

 

(iv)            
adjusted upward or downward by any other amount mutually agreed upon by Sellers and Buyer.

 

At Closing, the Joint
Purchase Price and the Samson Purchase Price shall be adjusted according to this Section 1.6(d). All such adjustments shall
be set forth on a settlement statement (the “Settlement Statement Settlement Statement "”), which Samson
shall prepare and provide to Buyer, along with supporting schedules and workpapers on which the calculation is based, at least
three (3) business days before Closing. If Buyer has disagreements regarding the calculation of the Settlement Statement, Buyer
may contact Sellers at least one (1) business day prior to Closing, and in such case Sellers and Buyer shall in good faith attempt
to resolve any disagreements related thereto. Adjustments to the Joint Purchase Price as set forth on Settlement Statement shall
be approved by Buyer and Sellers on or before Closing. Adjustments to the Samson Purchase Price as set forth on Settlement Statement
shall be approved by Buyer and Samson on or before Closing. If the parties are unable to reach agreement regarding the calculation
of the Settlement Statement, then Buyer shall pay the undisputed portion of the Joint Purchase Price and Samson Purchase Price
at Closing, and the Sellers shall have the right within thirty (30) days after Closing to submit the dispute for resolution by
arbitration pursuant to Section 9.9. If the Sellers fail to submit the matter to arbitration within such thirty (30) day period,
Sellers shall be deemed to have accepted Buyer’s payments of the Joint Purchase Price and Samson Purchase Price as payments
in full, and Buyer shall have no further liability with respect to such payment obligations. The portion of the Joint Purchase
Price payable to Samson and the Samson Purchase Price, as so adjusted, shall be paid at Closing by Buyer to Samson in accordance
with Section 5.3(a) and is referred to herein as the “Samson Closing Amount.” The portion of the Joint Purchase
Price payable to FPEC, as so adjusted, shall be paid at Closing by Buyer to FPEC in accordance with Section 5.3(a) and is referred
to herein as the “FPEC Closing Amount.”

 

    	5

    	 

    

 

article
2

TITLE MATTERS

 

2.1          
Title Review.

 

(a)               
From the date hereof until 5:00 p.m. (MDT) on June 25, 2013 (the “Defect Notice
Date”), Buyer and any representative of Buyer shall have the right to examine and inspect all the Records and Samson
Records. All such activities shall be conducted by Buyer or its representatives at Buyer’s sole cost, risk and expense.

 

(b)              
Each Seller shall make its Records and Samson shall
make the Samson Records available to Buyer at the offices of such Seller during Seller’s normal business hours. Upon Buyer’s
request each Seller will use its best efforts to submit to Buyer, at Buyer’s expense, as promptly as practicable, such abstracts,
title reports, and certificates of title covering the Joint Assets and/or Samson Assets, as applicable, which are in such Seller’s
possession as of the date hereof. Subject to the consent and cooperation of third parties, each Seller will assist Buyer in Buyer’s
efforts to obtain, at Buyer’s expense, such additional information from such third parties as Buyer may reasonably request.
Buyer may inspect the Records and Samson Records and such additional information only to the extent that it may do so without violating
any obligation of confidence or contractual commitment of such Seller to a third party. Sellers shall use commercially reasonable
efforts, but at no cost or expense to Sellers, to obtain the necessary consents to allow Buyer’s examination of any confidential
information that is material to the transaction contemplated by this Agreement.

 

(c)               
Except for the representations and warranties contained in this Agreement, Sellers make
no warranty or representation of any kind as to the Records and Samson Records or any information contained therein. Buyer agrees
that any conclusions drawn from the Records and Samson Records shall be the result of its own independent review and judgment.

 

(d)              
Buyer hereby agrees to defend, indemnify and hold harmless each of the third party operators and owners of the Assets and
Seller Indemnified Parties from and against any and all Losses arising out of, resulting from or relating to any field visit, on-site
inspection, or other due diligence activity conducted by Buyer or any representative of Buyer with respect to the Assets, even
if such Losses arise out of or result from, solely or in part, the sole, active, passive, concurrent or comparative negligence,
strict liability or other fault or violation of Law of or by any such third party operator or owner or Seller Indemnified Party,
excepting only Losses actually resulting on the account of the gross negligence or willful misconduct of such person.

 

2.2          
Defensible Title(a). The term “Defensible Title” means such title of a Seller in and to a Lease that, subject to the Permitted
Encumbrances: (i) entitles such Seller to receive not less than the net revenue interest (the “NRI”) in such
Lease as specified in Exhibit A-1 or Exhibit A-2, as applicable, proportionately reduced in the event such Seller’s
working interest in such Lease is less than 100% or the subject lease covers less than 100% of the mineral estate in the lands
covered thereby; (ii) entitles such Seller to a share of the working interest in each Lease as specified in Exhibit A-1
or Exhibit A-2, as applicable, (iii) entitles such Seller to not less than the Net Acres for such Lease as set forth on
Exhibit A-1 or Exhibit A-2, as applicable; and (iv) except for the Permitted Encumbrances, is free and clear of
liens, taxes, encumbrances, mortgages, claims, lis pendens, production payments, and any other defects, matters or conditions
that would cause an impairment in the use and enjoyment of, or loss of interest in, the affected Lease. 

 

2.3          
Permitted Encumbrances. The term “Permitted Encumbrances” shall mean:

 

    	6

    	 

    

 

(a)               
lessors’ royalties, overriding royalties, net profits interests, production payments, reversionary interests
and other burdens if the cumulative effect of such burdens does not reduce the NRI, on a Lease-by-Lease basis, below the NRI in
such Lease as specified in Exhibit A-1 or Exhibit A-2, as applicable;

 

(b)              
all consents, notices, filings, or other actions by federal, state or local governmental
bodies in connection with the conveyance of an Asset that is customarily sought after Closing;

 

(c)               
rights of reassignment upon the surrender or expiration of any Lease;

 

(d)              
easements, rights-of-way, servitudes, permits, surface leases and other rights with respect
to surface operations, on, over or in respect of any of the Leases or any restriction on access thereto that do not interfere
with the operation of the affected Lease;

 

(e)               
liens for taxes or assessments not yet due or not yet delinquent; and

 

(f)               
such Title Defects as Buyer has waived.

 

2.4          
Title Defect. The term “Title Defect” means, with respect to a Lease, any lien, encumbrance, adverse
claim, default, expiration, failure, defect, matter or condition, excluding the Permitted Encumbrances, that alone or in combination,
renders the respective Seller’s title to the particular Lease less than Defensible Title.

 

2.5          
Defect Value. The term “Defect Value” means the amount by which the Allocated Value of the applicable
Lease is reduced by a Title Defect. The Defect Value shall be determined by the Parties in good faith, or otherwise in accordance
with Section 2.9, taking into account all relevant factors, including without limitation, the following:

 

(a)               
If the Title Defect is a lien or encumbrance on a Lease, the Defect Value shall be the cost of removing such lien or encumbrance,
not to exceed the Allocated Value of the affected Lease;

 

(b)              
If the Title Defect is an actual reduction in NRI below the NRI in such Lease as specified
in Exhibit A-1 or Exhibit A-2, as applicable, the Defect Value shall be (i) the Allocated Value for the affected
Lease, proportionately reduced by the ratio of the reduction in the actual NRI in such Lease to the NRI as specified in Exhibit
A-1 or Exhibit A-2, as applicable (e.g., if the actual NRI is 78% and the NRI for such Lease as specified Exhibit
A-1 or Exhibit A-2, as applicable, is 80% , then the Defect Value would be 2/80ths of the Allocated Value);

 

    	7

    	 

    

 

(c)               
If the Title Defect is an actual reduction in Net Acres covered by the Lease from the
number of Net Acres set forth in Exhibit A-1 or Exhibit A-2, as applicable, for such Lease, the Defect Value shall
be an amount equal to such difference in Net Acres multiplied by the Net Acre Price; or

 

(d)              
If the Title Defect is a preferential right to purchase affecting a Lease or a third party’s consent required to assign
a Lease, such Lease shall be excluded from the transaction, whereupon the Defect Value shall be 100% of the Allocated Value of
such Lease.

 

2.6          
Notice of Title Defects. On or before 5:00 p.m. (MDT) on the Defect Notice Date, as may be extended by the signed
mutual agreement of the Parties, Buyer shall deliver to the respective Seller a written notice (a “Title Defect Notice”)
describing (a) each Title Defect and the Lease(s) affected thereby, (b) the basis for each Title Defect, (c) Buyer’s good
faith estimate of the Defect Value of each Title Defect, and (d) supporting documentation of the Title Defect. The failure of Buyer
to notify the respective Seller of a Title Defect in a Title Defect Notice on or before the Defect Notice Date shall be deemed
a waiver by Buyer of such Title Defect.

 

2.7          
Seller’s Right to Cure. Each Seller shall have the option, but not the obligation, to attempt to cure any Title
Defect, to Buyer’s reasonable satisfaction, on or before 5:00 p.m. (MDT) on the day prior to Closing (“Cure Period”).
Prior to the end of the Cure Period, Seller shall provide to Buyer evidence that a Title Defect has been cured. Prior to Closing,
Buyer shall notify the respective Seller whether such Title Defect has been cured to the reasonable satisfaction of Buyer.

 

2.8          
Title Defect Remedies. If any Title Defect timely asserted by Buyer pursuant to Section 2.6 is not (a) cured within
the Cure Period to Buyer’s reasonable satisfaction, or (b) waived by Buyer on or before Closing (an “Outstanding
Title Defect”), the respective Seller shall elect any of the following:

 

(a)               
the Joint Purchase Price or the Samson Purchase Price, as the case may be, shall be adjusted downward by the Defect Value
attributable to the Outstanding Title Defect and retain the right to cure the Title Defect after Closing. The respective Seller
shall have ninety (90) calendar days after the Closing Date in which to attempt to cure any such Title Defects to Buyer’s
reasonable satisfaction. If the respective Seller cures any such Title Defect, then Buyer shall promptly pay Sellers (or the applicable
Seller) the Defect Value with respect to the Title Defect that is so cured; provided, however, that the aggregate amount of Defect
Values to be paid by Buyer to Sellers on account of Sellers’ curing of Title Defects after Closing shall not exceed the aggregate
amount of the reductions in the Joint Purchase Price and/or the Samson Purchase Price, as the case may be, that Buyer received
as a result of any Title Defects;

 

(b)              
with the consent of Buyer, convey the Leases or Wells affected by a Title Defect to Buyer
at Closing, without adjustment to the Joint Purchase Price or Samson Purchase Price, as the case may be, and in such case,
such Seller shall indemnify Buyer against all liability, loss, cost and expense resulting from such Title Defect pursuant to an
indemnity agreement in form and substance mutually satisfactory to Seller and Buyer;

 

    	8

    	 

    

 

(c)               
retain the entirety of the Leases or Wells subject to such Title Defect, together with
all associated Assets, in which event the Joint Purchase Price or the Samson Purchase Price, as the case may be, shall be reduced
by an amount equal to the Allocated Value of such property and such associated Assets; or

 

(d)              
in the case of Samson, terminate this agreement in accordance with Section 5.4(e).

 

2.9          
Title Dispute Resolution. The affected Parties shall attempt to resolve, through good faith negotiations, all disputes
concerning (a) the existence and scope of a Title Defect, (b) the amount of the Defect Value and (c) the adequacy of the respective
Seller’s Title Defect curative materials and Buyer’s reasonable satisfaction thereof (the “Title Disputed
Matters”). In the event the Parties cannot resolve any Title Disputed Matters on or before Closing, the Lease affected
by any unresolved Title Disputed Matter shall be excluded from the transaction and the Joint Purchase Price or the Samson Purchase
Price, as the case may be, shall be reduced by 100% of the Allocated Value of such Lease, and any party shall have the right within
thirty (30) days after Closing to submit any Title Disputed Matter to arbitration for resolution pursuant to Section 9.9.

 

2.10      
Casualty Loss. If prior to Closing any of the Assets are substantially damaged or destroyed by fire, blow out, casing
collapse, or any other casualty (a “Casualty Defect Casualty Defect " ”), Sellers shall notify Buyer promptly
after any Seller has Knowledge of the occurrence of such event. Sellers shall have the right, but not the obligation, to cure any
such Casualty Defect by repairing such damage or, in the case of personal property or fixtures, replacing the Assets affected thereby
with equivalent items no later than the Closing Date. If any Casualty Defect exists at Closing, Buyer shall have the right, but
not the obligation, to proceed to purchase the Assets affected thereby, and the Joint Purchase Price and/or the Samson Purchase
Price, as applicable, shall be reduced by the aggregate reduction in the value of such Assets on account of such Casualty Defects,
as determined by the mutual agreement of the parties, or if the parties are unable to agree on such amount prior to Closing, then
such dispute shall be submitted to arbitration pursuant to Section 9.9. Notwithstanding anything to the contrary contained herein,
Sellers shall be entitled to retain all insurance proceeds and claims against other parties in respect of such Casualty Defect
that occurs prior to Closing.

 

article
3

REPRESENTATIONS AND WARRANTIES

 

The term “Material
Adverse Effect” shall mean any change, development, or effect (individually or in the aggregate) which is, or is reasonably
likely to be, materially adverse to the Assets, as a whole, or to any Samson Asset, as the context may require.

 

3.1          
Samson’s Representations and Warranties. With respect to Samson, “Knowledge” shall mean
the information actually known by Terence Barr only, or such information of which such person has received written notice, but
does not include knowledge or awareness of any other person, or imputed knowledge. Samson makes the following representations and
warranties as to (i) its undivided interest in the Joint Assets and (ii) the Samson Assets:

 

    	9

    	 

    

 

(a)               
Organization and Standing. Samson is a corporation duly organized, validly existing and in good standing under the
laws of the State of Colorado, and is qualified to do business in the State of Montana.

 

(b)              
Power. Samson has all requisite power and authority to carry on its business as presently conducted. The execution,
delivery and performance of this Agreement does not, and the fulfillment of and compliance with the terms and conditions hereof
will not, as of the Closing Date, violate, or be in conflict with, any material provision of Samson’s governing documents,
or any material provision of any agreement or instrument to which Samson is a party or by which it is bound, or any judgment, decree,
order, statute, rule or regulation applicable to Samson.

 

(c)               
Authorization and Enforceability. The execution, delivery and performance of this Agreement and the transactions
contemplated hereby have been duly and validly authorized by all requisite corporate action on the part of Samson. This Agreement
constitutes Samson’s legal, valid and binding obligation, enforceable in accordance with its terms, subject, however, to
the effects of bankruptcy, insolvency, reorganization, moratorium and other laws for the protection
of creditors, as well as to general principles of equity, regardless whether such enforceability is considered in a proceeding
in equity or at law.

 

(d)              
Liability for Brokers’ Fees. Samson has not incurred any liability, contingent
or otherwise, for brokers’ or finders’ fees relating to the transactions contemplated by this Agreement for which Buyer
shall have any responsibility whatsoever.

 

(e)               
Lawsuits and Claims. Except as disclosed in Schedule 3.1(e), there are no suits, actions or
other proceedings pending against Samson with respect to the Joint Assets and the Samson Assets and there is no proceeding, claim
or investigation pending or threatened with respect to the Joint Assets or the Samson Assets that would likely result in a Material
Adverse Effect.

 

(f)               
No Bankruptcy. There are no bankruptcy proceedings pending, being contemplated
by or threatened against Samson.

 

(g)              
Compliance with Laws. Samson is not in violation of any law, rule, regulation, order, permit, certificate, writ,
judgment, stipulation, injunction, decree, determination, award or decision (a “Rule Rule  
" ”) of any court, government, or governmental agency or instrumentality, or arbitrator binding upon Samson which violation
or alleged violation is reasonably likely to have a Material Adverse Effect on: (i) the Leases or their value; or (ii) the ability
of Samson to perform under this Agreement. Samson has received no notice from any Governmental Authority that Samson is alleged
to be in violation of any Rule binding upon Samson. Further, Samson has all governmental licenses and permits, and has properly
made all filings, necessary or appropriate to obtain such licenses and permits and to own and operate the Assets as presently being
owned and operated, and such licenses, permits and filings are in full force and effect, and no material violations exist or have
been recorded in respect of any such licenses, permits or filings, no proceeding is pending or is threatened that would challenge,
revoke or limit any such licenses, permits or filings.

 

    	10

    	 

    

 

(h)              
Taxes. Samson has paid in full all taxes, assessments, and other charges assessed or imposed on Samson with respect
to the Leases by any local, state, tribal, or federal taxing authority, other than income or sales taxes, except those that are
not yet past due and payable.

 

(i)                
Accuracy of the Records. Samson makes no representations regarding the accuracy
or completeness of any of the Records or the Samson Records; provided, however, Samson does represent that (i) all of the Records
and Samson Records are files, or copies thereof, that Samson has used in the ordinary course of operating and owning the Joint
Assets and the Samson Assets, respectively, (ii) Samson has made, or prior to Closing will make, all Records and Samson Records
in its possession available to Buyer and (iii) Samson has not intentionally withheld any of the Records or Samson Records from
Buyer.

 

(j)                
Contracts; No Default. Except as set forth in Schedule 3.1(j), Samson is not a party to, or otherwise subject
to any obligations under, any agreement related solely to the Assets other than the Leases and the agreements set forth on Exhibits
D-1 and D-2 (the “Samson Contracts Samson Contracts   " ”).
To Samson’s Knowledge, Samson is not in breach or default in any material respect, and
Samson has received no notice that it is alleged to be in breach or default in any material respect, under the terms of any Samson
Contract, which breach or default has not been cured by Closing, and the Leases are in full force and effect and Samson has made
all payments (including any applicable bonus, delay rentals, or similar payments) due thereunder or required to be made by Samson
to maintain such Samson Contract in effect. To Samson’s Knowledge, no other party to any Samson Contract is in breach or
default with respect to any of its obligations thereunder. There has not occurred any event, fact or circumstance which with the
lapse of time or the giving of notice, or both, would constitute a breach or default on behalf of Samson, or to Samson’s
Knowledge, with respect to any other party to any Samson Contract. Neither Samson, nor to Samson’s Knowledge, any other party
to any Samson Contract has given or threatened to give notice of any action to terminate, cancel or rescind any such agreement
or any provision thereof.

 

(k)              
Consents. Except as set forth on Schedule 3.1(k), no consent, authorization, order, or approval
of, or filing or registration with, any Governmental Authority is required for the consummation of the transactions contemplated
hereby by Samson, except any such consent, authorization, order, or approval that is customarily obtained, or any such filing or
registration that is customarily made, after the consummation of the purchase and sale of the oil and gas properties, such as any
authorization, consent, or approval of the Bureau of Indian Affairs or Bureau of Land Management with respect to the assignment
of any Leases or transfer of operations subject to such Governmental Authority’s jurisdiction. As used in this Agreement,
“Governmental Authority” means any national, state, local or tribal government or any subdivision, agency, court,
commission, department, board, bureau, regulatory authority or other division or instrumentality thereof.

 

(l)                
Preferential Rights and Consents. Except as set forth on Schedule 3.1(l), there
are no preferential rights to purchase, rights of first refusal, tag-along rights or similar rights affecting any of the Joint
Assets or Samson Assets, and no third party’s consent is required to assign any Joint Asset or Samson Asset.

 

    	11

    	 

    

 

(m)            
AMI/Farmout/JOA/Tax Partnership. Except as set forth on Schedule 3.1(m), none of the Joint Assets or Samson
Assets are subject to an area of mutual interest, exploration agreement, participation agreement, farmout, joint operating agreement,
tax partnership or similar agreement.

 

(n)              
Non-Competition. Except as set forth on Schedule 3.1(n), there are no non-competition
or similar agreements which will be binding upon Buyer after Closing.

 

(o)              
Lease Status/Royalties. To Samson’s Knowledge, except as set forth on Schedule
3.1(o), the Leases are in full force and effect and all obligations under the Leases have been fully performed, including but
not limited to, the proper and timely payment of all royalties, shut-in payments or delay rentals.
Samson has not received a written notice of any request or demand for payments, adjustments of payments or performance pursuant
to obligations under the Leases that is still outstanding.

 

(p)              
Advance Payments. Samson is not obligated by virtue of a prepayment arrangement under any contract for the sale of
Hydrocarbons and containing a “take or pay” or similar provision, of a production payment, gas balancing agreement,
of an advance payment contract, of a forward sale contract, or of any other arrangement, to deliver Hydrocarbons produced from
the Leases at some future time without then or thereafter receiving full payment therefor.

 

3.2          
FPEC’s Representations and Warranties. With respect to FPEC, “Knowledge” shall mean the
information actually known by Lynn Becker only, or such information of which such person has received written notice, but does
not include knowledge or awareness of any other person, or imputed knowledge. FPEC makes the following representations and warranties
as to its undivided interest in the Joint Assets:

 

(a)               
Organization and Standing. FPEC is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Delaware, and is qualified to do business in the State of Montana.

 

(b)              
Power. FPEC has all requisite power and authority to carry on its business as presently
conducted. The execution, delivery and performance of this Agreement does not, and the fulfillment of and
compliance with the terms and conditions hereof will not, as of the Closing Date, violate, or be in conflict with, any material
provision of FPEC’s governing documents, or any material provision of any agreement or instrument to which FPEC is a party
or by which it is bound, or any judgment, decree, order, statute, rule or regulation applicable to FPEC.

 

(c)               
Authorization and Enforceability. The execution, delivery and performance of this Agreement and the transactions
contemplated hereby have been duly and validly authorized by all requisite limited liability company action on the part of FPEC.
This Agreement constitutes FPEC’s legal, valid and binding obligation, enforceable in accordance with its terms, subject,
however, to the effects of bankruptcy, insolvency, reorganization, moratorium and other laws for the protection of creditors, as
well as to general principles of equity, regardless whether such enforceability is considered in a proceeding in equity or at law.

 

    	12

    	 

    

 

(d)              
Liability for Brokers’ Fees. FPEC has not incurred any liability, contingent or otherwise,
for brokers’ or finders’ fees relating to the transactions contemplated by this Agreement for which Buyer shall have
any responsibility whatsoever.

 

(e)               
Lawsuits and Claims. Except as disclosed in Schedule 3.2(e) there are no actions or suits pending against
FPEC with respect to the Joint Assets and there is no proceeding, claim or investigation pending or threatened with respect to
the Joint Assets that would likely result in a Material Adverse Effect.

 

(f)               
No Bankruptcy. There are no bankruptcy proceedings pending, being contemplated
by or threatened against FPEC.

 

(g)              
Compliance with Laws. FPEC is not in violation of, and FPEC has received no notice that FPEC is alleged to be in
violation of, any Rule of any court, government, or governmental agency or instrumentality, or arbitrator binding upon FPEC which
violation or alleged violation is reasonably likely to have a Material Adverse Effect on: (i) the Leases or their value; or (ii)
the ability of FPEC to perform under this Agreement. FPEC has received no notice from any Governmental Authority that FPEC is alleged
to be in violation of any Rule binding upon FPEC. Further, FPEC has all governmental licenses and permits, and has properly made
all filings, necessary or appropriate to obtain such licenses and permits and to own and operate the Assets as presently being
owned and operated, and such licenses, permits and filings are in full force and effect, and no material violations exist or have
been recorded in respect of any such licenses, permits or filings, no proceeding is pending or is threatened that would challenge,
revoke or limit any such licenses, permits or filings.

 

(h)              
Taxes. FPEC has paid in full all taxes, assessments, and other charges assessed
or imposed on FPEC with respect to the Leases by any local, state, tribal, or federal taxing authority, other than income or sales
taxes, except those that are not yet past due and payable.

 

(i)                
Accuracy of the Records. FPEC makes no representations regarding the accuracy or completeness of any of the Records;
provided, however, FPEC does represent that (i) all of the Records are files, or copies thereof,
that FPEC has used in the ordinary course of operating and owning the Joint Assets, (ii) FPEC has made, or prior to Closing will
make, all Records in its possession available to Buyer and (iii) FPEC has not intentionally withheld any of the Records from Buyer.

 

(j)                
Contracts; No Default. Except as set forth in Schedule 3.2(j), FPEC is not a party to, or otherwise subject
to any obligations under, any agreement related solely to the Assets other than the Leases and the agreements set forth on Exhibit
D-1 (the “FPEC Contracts FPEC Contracts   " ”). To FPEC’s
Knowledge, FPEC is not in breach or default in any material respect, and FPEC has received no
notice that it is alleged to be in breach or default in any material respect, under the terms of any FPEC Contract, which breach
or default has not been cured by Closing, and the FPEC Contracts are in full force and effect and FPEC has made all payments (including
any applicable bonus, delay rentals, or similar payments) due thereunder or required to be made by FPEC to maintain such FPEC Contract
in effect. To FPEC’s Knowledge, no other party to any FPEC Contract is in breach or default with respect to any of its obligations
thereunder. There has not occurred any event, fact or circumstance which with the lapse of time or the giving of notice, or both,
would constitute a breach or default on behalf of FPEC, or to FPEC’s Knowledge, with respect to any other party to any FPEC
Contract. Neither FPEC, nor to FPEC’s Knowledge, any other party to any FPEC Contract has given or threatened to give notice
of any action to terminate, cancel or rescind any such agreement or any provision thereof.

 

    	13

    	 

    

 

(k)              
Consents. Except as set forth on Schedule 3.2(k), no consent, authorization, order, or approval of, or filing
or registration with, any Governmental Authority is required for the consummation of the transactions
contemplated hereby by FPEC, except any such consent, authorization, order, or approval that is customarily obtained, or any such
filing or registration that is customarily made, after the consummation of the purchase and sale of the oil and gas properties,
such as any authorization, consent, or approval of the Bureau of Indian Affairs or Bureau of Land Management with respect to the
assignment of any Leases or transfer of operations subject to such Governmental Authority’s jurisdiction.

 

(l)                
Preferential Rights and Consents. Except as set forth on Schedule 3.2(l), there are no preferential rights
to purchase, rights of first refusal, tag-along rights or similar rights affecting any of the Joint Assets, and no third party’s
consent is required to assign any Joint Asset.

 

(m)            
AMI/Farmout/JOA/Tax Partnership. Except as set forth on Schedule 3.2(m), none of the Joint Assets are subject
to an area of mutual interest, exploration agreement, participation agreement, farmout, joint
operating agreement, tax partnership or similar agreement.

 

(n)              
Non-Competition. Except as set forth on Schedule 3.2(n), there are no non-competition
or similar agreements which will be binding upon Buyer after Closing.

 

(o)              
Lease Status/Royalties. To FPEC’s Knowledge, except as set forth on Schedule
3.2(o), the Leases are in full force and effect and all obligations under the Leases have been fully performed, including but
not limited to, the proper and timely payment of all royalties, shut-in payments or delay rentals. FPEC has not received a written
notice of any request or demand for payments, adjustments of payments or performance pursuant to obligations under the Leases that
is still outstanding.

 

(p)              
Advance Payments. Except as set forth on Schedule 3.2(p), FPEC is not obligated by virtue of a prepayment
arrangement under any contract for the sale of Hydrocarbons and containing a “take or pay” or similar provision, of
a production payment, gas balancing agreement, of an advance payment contract, of a forward sale contract, or of any other arrangement,
to deliver Hydrocarbons produced from the Leases at some future time without then or thereafter receiving full payment therefor.

 

3.3          
Buyer’s Representations and Warranties. Buyer makes the following representations and warranties:

 

(a)               
Organization and Standing. Buyer is a limited liability company duly organized,
validly existing and in good standing under the laws of Montana.

 

    	14

    	 

    

 

(b)              
Power. Buyer has all requisite power and authority to carry on its business as presently conducted. The execution
and delivery of this Agreement does not, and the fulfillment of and compliance with the terms
and conditions hereof will not, as of the Closing Date, violate, or be in conflict with, any material provision of Buyer’s
governing documents, or any material provision of any agreement or instrument to which Buyer is a party or by which it is bound,
or any judgment, decree, order, statute, rule or regulation applicable to Buyer.

 

(c)               
Authorization and Enforceability. This Agreement constitutes Buyer’s legal, valid
and binding obligation, enforceable in accordance with its terms, subject, however, to the effects of bankruptcy, insolvency, reorganization,
moratorium and other laws for the protection of creditors, as well as to general principles of equity, regardless whether such
enforceability is considered in a proceeding in equity or at law.

 

(d)              
Liability for Brokers’ Fees. Buyer has not incurred any liability, contingent or otherwise,
for brokers’ or finders’ fees relating to the transactions contemplated by this Agreement for which Sellers shall have
any responsibility whatsoever.

 

(e)               
Buyer’s Evaluation. Buyer is an experienced and knowledgeable investor in the oil and gas business. Buyer has
been advised by and has relied solely upon its own expertise in legal, tax and other professional counsel concerning the transaction
contemplated by this Agreement, the Assets and the value thereof.

 

(f)               
Securities Laws. Buyer intends to acquire the Assets for Buyer’s own benefit and account, and Buyer is not
acquiring the Assets with the intent of resale or distribution such as would be subject to regulation by federal or state securities
laws (collectively, the “Securities Laws”), and if Buyer should sell, transfer or otherwise dispose of the Assets
or fractional undivided interests therein, Buyer will do so in compliance with all applicable Securities Laws. Buyer has such knowledge
and experience in financial and business matters, and in oil and gas investments of the type contemplated by this Agreement, that
Buyer is capable of evaluating the merits and risks of this Agreement and its investment in the Assets, and Buyer is not in need
of the protection afforded investors by the Securities Laws. In addition, Buyer is an “accredited investor” as defined
in Rule 501(a) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended.

 

(g)              
Qualified to Hold Leases. Buyer is eligible under all applicable laws and regulations
to own leases covering the Leases.

 

(h)              
Financial Resources. Buyer has the financial resources available to close the transactions contemplated by this Agreement
without financing that is subject to any material contingency.

 

article
4

PRE-CLOSING OBLIGATIONS

 

4.1             
Encumbrances. From the Effective Date until the Closing Date (the “Interim Period Interim Period "
”), except as otherwise approved by Buyer, neither Seller shall transfer, sell, hypothecate, encumber, or otherwise dispose
of any of its Assets.

 

    	15

    	 

    

 

4.2          
Operation of Business. During the Interim Period, each Seller shall conduct its business with respect to the Assets
in the ordinary course as presently conducted. Unless agreed or waived in writing by Buyer, (a) each Seller shall cause the Assets
to be maintained in a good and workmanlike manner, (b) each Seller shall obtain Buyer’s prior written consent on all material
matters relating to the Assets, including without limitation, any proposed agreement or amendment, modification, rescission or
termination of an existing agreement, (c) each Seller shall promptly notify Buyer of any notice or any threatened notice of which
such Seller has Knowledge related to any default, potential default, or action to amend, modify, terminate, or rescind any agreement
(or provision thereof) related to the Assets, (d) each Seller shall timely pay all costs and expenses, including without limitation,
all royalties, rentals, Production Taxes, and operating costs incurred in connection with the Assets, (e) neither Seller shall
make any capital expenditure attributable to the Assets that is in excess of (i) $100,000 in any single instance, or (ii) $500,000
in the aggregate, (f) neither Seller shall abandon (whether permanently or temporarily) any well, pipeline, right-of-way, easement,
permit, or surface lease included in the Assets, nor release or abandon any portion of the Leases, and (g) neither Seller shall
waive, compromise or settle any material right or claim pertaining to the ownership or operation of the Assets.

 

4.3          
Consents and Filings. Promptly after the Effective Date, Sellers and Buyer shall use commercially reasonable efforts
to obtain all consents, approvals or authorizations of (and make all required filings or registrations with) all courts, governmental
agencies and bodies and other third parties which are necessary or desirable in connection with the consummation of the transactions
contemplated hereby.

 

4.4          
Compliance with Laws. Sellers shall comply in all material respects with all laws, statutes, ordinances, rules, and
regulations applicable to the Assets, such compliance to include, without limitation, paying or contesting in good faith all taxes,
assessments and government charges before they become delinquent.

 

4.5          
Notification Requirements. Each party shall promptly notify the other party in the event that, prior to the Closing,
it becomes aware that any representations and warranties made under this Agreement or in the Schedules, or any other certificate
delivered pursuant to this Agreement have become untrue or incorrect in any material respect.

 

article
5

CLOSING

 

5.1             
Closing. The purchase and sale of the Assets shall be closed and consummated (the “Closing”) at
the offices of Davis Graham & Stubbs LLP in Denver, Colorado, at 10:00 a.m. (MDT) on July 31, 2013, or on such other date or
at such other time agreed upon in writing by Buyer and Sellers (the “Closing Date”).

 

5.2          
Conditions Precedent to Closing.

 

(a)               
Samson’s Conditions. The obligations of Samson at Closing are subject, at the option of Samson, to the satisfaction
or waiver at or prior to Closing of the following conditions precedent:

 

    	16

    	 

    

 

(i)                
All representations and warranties of Buyer contained in Section 3.3 shall be true and correct in all material respects
on and as of the Closing Date, and Buyer shall have performed and satisfied all covenants and agreements required by this Agreement
to be performed and satisfied by Buyer at or prior to the Closing in all material respects;

 

(ii)              
Buyer stands ready, willing and able to Close with Samson;

 

(iii)            
No order has been entered by any court or governmental agency having jurisdiction over the Parties or the subject matter
of this Agreement that restrains or prohibits the transactions contemplated by this Agreement that remains in effect on the Closing
Date; and

 

(iv)            
Samson has not given notice of termination pursuant to Section 5.4.

 

(b)              
FPEC’s Conditions. The obligations of FPEC at Closing are subject, at the option of FPEC, to the satisfaction
or waiver at or prior to Closing of the following conditions precedent:

 

(i)                
All representations and warranties of Buyer contained in Section 3.3 shall be true and correct in all material respects
on and as of the Closing Date, and Buyer shall have performed and satisfied all covenants and agreements required by this Agreement
to be performed and satisfied by Buyer at or prior to the Closing in all material respects;

 

(ii)              
Buyer stands ready, willing and able to Close with FPEC;

 

(iii)            
No order has been entered by any court or governmental agency having jurisdiction over the Parties or the subject matter
of this Agreement that restrains or prohibits the transactions contemplated by this Agreement that remains in effect on the Closing
Date; and

 

(iv)            
FPEC has not given notice of termination pursuant to Section 5.4.

 

(c)               
Buyer’s Conditions. The obligations of Buyer at the Closing with respect to each Seller are subject, at the
option of Buyer, to the satisfaction or waiver at or prior to Closing of the following conditions
precedent:

 

(i)                
All representations and warranties of such Seller contained in Section 3.1 or Section 3.2, respectively, shall be true and
correct in all material respects on and as of the Closing Date, and such Seller shall have performed and satisfied all covenants
and agreements required by this Agreement to be performed and satisfied by such Seller at or prior to the Closing in all material
respects;

 

(ii)              
Such Seller stands ready, willing and able to Close with Buyer;

 

    	17

    	 

    

 

(iii)            
Each Seller has delivered to Buyer all of the agreements, certificates and other documents required to be delivered to Buyer
pursuant to Section 5.3;

 

(iv)            
With respect to the Assets taken as a whole, since the Effective Date, there shall not have occurred and be continuing a
Material Adverse Effect, nor shall any event or events have occurred that, individually or in the aggregate, with or without the
lapse of time, could reasonably be expected to result in a Material Adverse Effect;

 

(v)              
No order has been entered by any court or governmental agency having jurisdiction over such Seller or Buyer or the subject
matter of this Agreement that restrains or prohibits the purchase and sale contemplated by this Agreement and that remains in effect
at the time of Closing;

 

(vi)            
Buyer has not given notice of termination pursuant to Section 5.4;

 

(vii)          
Buyer shall be satisfied with the results of the Phase One Assessment, as determined in its sole discretion; and

 

(viii)        
FPEC shall have conveyed the Excluded Assets set forth on Exhibit A-3 to the Assiniboine and Sioux Tribes of the Fort Peck
Reservation, or their designee, on or prior to Closing.

 

Notwithstanding anything
in this Agreement to the contrary, (i) if Buyer’s conditions set forth in this Section 5.2(c) are satisfied with respect
to Samson and not FPEC, Buyer shall be obligated to Close on Samson’s undivided interest in the Joint Assets and the Samson
Assets, irrespective of whether Buyer’s conditions set forth in this Section 5.2(c) are satisfied with respect to FPEC, and
(ii) notwithstanding the satisfaction of Buyer’s conditions set forth in this Section 5.2(c) with respect to FPEC, Buyer
shall not be obligated to Close on FPEC’s undivided interest in the Joint Assets until such time as Buyer’s conditions
set forth in this Section 5.2(c) are satisfied with respect to Samson.

 

5.3          
Closing Deliveries. At Closing, the following shall occur:

 

(a)               
Buyer shall deliver to Samson the Samson Closing Amount and to FPEC the FPEC Closing Amount by wire transfer in immediately
available funds in accordance with the Settlement Statement and the wire instructions provided by each Seller therein;

 

(b)              
Buyer and Sellers shall execute and acknowledge, and Sellers shall deliver to Buyer, an
Assignment and Bill of Sale, substantially in the form of Exhibit C attached hereto (the “Assignment”),
in sufficient counterparts to facilitate recording;

 

(c)               
Buyer and Seller shall execute such additional governmental assignment forms as may be necessary to effect the assignment
of the Leases to Buyer; and

 

(d)              
each Seller shall execute and deliver to Buyer a certificate of such Seller’s non-foreign
status and certifying that Seller is not subject to withholding under Section 1445 of the Internal Revenue Code, as amended.

 

    	18

    	 

    

 

5.4          
Termination. This Agreement may be terminated prior to Closing, upon written notice to the other Parties, in accordance
with the following provisions:

 

(a)               
By mutual consent of Buyer and Samson;

 

(b)              
By Samson if Samson’s conditions set forth in Section 5.2(a) are not satisfied through
no fault of Samson, or are not waived by Samson, as of July 31, 2013;

 

(c)               
By FPEC (but only as to its undivided interest in the Joint Assets), if FPEC’s conditions set forth
in Section 5.2(b) are not satisfied through no fault of FPEC, or are not waived by FPEC, as of July 31, 2013;

 

(d)              
By Buyer, as to a Seller, if Buyer’s conditions set forth in Section 5.2(c) with respect to such Seller are not satisfied
through no fault of Buyer, or are not waived by Buyer, as of July 31, 2013;

 

(e)               
By either Buyer or Samson if the aggregate Defect Value of all Title Defects exceeds $937,500;

 

(f)               
By Buyer if Buyer is not satisfied with the results of the Phase One Assessment;

 

(g)              
By Samson, if Closing has not occurred on or before July 31, 2013, provided, Samson is not in material default under this
Agreement and is ready, willing and able to Close on or before July 31, 2013;

 

(h)              
By FPEC (but only as to its undivided interest in the Joint Assets), if Closing has not occurred
on or before July 31, 2013, provided, FPEC is not in material default under this Agreement and is ready, willing and able to Close
on or before July 31, 2013; or

 

(i)                
By Buyer, if Closing has not occurred on or before July 31, 2013, provided, Buyer is not in material default under this
Agreement and is ready, willing and able to Close on or before July 31, 2013

 

If Buyer or a Seller terminates this Agreement
pursuant to this Section 5.4 and asserts that a breach of this Agreement has occurred, the notice of termination shall include
a statement describing the nature of the alleged breach together with supporting documentation.

 

5.5          
Liabilities Upon Termination.

 

(a)               
Buyer’s Default. If Closing does not occur because (i) Buyer wrongly fails to tender performance at Closing
in material breach of this Agreement or otherwise materially breaches this Agreement prior to Closing, and if Samson is not in
material default under this Agreement and is ready, willing and able to Close with Buyer, (ii)
if Samson terminates this Agreement as of a right pursuant to Section 5.4(b) (but only with respect to Sections 5.2(a)(i) or 5.2(a)(ii)),
or (iii) if FPEC terminates this Agreement as of a right pursuant to Section 5.4(c) (but only with respect to Sections 5.2(b)(i)
or 5.2(b)(ii)), each of Samson and FPEC as its sole and exclusive remedy shall be entitled to retain as liquidated damages and
not as a penalty, the Samson Deposit and the FPEC Deposit, respectively, and each of the Sellers and Buyer hereby disclaims, waives
and releases any and all claims against the other arising in connection with or related to such termination. The Parties agree
that the damages that would be suffered by Sellers as a result of Buyer’s breach would be difficult to estimate and that
the liquidated damages described herein represent a reasonable estimation of such damages and do not constitute a penalty. Buyer’s
failure to Close shall not be considered wrongful if Buyer’s conditions under Section 5.2(c) are not satisfied through no
fault of Buyer and are not waived by Buyer.

 

    	19

    	 

    

 

(b)              
Samson’s Default. If Closing does not occur because (i) Samson wrongfully fails to tender performance at Closing
in material breach of this Agreement or otherwise materially breaches this Agreement prior to Closing, and if Buyer is not in material
default under this Agreement and is ready, willing and able to Close with Samson, or (ii) if
Buyer terminates this Agreement as to Samson as of a right pursuant to Section 5.4(d) (but only with respect to Sections 5.2(c)(i),
5.2(c)(ii) or 5.2(c)(iii)) (in each case, a “Samson Default Samson Default 
 " ”), Samson shall (i) return the Samson Deposit to
Buyer and (ii) pay Buyer as liquidated damages and not as a penalty, TWENTY FIVE THOUSAND DOLLARS ($25,000), and Buyer hereby disclaims,
waives and releases any and all claims against the other arising in connection with or related to such termination. Samson and
Buyer acknowledge and agree that the actual amount of damages resulting from such a termination would be difficult if not impossible
to determine accurately due to the unique nature of this Agreement, the unique nature of the Joint Assets and the Samson Assets,
the uncertainties of applicable commodity markets and differences of opinion with respect to such matters, and that the liquidated
damages provided for herein are a reasonable estimate by Samson and Buyer of such damages. Buyer hereby disclaims, waives and releases
any right Buyer may have to make a claim for specific performance of the purchase and sale of the Samson’s undivided interest
in the Joint Assets and the Samson Assets contemplated by this Agreement. Samson’s failure to close shall not be considered
wrongful if Samson’s conditions under Section 5.2(a) are not satisfied through no fault of Samson and are not waived by Samson.
Notwithstanding anything in this Agreement to the contrary, in no circumstance shall Samson be liable to FPEC if Closing does not
occur for any reason.

 

(c)               
FPEC’s Default. (i) (A) If FPEC wrongfully fails to tender performance with respect to its interest in the
Joint Assets at Closing in material breach of this Agreement or otherwise materially breaches this Agreement prior to Closing,
and if Buyer is not in material default under this Agreement and is ready, willing and able to Close with FPEC, or (B) if Buyer
terminates this Agreement with respect to FPEC’s interest in the Joint Assets as of a right pursuant to Section 5.4(d) (but
only with respect to Sections 5.2(c)(i), 5.2(c)(ii) or 5.2(c)(iii)), FPEC shall (1) return the FPEC Deposit and (2) pay Buyer as
liquidated damages and not as a penalty, TWELVE THOUSAND FIVE HUNDRED DOLLARS ($12,500). (ii) If Closing does not occur with respect
to FPEC’s interest in the Joint Assets because of a Samson Default , FPEC shall return the FPEC Deposit. In the event of
either (i) or (ii) above, each of FPEC and Buyer hereby disclaims, waives and releases any and all claims against the other arising
in connection with or related to such termination. FPEC and Buyer acknowledge and agree that the actual amount of damages resulting
from such a termination would be difficult if not impossible to determine accurately due to the unique nature of this Agreement,
the unique nature of the Joint Assets, the uncertainties of applicable commodity markets and differences of opinion with respect
to such matters, and that the liquidated damages provided for herein are a reasonable estimate by FPEC and Buyer of such damages.
Buyer hereby disclaims, waives and releases any right Buyer may have to make a claim for specific performance of the purchase and
sale of the FPEC’s undivided interest in the Joint Assets contemplated by this Agreement. FPEC’s failure to close shall
not be considered wrongful if FPEC’s conditions under Section 5.2(b) are not satisfied through no fault of FPEC and are not
waived by FPEC.

 

    	20

    	 

    

 

(d)              
Other Termination.

 

(i)                
If this Agreement is terminated pursuant to Sections 5.4(a), 5.4(g) or 5.4(h) each Party shall release the other Party from
any and all liability for termination of this Agreement and, unless otherwise agreed by the parties in a separate written agreement,
Samson and FPEC shall be entitled to retain the Samson Deposit and FPEC Deposit, respectively.

 

(ii)              
If this Agreement is terminated pursuant to Section 5.4(e) or 5.4(i) each Party shall release the other Party from any and
all liability for termination of this Agreement and the Samson Deposit and FPEC Deposit shall immediately be disbursed to Buyer.

 

(iii)            
If this Agreement is terminated pursuant to Section 5.4(f) and Buyer provides Samson with a written estimate from a recognized
environmental remediation firm approved by Samson (which approval will not be unreasonably withheld) (an “Environmental
Estimate”) that the cost to remediate the Environmental Conditions (defined below) will exceed $937,500 (an “Overrun
Estimate”), each Party shall release the other Party from any and all liability for termination of this Agreement and
the Samson Deposit and FPEC Deposit shall immediately be disbursed to Buyer.

 

(iv)            
If this Agreement is terminated pursuant to Section 5.4(f) and Buyer does not provide Samson with an Overrun Estimate, each
Party shall release the other Party from any and all liability for termination of this Agreement and Samson and FPEC shall be entitled
to retain the Samson Deposit and FPEC Deposit, respectively.

 

(e)               
Consequential Damages. In no event shall any Party be liable to any other Party for consequential or indirect damages
resulting from termination of this Agreement under this Section 5.5, including but not limited to, any claim for lost profits,
lost income or lost opportunity.

 

5.6          
Environmental Remediation.

 

(a)               
If one or more environmental conditions are identified by the Phase One Assessment (defined below) as requiring remediation
to avoid liability to Buyer after the Closing (the “Environmental Conditions”), Buyer may nevertheless elect
to Close. In such an event, and if Closing occurs on or before June 30, 2013, Buyer may withhold from the Samson Purchase Price
to be delivered at Closing the estimated cost of such remediation, up to a maximum of $937,500, if and to the extent that the costs
to cover Buyer’s actual out of pocket costs of such remediation (excluding Buyer’s internal expenses as costs for this
purpose) are described in reasonable detail in an Environmental Estimate (the “Remediation Holdback Holdback 
 " ”). If Buyer does retain a Remediation Holdback as permitted by this subsection, then
Buyer shall, promptly after the Closing, commence remediation of the Environmental Conditions. If Closing occurs after June 30,
2013, then Buyer shall not be entitled to withhold any funds for remediation of Environmental Conditions. 

 

    	21

    	 

    

 

(b)              
If Closing occurs on or before June 30, 2013, and Buyer elects to Close notwithstanding the disclosure of Environmental
Conditions in the Phase One Assessment but wishes to obtain a setoff from the Samson Purchase Price for the costs of remediation
in accordance with subsection (a), then Buyer shall commence remediation of the Environmental Conditions no later than thirty (30)
days following the Closing and shall, no later than ten (10) days after the beginning of each calendar month thereafter while remediation
efforts are continuing, provide Samson with a monthly accounting of all remediation costs and expenses incurred during the immediately
preceding month. Upon the earlier to occur of (i) three (3) months after Closing or (ii) thirty (30) days after all remediation
activities are completed (the “Remediation Date Date   " ”), Buyer
shall provide Samson with a final accounting of all remediation costs and expenses paid by Buyer in connection therewith (the “Final
Remediation Cost”). 

 

(c)               
If the Final Remediation Cost is less than the Remediation Holdback, Buyer shall immediately pay the difference to Samson
by wire or other electronic funds transfer. If the Final Remediation Cost is greater than the Remediation Holdback but not more
than $937,500, Samson shall pay the difference between the Final Remediation Cost and the Remediation Amount (the “Additional
Remediation Amount”) to Buyer by wire or other electronic funds transfer. If in such a case the Final Remediation Cost
is greater than $937,500, Samson shall pay to Buyer the difference between $937,500 and the Remediation Advance (the “Additional
Remediation Amount”). Any dispute regarding the Final Remediation Cost (or the Additional Remediation Amount) shall be
submitted to arbitration pursuant to Section 9.9.

 

(d)              
If Closing occurs after June 30, 2013, and Buyer elects to close notwithstanding the existence of Environmental Conditions,
Buyer shall be responsible for all costs of remediation of the Environmental Conditions, there shall be no Remediation Holdback,
and Samson shall in no event be responsible for any such costs.

 

article
6

POST-CLOSING OBLIGATIONS

 

6.1          
Post-Closing Obligations. Sellers and Buyer shall have the following post-Closing obligations:

 

(a)               
Receipts. All proceeds, receipts, credits and income attributable to the Assets for all periods subsequent to the
Effective Date shall be the sole property of Buyer, and, to the extent received by a Seller after Closing, Seller shall fully disclose,
account for and transmit such proceeds to Buyer promptly. All proceeds, receipts, credits and income attributable to the Assets
for all periods prior to the Effective Date shall be the sole property of the applicable Seller, and, to the extent received by
Buyer after Closing, Buyer shall fully disclose, account for and transmit such proceeds to the applicable Seller promptly.

 

    	22

    	 

    

 

(b)              
Records. Within sixty (60) days after Closing, Sellers shall deliver to Buyer the originals of the Records at a location
designated by Buyer. Any transportation, postage or delivery costs from Sellers’ offices
shall be at Buyer’s sole cost, risk and expense.

 

(c)               
Further Assurances. Sellers and Buyer agree to execute and deliver from time to time
such further instruments and do such other acts as may be reasonably requested and necessary to effectuate the purposes of this
Agreement.

 

(d)              
Liabilities and Obligations(a)                                       
. 

 

(i)                
Buyer’s Assumption of Liabilities and Obligations: June 30, 2013 Closing. If Closing occurs on or before June
30, 2013, upon Closing, Buyer shall assume and pay, perform, fulfill and discharge all claims, costs, expenses, liabilities and
obligations accruing or relating to the ownership or operation of (A) the Joint Assets (including those arising under environmental
laws) arising after the Effective Date, and (B) the Samson Assets (including those arising under environmental laws) whether arising
before or after the Effective Date, including those arising from ownership, development, and exploration of the Samson Assets or
the producing, transporting and marketing of Hydrocarbons from the Samson Assets, relating to periods before or after the Effective
Date, the obligation to plug and abandon all wells located on the Samson Lands, including the Wells, and reclaim all well sites
located on the Samson Lands regardless of when the obligations arose, all liability for royalty and overriding royalty payments
and taxes, and all payments made (or to be made) with respect to the preparation, submission and filing of all regulatory filings
related to the ownership and operation of the Samson Assets.

 

(ii)              
Buyer’s Assumption of Liabilities and Obligations: Post-June 30, 2013 Closing. If Closing occurs after June
30, 2013, upon Closing, Buyer shall assume and pay, perform, fulfill and discharge all claims, costs, expenses, liabilities and
obligations accruing or relating to the ownership and operation of the Assets (including those arising from environmental laws)
whether arising before or after the Effective Date, including those arising from ownership, development, and exploration of the
Assets or the producing, transporting and marketing of Hydrocarbons from the Assets, relating to periods before or after the Effective
Date, the obligation to plug and abandon all wells located on the Lands, including the Wells, and reclaim all well sites located
on the Lands regardless of when the obligations arose, all liability for royalty and overriding royalty payments and taxes, and
all payments made (or to be made) with respect to the preparation, submission and filing of all regulatory filings related to the
ownership and operation of the Assets (the liabilities and obligations assumed by Buyer pursuant to Section 6.1(d)(i) or 6.1(d)(ii),
as the case may be, are referred to in this Agreement as the “Assumed Liabilities”).

 

(iii)            
 Samson’s Retained Liabilities. If Closing occurs on or before June 30, 2013, Samson shall retain, pay, perform,
fulfill and discharge all claims, costs, expenses, liabilities and obligations relating to the ownership or operation of the Joint
Assets (including those arising under environmental laws) arising before the Effective Date (the “Retained Liabilities”).
For the avoidance of doubt, if Closing occurs after June 30, 2013, neither Seller shall retain any liability or obligation with
respect to the Assets, and pursuant to Section 6.1(d)(ii), Buyer shall assume all such liabilities and obligations.

 

    	23

    	 

    

 

article
7

TAX MATTERS

 

7.1          
Definitions. Whenever used in this Agreement, the following terms shall have the meanings set forth in this Article
7:

 

(a)               
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(b)              
“Production Taxes” shall mean all ad valorem, property, production, excise, net proceeds, severance, windfall
profit and all other taxes and similar obligations assessed against the Assets or based upon or measured by the ownership of the
Assets or the production of Hydrocarbons or the receipt of proceeds therefrom, other than income taxes.

 

7.2          
Production Tax Liability. Subject to the treatment of ad valorem taxes provided below, all Production Taxes shall
be prorated between Buyer and applicable Seller as of the Effective Date for all taxable periods that include the Effective Date.
The Parties acknowledge that ad valorem taxes assessed against the Assets are measured by the value of the preceding year’s
production. Ad valorem taxes shall be the responsibility of the party who owned the Asset when the production that is the basis
for the tax assessment occurred. Each Party shall timely pay all ad valorem taxes for which it has liability under this Section
and shall furnish to the other party evidence of such payment.

 

7.3          
Tax Notices, Statements and Returns. For tax periods in which the Effective Date occurs, Sellers agree to immediately
forward to Buyer copies of any tax notice or statement received by Sellers after Closing and provide Buyer with any information
Sellers have that is necessary for Buyer to file any required tax reports and returns related to the Assets. Buyer agrees to file
all tax returns and reports applicable to the Assets that Buyer is required to file after the Closing and, subject to the provisions
of Section 7.2, to pay all required Production Taxes payable with respect to the Assets.

 

7.4          
Tax Allocation. Sellers and Buyer shall use their best efforts to agree on an allocation for purposes of Form 8594
within thirty (30) days after Closing. Buyer and Sellers will file all tax returns (including amended returns and claims for
refund) and information reports in a manner consistent with the allocation determined pursuant to this Section.

 

article
8

DISCLAIMERS

 

8.1          
Disclaimer; Title; Condition and Fitness of the Assets. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF SELLERS
SET FORTH IN ARTICLE 3 OF THIS AGREEMENT (AS MODIFIED BY THE SCHEDULES HERETO AS SUPPLEMENTED OR AMENDED) OR ANY REPRESENTATIONS
AND WARRANTIES IN THE ASSIGNMENT DELIVERED PURSUANT HERETO, SELLERS WILL CONVEY TO BUYER THE ASSETS WITHOUT ANY EXPRESS, STATUTORY,
OR IMPLIED WARRANTY OR REPRESENTATION OF ANY KIND, INCLUDING WITHOUT LIMITATION WARRANTIES RELATING TO (i) TITLE, (ii) THE CONDITION
OF THE ASSETS, (iii) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY OF THE ASSETS, (iv) ANY IMPLIED OR EXPRESS WARRANTY OF
THE FITNESS OF THE ASSETS FOR A PARTICULAR PURPOSE, (v) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS,
(vi) ANY RIGHTS OF BUYER UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION OR RETURN OF THE ADJUSTED PURCHASE PRICE,
(vii) ANY IMPLIED OR EXPRESS WARRANTY OF FREEDOM FROM VICES OR DEFECTS, WHETHER KNOWN OR UNKNOWN, (viii) ANY IMPLIED WARRANTY OF
FREEDOM FROM PATENT OR TRADEMARK INFRINGEMENT, (ix) ANY AND ALL IMPLIED WARRANTIES EXISTING UNDER APPLICABLE LAW NOW OR HEREAFTER
IN EFFECT, (x) ANY IMPLIED OR EXPRESS WARRANTY REGARDING ANY ENVIRONMENTAL LAWS, THE RELEASE OF MATERIALS INTO THE ENVIRONMENT,
OR PROTECTION OF THE ENVIRONMENT OR HEALTH, AND (xi) ANY RIGHTS OF BUYER UNDER STATUTES TO CLAIM DIMINUTION OF VALUE. EXCEPT AS
SET FORTH IN THIS AGREEMENT OR IN THE ASSIGNMENT, BUYER WILL ACCEPT THE ASSETS “AS IS,” “WHERE IS,” AND
“WITH ALL FAULTS” AND IN ITS PRESENT CONDITION AND STATE OF REPAIR. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING,
SELLER MAKES NO REPRESENTATION OR WARRANTY AS TO (a) THE AMOUNT, VALUE, QUALITY, QUANTITY, VOLUME, OR DELIVERABILITY OF ANY OIL,
GAS, OR OTHER MINERALS OR RESERVES (IF ANY) IN, UNDER, OR ATTRIBUTABLE TO THE ASSETS, (b) THE PHYSICAL, OPERATING, REGULATORY COMPLIANCE,
SAFETY, OR ENVIRONMENTAL CONDITION OF THE ASSETS, OR (c) THE GEOLOGICAL OR ENGINEERING CONDITION OF THE ASSETS OR ANY VALUE THEREOF.

 

    	24

    	 

    

 

8.2          
Information About the Assets. Except as expressly set forth in this Agreement, each Party disclaims all liability
and responsibility for any representation, warranty, statement, or communication (oral or written) to any other Party (including
any information contained in any opinion, information, or advice that may have been provided to any such Party by any employee,
officer, director, agent, consultant, engineer, or engineering firm, trustee, representative, partner, member, beneficiary, stockholder,
or contractor of such disclaiming Party or its affiliates) wherever and however made, including those made in any data room and
any supplements or amendments thereto or during any negotiations with respect to this Agreement. EXCEPT AS SET FORTH IN THIS AGREEMENT
OR IN THE ASSIGNMENT, SELLERS MAKE NO WARRANTY OR REPRESENTATION, EXPRESS, STATUTORY, OR IMPLIED, AS TO (i) THE ACCURACY, COMPLETENESS,
OR MATERIALITY OF ANY DATA, INFORMATION, OR RECORDS FURNISHED TO BUYER IN CONNECTION WITH THE ASSETS, (ii) THE PRESENCE, QUALITY,
AND QUANTITY OF HYDROCARBON RESERVES (IF ANY) ATTRIBUTABLE TO THE ASSETS, (iii) THE ABILITY OF THE ASSETS TO PRODUCE HYDROCARBONS,
(iv) THE PRESENT OR FUTURE VALUE OF THE ANTICIPATED INCOME, COSTS, OR PROFITS, IF ANY, TO BE DERIVED FROM THE ASSETS, OR (v) THE
ENVIRONMENTAL CONDITION OF THE ASSETS.

 

    	25

    	 

    

 

article
9

MISCELLANEOUS

 

9.1          
Exhibits and Schedules. The Exhibits and Schedules to this Agreement are hereby incorporated in this Agreement by
reference and constitute a part of this Agreement.

 

9.2          
Expenses. Except as otherwise specifically provided, all fees, costs and expenses incurred by Buyer or Seller in
negotiating this Agreement or in consummating the transactions contemplated by this Agreement shall be paid by the Party incurring
the same, including, without limitation, engineering, land, title, legal and accounting fees, costs and expenses.

 

9.3          
Notices. All notices and communications required or permitted under this Agreement shall be in writing and addressed
as set forth below. Any communication or delivery hereunder shall be deemed to have been duly made and the receiving Party charged
with notice (a) if personally delivered, when received, (b) if sent by facsimile transmission, when received, (c) if mailed, five
business days after mailing, certified mail, return receipt requested, or (d) if sent by overnight courier, one day after sending.
All notices shall be addressed as follows:

 

If to Samson:

 

Samson Oil and Gas USA Montana,
Inc.

1331 17th Street, Suite
710

Denver, CO 80202

Attn: Terry Barr

Telephone: (303) 296-3994

Fax: (303) 295-1961

Email: terry.barr@samsonoilandgas.com

 

With copy to:

 

Davis Graham & Stubbs LLP

1550 17th Street, Suite 500

Denver, CO 80202

Attn: Lamont Larsen

Telephone: (303) 892-7473

Fax: (303) 893-1379

Email: lamont.larsen@dgslaw.com

 

If to FPEC:

 

Fort Peck
Energy Company, LLC

104 Highland
Drive

Wolf Point,
MT 59201

Attn: Mr.
Lynn Becker

-or-

Fort Peck
Energy Company, LLC

P.O. Box
97

Poplar, MT
59255

Attn: Mr.
Lynn Becker

Telephone:
(406) 653-3097

Email: Becker@NARPLLC.com

 

With Copy
to:

 

Vinson &
Elkins LLP

1001 Fannin
Street, Suite 2500

Houston,
TX 77002

Attn: Mr.
Shay Kuperman

Telephone:
(713) 758-4762

Fax: (713)
615-5106

Email: skuperman@velaw.com

 

    	26

    	 

    

 

If to Buyer:

 

Taurus Energy,
LLC

5177 Richmond
Ave., Suite 1220

Houston,
TX 77056

Attn: Jose
Gonzalez

Telephone:
(713) 333-3005

Fax: (713)
333-3006

Email: jose@us-sand.com

 

With copy to:

 

Sutherland Asbill & Brennan
LLP

1001 Fannin Street, Suite 3700

Houston, Texas 77002

Attn: Ram Sunkara

Telephone: (713) 470-6103

Fax: (713) 654-1301

Email : ram.sunkara@sutherland.com

 

Any Party may, by written notice so delivered
to the other Parties, change the address or individual to which delivery shall thereafter be made.

 

9.4          
Amendments. Except for waivers specifically provided for in this Agreement, this Agreement may not be amended nor
any rights hereunder waived except by an instrument in writing signed by the Party to be charged with such amendment or waiver
and delivered by such Party to the Party claiming the benefit of such amendment or waiver.

 

9.5          
Headings. The headings of the Articles and Sections of this Agreement are for guidance and convenience of reference
only and shall not limit or otherwise affect any of the terms or provisions of this Agreement.

 

    	27

    	 

    

 

9.6          
Counterparts/Fax Signatures. This Agreement may be executed by Buyer and Sellers in any number of counterparts, each
of which shall be deemed an original instrument, but all of which together shall constitute but one and the same instrument. Signatures
exchanged by fax or .pdf signatures shall be considered binding.

 

9.7          
References. References made in this Agreement, including use of a pronoun, shall be deemed to include where applicable,
masculine, feminine, singular or plural, individuals or entities. As used in this Agreement, “person” shall
mean any natural person, corporation, partnership, trust, limited liability company, court, agency, government, board, commission,
estate or other entity or authority. The words “include,” “includes,” and “including” do not
limit the preceding terms or words and shall be deemed to be followed by “without limitation.”

 

9.8          
Governing Law; Waiver of Jury Trial. This Agreement and the transactions contemplated hereby shall be construed in
accordance with, and governed by, the laws of the State of Texas, without regard to its conflicts of laws rules; provided, however,
the laws of the State where the subject leases are located shall control the Assignment with respect to conveyance matters and
other real property matters necessarily subject to the laws of the State where the subject leases are located. EACH OF THE PARTIES
HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION
HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION
IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT.

 

9.9          
Arbitration. Except as otherwise indicated herein, any claim, controversy or dispute arising out of, relating to,
or in connection with the Agreement or the agreements and transactions contemplated hereby, by Buyer or Seller, including the interpretation,
validity, termination or breach thereof, shall be resolved solely through binding arbitration in accordance with the dispute resolution
procedures set forth in this Section 9.9. The Parties covenant that they shall not resort to court remedies except as provided
for in this Section 9.9, or for preliminary relief in aid of arbitration. Except as otherwise provided in this Agreement, the following
provisions shall apply to any arbitrations conducted pursuant to this Agreement:

 

(a)               
Within ten (10) days after written demand by either Party for arbitration, Sellers and Buyer shall each appoint one arbitrator.
The two arbitrators so appointed shall then appoint a third arbitrator. If either Party shall fail to appoint an arbitrator within
the time stated, or if the two arbitrators so appointed fail within ten (10) days after the appointment of the second of them to
agree on a third arbitrator, the arbitrator or arbitrators necessary to complete a panel of three (3) arbitrators shall be appointed
pursuant to the commercial arbitration rules specified by the AAA. All arbitrators must be neutral disinterested parties who have
never been officers, directors or employees or attorneys of the parties or any of their affiliates, must have not less than ten
(10) years’ experience in the oil and gas industry, and must have a formal financial/accounting, petroleum engineering, land
or legal education.

 

    	28

    	 

    

 

(b)              
The arbitration proceeding shall be governed by Texas law and shall be conducted in accordance with the Commercial Arbitration
Rules of the AAA with discovery to be conducted in accordance with the Federal Rules of Civil Procedure, and with any disputes
over the scope of discovery to be determined by the arbitrators.

 

(c)               
The arbitration proceeding shall be held in Denver, Colorado and a hearing shall be held no later than sixty (60) days after
submission of the matter to arbitration, and a written decision shall be rendered by the arbitrators within thirty (30) days of
the hearing.

 

(d)              
At the hearing, the Parties shall present such evidence and witnesses as they may choose, with or without counsel. Adherence
to formal rules of evidence shall not be required but the arbitration panel shall consider any evidence and testimony that it determines
to be relevant, in accordance with procedures that it determines to be appropriate.

 

(e)               
Any award entered in the arbitration shall be made by a written opinion stating the reasons and basis for the award made
and may include an award of reasonable costs and attorney’s fees if the arbitrator panel so determines.

 

(f)               
The costs incurred in employing the arbitrators, including the arbitrators’ retention of any independent qualified
experts, shall be borne 50% by the Sellers and 50% by Buyer.

 

(g)              
The arbitrator’s award may be filed in any court of competent jurisdiction and may be enforced by any Party as a final
judgment of such court.

 

9.10      
Confidentiality. Buyer shall keep any data or information acquired by Buyer in the course of its due diligence examination
(including, without limitation, information acquired pursuant to its review of the Records and Samson Records) and any reports
or results generated from such due diligence examination (the “Due Diligence Materials”) strictly confidential
and shall not disclose any of such data, information or results to any governmental authority or other third party unless required
by law or regulation and then only after written notice to Sellers of the determination of the need for disclosure. If Buyer becomes
legally compelled to disclose any of the Due Diligence Materials, Buyer shall use all commercially reasonable efforts to provide
Sellers with notice sufficiently prior to any such disclosure so as to allow Sellers, at Sellers’ expense, to file any protective
order, or seek any other remedy, as it deems appropriate under the circumstances. Buyer shall use the Due Diligence Materials only
in connection with the transactions contemplated by this Agreement. If this Agreement is terminated prior to the Closing, Buyer
shall, upon Sellers’ request, deliver the Due Diligence Materials to Sellers, which Due Diligence Materials shall become
the sole property of Sellers.

 

9.11      
Entire Agreement. This Agreement constitutes the entire understanding among the Parties with respect to the subject
matter hereof, superseding all negotiations, prior discussions and prior agreements and understandings relating to such subject
matter.

 

9.12      
Indemnification.

 

(a)               
Samson’s Indemnification of Buyer. Samson assumes all risk, liability, obligation and Losses in connection
with, and Samson shall defend, indemnify, save and hold harmless Buyer, and its affiliates, shareholders, principals, members,
partners, investors, representatives, agents, successors, and assigns (the “Buyer Indemnified Parties”), from
and against all Losses which arise directly or indirectly from or in connection with:

 

(i)                
 any breach by Samson of any of Samson’s representations, warranties or covenants hereunder;

 

(ii)              
the Retained Liabilities; or

 

(iii)            
Samson’s interest in the Excluded Assets.

 

    	29

    	 

    

 

(b)              
FPEC’s Indemnification of Buyer. FPEC assumes all risk, liability, obligation and Losses in connection with,
and FPEC shall defend, indemnify, save and hold harmless the Buyer Indemnified Parties from and against all Losses which arise
directly or indirectly from or in connection with:

 

(i)                
 any breach by FPEC of any of FPEC’s representations, warranties or covenants hereunder; or

 

(ii)              
FPEC’s interest in the Excluded Assets.

 

(c)               
Buyer’s Indemnification of Sellers. Buyer assumes all risk, liability, obligation and Losses in connection
with, and shall defend, indemnify, and save and hold harmless Sellers, and each of their respective affiliates, shareholders, principals,
members, partners, investors, representatives, agents, successors, and assigns (collectively, the “Seller Indemnified
Parties”), from and against all Losses which arise directly or indirectly from or in connection with:

 

(i)                
the Assumed Liabilities;

 

(ii)              
any breach by Buyer of any of Buyer’s representations, warranties or covenants hereunder; and

 

(iii)            
Buyer and/or Buyer’s representative conducting a Phase One Assessment (as defined below).

 

(d)              
Losses. “Losses” shall mean any actual losses, costs, expenses (including court costs, reasonable
fees and expenses of attorneys, technical experts and expert witnesses and the cost of discovery and investigation), liabilities,
damages, demands, suits, claims, and sanctions of every kind and character (including civil fines) arising from, related to or
reasonably incident to matters indemnified against; excluding however, any special, consequential, punitive or exemplary
damages, including without limitation, damages for diminution of value of an Asset, loss of profits incurred by a Party hereto
or Losses incurred as a result of the indemnified Party indemnifying a third party.

 

(e)               
No Insurance; Subrogation. The indemnifications provided herein shall not be construed as a form of insurance. Each
Party hereby waives for itself, its successors or assigns, including, without limitation, any insurers, any rights to subrogation
for Losses for which each Party is respectively liable or against which each Party indemnifies another Party.

 

    	30

    	 

    

 

(f)               
Liability Limitations.

 

(i)                
Notwithstanding anything to the contrary set forth herein, the Buyer Indemnified Parties shall not assert a claim against
either Seller for indemnification under Section 9.12(a) or (b) unless (i) the amount exceeds $50,000 with respect to any individual
Loss and (ii) with respect to total Buyer Losses in excess of such amount, the aggregate amount of such Buyer Losses exceeds, in
aggregate, $500,000 (the “Buyer Basket”) and then the recoverable Losses shall be limited to those that exceed
the Buyer Basket.

 

(ii)              
The aggregate liability of Samson to the Buyer Indemnified Parties in connection with breaches of representations, warranties,
covenants and agreements of Samson contained in this Agreement shall in no event exceed 25% of the portion of the Joint Purchase
Price paid to Samson plus 25% of the Samson Purchase Price. The aggregate liability of FPEC to any Buyer Indemnified Parties in
connection with breaches of representations, warranties, covenants and agreements of FPEC contained in this Agreement shall in
no event exceed 25% of the portion of the Joint Purchase Price paid to FPEC. The Buyer Indemnified Parties shall not be entitled
to seek indemnity exceeding such amounts under this Agreement or otherwise, and the Buyer Indemnified Parties shall have no recourse
against Sellers after such threshold is met.

 

(iii)            
From and after the Closing, the remedies set forth in this Section 9.12 shall provide the sole and exclusive remedies arising
out of, in connection with, relating to or arising under this Agreement and any other document, agreement, certificate or other
instrument delivered pursuant hereto or in connection with the transactions contemplated hereby, whether based on contract, tort,
strict liability, other laws or otherwise, including any breach or alleged breach of any representation, warranty, covenant or
agreement made herein or any other document contemplated herein or delivered pursuant hereto. The Parties acknowledge and agree
that from and after the Closing the remedies available in this Section 9.12 supersede (and each Party waives and releases) any
other remedies available at law or in equity including rights of rescission, rights of contribution and Losses arising under applicable
statutes.

 

(iv)            
The indemnities set forth in this Section 9.12 shall be enforceable against the Parties in accordance with the express terms
and scope thereof notwithstanding any express negligence rule or any similar directive that would prohibit or otherwise limit indemnities
because of the simple or gross negligence (whether sole, concurrent, active or passive) or other fault or strict liability of any
indemnitee.

 

9.13      
Binding Effect. This Agreement shall be binding upon, and shall inure to the benefit of, the Parties hereto, and
their respective successors and assigns.

 

9.14      
No Third-Party Beneficiaries. This Agreement is intended only to benefit the Parties hereto and their respective
permitted successors and assigns.

 

    	31

    	 

    

 

9.15      
Survival. All representations and warranties in this Agreement shall survive for a period of eighteen (18) months
following the Closing Date.

 

9.16      
Waiver. The waiver or failure of any Party to enforce any provision of this Agreement shall not be construed or operate
as a waiver of any further breach of such provision or of any other provision of this Agreement.

 

9.17      
Limitation on Damages. The Parties hereto expressly waive any and all rights to consequential, special, incidental,
punitive or exemplary damages, or loss of profits resulting from any breach of this Agreement.

 

9.18      
Severability. It is the intent of the Parties that the provisions contained in this Agreement shall be severable.
Should any provisions, in whole or in part, be held invalid as a matter of law, such holding shall not affect the other portions
of this Agreement, and such portions that are not invalid shall be given effect without the invalid portion.

 

9.19      
Announcements. Except as and to the extent required by law, neither Buyer nor Sellers will make any press release
or announcement with respect to this Agreement or the transactions contemplated hereby without the prior consent of the other Party,
such consent not to be unreasonably withheld or delayed; provided, however, if a Party is required to make such a public
announcement or statement by law or under the rules and regulations of the New York Stock Exchange (or other public stock exchange
of similar reputation and standing) on which the shares of such Party or any of its affiliates are listed, then the same may be
made without the approval of the other Party. The opinion of counsel of the Party making such announcement or statement shall be
conclusive evidence of such requirement by law or rules or regulations.

 

9.20      
Transfer Taxes and Recording Fees. Buyer shall pay all sales, transfer, use or similar taxes, if any, occasioned
by the sale or transfer of the Leases and all documentary, transfer, filing, licensing, and recording fees required in connection
with the processing, filing, licensing or recording of any assignments, titles or bills of sale.

 

9.21      
Relationship of the Parties. This Agreement shall not be deemed or construed to create an agency relationship between
the Parties. This Agreement is not intended to create, and shall not be construed to create, a joint venture, tax or other partnership
or association or to render the Parties liable as partners. However, if for federal income tax purposes, this Agreement and the
operations conducted by the Parties pursuant hereto are regarded as having created a partnership, each Party thereby affected elects
to be excluded from the application of all of the provisions of Subchapter “K,” Chapter 1, Subtitle “A,”
of the Code as permitted and authorized by Section 761 of the Code and the regulations promulgated thereunder. Should there be
any law that each Party thereby affected give further evidence of this election, each such Party shall execute such documents and
furnish such other evidence as may be required by the Internal Revenue Service or as may be necessary to evidence this election.
No Party shall give any notice or take any other action inconsistent with the election made hereby.

 

9.22      
Further Assurances. From time to time after Closing, Sellers and Buyer shall each execute, acknowledge and deliver
to the other such further instruments and take such other action as may be reasonably requested in order to accomplish more effectively
the purposes of the transactions contemplated by this Agreement.

 

    	32

    	 

    

 

9.23      
Samson Parent Guaranty. Samson Parent is a party to this Agreement solely for the purpose of this Section 9.23, as
a guarantor on behalf of Samson (its direct wholly-owned subsidiary). Samson Parent fully, irrevocably and unconditionally guarantees
to Buyer the full, complete and timely compliance with and performance of all agreements, covenants and obligations of Samson under
this Agreement (the "Samson Obligations") (collectively, the "Samson Parent Guaranty"). The Samson Obligations
shall include Samson's obligation to satisfy all indemnification and other payment obligations of Samson arising in connection
with this Agreement when and to the extent that any of the same shall become due and payable or performance of or compliance with
any of the same shall be required. The Samson Parent Guaranty constitutes an irrevocable and continuing guarantee of payment and
performance and Samson Parent shall be liable for any breach of any of the Samson Obligations. The Samson Parent Guaranty shall
remain in full force and effect and shall be binding on Samson Parent and its successors and assigns until all of the Samson Obligations
have been satisfied in full (which, for the avoidance of doubt, shall not be deemed to have occurred until the date following the
date on which all indemnification obligations of Samson under this Agreement expire).

 

9.24      
Seller Liability. The obligations and liabilities of each Seller under this Agreement shall be several as to each
Seller, and not joint and several.

 

9.25      
Environmental Review. Sellers hereby consent to Buyer conducting, prior to Closing, at Buyer's sole risk and expense,
an ASTM Phase One Environmental Assessment (a "Phase One Assessment") of the Assets. The Phase One Assessment shall not
include sampling activities or other environmental testing. Samson shall have the right to be present during any Phase One Assessment
of the Assets. Buyer shall promptly provide Sellers with copies of all reports (whether in draft or final form), test results,
and other documentation and data prepared or compiled by Buyer and/or any of Buyer's representatives and which contain information
collected or generated from the Phase One Assessment conducted with respect to such Assets. Sellers shall not be deemed by their
receipt of said documents or otherwise to have made any representation or warranty, expressed, implied or statutory, as to the
condition to the Assets or to the accuracy of said documents or the information contained therein, and Buyer's sole remedy with
respect to the results of the Phase One Assessment and the condition of the Assets is set forth Section 5.4(f) and 5.6 hereof.
Upon completion of Buyer's Phase One Assessment, Buyer shall at its sole cost and expense repair any damage done to the Assets
in connection with Buyer's due diligence in accordance with recognized industry standards.

  

[Signature Page Follows]

 

    	33

    	 

    

 

IN WITNESS WHEREOF
the Parties have executed this Agreement as of the Execution Date.

 

	 	SAMSON:

 

		SAMSON OIL AND GAS USA MONTANA, INC.,
    a Colorado corporation

 

		By:/s/ Terence Barr_________________________

		Name: Terence Barr

		Title: President and Chief Executive Office

 

		SAMSON PARENT:

 

		SAMSON OIL AND GAS USA, INC., a
    Colorado corporation

 

		By: /s/ Terence Barr________________________

		Name: Terence
    Barr

		Title: President and Chief Executive Office

 

	 	FPEC:

 

		FORT PECK ENERGY COMPANY, LLC,
    a Delaware limited liability company

 

		By: Native
    American Resource Partners, LLC, as Manager

 

		By: /s/ Lynn D.
    Becker______________________

		Name: Lynn D.
    Becker

		Title: Vice President

 

	 	BUYER:

 

		TAURUS ENERGY, LLC, a
    Montana limited liability company

 

		By: /s/ Jose
    Gonzalez_______________________

		Name: Jose
    Gonzalez

		Title: Managing Member

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