Document:

EX-10.1

PURCHASE AND SALE AGREEMENT

BETWEEN

TETON DJ LLC

AS SELLER

AND

NOBLE ENERGY, INC.

AS BUYER

DATED EFFECTIVE FEBRUARY 1, 2009

CHASE, DUNDY, KEITH AND PERKINS COUNTIES, NEBRASKA

PHILLIPS, SEDGWICK AND YUMA COUNTIES, COLORADO

CONFIDENTIAL

TABLE OF CONTENTS

Page

EXHIBITS

	 	 	 	 	 
	Exhibit	 	Description	 	Section
	 	 	 	 	Reference
	A-1
	 	Leases and Lands (Chundy, Grant and East Big Springs

Complexes)

	 	1.2.a

	A-2
	 	Leases and Lands (Frenchman Creek)

	 	1.2.a
	B
	 	Wells and Allocated Values

	 	1.2.b
	C
	 	Easements and Surface Leases

	 	1.2.e
	D
	 	Personal Property and Equipment

	 	1.2.e
	E
	 	Facility Sites

	 	1.2.f
	F
	 	Officer’s Certificates of Seller and Teton Energy

	 	11.3.a
	G
	 	Officer’s Certificate of Buyer

	 	11.3.b
	H
	 	Non-Foreign Affidavit of Seller

	 	11.3.c
	I
	 	Form of Assignment and Bill of Sale

	 	11.3.d

DISCLOSURE SCHEDULES

	 	 	 	 	 	 	 	 	 
	Schedule	 	Description	 	Section
	 	 	 	 	 	 	Reference
	 	6.8	 	 	Material Agreements

	 	 	6.8	 

PURCHASE AND SALE AGREEMENT

This Purchase and Sale Agreement (“Agreement”), dated March 31, 2009, is by and between Teton
DJ LLC, a Colorado limited liability company, (“Seller” or “Teton DJ”) with an address of 600 17th
Street, Suite 1600 North, Denver, Colorado 80202, and Noble Energy, Inc., a Delaware corporation
(“Buyer” or “Noble”) with an address of 1625 Broadway, Suite 2200, Denver, Colorado 80202. The
transaction contemplated by this Agreement may be referred to as the “Transaction.” Seller and
Buyer may be referred to individually as a “Party” or collectively as the “Parties.” Teton Energy
Corporation (“Teton Energy”) joins in this Agreement for the purposes of providing certain
guarantees in accordance with existing agreements between the Parties.

RECITALS

A. Teton Energy and Noble entered into an Acreage Earning Agreement dated effective
December 31, 2005 (the “Acreage Earning Agreement”) , providing for the earning by Noble of an
interest in oil and gas leasehold properties owned by Teton Energy (the “Teton Leases”), the
exploration for oil and gas, the drilling and operation of wells, the installation of production
infrastructure, and the acquisition of oil and gas properties within an area of mutual interest
(the “AMI”), among other matters, in Chase, Dundy, Keith and Perkins Counties, Nebraska and
Sedgwick County, Colorado.

B. By First Amendment to Acreage Earning Agreement dated effective December 31, 2005 (the
“Amendment”), among other matters, Teton Energy and Noble acknowledge that title to the Teton
Leases is held by Teton DJ, a wholly owned subsidiary of Teton Energy and, therefore, Teton DJ
should be a party to the joint operating agreements covering jointly owned oil and gas properties
in the AMI.

C. The Amendment provides that Teton Energy agrees to indemnify, hold harmless and defend
Noble from and against all losses whatsoever arising out of any failure on the part of Teton DJ to
perform its obligations under joint operating agreements covering the jointly owned properties in
the AMI.

D. Seller owns and desires to sell the Assets, as defined below, to Buyer upon the terms and
conditions set forth in this Agreement.

E. Buyer desires to purchase the Assets pursuant to the terms and conditions of this
Agreement.

AGREEMENT

In consideration of the mutual promises contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer agree
as follows:

ARTICLE 1

PURCHASE AND SALE

1.1 Purchase and Sale. Seller agrees to sell and convey to Buyer, and Buyer agrees to
purchase and receive from Seller, the Assets, as defined below.

1.2 Assets. The “Assets” are all of Seller’s right, title and interest in and to the
following real and personal property interests, located in Chase, Dundy, Keith and Perkins
Counties, Nebraska, and Phillips, Sedgwick and Yuma Counties, Colorado.

a. The oil and gas leases described on Exhibits A-1 and A-2, including extensions and
renewals thereof (the “Leases”) (including without limitation working interests, operating
rights, overriding royalty interests, production payments and net profits interests) insofar
as the Leases cover all lands covered by the Leases, whether or not such lands are
adequately or fully described on Exhibit A (the “Lands”), and the oil, gas and all other
hydrocarbons (including, but not limited to, coalbed methane) (“Hydrocarbons”), that may be
produced from the Leases and Lands;

b. The oil and gas wells located on the Leases and Lands described on Exhibit A-1 only,
or lands pooled or unitized therewith, including without limitation, the oil and gas wells
specifically described on Exhibit B, whether producing or non-producing; all injection and
disposal wells on the Leases and Lands described on Exhibit A-1 only (the “Wells”), and all
personal property and equipment associated with the Wells as of the Effective Time;

c. The rights, to the extent transferable, in and to all existing and effective
unitization, pooling and communitization agreements, declarations and orders, and the
properties covered and the units created thereby, to the extent that they relate to or
affect any of the interests described in Sections 1.2.a. and 1.2.b. or the post-Effective
Time production of Hydrocarbons from the Leases and Lands;

d. The rights, to the extent transferable, in and to the Material Agreements described
on Schedule 6.8, only insofar as they relate to the Leases and Lands;

e. All of the personal property, materials, fixtures, improvements, well equipment,
piping, valves, electrical, communications, separation, dehydration, compression and other
equipment and facilities, tanks, chemicals, injection facilities, saltwater disposal
facilities, flow lines, gathering systems (including without limitation the Chundy Gathering
System), permits, licenses, approvals, servitudes, rights-of-way, easements, surface leases,
and other surface rights and all other appurtenances and facilities located on or used in
connection with or otherwise related to the exploration for or production, gathering,
treatment, processing, storing, sale or disposal of Hydrocarbons or water produced from the
properties and interests described in Sections 1.2.a through 1.2.d, including without
limitation the easements and surface leases described on Exhibit C and the personal property
and equipment described on Exhibit D;

f. The lands described on Exhibit E (“Facility Sites”);

g. All data, interpretive data and geophysical modeling seismic lines over the general
area of the Assets owned by Seller, including 3-D seismic over Seller’s “Frenchman Creek”
prospect, but excluding from the foregoing those files, records, data and information that
are (i) subject to unaffiliated third party contractual restrictions on disclosure or
transfer, which are applicable to Buyer or (ii) subject to a transfer fee, unless Buyer
agrees in writing to pay such transfer fees; and

h. All files, records, correspondence, data and information relating to the items
described in Sections 1.2.a through 1.2.g maintained by Seller (the “Records”), including,
without limitation, lease and land files, abstracts, title reports, memoranda and opinions,
well files, contract files, tax and accounting files related to the Assets.

1.3 Excluded Wells, Frenchman Creek. All wellbores on the Leases and Lands described
on Exhibit A-2, including without limitation the Kramer 24-12 Well located in the SE/4SW/4 of
Section 12, T. 6 N., R. 43 W., and the Kramer 12-13 Well located in the SW/4NW/4 of Section 13, T.
6 N., R. 43 W., Phillips County, Colorado, are excluded from this Agreement and the Transaction
(the “Excluded Wellbores”).

1.4 Teton ORRI LLC. For the avoidance of doubt, the Assets do not include any
overriding royalty interests in the Leases and Lands owned by Teton ORRI LLC on the date of
Closing.

1.5 Effective Time. The purchase and sale of the Assets shall be effective as of
February 1, 2009 at 7:00 a.m., Mountain Time (the “Effective Time”).

ARTICLE 2

PURCHASE PRICE

2.1 Purchase Price. The Purchase Price for the Assets shall be Three Million Eight
Hundred Thousand Dollars ($3,800,000.00) (the “Purchase Price”), subject to Section 2.2 below.
Based on market valuations performed by independent third parties, and Seller’s reasonable judgment
based on several factors, including but not limited to market solicitations, offers made to Seller,
and expressions of interest made and received by Seller, the Purchase Price is fair and reasonable
consideration for the Assets.

2.2 Adjustments to Purchase Price. The Purchase Price shall be adjusted at Closing
according to this Section without duplication pursuant to a “Settlement Statement” approved by
Seller and Buyer on or before Closing. A draft of the Settlement Statement will be prepared by
Buyer and provided to Seller on or before Closing for Buyer’s comment and review. The Settlement
Statement shall set forth the Purchase Price as adjusted as provided in this Section, which amount
is referred to as the “Closing Amount.” For the purposes of this Agreement, the term “Property
Expenses” shall mean all capital expenses, joint interest billings, lease operating expenses, lease
rental and maintenance costs, Taxes (as defined and apportioned as of the Effective Time pursuant
to Article 13), drilling expenses, workover expenses, geological, geophysical and any other
exploration or development expenditures chargeable under applicable operating agreements or other
agreements consistent with the standards established by the Council of Petroleum Accountant
Societies of North America that are attributable to the maintenance and operation of the Assets
during the period in question.

a. Upward Adjustments. The Purchase Price shall be adjusted upward by the
following:

i. An amount equal to all Property Expenses, including prepaid expenses,
attributable to the Assets after the Effective Time that were paid by Seller (all to
be apportioned as of the Effective Time except as otherwise provided), including
without limitation, prepaid rentals and royalties, including lease rentals;

ii. The proceeds of production attributable to the Assets occurring before the
Effective Time and received by Buyer, net of royalties and taxes measured by
production;

iii. An amount equal to the value actually received by Buyer for Seller’s share
of any oil or condensate in tanks or storage facilities produced from or credited to
the Leases and Lands prior to the Effective Time based upon the quantities in oil or
condensate tanks or storage facilities as measured by and reflected in Seller’s
records; and

iv. Any other amount provided in this Agreement or agreed upon by Seller and
Buyer.

b. Downward Adjustments. The Purchase Price shall be adjusted downward by the
following:

i. An amount equal to all Property Expenses attributable to the Assets prior to
the Effective Time that are paid by Buyer, subject to Section 2.2.c.;

ii. An amount equal to the sum of all Title Defect adjustments under Section
4.4.b.;

iii. An amount equal to the sum of all Environmental Defect adjustments under
Section 5.3.b;

iv. The proceeds of production attributable to the Assets occurring on or after
the Effective Time and received by Seller, net of royalties and taxes measured by
production; and

v. Any other amount provided in this Agreement or agreed upon by Seller and
Buyer.

c. Final Allocation of Property Expenses. The Parties have agreed on the
amount of all Property Expenses related to periods prior to the Effective Time, subject to
the apportionment of Taxes as provided in Article 13, on an arms’ length basis and after
adequate and sufficient inquiry and investigation. For purposes of this paragraph only,
Property Expenses shall not include claims by third parties for additional royalties payable
with respect to Seller’s interest in the Assets prior to the Effective Time.

2.3 Allocated Values. Buyer and Seller have agreed to allocate the Purchase Price
among the Assets as follows, which amounts shall be referred to as the “Allocated Value.”

	 	 	 	 	 	 	 	 	 
	Wells:
	 	$	2,000,000	 	 	As allocated among the Wells on
	 
	 	 	 	 	 	Exhibit B
	Undeveloped
Leasehold:
	 	$	870,160	 	 	 	 	 
	 	 	 
	Chundy Gathering
	 	$	725,540	 	 	 	 	 
	System:
	 	 	 	 	 	 	 	 
	 	 	 
	Frenchman Creek Leasehold:
	 	$	139,300	 	 	 	 	 
	Frenchman Creek Seismic:
	 	$	65,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 
	TOTAL
	 	$	3,800,000	 	 	 	 	 

ARTICLE 3

DUE DILIGENCE REVIEW

3.1 Access to Records. Subject to Section 3.2, Seller will disclose and make
available to Buyer and its representatives at Seller’s or Seller’s agent’s office and during
Seller’s normal business hours, all Records in Seller’s possession or control relating to the
Assets for the purpose of permitting Buyer to perform its due diligence review including, but not
limited to, all title opinions, well, leasehold, unit, title, contract, division order, accounting,
tax, gas marketing, vendor and creditor files. Seller agrees to cooperate with Buyer in Buyer’s
efforts to obtain, at Buyer’s sole expense, such additional information relating to the Assets as
Buyer may reasonably desire. Buyer may inspect the Records only to the extent it may do so without
violating any obligation, confidence or contractual commitment of Seller to a third party. Seller
shall use reasonable efforts to obtain the necessary consents to allow Buyer’s examination of any
confidential information that is material to this transaction.

3.2 Representation and Warranty. Seller makes no representations regarding the
accuracy of any of the Records; provided, however, Seller does represent that (i) all of the
Records are files, or copies thereof, that Seller has used in the ordinary course of operating and
owning the Assets, (ii) Seller has not intentionally withheld any material information in the
Records and (iii) Seller has not intentionally misrepresented any material information in the
Records. Except as set forth in this Section 3.2, no representation or warranty of any kind is
made by Seller as to the Records and Buyer expressly agrees that any conclusions drawn therefrom
shall be the result of its own independent review and judgment. The representations contained in
this paragraph shall apply only to matters of fact, and shall not apply to any information, data,
printouts, extrapolations, projections, documentation, maps, graphs, charts, or tables which
reflect, depict, present, portray, or represent, or which are based upon or derived from, in whole
or in part, interpretation of the Records including, but not limited to, matters of geological,
geophysical, engineering, or scientific interpretation.

ARTICLE 4

TITLE MATTERS

4.1 Defensible Title. The term “Defensible Title” means such title to the Assets,
that, subject to and except for Permitted Encumbrances: (i) entitles Seller to receive not less
than the net revenue interest set forth on Exhibit B for each Well listed on Exhibit B (“NRI”);
(ii) obligates Seller to bear costs and expenses relating to the maintenance, development,
operation and the production of Hydrocarbons from each Well in an amount not greater than the
working interest set forth in Exhibit B (“WI”); (iii) is not subject to reduction by virtue of the
exercise by any third party of a reversionary interest, back in or similar right except as
scheduled in Exhibit B; (iv) is free and clear of mortgages, encumbrances, liens, delinquent taxes
and preferential rights to purchase or rights of first refusal unless the foregoing rights are
waived by the holders thereof; (v) is not subject to unperformed drilling obligations except as
expressly assumed by Buyer; and (vi) is not subject to defects or conditions that would create a
material impairment of use or loss of interest in the affected Asset.

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

a. lessors’ royalties, overriding royalties, net profits interests, production
payments, reversionary interests and similar burdens if the net cumulative effect of such
burdens does not operate to reduce the NRI set forth on Exhibit B;

b. liens for Taxes, or assessments, not yet due or delinquent;

c. all rights to consent by, required notices to, filings with, or other actions by
federal, state and local governmental entities in connection with the ownership or operation
of the Leases if the same are customarily obtained subsequent to such transfer of ownership
or operations;

d. easements, rights-of-way, servitudes, permits, and surface leases on, over, or in
respect of property owned or leased by Seller or over which Seller owns rights-of-way,
easements, permits, or licenses that are of record in the applicable county to the extent
such matters, individually or in the aggregate, do not materially interfere with oil and gas
operations on the Leases and do not materially affect the value thereof;

e. rights of reassignment upon the surrender or expiration of any Lease;

f. the terms and conditions of the Material Agreements to the extent such do not
decrease the NRI for the affected Asset or increase the WI for such Asset without a
corresponding proportionate increase in the NRI for such Asset; and

g. any encumbrance, title defect or matter waived or deemed waived by Buyer pursuant to
Section 4.4.a.

4.3 Title Defects. The term “Title Defect” means any encumbrance, encroachment,
irregularity, defect in or objection to real property title, excluding Permitted Encumbrances, that
alone or in combination with other defects renders title to an Asset less than Defensible Title.

4.4 Adjustments for Title Defects.

a. Notice of Title Defects. Buyer shall deliver to Seller a written “Notice of
Title Defects” on or before March 31, 2009. The Notice of Title Defects shall describe the
Title Defect and state the reduction in the Allocated Value of an Asset caused by the Title
Defect (the “Defect Value”). Other than matters which are violative of Seller’s special
warranty of title set out in Exhibit I, any matters not described in a written Notice of
Title Defect shall conclusively be deemed to have been waived and accepted by Buyer, and
shall be deemed Permitted Encumbrances hereunder. In determining the Defect Value, the
Parties intend to include only that portion of the Asset affected by the Title Defect. The
Defect Value may not exceed the Allocated Value of the Asset and shall be determined by the
Parties in good faith, taking into account all relevant factors, including without
limitation the following:

i. If the Title Defect is a lien or encumbrance on the Asset created by Seller,
and such lien or encumbrance is unconditionally released at or prior to Closing,
there shall be no Defect Value associated with such lien or encumbrance.

ii. If the Title Defect is an actual reduction in NRI or any other matter that
does not fall within the matters described in subsection i., then the Buyer will
rerun its ARIES based calculation (or similar program) that resulted in the
Allocated Value for the affected portion of the Assets using the same economic and
engineering criteria except as changed to accommodate the Title Defect to calculate
the impact on the Allocated Value for the affected Asset. This revised calculation
of the Allocated Value will be presented to Seller, and Buyer and Seller will act in
good faith to reach mutual agreement as to the diminution effect of the Title Defect
and thus the Defect Value.

b. Defect Adjustments. With respect to adjustments to the Purchase Price for
Title Defects, the Parties agree as follows:

i. “Excluded Assets” are Assets excluded from this Agreement pursuant to
Sections 4.4.b.iii and 5.3.b.

ii. Seller shall have the option of attempting to cure Title Defects to the
reasonable satisfaction of Buyer on or before the Closing Date, which option shall
be communicated to Buyer prior to the Closing Date.

iii. If Seller does not elect to cure or cannot cure a Title Defect to Buyer’s
reasonable satisfaction, Buyer shall have the option to either accept assignment of
the Asset affected by a Title Defect, and the Purchase Price shall be adjusted
downward by the Defect Value, or to exclude such Asset from this Agreement. If
Buyer elects to exclude such Asset, the Purchase Price shall be adjusted downward by
an amount equal to the Allocated Value of the Excluded Asset.

4.5 Dispute Resolution. The Parties agree to resolve disputes concerning the
following matters pursuant to this Section 4.5: (i) the existence of a Title Defect, (ii) the
adequacy of Title Defect curative materials submitted pursuant to Section 4.4.b, and (iii) the
amount of a Defect Value (collectively, the “Disputed Defect Matters”). The Parties agree to
attempt to initially resolve all disputes through good-faith negotiations. Subject to Buyer’s and
Seller’s right to terminate this Agreement under Article 10 prior to Closing, if the Parties cannot
resolve such disputes on or before Closing, the Disputed Defect Matters shall be submitted to
binding arbitration in accordance with the procedures set forth in Section 14.5.d. In such event,
an amount equal to the Defect Values associated with the Disputed Defect Matters shall be withheld
from the Purchase Price paid by Buyer to Seller at Closing, and the affected Assets shall be
retained by Seller at Closing. If, following binding arbitration, the Seller is obligated to sell
and the Buyer is obligated to purchase the Assets or portions of the Assets affected by a Disputed
Defect Matter, the closing date for the affected Assets shall occur within ten (10) Business Days
following the decision of the arbitrators or as otherwise agreed to by the Parties. “Business Day”
means a day on which commercial banks located in Denver, Colorado are open for business.
Notwithstanding the foregoing, Closing shall occur on March 31, 2009 as to Assets which are not
affected by a Disputed Defect Matter, subject, however, to the rights of Seller and Buyer to
terminate this Agreement under Article 10.

4.6 Casualty Loss. After the Effective Time and prior to Closing, if a portion of the
Assets is destroyed by fire or other casualty, or is taken or threatened to be taken in
condemnation or under the right of eminent domain, (with such event being a “Casualty Loss”), Buyer
shall purchase the Asset at Closing for the Allocated Value of the Asset reduced by the estimated
cost to repair or replace such Asset (with equipment of similar utility). In no event shall the
watering out of a well, casing collapse, or breakage of equipment constitute a Casualty Loss.

ARTICLE 5

ENVIRONMENTAL MATTERS

5.1 Definitions. For the purposes of the Agreement, the following terms shall have
the following meanings:

a. Environmental Laws. “Environmental Laws” shall mean all laws, rules,
regulations, statutes, ordinances, decrees or orders of any Governmental Authority relating
to (a) the control of any potential pollutant or protection of the air, water or land, (b)
solid, gaseous or liquid waste generation, handling, treatment, storage, disposal or
transportation, and (c) exposure to hazardous, toxic or other substances alleged to be
harmful, and includes without limitation final and binding requirements related to the
foregoing imposed by (i) the terms and conditions of any license, permit, approval or other
authorization by any Governmental Authority, and (ii) applicable judicial, administrative or
other regulatory decrees, judgments and orders of any Governmental Authority. The term
“Environmental Laws” shall include, but not be limited to, the following statutes and the
regulations promulgated thereunder, as currently in effect: the Clean Air Act, 42 U.S.C. §
7401 et seq., the Clean Water Act, 33 U.S.C. § 1251 et seq., the Resource Conservation
Recovery Act, 42 U.S.C. § 6901 et seq., the Superfund Amendments and Reauthorization Act, 42
U.S.C. § 11011 et seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the
Water Pollution Control Act, 33 U.S.C. § 1251, et seq., the Safe Drinking Water Act, 42
U.S.C. § 300f et seq., the Comprehensive Environmental Response, Compensation, and Liability
Act, 42 U.S.C. § 9601 et seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7
U.S.C. § 136, et. seq., and any similar state, federal or local statute or ordinance.

b. Governmental Authority. “Governmental Authority” shall mean any and all
foreign, federal, state or local governments, governmental institutions, public authorities
and governmental entities of any nature whatsoever, and any subdivisions or
instrumentalities thereof, including, but not limited to, departments, boards, bureaus,
commissions, agencies, courts, administrations and panels, and any divisions or
instrumentalities thereof, whether permanent or ad hoc and whether now or hereafter
constituted or existing.

c. Environmental Defect. “Environmental Defect” means a condition in, on or
under the Assets (including, without limitation, air, land, soil, surface and subsurface
strata, surface water, ground water, or sediments) attributable to a period of time prior to
the Effective Time that causes any portion of the Assets to be in material violation of an
Environmental Law or requires Remediation under an Environmental Law.

d. Remediation. “Remediation” means actions or activities required to comply
with Environmental Laws to (a) clean up or remove hazardous materials from the environment,
(b) prevent or minimize the movement, leaching or migration of hazardous materials into the
environment, (c) prevent, minimize or mitigate the release or threatened release of
hazardous materials into the environment, or injury or damage from such release, and
including without limitation, costs and expenses payable in connection with the foregoing
for legal, engineering or other consultant services, for investigation, testing, sampling
and monitoring, for boring excavation and construction, for removal, modifications or
replacement of equipment or facilities, for labor and material, and for proper storage,
treatment and disposal of hazardous materials.

5.2 Environmental Assessment. Buyer may conduct an on-site inspection, environmental
assessment and compliance audit of the Assets (an “Environmental Assessment”) at Buyer’s cost and
expense. Seller shall provide Buyer with all information in Seller’s possession or control
pertaining to the environmental condition of the Assets, including, but not limited to, status of
any environmental audits, permits, records and assessments in Seller’s possession or control, and
shall make available to Buyer all present personnel who would reasonably be expected to have
knowledge or information regarding the environmental status or condition of the Assets. Buyer
shall provide Seller prior written notice of any environmental inspections and tests, including
sampling activities, and Buyer shall give Seller the opportunity to participate in all such
inspections and tests. Buyer shall provide Seller, at no cost to Seller, all reports of
environmental inspections and tests, provided that all such reports shall be deemed to be
confidential between the parties and subject to the confidentiality provisions of Section 8.6.a of
this Agreement. Buyer agrees to release, indemnify, defend, and hold harmless Seller against all
Losses (as defined in Section 14.3) arising from or related to the activities of Buyer, its
employees, agents, contractors and other representatives in connection with Buyer’s Environmental
Assessment regardless of the negligence or strict liability of Seller.

5.3 Adjustments for Environmental Defects Pre-Closing.

a. Notice of Environmental Defects. Buyer shall provide Seller with written
notice of any Environmental Defect which Buyer’s Environmental Assessment reveals and will
provide evidence thereof. Such notice and evidence shall be given on or before March 31,
2009. Buyer will be deemed to have conclusively waived the right to adjust the Purchase
Price with respect to any Environmental Defect about which it fails to notify Seller in
writing prior to March 31, 2009.

b. Defect Adjustments. Upon receipt of a notice of Environmental Defect,
Seller may, at its sole election prior to the Closing Date, either: (i) agree with Buyer on
an adjustment to the Purchase Price which shall be reflected on the Settlement Statement,
which adjustment shall reflect the cost to remediate such Environmental Defect
(“Environmental Defect Value”); or (ii) in the event of the failure of the Parties to come
to agreement under (i), remove the affected Asset(s) from this Agreement and adjust the
Purchase Price downward by the Allocated Value(s) of the excluded Asset(s) on the Settlement
Statement. Any Remediation of an Environmental Defect shall be conducted by or under the
supervision of Buyer. In no event will Buyer have any obligation to remediate any such
Environmental Defect unless Buyer expressly agrees in writing to do so. There shall be no
reduction to the Purchase Price until such time as the sum of all Environmental Defect
Values exceeds Seventy-Five Thousand Dollars ($75,000) (the “Environmental Threshold
Amount”) but, in such event, the Purchase Price reduction shall include the Environmental
Threshold Amount.

5.4 Environmental Dispute Resolution Pre-Closing. The parties agree to resolve
disputes concerning the following matters pursuant to this Section: (i) the existence and scope of
Environmental Defect, (ii) Buyer’s estimate of costs of Remediation of an Environmental Defect and
(iii) the effectiveness of Remediation. The parties agree to attempt to initially resolve all
disputes through good faith negotiations. If the parties cannot resolve disputes regarding items
(i), (ii) or (iii) on or before the Closing Date, the disputed matters will be finally determined
by binding arbitration pursuant to Section 14.5.d.

5.5 Seller’s Indemnity.

a. Seller shall indemnify, hold harmless, release and defend Buyer from and against all
damages, losses, claims, demands, causes of action, judgments and other costs (including but
not limited to any civil fines, penalties, costs of assessment, clean-up, removal and
remediation of pollution or contamination, and expenses for the modification, repair or
replacement of facilities on the Lands) brought by any and all persons and any agency or
other body of federal, state or local government, on account of any personal injury, illness
or death, any damage to, destruction or loss of property, and any contamination or pollution
of natural resources (including soil, air, surface water or groundwater) to the extent any
of the foregoing directly or indirectly is caused by or otherwise involves any environmental
condition of the Assets or Lands, which is created and arises prior to Closing, including,
but not limited to, the presence, disposal or release of any material (whether hazardous,
extremely hazardous, toxic or otherwise) of any kind in, on or under the Assets or the Lands
before Closing (the “Pre-Closing Environmental Liabilities”). Notwithstanding the
foregoing, Seller’s obligation under this Section 5.5 is effective only if the Environmental
Threshold Amount is exceeded (in which event Seller’s Pre-Closing Environmental Liabilities
shall include the Environmental Threshold Amount and if, and to the extent that, Buyer gives
written notice to Seller of an asserted Pre-Closing Environmental Liability within six (6)
months from the date of Closing (“Retained Environmental Liability”).

b. Seller’s indemnification obligations shall extend to and include, but not be limited
to the following with respect to Pre-Closing Environmental Liabilities: (i) the negligence
or other fault of Seller, third parties and its agents, whether such negligence is active or
passive, joint, sole or concurrent, (ii) Seller’s or Buyer’s strict liability, and (iii)
Seller’s or Buyer’s liabilities or obligations under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. §§ 9601 et seq.),
the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), the Clean
Water Act (33 U.S.C. §§ 466 et seq., the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450),
the Hazardous Materials Transportation Act (49 U.S.C. §§ 1801 et seq.), the Toxic Substances
Control Act (15 U.S.C. §§ 2601-2629), the Clean Air Act (42 U.S.C. § 7401 et seq.) as
amended, the Clean Air Act Amendments of 1990 and all state and local laws and any
replacement or successor legislation or regulation thereto. This indemnification shall be
in addition to any other indemnity provisions contained in this Agreement, and it is
expressly understood and agreed that any terms of this article shall control over any
conflicting or contradicting terms or provisions contained in this Agreement; however, this
Article 5 shall constitute Buyer’s sole remedy for any Pre-Closing Environmental
Liabilities.

c. Seller’s indemnification shall not extend to matters or conditions for which an
adjustment of the Purchase Price was made pursuant to Section 5.3.b(i).

5.6 Buyer’s Indemnity.

a. Except for Excluded Assets, Buyer shall indemnify, hold harmless, release and defend
Seller from and against all damages, losses, claims, demands, causes of action, judgments
and other costs (including but not limited to any civil fines, penalties, costs of
assessment, clean-up, removal and remediation of pollution or contamination, and expenses
for the modification, repair or replacement of facilities on the Lands) brought by any and
all persons and any agency or other body of federal, state or local government, on account
of any personal injury, illness or death, any damage to, destruction or loss of property,
and any contamination or pollution of natural resources (including soil, air, surface water
or groundwater) to the extent any of the foregoing directly or indirectly is caused by or
otherwise involves any environmental condition of the Assets or Lands, which is created and
arises after Closing, including, but not limited to, the presence, disposal or release of
any material (whether hazardous, extremely hazardous, toxic or otherwise) of any kind in, on
or under the Assets or the Lands after Closing (the “Post-Closing Environmental
Liabilities”).

b. Buyer’s indemnification obligations shall extend to and include, but not be limited
to the following with respect to Post-Closing Environmental Liabilities: (i) the negligence
or other fault of Buyer, third parties, and its agents, whether such negligence is active or
passive, joint, sole or concurrent, (ii) Seller’s or Buyer’s strict liability, and (iii)
Seller’s or Buyer’s liabilities or obligations under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. §§ 9601 et seq.),
the Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), the Clean
Water Act (33 U.S.C. §§ 466 et seq.), the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450),
the Hazardous Materials Transportation Act (49 U.S.C. §§ 1801 et seq.), the Toxic Substances
Control Act (15 U.S.C. §§ 2601-2629), the Clean Air Act (42 U.S.C. § 7401 et seq.) as
amended, the Clean Air Act Amendments of 1990 and all state and local laws and any
replacement or successor legislation or regulation thereto. This indemnification shall be
in addition to any other indemnity provisions contained in this Agreement, and it is
expressly understood and agreed that any terms of this Section shall control over any
conflicting or contradicting terms or provisions contained in this Agreement.

ARTICLE 6

SELLER’S REPRESENTATIONS

Seller makes the following representations and warranties as of the date of this Agreement and
as of Closing:

6.1 Existence and Qualification. Teton DJ is a Colorado limited liability company
duly organized, validly existing and in good standing under the laws of Colorado. Teton Energy
Corporation is a Delaware corporation duly organized, validly existing and in good standing under
the laws of Delaware.

6.2 Power. Seller has all requisite power and authority to carry on its business as
presently conducted and to enter into this Agreement and convey the Assets. The execution and
delivery of this Agreement, consummation of the Transaction, and the fulfillment of and compliance
with the terms and conditions hereof will not violate, or be in conflict with, any material
provision of the governing documents of Seller or any material provision of any agreement or
instrument to which Seller is a party or by which Seller is bound, or any judgment, decree, order,
statute, rule or regulation applicable to Seller.

6.3 Authorization and Enforceability. The execution, delivery and performance of this
Agreement and the Transaction have been duly and validly authorized by all requisite action on
Seller’s part. This Agreement constitutes Seller’s legal, valid and binding obligation,
enforceable in accordance with its terms, subject, however, to the effects of bankruptcy,
insolvency, reorganization, moratorium and similar 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.

6.4 Liability for Brokers’ Fees. Seller has not incurred any liability, contingent or
otherwise, for brokers’ or finders’ fees relating to the Transaction for which Buyer shall have any
responsibility whatsoever.

6.5 No Bankruptcy. There are no bankruptcy proceedings pending, being contemplated
by, or to Seller’s knowledge, based upon reasonable inquiry and investigation, threatened against
Seller or Teton Energy.

6.6 Litigation. Seller has not received written notice of any pending proceeding,
notice of violation, action, suit, claim or investigation before any federal, state or other
governmental court, or agency involving the ownership, operation or environmental condition of the
Leases. There is no action, suit, proceeding, protest, claim or investigation by any person,
entity, administrative agency or governmental body pending or, to Seller’s knowledge, threatened,
against Seller before any governmental authority that impedes or is likely to impede Seller’s
ability to consummate the Transaction or to assume the liabilities to be assumed by Seller under
this Agreement.

6.7 Taxes. All taxes and assessments pertaining to the Assets based on ownership of
the Assets for all taxable periods prior to the taxable period in which this Agreement is executed
have been properly paid. All income taxes and obligations relating thereto that could result in a
lien or other claim against any of the Leases have been properly paid, unless contested in good
faith by appropriate proceeding.

6.8 Agreements. All of the material agreements pertaining to the Leases and Lands,
which affect the interest being acquired by Buyer in the Assets pursuant to this Agreement, or
Buyer’s exploration, development, or production operations on the Leases and Lands, including
agreements for the gathering and transportation of Hydrocarbons produced from the Leases and Lands
(the “Material Agreements”) (but excluding surface use agreements to which Buyer is a Party) are
listed on Schedule 6.8.

6.9 Tax Partnerships. The Assets are not subject to any tax partnership agreements
requiring a partnership income tax return to be filed under Subchapter K of Chapter 1 of Subtitle A
of the Code, with the exception of tax partnership agreements which are a part of the Material
Agreements.

6.10 Prepayments. Except as set forth on Schedule 6.10, there are no agreements
involving any prepayments for production or any agreements requiring the delivery of oil, gas or
other minerals produced from or allocated to any of the Leases at some future time without
receiving full payment therefor at the time of delivery.

6.11 Hydrocarbon Sales Contracts. Except as set forth on Schedule 6.10, no
Hydrocarbons are subject to a sales contract (other than spot sales agreements terminable on no
more than 30 days notice) and no person has any call upon, option to purchase or similar rights
with respect to the production from the Assets.

6.12 Hedging Arrangements. The Leases are not subject to any gas sales, gathering or
transportation contracts which include provisions for hedging, price risk management or other such
financial arrangements or transactions, which will affect or burden the Leases from and after the
Closing Date.

6.13 Preferential Rights to Purchase and Areas of Mutual Interest. With the exception
of the area of mutual interest obligation in the Acreage Earning Agreement dated effective May 1,
2007 between Teton DJ LLC and Targe Energy Exploration and Production, LLC, there are no
preferential rights to purchase or area of mutual interest obligations which entitle any third
party to receive a portion of Seller’s interest in the Assets or that would obligate Buyer to offer
any portion of oil and gas rights or interests acquired by Buyer in the Lands or the area of the
Assets after Closing. Specifically, all area of mutual interest obligations provided in the
Purchase and Sale Agreement dated January 5, 2005 between ATEC Energy Ventures, LLC, Apollo Energy,
LLC and Teton Petroleum Company have not been extended beyond their original terms, and have
terminated.

6.14 Third-Party Consents. Except for consents that are Permitted Encumbrances, there
are no third-party consents required for Seller’s assignment and conveyance of the Assets to Buyer.

6.15 Leases. All bonuses, rentals, royalties, shut-in royalty payments and other
payments due under the Leases have been properly and timely paid and the Leases are in full force
and effect.

6.16 Liens and Encumbrances. Except for (i) the burdens and obligations created by or
arising under the Leases and Material Agreements, (ii) Permitted Encumbrances, (iii) Mortgage, Deed
of Trust, Assignment of As-Extracted Collateral, Security Agreement and Financing Statement dated
effective August 9, 2007 from Teton DJ LLC to J. Scott Fowler, as Trustee for the benefit of JP
Morgan Chase Bank, N.A., as Administrative Agent (the “JP Morgan Mortgage”), and (iv) Mortgage,
Deed of Trust, Assignment of As-Extracted Collateral, Security Agreement and Financing Statement
dated effective June 28, 2008 from Teton DJ LLC to the Bank of New York Mellon Trust Company N.A.,
as Subordinate Noteholder Representative (the “Bank of New York Mortgage”), there are no loan
agreements, promissory notes, pledges, mortgages, guaranties, security agreements, financing
statements, mechanics liens, judgment liens or other liens or encumbrances of any type, which are
secured by or constitute a lien or encumbrance on the Assets.

6.17 Imbalance Volumes. There are no gas imbalances, (i) which are with gatherers,
processors, or transporters or with co-tenants or working interest owners in a well, unit, or field
(ii) which are associated with the Assets and (iii) where Seller has received a quantity of gas
prior to the Effective Time for which Buyer will have a duty after the Effective Time to deliver an
equivalent quantity of gas or pay a sum of money.

6.18 Lease Burdens. All obligations of Seller to assign or convey overriding royalty
interests, production payments, net profits interests or any other burden on the Leases and Wells
have been performed, and all instruments reflecting such burdens have been recorded, or have been
provided to Buyer.

6.19 Compliance with Law. Seller has not received a written notice of a material
violation of any statute, law, ordinance, regulation, permit, rule or order of any federal, state
or local government or any other governmental department or agency, or any judgment, decree or
order of any court, applicable to the Assets or operations on the Assets, which remains uncured.

6.20 Outstanding Commitments, AFEs and Invoices. Seller has incurred no expenses, and
has made no commitments to make expenditures in connection with the ownership or operation of the
Assets after the Effective Time, other than with respect to routine operations performed in the
ordinary course of operating the existing wells on the Assets, and (ii) no proposals or authorities
for expenditures are currently outstanding (whether made by Seller or by any other party) to drill
additional wells, or to deepen, plug back, or rework existing wells, or to conduct other operations
on the Assets for which consent is required under the applicable operating agreement or to abandon
any wells on the Assets, or to conduct any other operation on the Assets.

6.21 Plugging and Abandonment Obligations, Frenchman Creek. There are no wells which
are required to be plugged and abandoned, surface restoration or reclamation which is required to
be performed or Environmental Defects which are required to be remediated in connection with
Seller’s interest in the leases and lands covered by the Acreage Earning Agreement dated effective
May 1, 2007 between Teton DJ LLC and Targe Energy Exploration and Production, LLC at the present
time under applicable governmental laws, rules or regulations or an agreement to which Seller is a
party.

6.22 Operations, Frenchman Creek. With the exception of operations related to the
Excluded Wellbores, Seller has not conducted oil and gas exploration, development or production
operations on the Leases and Lands described on Exhibit A-2.

ARTICLE 7

BUYER’S REPRESENTATIONS

Buyer makes the following representations and warranties as of the date of this Agreement and
as of Closing:

7.1 Organization and Standing. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware, and is duly qualified to
carry on its business in the State of Colorado.

7.2 Power. Buyer has all requisite corporate power and authority to carry on its
business as presently conducted and to enter into this Agreement and to acquire the Assets. The
execution and delivery of this Agreement, consummation of the Transaction, and the fulfillment of
and compliance with the terms and conditions hereof will not violate, or be in conflict with, any
material provision of Buyer’s articles of incorporation or bylaws or any material provision of any
agreement or instrument to which Buyer is a party or by which Buyer is bound, or, to its knowledge,
any judgment, decree, order, statute, rule or regulation applicable to it.

7.3 Authorization and Enforceability. The execution, delivery and performance of this
Agreement and the Transaction have been duly and validly authorized by all requisite corporate
action on Buyer’s part. 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 similar 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.

7.4 Liability for Brokers’ Fees. Buyer has not incurred any liability, contingent or
otherwise, for brokers’ or finders’ fees relating to the Transaction for which Seller shall have
any responsibility whatsoever.

7.5 Litigation. There is no action, suit, proceeding, claim or investigation by any
person, entity, administrative agency or governmental body pending or, to Buyer’s knowledge,
threatened in writing, against Buyer before any governmental authority that impedes or is likely to
impede Buyer’s ability to consummate the Transaction and to assume the liabilities to be assumed by
Buyer under this Agreement.

ARTICLE 8

PRE-CLOSING OBLIGATIONS

As to the period of time from the execution hereof until Closing, Seller and Buyer covenant
and agree as follows:

8.1 Operations Prior to Closing. From the date of execution hereof to the Closing,
Seller agrees to maintain the insurance now in effect with respect to the Assets through the date
of Closing.

8.2 Restriction on Operations. Except in the case of an emergency, Seller will
promptly inform Buyer of all requests for commitments to expend funds in excess of $25,000 per
activity net to Seller’s interests conducted on or with respect to the Assets, and will keep Buyer
timely informed of all material developments affecting any of the Assets. Without the prior
written consent of Buyer, Seller shall not:

a. enter into any new agreements or commitments with respect to the Assets which extend
beyond the Closing;

b. commit to or incur any expenditures in excess of $25,000 (net to Seller’s interest)
with respect to any part of the Assets;

c. make any nonconsent elections with respect to operations affecting the Assets;

d. abandon any Well or release (or permit to terminate), or modify or reduce its rights
under all or any portion of any of the Leases;

e. modify or terminate any of the Material Agreements or waive or relinquish any right
thereunder;

f. agree to any renegotiated price, take or other terms under existing gas purchase
agreements;

g. agree to any credit or prepayment arrangement that would reduce the share of gas
deliverable with respect to the Assets following the Effective Time;

h. enter into any agreement or instrument for the sale, treatment, or transportation of
production from the Leases (except for sales agreements terminable on no more than 30 days’
notice);

i. create any material gas imbalance affecting the Assets; or

j. encumber, sell or otherwise dispose of any of the Assets, other than personal
property that is replaced by equivalent property or consumed in the normal operation of the
Assets.

For the purposes of obtaining the written consents required in this Section 8.2, Buyer
designates the person set forth in Section 15.3. Such consents may be given in writing by
overnight courier or facsimile transmission.

8.3 Legal Status. Buyer and Seller shall use all reasonable efforts to maintain their
respective legal statuses from the date hereof until the Closing Date and to assure that as of the
Closing Date they will not be under any material corporate, legal or contractual restriction that
would prohibit or delay the timely consummation of the Transaction.

8.4 Notices of Claims. Seller shall promptly notify Buyer and Buyer shall promptly
notify Seller, if, between the date hereof and the Closing Date, Seller or Buyer, as the case may
be, receives notice of any claim, suit, action or other proceeding of the type referred to in
Sections 6.6 and 7.5.

8.5 Compliance with Laws. During the period from the date of this Agreement to the
Closing Date, Seller shall attempt in good faith to comply in all material respects with all
applicable statutes, ordinances, rules, regulations and orders relating to the ownership and
operation of the Leases.

8.6 Government Reviews and Filings. Before and after the Closing, Buyer and Seller
shall cooperate to provide requested information, make required filings with, prepare applications
to, and conduct negotiations with each governmental agency as required to consummate the
Transaction. Each Party shall make any governmental filings occasioned by its ownership or
structure.

8.7 Confidentiality of Data and Information. All data and information obtained from
Seller in connection with the Transaction whether before or after the execution of this Agreement,
including data and information generated by Buyer in connection with this Transaction
(collectively, the “Information”) is deemed by the Parties to be confidential and proprietary to
Seller. Buyer shall take reasonable steps to ensure that Buyer’s employees, consultants and agents
comply with the provisions of this Section 8.7. Until completion of the Closing, except as
required by law, Buyer and its officers, agents and representatives will hold in strict confidence
the terms of this Agreement and all Information, except any Information which: (i) at the time of
Seller’s disclosure to Buyer is in the public domain; (ii) after Seller’s disclosure to Buyer
becomes part of the public domain by publication or otherwise, except by Buyer’s breach of this
commitment; (iii) Buyer can establish by competent proof that Buyer was rightfully in its
possession at the time of Seller’s disclosure to Buyer; (iv) Buyer rightfully receives from third
parties free of any obligation of confidence; (v) is disclosed to Buyer’s consultants, investors
and lenders who similarly agree to protect the confidentiality of such Information and agree to use
such Information only for their due diligence evaluation of the Assets; or (vi) is developed
independently by Buyer, provided that the person or persons developing the Information shall not
have had access to the Information. The terms of this Section 8.7 shall survive termination of
this Agreement for a period of one year from the Effective Time.

8.8 Teton Energy Guaranty.

a. Guaranty. Teton Energy irrevocably and unconditionally guarantees (a) the
timely payment when due of any post-closing purchase price adjustment in favor of Buyer
payable by Teton DJ under Section 2.2 of the Agreement and (b) the indemnity obligations of
Teton DJ under Sections 5.5 and 14.3 of the Agreement for all Losses which arise from or in
connection with (i) Seller’s Liabilities, (ii) any breach of any representation or warranty
made by Teton DJ, (iii) any breach by Teton DJ of its special warranty of title for the
Assets contained in any conveyance, and (iv) any breach by Teton DJ of the Agreement ((i)
through (iv) are collectively referred to as the “Obligations”);

b. Demand and Notice. If Teton DJ fails, refuses or is unable for any reason
to pay any Obligation, Buyer shall make a demand upon Teton Energy (a “Payment Demand”).
Teton Energy shall pay such Payment Demand within five business days. A Payment Demand
shall be in writing and shall reasonably and briefly specify in what manner and what amount
Teton DJ has failed to pay and an explanation of why such payment is due, with a specific
statement that Buyer is calling upon Teton Energy to pay under this Guaranty. A single
written Payment Demand shall be effective as to any specific default during the continuance
of such default, until Teton DJ or Teton Energy has cured such default, and additional
written demands concerning such default shall not be required until such default is cured.
If payment by Teton Energy pursuant to the terms of this guaranty is not made, Buyer shall
be entitled to enforce the terms of this guaranty through specific performance or otherwise.

c. Subrogation. Teton Energy will not exercise any rights which it may have by
way of subrogation until all the Obligations to Buyer shall have been paid in full. Subject
to the foregoing, upon payment of all the Obligations, Teton Energy shall be subrogated to
the rights of Buyer against Teton DJ.

ARTICLE 9

CONDITIONS TO CLOSING

9.1 Buyer’s Conditions. The obligations of Buyer at Closing are subject, at the
option of Buyer, to the satisfaction on or prior to the Closing of the following conditions
precedent:

a. Representations, Warranties and Covenants. All of Seller’s representations
and warranties contained in Article 6 of this Agreement shall be true in all material
respects at and as of the Closing in accordance with their terms as if such representations
and warranties were remade at and as of the Closing, and Seller shall have performed and
satisfied all covenants and agreements required by this Agreement to be performed and
satisfied by Seller at or prior to the Closing in all material respects and in form
acceptable to Buyer in its sole judgment;

b. No Action. 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 this Transaction and that remains in effect at the time of Closing;

c. Title Defects. The aggregate value of all uncured Title Defects and
Environmental Defects as of Closing does not exceed ten percent (10%) of the Purchase Price;

d. Release of Mortgages. Seller has obtained full releases of the JP Morgan
Mortgage and the Bank of New York Mortgage, and terminations of associated financing
statements, insofar as the same cover the Assets and in sufficient counterparts to
facilitate recording and filing.

9.2 Seller’s Conditions. The obligations of Seller at the Closing are subject, at the
option of Seller, to the satisfaction at or prior to Closing of the following conditions precedent:

a. Representations, Warranties and Covenants. All of Buyer’s representations
and warranties contained in Article 7 of this Agreement shall be true in all material
respects at and as of the Closing in accordance with their terms as if such representations
and warranties were remade at and as of the Closing 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 and in form
acceptable to Seller in its sole judgment;

b. No Action. 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 this Transaction and that remains in effect at the time of Closing; and

c. Title Defects. The aggregate value of all uncured Title Defects and
Environmental Defects as of Closing does not exceed ten percent (10%) of the Purchase Price.

ARTICLE 10

RIGHT OF TERMINATION AND ABANDONMENT

10.1 Termination. This Agreement may be terminated in accordance with the following
provisions:

a. by Buyer if any of the conditions set forth in Section 9.1 are not satisfied,
through no fault of Buyer, or waived by Buyer in writing, as of the Closing Date;

b. by Seller if any of the conditions set forth in Section 9.2 are not satisfied,
through no fault of Seller, or waived by Seller in writing, as of the Closing Date; or

c. by Buyer or Seller if, through no fault of the Party claiming termination, the
Closing does not occur on or before the date specified in Section 11.1; or

d. by Buyer or Seller if the aggregate value of all uncured Title Defects and
Environmental Defects as of Closing exceeds ten percent (10%) of the Purchase Price.

10.2 Liabilities Upon Termination.

a. Buyer’s Default. If the Transaction is not consummated on or before the
Closing Date by reason of Buyer’s wrongful failure to tender performance at Closing, and if
Seller is not in material default under the terms of this Agreement and is ready, willing
and able to close, and Seller terminates this Agreement, Buyer shall pay Seller Thirty Eight
Thousand Dollars ($38,000) as a “Liquidated Damages Payment” and as Seller’s sole and
exclusive remedy for failure of the Transaction to close. Seller and Buyer agree that
Seller’s damages if Buyer fails to close are difficult to measure and both Seller and Buyer
agree that the amount of the Liquidated Damages Payment bears a reasonable relationship to
and is a reasonable estimation of such damages. After termination of the Agreement, Buyer
shall have no further obligation or liability to Seller under this Agreement except for the
provisions of Section 8.7.

b. Seller’s Default. If the Transaction is not consummated on or before the
Closing Date by reason of Seller’s wrongful failure to tender performance at Closing and if
Buyer is not in material default under this Agreement and is ready, willing and able to
close, Buyer may pursue specific performance of this Agreement, and in any event Buyer shall
have all other remedies available to it for Seller’s wrongful failure to close.

c. Other Termination. If Seller and Buyer agree to terminate this Agreement,
each Party shall release the other Party from any and all liability for termination of this
Agreement, except the provisions of Section 8.7.

ARTICLE 11

CLOSING

11.1 Date of Closing. Subject to the conditions stated in this Agreement,
consummation of the Transaction (the “Closing”) shall be held on or before March 31, 2009. The
date the Closing actually occurs is called the “Closing Date.”

11.2 Place of Closing. The Closing shall be held on the Closing Date at Holland &
Hart LLP’s offices in Denver, Colorado at 10:00 a.m. or at such other time and place as Seller and
Buyer may agree in writing.

11.3 Closing Obligations. At Closing, the following events shall occur, each being a
condition precedent to the others and each being deemed to have occurred simultaneously with the
others:

a. Seller’s and Teton Energy’s Officers Certificates. Teton DJ and Teton
Energy ‘s Officers shall deliver to Buyer an Officer’s Certificates in the form of Exhibit
F;

b. Buyer’s Officer’s Certificate. Buyer shall deliver to Seller an Officer’s
Certificate in the form of Exhibit G;

c. Non-Foreign Status. Seller shall deliver to Buyer an affidavit of
non-foreign status and no requirement for withholding under Section 1445 of the Internal
Revenue Code in the form of Exhibit H;

d. Assignment. Seller and Buyer shall execute, acknowledge and deliver to
Buyer an Assignment and Bill of Sale, conveying the Assets to Buyer effective as of the
Effective Time (in sufficient counterparts to facilitate filing and recording) substantially
in the form of Exhibit I, conveying the Assets with a special warranty of title by, through
and under Seller but not otherwise;

e. Governmental Forms of Transfer. Seller and Buyer shall execute and deliver
to Buyer such other assignments or transfers necessary to transfer the Assets to Buyer,
including without limitation any conveyances on official forms and related documentation
necessary to transfer the Assets to Buyer in accordance with requirements of governmental
regulations;

f. Quitclaim Deeds. Seller shall execute and deliver to Buyer quitclaim deeds,
conveying all of Seller’s interest in the Facility Sites;

g. Settlement Statement. Buyer and Seller shall execute and deliver the
Settlement Statement;

h. Purchase Price. Buyer shall deliver to Seller the Closing Amount by wire
transfer of immediately available funds;

i. Possession. Seller shall deliver to Buyer possession of the Assets; and

j. Records. Seller shall deliver the Records to Buyer.

ARTICLE 12

POST-CLOSING OBLIGATIONS

12.1 Records. Records shall be delivered to Buyer on the Closing Date. Seller may
retain copies of the Records and shall be granted reasonable access, during ordinary business hours
and with reasonable notice, to those records provided to Buyer for any future needs which may arise
out of Seller’s ownership of the Assets.

12.2 Recording Fees. Buyer shall pay all governmental filing and recording fees
required in connection with the processing, filing, or recording of any assignments effectuating
the Transaction.

12.3 Further Assurances. From time to time after Closing, Buyer and Seller 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 more effectively assure the other the full beneficial
use and enjoyment of the Assets and otherwise to accomplish the purposes of the Transaction.

ARTICLE 13

TAX MATTERS

13.1 Apportionment of Tax Liability. “Taxes” shall mean all ad valorem, property,
production, excise, net proceeds, severance 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. All Taxes based on or
measured by production of Hydrocarbons shall be deemed attributable to the period during which such
production occurred and not attributable to the year in which such Taxes are assessed. Buyer, as
operator of the Assets, has deducted from Seller’s revenues sums to pay Seller’s share of ad
valorem, conservation, and severance taxes. Consequently there shall be no adjustment to the
Purchase Price for ad valorem, conservation or severance taxes. Buyer shall retain all amounts
deducted by it for payment of ad valorem, conservation and severance taxes, even if the actual
taxes, when assessed, are less than the amount withheld, and Seller shall have no obligation for
any additional ad valorem, conservation or severance taxes even if the actual taxes, when assessed,
are greater than the amount withheld by Buyer. The apportionment of all other taxes (if any)
between the Parties shall take place as an adjustment to the Purchase Price pursuant to Section 2.2
in the Settlement Statement, using estimates of such Taxes if actual numbers are not available.

13.2 Tax Reports and Returns. Seller agrees to file all tax reports and returns
required to be filed by Seller prior to Closing and Buyer agrees to file all tax reports and
returns required to be filed after Closing. The non-filing Party agrees to provide the filing
Party with all information in or ascertainable from their records necessary to file any required
tax reports and returns related to the Assets. Buyer agrees to pay all Taxes due and payable with
respect to the Assets after Closing subject to the provisions of Sections 13.1.

13.3 Sales Taxes. Buyer shall be liable for and shall indemnify Seller for, any sales
and use taxes, conveyance, transfer and recording fees and real estate transfer stamps or taxes
that may be imposed on any transfer of the Assets pursuant to this Agreement. If required by
applicable law, Seller shall, in accordance with applicable law, calculate and remit any sales or
similar taxes that are required to be paid as a result of the transfer of the Assets to Buyer and
Buyer shall promptly reimburse Seller therefor. If Seller receives notice that any sales and/or
use taxes are due, Seller shall promptly forward such notice to Buyer for handling.

13.4 Tax Information. Buyer and Seller shall cooperate and agree upon allocation of
the proceeds for the respective properties and shall agree to file any necessary tax forms with the
United States Internal Revenue Service.

ARTICLE 14

ASSUMPTION AND RETENTION OF OBLIGATIONS

AND INDEMNIFICATION

14.1 Buyer’s Assumption of Liabilities and Obligations. Upon Closing, Buyer shall
assume and pay, perform, fulfill and discharge all duties, claims, costs, expenses, liabilities and
obligations (the “Liabilities”) accruing or relating to (i) the owning, operating or maintaining of
the Assets to the extent such Liabilities relate to periods on or after the Effective Time,
including without limitation the Post-Closing Environmental Liabilities (the “Buyer’s Liabilities”)
and (ii) any breach of any representation, warranty, covenant or agreement of Buyer contained in
this Agreement (together, the “Assumed Liabilities”).

14.2 Seller’s Retention of Liabilities and Obligations. Upon Closing, Seller shall
retain all Liabilities accruing or relating to (i) the owning, operating or maintaining of the
Assets to the extent such Liabilities relate to periods prior to the Effective Time, including
without limitation the payment of royalties, overriding royalties and Taxes attributable to the
period of time prior to the Effective Time and, the Pre-Closing Environmental Liabilities, all of
the foregoing being subject to Sections 2.2.c and 5.5; (ii) any injury, death, casualty, tortious
action or inaction occurring on or attributable to the Assets and attributable to the period of
time prior to the Closing Date, (Subsections 14.2(i) and (ii) being the “Seller’s Liabilities”),
and (iii) any breach of any representation, warranty, covenant or agreement of Seller contained in
this Agreement (collectively, the “Retained Liabilities”).

14.3 Indemnification. “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 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, diminution of value of an Asset, loss of profits incurred by a Party
or Loss incurred as a result of the indemnified Party indemnifying a third party.

After the Closing, Buyer and Seller shall indemnify each other as follows:

a. Seller’s Indemnification of Buyer. Seller assumes all risk, liability,
obligation and Losses in connection with, and shall defend, indemnify, and save and hold
harmless Buyer, its officers, directors, employees and agents, from and against all Losses
which arise from or in connection with (i) Seller’s Liabilities, (ii) any breach of any
representation or warranty made by Seller, (iii) any breach by Seller of their special
warranty of title for the Assets contained in any conveyance, and (iv) any breach by Seller
of this Agreement.

b. Buyer’s Indemnification of Seller. Buyer assumes all risk, liability,
obligation and Losses in connection with, and shall defend, indemnify, and save and hold
harmless Seller, Seller’s members, officers, directors, employees and agents, from and
against all Losses which arise from or in connection with (i) Buyer’s Liabilities, and (ii)
any breach of any representation or warranty made by Buyer, and (iii) any breach by Buyer of
this Agreement.

14.4 Release. Buyer shall be deemed to have released Seller at the Closing from any
Losses for which Buyer has agreed to indemnify Seller hereunder, and Seller shall be deemed to have
released Buyer at the Closing from any Losses for which Seller has agreed to indemnify Buyer
hereunder.

14.5 Procedure. The indemnifications contained in Section 14.3 shall be implemented
as follows:

a. Coverage. Such indemnity shall extend to all Losses suffered or incurred by
the indemnified party.

b. Claim Notice. The Party seeking indemnification under the terms of this
Agreement (“Indemnified Party”) shall submit a written “Claim Notice” to the other Party
(“Indemnifying Party”) stating: (i) the amount of each payment claimed by an Indemnified
Party to be owing, (ii) the basis for such claim, with supporting documentation, and (iii) a
list identifying to the extent reasonably possible each separate item of Loss for which
payment is so claimed. The amount claimed shall be paid by the Indemnifying Party to the
extent required herein within 30 days after receipt of the Claim Notice, or after the amount
of such payment has been finally established, whichever last occurs.

c. Information. Within 20 days after the Indemnified Party receives notice of
a claim or legal action that may result in a Loss for which indemnification may be sought
under this Article 14 (“Claim”), the Indemnified Party shall give written notice of such
Claim to the Indemnifying Party. If the Indemnifying Party or its counsel so requests, the
Indemnified Party shall furnish the Indemnifying Party with copies of all pleadings and
other information with respect to such Claim. At the election of the Indemnifying Party
made within 60 days after receipt of such notice, the Indemnified Party shall permit the
Indemnifying Party to assume control of such Claim (to the extent only that such Claim,
legal action or other matter relates to a Loss for which the Indemnifying Party is liable),
including the determination of all appropriate actions, the negotiation of settlements on
behalf of the Indemnified Party, and the conduct of litigation through attorneys of the
Indemnifying Party’s choice; provided, however, that no such settlement can result in any
liability or cost to the Indemnified Party for which it is entitled to be indemnified
hereunder without its consent. If the Indemnifying Party elects to assume control, (i) any
expense incurred by the Indemnified Party thereafter for investigation or defense of the
matter shall be borne by the Indemnified Party, and (ii) the Indemnified Party shall give
all reasonable information and assistance, other than pecuniary, that the Indemnifying Party
shall deem necessary to the proper defense of such Claim, legal action, or other matter. In
the absence of such an election, the Indemnified Party will use its best efforts to defend,
at the Indemnifying Party’s expense, any claim, legal action or other matter to which such
other Party’s indemnification under this Article 14 applies until the Indemnifying Party
assumes such defense, and, if the Indemnifying Party fails to assume such defense within the
time period provided above, settle the same in the Indemnified Party’s reasonable discretion
at the Indemnifying Party’s expense. If such a Claim requires immediate action, both the
Indemnified Party and the Indemnifying Party will cooperate in good faith to take
appropriate action so as not to jeopardize defense of such Claim or either Party’s position
with respect to such Claim.

d. Dispute. Other than with respect to a Claim based on an issue for which
another method of dispute resolution is provided in this Agreement, if the existence of a
valid Claim or amount to be paid by an Indemnifying Party is in dispute, the Parties agree
to submit determination of the existence of a valid Claim or the amount to be paid pursuant
to the Claim Notice to binding arbitration in Denver, Colorado, such arbitration to be
conducted as follows: The arbitration proceeding shall be governed by Colorado law and
shall be conducted in accordance with the Commercial Arbitration Rules of the American
Arbitration Association (“AAA”), though it need not be administered by the AAA. Discovery,
to the extent allowed by the arbitrator, shall 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 arbitrator. There shall be a single, neutral arbitrator selected jointly by the
Parties. If the Parties are unable to agree on an arbitrator within ten (10) days following
a Party’s receipt of notice of Claim from the other Party, then either Party or both Parties
shall request the Judicial Arbiter Group, Inc. of Denver, Colorado to appoint an arbitrator.
The appointment of an arbitrator by Judicial Arbiter Group, Inc. shall be final. The
arbitrator will have no authority to award punitive damages or any other damages not
measured by the prevailing Party’s actual damages, and may not, in any event, make any
ruling, finding or award that does not conform to the terms and conditions of the Agreement.
The arbitrator shall conduct a hearing no later than 30 days after his/her appointment. 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
arbitrator shall consider any evidence and testimony that he/she determines to be relevant,
in accordance with procedures that he/she determines to be appropriate. Any award entered
in the arbitration shall be made in writing and any payment due pursuant to the arbitration
shall be made within 15 days of the arbitrator’s award. The award of the arbitrator need
not be accompanied by a reasoned opinion. The arbitrator shall award to the prevailing
Party, if any, as determined by the arbitrator, all of its costs and fees. “Costs and fees”
means all reasonable pre-award expenses of an arbitration, including the arbitrator’s fees,
administrative fees, travel expenses, out-of-pocket expenses such as copying, telephone,
court costs, witness fees, and reasonable attorneys’ fees. The award may be filed in a
court of competent jurisdiction and may be enforced by any Party as a final judgment of such
court.

14.6 Reservation as to Non-Parties. Nothing herein is intended to limit or otherwise
waive any recourse Buyer or Seller may have against any non-party for any obligations or
liabilities that may be incurred with respect to the Assets.

ARTICLE 15

MISCELLANEOUS

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

15.2 Expenses. All fees, costs and expenses incurred by Buyer or Seller in
negotiating this Agreement or in consummating the Transaction shall be paid by the Party incurring
same, including, without limitation, legal and accounting fees, costs and expenses.

15.3 Notices. All notices and communications required or permitted under this
Agreement shall be in writing and addressed as follows:

If to Seller:

Dominic J. Bazile II

Chief Operating Officer and Executive Vice President

Teton Energy Corporation

600 17th Street, Ste. 1600 North

Denver, Colorado 80202

Telephone: 303-565-4600

Facsimile: 303-565-4606

Email: dbazile@teton-energy.com

If to Buyer:

Ted Brown

Senior Vice President-Northern Region

Noble Energy, Inc.

1675 Broadway, Suite 2200

Denver, Colorado 80202

Telephone: 303-228-4000

Facsimile: 303-228-4281

Email: tdbrown@nobleenergyinc.com

With a copies to:

Shawn E. Conner

Vice President

Noble Energy, Inc.

100 Glenborough Drive, #100

Houston, TX 77067

Telephone: 281-872-3100

Facsimile: 281-872-3111

Email: sconner@nobleenergyinc.com

Robert Leo

Senior Counsel

Noble Energy, Inc.

1625 Broadway, #2200

Denver, CO 80202

Telephone: 303-228-4000

Facsimile: 303-228-4293

Email: rleo@nobleenergyinc.com

Any notice or communication hereunder shall be deemed to have been duly made and the receiving
Party charged with notice (i) if personally delivered, when received, (ii) if faxed or sent
electronically, when received if receipt is confirmed, (iii) if mailed, certified mail, return
receipt requested, on the date set forth on the return receipt, or (iv) if sent by overnight
courier, one day after sending. Any Party may, by written notice so delivered to the other
Parties, change the address or individual to which delivery shall thereafter be made.

15.4 Amendments. 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.

15.5 Assignment. Prior to Closing, neither Seller nor Buyer shall assign all or any
portion of its respective rights or delegate all or any portion of its respective duties hereunder
without the prior written consent of the other Party.

15.6 Announcements. Seller and Buyer shall consult with each other with regard to all
press releases and other announcements issued after the date of execution of this Agreement and
prior to the Closing Date concerning this Agreement or this Transaction and, except as may be
required by applicable laws or the applicable rules and regulations of any governmental agency or
stock exchange, Buyer or Seller shall not issue any such press release or other publicity without
the prior written consent of the other Party, which consent shall not be unreasonably withheld.

15.7 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.

15.8 Counterparts. This Agreement may be executed by Buyer, Seller and Teton Energy
in any number of counterparts, each of which shall be deemed an original instrument, but all of
which together shall constitute one and the same instrument. Execution can be evidenced by fax or
electronic signatures with original signature pages to follow in due course.

15.9 References. References made in this Agreement, including use of a pronoun, shall
be deemed to include, where applicable, masculine, feminine, singular or plural, individuals,
partnerships or corporations. As used in this Agreement, “person” shall mean any natural person,
corporation, partnership, court, agency, government, board, commission, trust, estate or other
entity or authority.

15.10 Governing Law. This Agreement and the Transaction and any arbitration or
dispute resolution conducted pursuant hereto shall be construed in accordance with, and governed
by, the laws of the State of Colorado and the Parties hereby subject themselves to the sole and
exclusive jurisdiction of the Federal or State courts of Colorado for resolution of any dispute
related to this Agreement.

15.11 Entire Agreement. This Agreement constitutes the entire understanding among the
Parties, their respective partners, shareholders, officers, directors and employees with respect to
the subject matter hereof, superseding all negotiations, prior discussions, preliminary term sheets
and prior agreements, notwithstanding language to the contrary therein.

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

15.13 Survival. The representations and warranties set forth in Article 6 and Article
7 shall survive the Closing without limitation as to time. Delivery of the Assignment and Bill of
Sale and Quitclaim Deeds conveying Facility Sites at the time of the closing will not constitute a
merger of this Agreement with the Assignment or Quit Claim Deeds.

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

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

15.16 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.

15.17 Condition Precedent. A condition precedent to the effectiveness of this
Agreement is signature by Buyer, Seller and Teton Energy. Unless and until Buyer, Seller and Teton
Energy have executed this Agreement, the Agreement will not be legally binding.

Executed on the dates set forth below each Party’s signature.

	 
	SELLER:

	TETON DJ LLC

	By: Lonnie R. Brock

	Title: Executive Vice President and

Chief Financial Officer

	Date: March 31, 2009

	TETON ENERGY CORPORATION

	By: Dominic J. Bazile II

	Title: Chief Operating Officer and

Executive

Vice President

	Date: March 31, 2009

	BUYER:

	NOBLE ENERGY, INC.

	By: Shawn E. Conner

	Title: Vice President

	Date: March 31, 2009

[Signature page to Purchase and Sale Agreement dated effective February 1, 2009 between Teton DJ
LLC, As Seller and Noble Energy, Inc., as Buyer]

EXHIBIT A

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller

and Noble Energy, Inc., as Buyer

LEASES AND LANDS 

EXHIBIT B

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

WELLS AND ALLOCATED VALUES

EXHIBIT C

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

EASEMENTS AND SURFACE LEASES

EXHIBIT D

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

PERSONAL PROPERTY AND EQUIPMENT

	 	 	 	 	 	 	 
	Chundy Field Facilities and Equipment:
	 
	 	1	 	 	Jones Compressor Site

	 	Section 31-T5N-40W
	 	2	 	 	Jutten Compressor Site and Salt Walter

Disposal

	 	Section 20-T5N-41W

	 	3	 	 	Seward Salt Walter Disposal

	 	Section 22-T4N-41W
	 	4	 	 	Supreme Investments Water Transfer Station

	 	Section 06-T4N-41W
	Hagan Field Facilities and Equipment:
	 
	 	5	 	 	Malmkar Compressor Site

	 	Section 22-T10N-39W
	 	6	 	 	Young Salt Walter Disposal Site

	 	Section 30-T10N-38W

EXHIBIT E

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

FACILITY SITES

	 
	Leon Lee:
	Township 10 North, Range 38 West, 6th P.M.

	 

	Section 31: A one acre Tract of land 330 feet in length and 132 feet in width

lying approximately 30 feet South of the North line and 33 feet West of the

East line of the NE/4NE/4NE/4, more particularly described in Surface Deed

recorded as Instrument No. 08-00085.

	Containing 1.00 acre, more or less

	Perkins County, Nebraska

	Calvin J. Young and Irma M. Young:

	 

	Township 10 North, Range 38 West, 6th P.M.

	 

	Section 30: E/2NE/4SE/4

	Containing 20 acres, more or less

	Perkins County, Nebraska

	George L. Seward:

	 

	Township 4 North, Range 41 West, 6th P.M.

	 

	Section 22: W/2NW/4NW/4

	Containing 20 acres, more or less

	Dundy County, Nebraska

	Jutten Properties, LLC:

	 

	Township 5 North, Range 41 West, 6th P.M.

	 

	Section 20: E/2NE/4SE/4

	Containing 20.00 acres, more or less

	Chase County, Nebraska

EXHIBIT F

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

FORM OF OFFICER’S CERTIFICATES OF SELLER AND TETON ENERGY CORPORATION

Officer’s Certificate of Teton DJ LLC

The undersigned, Lonnie R. Brock, Executive Vice President and Chief Financial Officer of
Teton DJ LLC (“Teton DJ”), and is delivering this Officer’s Certificate to Noble Energy, Inc.
(“Noble”), pursuant to that certain Purchase and Sale Agreement, dated effective February 1, 2009,
by and between Teton DJ LLC and Noble Energy, Inc., (the “Agreement”). Capitalized terms used
herein shall have the meanings given to them in the Agreement. Teton DJ hereby certifies to Noble
that as of the date hereof the following conditions precedent to consummate the Closing have been
satisfied:

1. All representations and warranties of Teton DJ contained in the Agreement are true and
correct in all material respects as of the date of the Closing, and

2. All covenants and agreements required by the terms of the Purchase Agreement to be
performed and complied with by Teton DJ prior to or at the Closing have been duly performed in all
material respects as of the date of the Closing.

IN WITNESS WHEREOF, the undersigned has caused this Certificate to be duly executed March 31,
2009.

TETON DJ LLC

	 	 	 
	By:Lonnie R. Brock

	 	

	Title:Executive Vice President and Chief Financial Officer

1

	 	 	 
	STATE OF COLORADO

CITY AND

COUNTY OF DENVER

	 	)

) ss.

)

The foregoing instrument was acknowledged before me this 31st day of March, 2009,
by Lonnie R. Brock, Executive Vice President and Chief Financial Officer of Teton DJ LLC.

Witness my hand and official seal.

My commission expires:       

Notary Public

2

Officer’s Certificate of Teton Energy Corporation

The undersigned, Dominic J. Bazile II is Chief Operating Officer and Executive Vice President
of Teton Energy Corporation (“Teton Energy”), and is delivering this Officer’s Certificate to Noble
Energy, Inc. (“Noble”), pursuant to that certain Purchase and Sale Agreement, dated effective
February 1, 2009, by and between Teton DJ LLC and Noble Energy, Inc. (“Noble”), (the “Agreement”).
Capitalized terms used herein shall have the meanings given to them in the Agreement. Teton Energy
hereby certifies to Buyer that as of the date hereof the following conditions precedent to
consummate the Closing have been satisfied:

1. All representations and warranties of Teton Energy contained in the Agreement are true and
correct in all material respects as of the date of the Closing, and

2. All covenants and agreements required by the terms of the Purchase Agreement to be
performed and complied with by Teton Energy prior to or at the Closing have been duly performed in
all material respects as of the date of the Closing.

IN WITNESS WHEREOF, the undersigned has caused this Certificate to be duly executed March 31,
2009.

TETON ENERGY CORPORATION

Dominic J. Bazile II

Chief Operating Officer and Executive Vice President

	 	 	 	 	 
	STATE OF COLORADO
	 	 	)	 
	CITY AND
	 	) ss.
	COUNTY OF DENVER
	 	 	)	 

The foregoing instrument was acknowledged before me this 31st day of March, 2009,
by Dominic J. Bazile II, as Chief Operating Officer and Executive Vice President of Teton Energy
Corporation.

Witness my hand and official seal.

My commission expires:       

Notary Public

EXHIBIT G

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

FORM OF OFFICER’S CERTIFICATE OF BUYER

The undersigned, Shawn E. Conner, as Vice President of Noble Energy, Inc., a Delaware
corporation (“Noble”), is delivering this Certificate to Teton DJ LLC (“Teton DJ”), pursuant to
that certain Purchase and Sale Agreement dated effective February 1, 2009, by and between Teton DJ
and Noble (the “Agreement”). Capitalized terms used herein shall have the meanings given to them
in the Agreement. Noble hereby certifies to Teton that as of the date hereof the following
conditions precedent to consummate the Closing have been satisfied:

1. All representations and warranties of Noble contained in the Agreement are true and correct
in all material respects as of the date of the Closing, and

2. All covenants and agreements required by the terms of the Purchase Agreement to be
performed and complied with by Noble prior to or at the Closing have been duly performed in all
material respects as of the date of the Closing.

IN WITNESS WHEREOF, the undersigned has caused this Certificate to be duly executed March 31,
2009.

NOBLE ENERGY, INC.

	 	 	 	 	 
	By:Shawn E. Conner
Title:Vice President
	 	 	 	 
	STATE OF COLORADO
	 	 	)	 
	CITY AND
	 	) ss.
	COUNTY OF DENVER
	 	 	)	 

The foregoing instrument was acknowledged before me this 31st day of March, 2009,
by Shawn E. Conner, Vice President of Noble Energy, Inc.

Witness my hand and official seal.

My commission expires:       

Notary Public

EXHIBIT H

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

FORM OF NON-FOREIGN AFFIDAVIT

Exemption from Withholding of Tax for Dispositions of U.S. Real Property Interests

by Teton DJ LLC

Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property
interest must withhold tax if the transferor is a foreign person. To inform Noble Energy, Inc.
(“Buyer”) that withholding of tax is not required upon the disposition of U.S. real property
interests by Teton DJ LLC (“Seller”), the undersigned hereby certifies the following:

1. Seller is not a nonresident alien, foreign corporation, foreign partnership, foreign trust
or foreign estate for purposes of U.S. income taxation;

2. The taxpayer identifying number of Seller is 84-1482290.

3. Seller’s address is 600 17th Street, Suite 1600 North, Denver, Colorado 80202.

Seller understands that Buyer may disclose this certification to the Internal Revenue Service
and that any false statement contained herein could be punished by fine, imprisonment or both.

Under penalties of perjury, I declare that I have examined this certification and, to the best
of my knowledge and belief, it is true, correct and complete, and I further declare I have
authority to sign this document.

Date: March 31, 2009

Seller:

TETON DJ LLC

	 	 	 
	Lonnie R. Brock

	Title:

	 	Executive Vice President and

Chief Financial Officer

3

	 	 	 
	STATE OF COLORADO

CITY AND

COUNTY OF DENVER

	 	)

) ss.

)

The foregoing instrument was acknowledged before me this 31st day of March, 2009,
by Lonnie R. Brock, Executive Vice President and Chief Financial Officer of Teton DJ LLC.

Witness my hand and official seal.

My commission expires:       

Notary Public

EXHIBIT I

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

FORM OF ASSIGNMENT AND BILL OF SALE

This Assignment and Bill of Sale (“Assignment”), dated effective February 1, 2009 (the
“Effective Time”) is from Teton DJ LLC, a Colorado limited liability company, and Teton Energy
Corporation, a Delaware corporation, (together, Assignor), to Noble Energy, Inc., a Delaware
corporation, with an address of 1625 Broadway, Suite 2200, Denver, Colorado 80202 (“Assignee”).

For $100.00 and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Assignor hereby sells, assigns, transfers, grants, bargains and conveys to
Assignee all of Assignor’s right, title and interest in and to the following real and personal
property interests in Chase, Dundy, Keith and Perkins Counties, Nebraska and Phillips, Sedgwick and
Yuma Counties, Colorado, (collectively, the “Assets”):

a. The oil and gas leases described on Exhibits A-1 and A-2, including extensions and
renewals thereof (the “Leases”) (including without limitation working interests, operating
rights, overriding royalty interests, production payments and net profits interests) insofar
as the Leases cover all lands covered by the Leases, whether or not such lands are
adequately or fully described on Exhibit A (the “Lands”), and the oil, gas and all other
hydrocarbons (including, but not limited to, coalbed methane) (“Hydrocarbons”), that may be
produced from the Leases and Lands;

b. The oil and gas wells located on the Leases and Lands described on Exhibit A-1 only,
or lands pooled or unitized therewith, including without limitation, the oil and gas wells
specifically described on Exhibit B, whether producing or non-producing; all injection and
disposal wells on the Leases and Lands described on Exhibit A-1 only (the “Wells”), and all
personal property and equipment associated with the Wells as of the Effective Time;

c. The rights, to the extent transferable, in and to all existing and effective
unitization, pooling and communitization agreements, declarations and orders, and the
properties covered and the units created thereby, to the extent that they relate to or
affect any of the interests described in Paragraphs a. and b. or the post-Effective Time
production of Hydrocarbons from the Leases and Lands;

d. The rights, to the extent transferable, in and to the Material Agreements described
on Exhibit E, only insofar as they relate to the Leases and Lands;

e. All of the personal property, materials, fixtures, improvements, well equipment,
piping, valves, electrical, communications, separation, dehydration, compression and other
equipment and facilities, tanks, chemicals, injection facilities, saltwater disposal
facilities, compression facilities, flow lines, gathering systems (including without
limitation the Chundy Gathering System), permits, licenses, approvals, servitudes,
rights-of-way, easements, surface leases, and other surface rights, and all other
appurtenances and facilities located on or used in connection with or otherwise related to
the exploration for or production, gathering, treatment, processing, storing, sale or
disposal of Hydrocarbons or water produced from the properties and interests described in
Paragraphs a. through d., including without limitation the easements and surface leases
described on Exhibit C and the personal property and equipment described on Exhibit D;

f. All data, interpretive data and geophysical modeling seismic lines over the general
area of the Assets but excluding any of the foregoing that are (i) subject to unaffiliated
third party contractual restrictions on disclosure or transfer, which are applicable to
Assignor or (ii) subject to a transfer fee, unless Assignor agrees in writing to pay such
transfer fee; and

g. All files, records, correspondence, data and information relating to the items
described in Paragraphs a. through f. maintained by Assignor including, without limitation,
lease and land files, abstracts, title reports, memoranda and opinions, well files, contract
files, tax and accounting files related to the Assets.

TO HAVE AND TO HOLD the Assets unto Assignee and its successors and assigns forever.

This Assignment is made subject to the following terms and conditions:

1. Purchase and Sale Agreement. This Assignment is being made pursuant to the terms
of the Purchase and Sale Agreement dated effective February 1, 2009, between Assignor and Assignee
(the “Agreement”). All capitalized terms used but not defined herein shall have the meanings given
them in the Agreement. If there is a conflict between the terms of this Assignment and the terms
of the Agreement, the terms of the Agreement shall control to the extent of the conflict. Assignor
and Assignee intend that the terms of the Agreement remain separate and distinct from and not merge
into the terms of this Assignment.

2. Teton ORRI LLC Overriding Royalty. For the avoidance of doubt, the Assets do not
include any overriding royalty interests in the Leases and Lands owned of record by Teton ORRI LLC
on the date of the recording of this Assignment in each of the applicable county real property
records.

3. Excluded Wells, Frenchman Creek. All wellbores on the Leases and Lands described
on Exhibit A-2, including without limitation the Kramer 24-12 Well located in the SE/4SW/4 of
Section 12, T. 6 N., R. 43 W., and the Kramer 12-13 Well located in the SW/4NW/4 of Section 13, T.
6 N., R. 43 W., Phillips County, Colorado, are excluded from this Assignment.

4. Special Warranty of Title. ASSIGNOR WARRANTS TITLE TO THE ASSETS ONLY FROM AND
AGAINST ALL PERSONS CLAIMING BY, THROUGH AND UNDER ASSIGNOR, BUT NOT OTHERWISE.

5. Subrogation. To the extent permitted by law, Assignee shall be subrogated to
Assignor’s rights in and to representations, warranties and covenants given with respect to the
Assets. Assignor hereby grants and transfers to Assignee, its successors and assigns, to the
extent so transferable and permitted by law, the benefit of and the right to enforce the covenants,
representations and warranties, if any, which Assignor is entitled to enforce with respect to the
Assets, but only to the extent not enforced by Assignor.

6. Governmental Forms of Assignment. Assignor and Assignee may execute separate
governmental form assignments of the Assets on officially approved forms, in sufficient
counterparts to satisfy applicable statutory and regulatory requirements. Those assignments shall
be deemed to contain all of the exceptions, reservations, warranties, rights, titles, powers and
privileges set forth herein as fully as though they were set forth in each such assignment. The
interests conveyed by such separate assignments are the same, and not in addition to, the Assets
conveyed herein.

7. Further Assurances. Assignor shall execute, acknowledge and deliver or cause to be
executed, acknowledged and delivered such instruments and take such other action as may be
reasonably necessary or advisable to carry out the purposes and intents of this Assignment. Teton
Energy Corporation joins in this Assignment as further assurance to Assignee that all right, title
and interest of Teton DJ, whether legal or equitable, in the Assets is hereby assigned.

8. Successors and Assigns. This Assignment binds and inures to the benefit of
Assignor and Assignee and their respective successors and assigns.

9. Counterparts. This Assignment may be executed in any number of counterparts, each
of which shall be deemed an original and all of which taken together shall constitute but one and
the same instrument. In order to facilitate recordation, there are omitted from the Exhibits to
this Assignment in certain counterparts descriptions of property located in counties other than the
county in which the particular counterpart is to be recorded.

EXECUTED on the dates contained in the acknowledgments of this Assignment, to be effective for
all purposes as of the Effective Time.

ASSIGNOR:

TETON DJ LLC

	 	 	 	By:
Lonnie R. Brock
Title: Executive Vice President and Chief Financial
Officer

TETON ENERGY CORPORATION

	 	 	 	By:
Dominic J. Bazile II

	 	 	 	Title: Chief Operating Officer and Executive Vice
President

ASSIGNEE:

NOBLE ENERGY, INC.

	 	 	 	By:
Shawn E. Conner

Title: Vice President

4

ACKNOWLEDGMENTS

	 	 	 
	STATE OF COLORADO

CITY AND

COUNTY OF DENVER

	 	)

) ss.

)

The foregoing instrument was acknowledged before me this 31st day of March, 2009,
by Lonnie R. Brock, Executive Vice President and Chief Financial Officer of Teton DJ LLC.

Witness my hand and official seal.

My commission expires:       

Notary Public

	 	 	 
	STATE OF COLORADO

CITY AND

COUNTY OF DENVER

	 	)

) ss.

)

The foregoing instrument was acknowledged before me this 31st day of March, 2009,
by Dominic J. Bazile II, as Chief Operating Officer and Executive Vice President of Teton Energy
Corporation.

Witness my hand and official seal.

My commission expires:       

Notary Public

	 	 	 
	STATE OF COLORADO

CITY AND

COUNTY OF DENVER

	 	)

) ss.

)

The foregoing instrument was acknowledged before me this 31st day of March, 2009,
by Shawn E. Conner, Vice President of Noble Energy, Inc.

Witness my hand and official seal.

My commission expires:       

Notary Public

SCHEDULE 6.8

To Purchase and Sale Agreement

dated effective February 1, 2009 between

Teton DJ LLC, as Seller,

and Noble Energy, Inc., as Buyer

MATERIAL AGREEMENTS

	 	 	 	 	 	 	 
	 	1.	 	 	Agreement:
	 	Acreage Earning Agreement

	 	 	 	 	Date:
	 	12/31/05

	 	 	 	 	Parties:
	 	Noble Energy, Inc. and Teton Energy Corporation

	 	2.	 	 	Agreement:
	 	First Amendment to Acreage Earning Agreement by and between

Noble Energy, Inc. and Teton Energy Corporation

	 	 	 	 	Date:
	 	12/31/05

	 	 	 	 	Parties:
	 	Noble Energy, Inc. and Teton Energy Corporation

	 	3.	 	 	Agreement:
	 	East Big Springs Complex Joint Operating Agreement by and

between Noble Energy, Inc. (Operator) and Teton DJ LLC by

Teton Energy Corporation, Manager (Non-Operator)

	 	 	 	 	Date:
	 	01/27/06

	 	 	 	 	Parties:
	 	Noble Energy, Inc. (Operator) and Teton DJ LLC by Teton

Energy Corporation, Manager (Non-Operator)

	 	4.	 	 	Agreement:
	 	Grant Complex Joint Operating Agreement by and between

Noble Energy, Inc. (Operator)) and Teton DJ LLC by Teton

Energy Corporation, Manager (Non-Operator)

	 	 	 	 	Date:
	 	01/27/06

	 	 	 	 	Parties:
	 	Noble Energy, Inc. (Operator) and Teton DJ LLC by Teton

Energy Corporation, Manager (Non-Operator)

	 	5.	 	 	Agreement:
	 	Chundy Complex Joint Operating Agreement by and between

Noble Energy, Inc. (Operator) and Teton DJ LLC by Teton

Energy Corporation, Manager (Non-Operator)

	 	 	 	 	Date:
	 	01/27/06

	 	 	 	 	Parties:
	 	Noble Energy, Inc. (Operator) and Teton DJ LLC by Teton

Energy Corporation, Manager (Non-Operator)

	 	6.	 	 	Agreement:
	 	Model Form Recording Supplement to Operating Agreement and

Financing Statement

	 	 	 	 	Date:
	 	01/27/06

	 	 	 	 	Parties:
	 	Noble Energy, Inc. and Teton DJ LLC

	 	 	 	 	Rec. Date:
	 	06/26/06

	 	 	 	 	Book/Page:
	 	Book 16 O&G, Page 807

	 	 	 	 	County/State:
	 	Chase County, Nebraska

	 	7.	 	 	Agreement:
	 	Model Form Recording Supplement to Operating Agreement and

Financing Statement

	 	 	 	 	Date:
	 	01/27/06

	 	 	 	 	Parties:
	 	Noble Energy, Inc. and Teton DJ LLC

	 	 	 	 	Rec. Date:
	 	11/13/06

	 	 	 	 	Book/Page:
	 	Book 38, Misc., Page 559

	 	 	 	 	County/State:
	 	Dundy County, Nebraska

	 	8.	 	 	Agreement:
	 	Acreage Earning Agreement

	 	 	 	 	Date:
	 	05/01/07

	 	 	 	 	Parties:
	 	Teton DJ LLC and Targe Energy Exploration and Production LLC

5Exhibit 10.4

Exhibit 10.4

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

INSTRUCTIONS FOR COMPLETING TIME-BASED RESTRICTED STOCK AWARD

AGREEMENT FOR EMPLOYEES

Code Sheet

The following codes are used in this Award Agreement and should be replaced using your computer’s
“Replace” function.

	 	 	 	 	 
	 

	 	VTA
	 	Grantee’s name (all capital letters)
	 
	 	 	 	 
	 

	 	VTB
	 	Grant Date (all capital letters)
	 
	 	 	 	 
	 

	 	Vtb
	 	Grant Date (initial capital letters only)
	 
	 	 	 	 
	 

	 	Vtc
	 	Person to contact for more information
	 
	 	 	 	 
	 

	 	Vtd
	 	Contact’s telephone number, including area code
	 
	 	 	 	 
	 

	 	Vte
	 	Date that is 30 days after the Grant Date (initial capital letters only)
	 
	 	 	 	 
	 

	 	Vtf
	 	Number of Shares of Restricted Stock granted (insert only the number in Arabic
numerals)
	 
	 	 	 	 
	 

	 	Vtg
	 	Contact’s street address
	 
	 	 	 	 
	 

	 	Vth
	 	Contact’s city, state and zip code
	 
	 	 	 	 
	 

	 	Vti
	 	Calendar year in which grant is made (e.g., 2009)
	 
	 	 	 	 
	 

	 	Vtq
	 	Grantee’s name (initial capital letters only)

 

 

 

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

TIME-BASED RESTRICTED STOCK AWARD AGREEMENT GRANTED TO

VTA on VTB

A. Schulman, Inc. (“Company”) believes that its business interests are best served by extending to
you an opportunity to earn additional compensation based on the growth of the Company’s business.
To this end, the Company adopted, and its stockholders approved, the A. Schulman, Inc. Amended and
Restated 2006 Incentive Plan (“Plan”) as a means through which employees like you may share in the
Company’s success. Capitalized terms that are not defined herein shall have the same meanings as
in the Plan.

This Award Agreement describes many features of your Award and the terms and conditions of your
Award. To ensure you fully understand these terms and conditions, you should:

	 	•	 	Read the Plan carefully to ensure you understand how the Plan works;

	 	•	 	Read this Award Agreement carefully to ensure you understand the nature of your Award
and what you must do to earn it; and

	 	•	 	Contact Vtc at Vtd if you have any questions about your Award.

Also, no later than Vte, you must return a signed copy of the Award Agreement to:

Vtc

A. Schulman, Inc.

Vtg

Vth

Nature of Your Award

You have been granted Shares of Restricted Stock. If you satisfy the terms and conditions
described in this Award Agreement, the restrictions imposed on your Restricted Stock will lapse and
you will own the Shares. These and other conditions affecting your Restricted Stock are described
in this Award Agreement and the Plan, both of which you should read carefully.

Grant Date: Vtb.

Number of Shares of Restricted Stock: You have been granted Vtf Shares of Restricted Stock,
subject to the terms and conditions of this Award Agreement and the Plan.

When Your Award Will Vest

Until the terms and conditions described in this Award Agreement and the Plan are met, your Shares
of Restricted Stock will be held in escrow. Your Shares of Restricted Stock will be either
released from escrow and distributed to you, free of any restrictions, or forfeited, depending on
whether or not you satisfy the terms and conditions described in this Award Agreement and in the
Plan.

 

1

 

Normal Vesting Date: Normally, subject to your continued employment with the Company or a Related
Entity, restrictions on 33 1/3 % of your Shares of Restricted Stock will lapse (i.e., your Shares
of Restricted Stock will vest) on each of the first, second and third anniversaries of the Grant
Date. For purposes of this Agreement, each 12-month period ending on an anniversary of the Grant
Date shall be referred to as a “Vesting Year.”

However, your Restricted Stock may vest earlier in the circumstances described below.

How Your Restricted Stock Might Vest Earlier Than the Normal Vesting Date: Your Restricted Stock
will immediately vest if there is a Change in Control.

How Your Termination of Employment Will Affect Your Restricted Stock: You may forfeit your
Restricted Stock if you Terminate before the Normal vesting date, although this will depend on why
you Terminate.

	 	•	 	If you Terminate because of [1] death or [2] Disability, your Restricted Stock
will fully vest on your Termination date.

	 	•	 	If you Terminate because of Retirement and if the Committee agrees to treat your
Termination as a Retirement, a prorata portion of your Restricted Stock will vest
on your Retirement date equal to: [1] the number of unvested Shares of Restricted
Stock that would have become vested if you had remained employed through the end of
the Vesting Year in which you Terminate, multiplied by [2] a fraction, the
numerator of which is the number of whole months you were employed during such
Vesting Year and the denominator of which is 12.

	 	•	 	If you Terminate under any other circumstances, all of the Restricted Stock
granted through this Award Agreement will be forfeited on your Termination date.

Settling Your Award

If the restrictions on your Restricted Stock lapse, your Restricted Stock will be settled
automatically.

Other Rules Affecting Your Award

Rights During the Restriction Period: During the Restriction Period (and even though the Shares of
Restricted Stock are held in escrow until they are settled), you may exercise any voting rights
associated with your Shares of Restricted Stock. You also will be entitled to receive any
dividends or other distributions paid with respect to your Shares of Restricted Stock, although
such dividends and other distributions also will be held in escrow and subject to the same
restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect
to which they were paid under this Award Agreement until the Restricted Stock is settled and
distributed to you (or forfeited), depending on whether or not you have met the conditions
described in this Award Agreement and in the Plan.

 

2

 

Beneficiary Designation: You may name a beneficiary or beneficiaries to receive any portion of
your Award and any other right under the Plan that is unsettled at your death. To do so, you must
complete a beneficiary designation form by contacting Vtc at Vtd or the address below. If you
previously completed a valid beneficiary designation form, such form shall apply to the Award until
changed or revoked. If you die without completing a beneficiary designation form or if you do not
complete that form correctly, your beneficiary will be your surviving spouse or, if you do not have
a surviving spouse, your estate.

Tax Withholding: Certain taxes must be withheld when your Award vests and is settled. These taxes
may be paid in one of several ways. They are:

	 	•	 	By the Company withholding this amount from other amounts owed to you (e.g., from
your salary);

	 	•	 	By the Company withholding all or a portion of any cash amount owed to you with
respect to dividends credited with respect to the Shares that are to be distributed to
you;

	 	•	 	By giving the Company a check (payable to “A. Schulman, Inc.”) in an amount equal to
the taxes that must be withheld; or

	 	•	 	By having the Company withhold a portion of the Shares that otherwise would be
distributed to you. The number of Shares withheld will have a fair market value equal
to the taxes that must be withheld.

You must choose the approach you prefer before the Shares are transferred to you, although the
Company may reject your preferred method for any reason (or for no reason). If this happens, the
Company will specify (from among the alternatives just listed) how these taxes are to be paid.

If you do not choose a method within 30 days of the applicable settlement date, the Company will
withhold either through payroll practices or a portion of the Shares that otherwise would be
distributed to you. The number of Shares withheld will have a fair market value equal to the taxes
that must be withheld and the balance of the Shares will be distributed to you.

Transferring Your Restricted Stock: Normally, your Restricted Stock may not be transferred to
another person. However, as described above, you may complete a beneficiary designation form to
name the person to receive any Restricted Stock that is settled after you die. Also, the Committee
may allow you to transfer your Restricted Stock to certain Permissible Transferees, including a
trust established for your benefit or the benefit of your family. Contact Vtc at the address or
number given below if you are interested in doing this.

Governing Law: This Award Agreement will be construed in accordance with and governed by the laws
(other than laws governing conflicts of laws) of the State of Ohio, except to the extent that the
Delaware General Corporation Law is mandatorily applicable.

 

3

 

Other Agreements: Also, your Restricted Stock will be subject to the terms of any other written
agreements between you and the Company or a Related Entity to the extent that those other
agreements do not directly conflict with the terms of the Plan or this Award Agreement.

Adjustments to Your Restricted Stock: Subject to the terms of the Plan, your Award will be
adjusted, if appropriate, to reflect any change to the Company’s capital structure (e.g., the
number of Shares of Restricted Stock will be adjusted to reflect a stock split).

Other Rules: Your Restricted Stock also is subject to more rules described in the Plan. You
should read the Plan carefully to ensure you fully understand all the terms and conditions of this
Award.

*****

You may contact Vtc at the address or number given below if you have any questions about your Award
or this Award Agreement.

*****

 

4

 

Your Acknowledgment of Award Conditions

Note: You must sign and return a copy of this Award Agreement to Vtc at the address given below no
later than Vte.

By signing below, I acknowledge and agree that:

	 	•	 	A copy of the Plan has been made available to me;

	 	•	 	I understand and accept the conditions placed on my Award and understand what I must
do to earn my Award;

	 	•	 	I will consent (in my own behalf and in behalf of my beneficiaries and without any
further consideration) to any change to my Award or this Award Agreement to avoid
paying penalties under Section 409A of the Code, even if those changes affect the terms
of my Award and reduce its value or potential value; and

	 	•	 	I must return a signed copy of this Award Agreement to the address shown below by
Vte.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	VTA	 	 	 	 	 	A. SCHULMAN, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	(signature)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Date signed:

	 	 	 	 	 	Date signed:	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 	 	 

	 	 

A signed copy of this Award Agreement must be sent to the following address no later than Vte:

Vtc

A. Schulman, Inc.

Vtg

Vth

Vtd

 

5

 

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

INSTRUCTIONS FOR COMPLETING SECTION 83(b) ELECTION FORM

You may make a Section 83(b) Election by completing the Section 83(b) Election Form. To do this:

	 	•	 	You must make the election by completing the attached form;

	 	•	 	Within 30 days of Vtb, you must send a copy of this form to the internal revenue
office at which you file your federal income tax return;

	 	•	 	A copy of this form must be submitted with your income tax return for the taxable
year in which the property is transferred; and

	 	•	 	You also must send a copy of this form to:

Vtc

A. Schulman, Inc.

Vtg

Vth

 

 

 

A. SCHULMAN, INC.

AMENDED AND RESTATED

2006 INCENTIVE PLAN

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED

The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of
1986, as amended, to include in taxpayer’s gross income for the current taxable year, the amount of
any income that may be taxable to taxpayer in connection with taxpayer’s receipt of the property
described below:

	1.	 	The name, address, taxpayer identification number and taxable year of the undersigned
are as follows:

	 	 	 	 	 	 	 	 	 
	 	 	NAME OF TAXPAYER: Vtq	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	ADDRESS: 	 	 	 	 	 	 
	 

	 	 	 

	 	 	 	 	 
	 

	 	 	 

	 	 	 	 	 
	 

	 	 	 

	 	 	 	 	 
	 	 	IDENTIFICATION NUMBER OF TAXPAYER: 	 	 	 	 
	 

	 	 	 	 	 

	 	 

TAXABLE YEAR: Calendar year Vti

	2.	 	The property with respect to which the election is made is:

Vtf shares of the common stock of A. Schulman, Inc., a Delaware corporation
(“Company”).

	3.	 	The date on which the property was transferred is: Vtb.

	4.	 	The property is subject to the following restrictions:

Forfeiture of:

           shares in favor of the Company if employment terminates before
                    .

           shares in favor of the Company if employment terminates before
                    .

           shares in favor of the Company if employment terminates before
                    .

 

1

 

Restrictions may lapse earlier upon the death or disability (as defined in the A.
Schulman, Inc. Amended and Restated 2006 Incentive Plan (the “Plan”)) of the
taxpayer or in the event of a change in control (as defined in the Plan). In the
discretion of the Compensation Committee of the Company, the restrictions on a
prorata portion of the Shares may lapse earlier upon the retirement (as defined in
the Plan) of the taxpayer.

	5.	 	The fair market value at the time of transfer, determined without regard to any
restriction other than a restriction which by its terms will never lapse, of such
property is: $                    .

	6.	 	The amount (if any) paid for such property: $00.00.

The undersigned has submitted a copy of this statement to the Company. The transferee of such
property is the person performing the services in connection with the transfer of said property.

The undersigned understands that the foregoing election may not be revoked except with the consent
of the Commissioner.

	 	 	 	 	 
	Dated:                      	  	 	 
	 	 	Vtq 	 
	 	 	 	 

 

2

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