Document:

Purchase, Sale and Participation Agreement

 Exhibit 10.25 
 PURCHASE, SALE AND PARTICIPATION AGREEMENT 
 by and between

 ORCA ICI DEVELOPMENT, JV, 
 as Seller, 
 and 

MATADOR RESOURCES COMPANY, 
 as Buyer 
 Dated as of May 16, 2011 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	 1.
	 	 Purchase and Sale 
	  	 	1	  
		 	 (a) Property Being Sold
	  	 	1	  
			
	 2.
	 	 Purchase Price 
	  	 	2	  
			
	 3.
	 	 Effective Date and Closing 
	  	 	2	  
			
	 4.
	 	 Representations and Warranties of Seller 
	  	 	2	  
		 	 (a)    Authority
	  	 	2	  
		 	 (b)    Valid Agreement
	  	 	2	  
		 	 (c)    Authorization
	  	 	3	  
		 	 (d)    Leases
	  	 	3	  
		 	 (e)    Prepayments and Wellhead Imbalances
	  	 	3	  
		 	 (f)     Taxes
	  	 	3	  
		 	 (g)    Brokers
	  	 	4	  
		 	 (h)    Maintenance of Interests
	  	 	4	  
		 	 (i)     Suits and Claims
	  	 	4	  
		 	 (j)     Environmental Matters
	  	 	4	  
		 	 (k)    Obligation to Close
	  	 	4	  
		 	 (l)     Outstanding AFEs, Well Commitments, Etc.
	  	 	4	  
		 	 (m)   Contracts, Consents and Preferential Rights
	  	 	4	  
		 	 (n)    Buyer’s Remedy in the Event of a Breach of Warranty by Seller
	  	 	5	  
			
	 5.
	 	 Representations and Warranties of Buyer 
	  	 	5	  
		 	 (a)    Authority
	  	 	5	  
		 	 (b)    Valid Agreement
	  	 	5	  
		 	 (c)    Governmental Approvals
	  	 	5	  
		 	 (d)    Independent Evaluation
	  	 	5	  
		 	 (e)    Obligation to Close
	  	 	6	  
		 	 (f)     Available Funds
	  	 	6	  
		 	 (g)    Brokers
	  	 	6	  
			
	 6.
	 	 Title Matters
	  	 	6	  
		 	 (a)    Definitions
	  	 	6	  
		 	 (b)    Examination of Files and Records
	  	 	7	  
		 	 (c)    Notice of Title Defect
	  	 	8	  
		 	 (d)    Procedure
	  	 	8	  
		 	 (e)    Required Consents
	  	 	8	  
		 	 (f)     Termination Right
	  	 	9	  
			
	 7.
	 	 Right to Participate. 
	  	 	9	  
		 	 (a)    Joint Operating Agreement
	  	 	9	  

  
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		 	 (b)    Participation Right – DeWitt
	  	 	10	  
		 	 (c)    Participation Right – KGW
	  	 	11	  
		 	 (d)    Reassignment
	  	 	12	  
		 	 (e)    Lease Burdens
	  	 	12	  
		 	 (f)     Rights of Ingress and Egress
	  	 	12	  
			
	 8.
	 	 Feasibility Period; Inspections
	  	 	13	  
			
	 9.
	 	 Covenants of Seller Prior to Closing
	  	 	14	  
		 	 (a)    Operations
	  	 	14	  
		 	 (b)    Negative Covenants
	  	 	14	  
			
	 10.
	 	 Closing
	  	 	15	  
		 	 (a)    Time and Place
	  	 	15	  
		 	 (b)    Preliminary Closing Settlement Statement
	  	 	15	  
		 	 (c)    Agreed Closing Settlement Statement
	  	 	15	  
		 	 (d)    Seller’s Deliveries
	  	 	15	  
		 	 (e)    Buyer’s Deliveries
	  	 	16	  
		 	 (f)     Copies of Data and Recorded Assignment
	  	 	16	  
		 	 (g)    Sales and Transfer Taxes
	  	 	16	  
			
	 11.
	 	 Post-Closing Obligations 
	  	 	16	  
		 	 (a)    Final Settlement Statement
	  	 	16	  
		 	 (b)    Payment of Final Settlement Amounts
	  	 	17	  
		 	 (c)    Additional Payments Received
	  	 	17	  
		 	 (d)    Revenues and Expenses
	  	 	17	  
		 	 (e)    Drilling and Completion of Earning Wells
	  	 	17	  
		 	 (f)     Identification of Wells
	  	 	18	  
			
	 12.
	 	 Indemnification
	  	 	18	  
		 	 (a)    By Seller
	  	 	18	  
		 	 (b)    By Buyer
	  	 	18	  
			
	 13.
	 	 Area of Mutual Interest 
	  	 	18	  
			
	 14.
	 	 Dispute Resolution 
	  	 	19	  
		 	 (a)    Mediation
	  	 	19	  
		 	 (b)    Arbitration
	  	 	19	  
			
	 15.
	 	 Miscellaneous
	  	 	20	  
		 	 (a)    Further Assurances
	  	 	20	  
		 	 (b)    Entire Agreement
	  	 	20	  
		 	 (c)    Confidentiality
	  	 	21	  
		 	 (d)    Notices
	  	 	21	  
		 	 (e)    Binding Effect
	  	 	22	  
		 	 (f)     Counterparts
	  	 	22	  
		 	 (g)    Law Applicable; Jurisdiction and Venue
	  	 	22	  
		 	 (h)    Survival
	  	 	23	  

  
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		 	 (i)     Headings
	  	 	23	  
		 	 (j)     Timing
	  	 	23	  
		 	 (k)    Expenses
	  	 	23	  
		 	 (l)     Amendment and Waiver
	  	 	23	  
		 	 (m)   Announcements
	  	 	23	  
		 	 (n)    Third-Party Beneficiaries
	  	 	23	  
		 	 (o)    Severance
	  	 	23	  

 Exhibits 
  

			
	 Exhibit “A”
	  	Description of DeWitt Leases
	 Exhibit “A-1”
	  	List of DeWitt Lease Net Revenue Interests, Net Acres and Allocated Values
	 Exhibit “B”
	  	Description of Karnes, Gonzales and Wilson Leases
	 Exhibit “B-1”
	  	List of Karnes, Gonzales and Wilson Lease Net Revenue Interests, Net Acres and Allocated Values
	 Exhibit “C”
	  	List of Certain Agreements, Contracts, Approvals and Consents
	 Exhibit “D”
	  	Joint Operating Agreement
	 Exhibit “E”
	  	Form of DeWitt Five Percent Reassignment
	 Exhibit “F”
	  	Form of DeWitt Fifteen Percent Reassignment
	 Exhibit “G”
	  	Form of KGW Earning Well Reassignment
	 Exhibit “H”
	  	Form of Orca Participation Reassignment
	 Exhibit “I”
	  	Form of Assignment, Conveyance and Bill of Sale
	 Exhibit “J”
	  	Lewton Well Log
	 Exhibit “K”
	  	Other Obligations Exhibit
	 Exhibit “L”
	  	Tax Partnership Agreement

 Schedules 
  

			
	 Schedule 4(i)
	  	Legal Proceedings

 Addenda 
 Addendum to Address Post-Closing Issues 

  
 iii

 PURCHASE, SALE AND PARTICIPATION AGREEMENT 

This Purchase, Sale and Participation Agreement (the “Agreement”) is made this 16th day of May, 2011
(the “Effective Date”), by and between ORCA ICI DEVELOPMENT, JV, a Texas general partnership (“Seller”), whose address is 5005 Riverway, Suite 440, Houston, Texas 77056, and MATADOR RESOURCES COMPANY, a Texas corporation,
whose address is One Lincoln Centre, 5400 LBJ Freeway, Suite 1500, Dallas, Texas 75240 (“Buyer”). Buyer and Seller may be collectively referred to herein as the “Parties” and individually as a
“Party.” Buyer and Seller agree as follows: 
 AGREEMENT 

1. Purchase and Sale. 

(a) Property Being Sold. For and in consideration of the Purchase Price and Buyer’s
agreement to the terms and conditions of this Agreement, including without limitation Buyer’s agreement to drill the DeWitt Earning Wells and the KGW Earning Wells, and subject to the terms and conditions of this Agreement, Seller agrees to
make the Property exclusively available and subject to Buyer’s right to acquire and retain it hereunder. The term “Property” (or within context “Properties”) means: 

(i) DeWitt Leasehold. An undivided Fifty Percent (50%) of 8/8ths of Seller’s
right, title and interest in and to the oil, gas and mineral leases and subleases, including renewals, extensions, ratifications and amendments to such leases and subleases, and further including working interests, rights of assignment and
reassignment, net revenue interests and undeveloped locations under or in oil, gas and mineral leases, and interests in rights to explore for and produce oil, gas or other minerals covering approximately 2,794.728 gross acres and 2,794.728 net acres
in DeWitt County, Texas insofar and only insofar as such rights, titles and interests are described in Exhibit “A” (all references in this Agreement to Exhibit “A” shall be deemed to include Exhibit
“A-1”) attached and made a part hereof (all of such right, title and interest described in this Section 1(a)(i) being hereinafter referred as the “DeWitt Leases” or in some cases “DeWitt
Lease” if the context requires, but excluding the 220 acres associated with the Lewton #1H well as identified in the Farmout Agreement dated March 18, 2011, by and between Buyer and Seller); 

(ii) Karnes, Gonzales and Wilson Leasehold. One Hundred Percent (100%) of 8/8ths of
Seller’s right, title and interest in and to the oil, gas and mineral leases and subleases, including renewals, extensions, ratifications and amendments to such leases and subleases, and further including working interests, rights of assignment
and reassignment, net revenue interests and undeveloped locations under or in oil, gas and mineral leases, and interests in rights to explore for and produce oil, gas or other minerals covering approximately 3,938.081 gross acres and 3,938.081 net
acres in Karnes, Gonzales and Wilson Counties, Texas insofar and only insofar as such rights, titles and interests are described in Exhibit “B” (all references in this Agreement to Exhibit “B” shall be deemed to
include Exhibit “B-1”) attached and made a part hereof (all of such right, title and interest described in this Section 1(a)(ii) being hereinafter 

  
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referred to herein as the “KGW Leases” or in some cases “KGW Lease” if the context requires; the DeWitt Leases and KGW Leases (or assigned interest therein)
being hereinafter referred to collectively as the “Leases” or in some cases “Lease” if the context requires); 
 Notwithstanding the foregoing clauses (i) and (ii), the term “Property” shall exclude, and Seller shall reserve and except in any assignment thereof, any of Seller’s right,
title and interest in the Leases not conveyed and assigned to Buyer as a result of a Title Defect (as defined in Section 6(a)) unless Seller is able to timely cure or remediate such defect as referenced in Section 6(d) or if such
defect is waived by Buyer. 
 (iii) Rights in Production. All of Seller’s
right, title and interest in and to all reversionary interests, backin interests, overriding royalty interests and production payments relating to all natural gas, casinghead gas, natural gas liquids, condensate, products, crude oil and other
hydrocarbons, whether gaseous or liquid, produced and severed from, or allocable to the Leases (the “Hydrocarbons”), but only to the extent such right, title and interest are attributable to the Leases; 

(iv) Contract Rights. All of Seller’s right, title and interest in or derived from unit
agreements, orders and decisions of regulatory authorities establishing or relating to units, unit operating agreements, exploration agreements, operating agreements, communitization agreements, gas purchase agreements, oil purchase agreements,
gathering agreements, transportation agreements, road use agreements, surface use agreements, processing or treating agreements, farmout agreements and farm in agreements, rights-of-way, easements, seismic agreements, seismic permits, permits,
surface leases and any other agreements relating to the Leases and Hydrocarbons to the extent such contracts are assignable without the payment of any compensation (the “Contracts”), but only to the extent such right, title and
interest are attributable to the Leases, and Hydrocarbons; 
 2. Purchase Price. As part of the
consideration to Seller, Buyer agrees to pay to Seller for the Property the sum of THIRTY FOUR MILLION DOLLARS AND NO/100 ($34,000,000.00) (the “Purchase Price”). The Purchase Price shall be payable at Closing (as hereinafter
defined) to Seller in immediately available funds. 
 3. Effective Date and Closing. The
conveyance of the Property to Buyer shall be effective as of and title thereof shall be delivered at the closing, which shall take place on the date that is five (5) business days after the Effective Date (the “Closing” or
“Closing Date”) unless extended by the written agreement of the Parties. 
 4.
Representations and Warranties of Seller. Seller represents and warrants to Buyer as of the date hereof and will represent and warrant to Buyer at the Closing, as follows: 

(a) Authority. Orca ICI Development, JV is a general partnership duly organized, validly
existing and in good standing under the laws of the State of Texas and has the requisite power and authority to enter into, deliver and perform this Agreement and carry out the transactions contemplated under this Agreement. 

(b) Valid Agreement. This Agreement constitutes the legal, valid and binding agreement of
Seller on its behalf. At the Closing, all instruments required hereunder to be executed 

  
 2 

 
and delivered by Seller shall constitute legal, valid and binding obligations of Seller. The execution and delivery by Seller of this Agreement, the consummation of the transactions set forth
herein and the performance by Seller of its obligations hereunder have been duly and validly authorized by all requisite corporate action on the part of Seller and will not, in any material respects, violate, conflict with or result in any violation
or breach of any provision of any: 
 (i) Agreement, contract, mortgage, lease, license or other
instrument to which Seller or any of Seller’s partners are a party or by which Seller or the Property is bound; 
 (ii) Governmental franchise, license, permit or authorization or any judgment or order of a judicial or governmental body applicable to Seller or the Property; or 

(iii) Law, statute, decree, rule or regulation of any jurisdiction in the United States to which Seller or
the Property is subject. 
 (c) Authorization. This Agreement has been duly
authorized, executed and delivered by Seller on its behalf. All instruments required to be delivered by Seller at the Closing shall be duly authorized, executed and delivered by Seller. This Agreement and all documents executed by Seller in
connection with this Agreement shall constitute legal, valid and binding obligations of Seller, enforceable against Seller in accordance with their terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium and similar laws
from time to time in effect, as well as general principles of equity. 
 (d)
Leases. (i) The Leases are in full force and effect and are the valid and legally binding obligations of the parties thereto and are enforceable in accordance with their respective terms, (ii) all royalties, rentals and other
payments due under the Leases have been fully, properly and timely paid, or placed in suspense, (iii) Seller has not made any oral or written agreements that would impair or interfere with the ability of Buyer to enter upon and conduct
operations on the Leases, amend any of the terms in the Leases, or bind Buyer to any obligations that are not disclosed in the Leases or on the Other Obligations Exhibit attached hereto as Exhibit “K”, (iv) all deductions from
oil and gas proceeds have been deducted in compliance with all of the terms and conditions of the applicable Leases, other contracts and applicable law, (v) Seller is not in material breach or default with respect to any of its obligations
pursuant to any of the Leases and (vi) Seller has received no written or oral notice of default under any of the Leases. 
 (e) Prepayments and Wellhead Imbalances. Except as provided in the Leases, Seller is not obligated, by virtue of a production payment, prepayment arrangement
under any contract for the sale of Hydrocarbons containing a “take or pay,” advance payment or similar provision, gas balancing agreement or any other arrangement to deliver Hydrocarbons produced from the Property at any time after the
Effective Date without then or thereafter receiving full payment therefor. 
 (f)
Taxes. All due and payable ad valorem, property, production, severance and similar taxes and assessments based on or measured by the ownership of property on the Property have been timely paid when due and are not in arrears and all
such taxes and assessments which become due prior to the Closing Date for any periods prior to the Effective Date, will be properly paid or accounted for at Closing. 

  
 3 

 (g) Brokers. Seller has incurred no obligation
or liability, contingent or otherwise, for brokers’ or finders’ fees with respect to this transaction for which Buyer shall have any obligation or liability. 

(h) Maintenance of Interests. Seller has maintained and will continue, from the date of this
Agreement until the Closing, to maintain the Property in a reasonable and prudent manner, in full compliance with applicable law and orders of any governmental authority, will maintain insurance and bonds, if any, now in force with respect to the
Property and will pay when due all costs and expenses coming due and payable in connection with the Property including but not limited to, payment of all rentals, deferred payments, extension payments and any other necessary payments to maintain the
Leases in full force and effect. 
 (i) Suits and Claims. Except as disclosed on
Schedule 4(i) attached hereto, to Seller’s knowledge, no suit, action, claim or other proceeding is now pending or threatened before any court, arbitration panel or governmental agency which might result in the impairment or loss of any
of Seller’s title to any portion of the Property or a material diminution of the value of any of the Property or that might materially hinder or impede the operation of the Property, and Seller shall promptly notify Buyer of any such proceeding
which arises or is threatened prior to the Closing Date. 
 (j) Environmental
Matters. To Seller’s knowledge, Seller is not in material violation of any environmental laws applicable to the Property, or any material limitations, restrictions, conditions, standards, obligations or timetables contained in any
environmental laws. Seller has not received any written notice alleging such a violation is pending or threatened against the Property. 
 (k) Obligation to Close. Seller shall take or cause to be taken all actions necessary or advisable to consummate the transactions contemplated by this Agreement and to assure that as of the
Closing Date it will not be under any material, legal, governmental or contractual restriction that would prohibit or delay the timely consummation of such transactions. 

(l) Outstanding AFEs, Well Commitments, Etc. Except as provided in the Leases, Seller has
not, and will not after execution of this Agreement by all Parties, become legally obligated for any future operational commitments requiring an expenditure, if such commitments would be binding on Buyer, of greater than Five Thousand Dollars and
No/100 ($5,000.00) net to the Property, without obtaining Buyer’s written consent. There are no operations on the Property to which Seller is or was a non-consenting party. There are no obligations to drill additional wells on the Leases, other
than those required to maintain the Leases in force and effect. 
 (m) Contracts, Consents
and Preferential Rights. Exhibit “C” attached hereto and made a part hereof accurately identifies the following items: 
 (i) All joint venture and area of mutual interest agreements of which any terms remain executory and affect any Property; 

(ii) All gas purchase contracts, oil purchase contracts, gathering contracts, transportation contracts,
marketing contracts, disposal or injection contracts and all 

  
 4 

 
other contracts affecting any Property which are not, by the terms thereof, subject to termination upon thirty (30) days or less notice; 

(iii) All governmental approvals and third party contractual consents required in order to consummate the
transactions contemplated by this Agreement; and 
 (iv) All agreements pursuant to which third
parties have preferential rights or similar rights to acquire any portion of the Property upon the transfer of the Property by Seller to the Buyer as contemplated by this Agreement. 

(n) Buyer’s Remedy in the Event of a Breach of Warranty by Seller. If Buyer discovers
or is advised by Seller in writing at or prior to Closing that any of Seller’s warranties and representations are untrue as of the Closing, then Buyer may either (i) waive objection thereto and close, without reduction of the Purchase
Price; or (ii) as Buyer’s sole and exclusive remedy, terminate this Agreement, whereupon neither party shall have any further rights or obligations hereunder except as otherwise expressly provided. 

5. Representations and Warranties of Buyer. Buyer represents and warrants to Seller as of the date hereof
and will represent and warrant at the Closing, as follows: 
 (a) Authority. Buyer
is a corporation duly organized and in good standing under the laws of the State of Texas and has all the requisite corporate power and authority to enter into and perform this Agreement and carry out the transactions contemplated under this
Agreement. 
 (b) Valid Agreement. This Agreement constitutes the legal, valid and
binding agreement of Buyer. At the Closing, all instruments required hereunder to be executed and delivered by Buyer shall be duly executed and delivered to Seller and shall constitute legal, valid and binding obligations of Buyer. Buyer’s
execution and delivery of this Agreement, the consummation of the transactions set forth herein and Buyer’s performance of Buyer’s obligations hereunder have been duly and validly authorized by all requisite corporate action on the part of
Buyer and will not conflict with or result in any violation of any provision of any: 
 (i)
Agreement, contract, mortgage, lease, license or other instrument to which Buyer is a party or by which Buyer is bound; 
 (ii) Governmental franchise, license, permit or authorization or any judgment or order of a judicial or governmental body applicable to Buyer; or 

(iii) Law, statute, decree, rule or regulation of any jurisdiction in the United States to which Buyer is
subject. 
 (c) Governmental Approvals. Buyer shall obtain all required local,
state, federal governmental and agency permissions, approvals, permits, bonds and consents, as may be required to assume Seller’s assigned obligations and responsibilities attributable to the Property. 

(d) Independent Evaluation. Buyer is an experienced and knowledgeable investor in the oil
and gas business. Buyer has been advised by and has relied solely on its own 

  
 5 

 
expertise and legal, tax, title, reservoir engineering, environmental and other professional counsel concerning this transaction, the Property, the value thereof and title thereto. 

(e) Obligation to Close. Buyer shall take or cause to be taken all actions necessary or
advisable to consummate the transactions contemplated by this Agreement and to assure that as of the Closing Date it will not be under any material, corporate, legal, governmental or contractual restriction that would prohibit or delay the timely
consummation of such transactions. 
 (f) Available Funds. Buyer has readily
available sufficient funds to pay the full amount of the Purchase Price. 
 (g)
Brokers. Buyer has incurred no obligation or liability, contingent or otherwise, for brokers’ or finders’ fees with respect to this transaction for which Seller shall have any obligation or liability. 

6. Title Matters. 

(a) Definitions. 

(i) “Marketable Title” means a title that can be deduced from the applicable
county, state and federal records and is such that: 
  

	 	•	 	 a reasonable and prudent person engaged in the business of the ownership, development and operation of oil and gas properties with the knowledge of
all the facts and their legal bearing would be willing to accept title to the Property, and 

  

	 	•	 	 the title is free and clear from liens and encumbrances that would reduce, impair or prevent Buyer from receiving payment from the purchasers of
production, or which would materially impair or reduce the ability of Buyer to enter upon and conduct operations upon the Property, or which would materially impair or reduce the economic benefit Buyer could reasonably expect from acquiring the
Property. 

 (ii) “Title Defect” means: (A) any
matter that would cause the title to the Property to fail to qualify as Marketable Title; (B) any matter that reduces the net revenue interest to be conveyed to Buyer in any Lease to less than that which is represented on Exhibit
“A-1” or “B-1”; and (C) any matter that reduces the number of net acres to be conveyed with respect to any Lease from that which is represented on Exhibit “A-1” or “B-1”; provided, however, the
term “Title Defect” shall not include a Permitted Encumbrance. 
 (iii)
“Allocated Value” means the value agreed upon by the Parties for the Properties as set forth on Exhibits “A-1” and “B-1”. 

  
 6 

 (iv) “Permitted Encumbrance”, as to
any Lease, means: 
 (1) lessors’ royalties, overriding royalties, net profits interests,
production payments, reversionary interests and similar burdens (“Lease Burdens”) (payable or in suspense) filed of record as of March 17, 2011 in the county in which such Lease is located, if the net cumulative effect
of such Lease Burdens does not operate to reduce (i) the net revenue interest for such Lease below that which is represented on Exhibit “A-1” or “B-1”, and (ii) the number of net acres to be conveyed with respect
to such Lease from that which is represented on Exhibit “A-1” or “B-1”; 
 (2) liens for taxes or assessments not yet due and delinquent; 
 (3) all rights to consent by, required notices to, filings with, or other actions by federal, state or local governmental bodies in connection with the conveyance of the applicable Lease if the same are
customarily obtained after such conveyance (“Routine Consents”); 
 (4) rights
of reassignment upon the surrender or expiration of any Lease; 
 (5) easements, rights-of-way,
servitudes, permits, surface leases and other rights with respect to surface operations, on, over or in respect of the lands covered by the Lease or any restriction on access thereto so long as the same do not materially interfere with the operation
of the affected Lease and do not materially affect the value thereof; 
 (6) materialmen’s,
mechanics’, operators’ or other similar liens arising in the ordinary course of business incidental to operation if such liens and charges have not been filed pursuant to law or the time for filing such liens and charges has expired; and

 (7) all other contracts, agreements, instruments, obligations, defects and irregularities
affecting such Lease that individually or in the aggregate are not such as to materially interfere with the ability of Buyer to enter upon and conduct operations upon the Lease or materially interfere with the value or use of such Lease and cannot
reasonably be expected to prevent Buyer from receiving the proceeds of production from such Lease; provided, nothing in this Section 6(a)(iv)(7) shall operate to reduce (i) the net revenue interest for such Lease below that which is
represented on Exhibit “A-1”or “B-1” and (ii) the number of net acres to be conveyed with respect to such Lease from that which is represented on Exhibit “A-1” or “B-1”. 

(b) Examination of Files and Records. Seller has made and shall continue to make available
to Buyer its Leases, title files, easements, contracts and other title information available in Seller’s files relating to the Property (collectively “Data”). Upon reasonable advance notice from Buyer, all such Data shall be
made available at Seller’s office during normal working hours. Seller shall also permit Buyer to examine and copy such Data at Buyer’s expense. If Closing does not occur, Buyer shall promptly return all such Data, copies of Data and other
materials provided by Seller to Buyer hereunder. Buyer shall, and shall cause its 

  
 7 

 
affiliates, officers, employees, representatives and agents to, treat as confidential all such Data in accordance with the requirements of Section 15(c) of this Agreement and shall
not, and shall cause its affiliates, officers, employees, representatives and agents not to, disclose or otherwise use the Data for any purpose other than its evaluation of the Property prior to the Closing. 

(c) Notice of Title Defect. Buyer will review title to the Leases prior to Closing and
notify Seller in writing of any Title Defect it discovers as soon as reasonably practicable after its discovery, but no later than two (2) business days after the Effective Date. Any notice provided hereunder shall include a description of the
Title Defect, the basis for the Title Defect, the Lease affected by the Title Defect and the Allocated Value of the affected Lease. Buyer will be deemed to have conclusively waived any Title Defect about which it fails to notify Seller in writing
within the applicable period specified in the preceding sentence. 
 (d) Procedure.
If Buyer properly and timely notifies Seller of a Title Defect, Seller shall have the option, but not the obligation, to cure the Title Defect. If Seller elects not to, or is unable to cure a Title Defect prior to Closing, the Purchase Price will be
reduced by the Allocated Value of the affected Lease. Further, the Buyer’s obligation to drill the KGW Earning Wells and/or the DeWitt Earning Wells, depending on the location of the affected Lease(s), shall be reduced proportionately to the
reduction caused by the affected Lease in relation to the net leasehold acres of the KGW Leases or the DeWitt Leases, as appropriate (provided however, before Buyer’s obligation to drill a KGW Earning Well and/or a DeWitt Earning Well is
reduced, the affected Leases must total at least twenty percent (20%) of the total net leasehold acres within the KGW Leases and/or the DeWitt Leases, as appropriate). The affected Lease will not be conveyed to Buyer at the Closing unless,
however, Buyer elects to waive the Title Defect, in which case the Purchase Price shall not be reduced and the affected Lease shall be conveyed to Buyer at the Closing. In the event Buyer asserts a Title Defect and Seller elects to cure, no later
than 5:00 PM on the business day preceding the Closing Date, Seller shall provide Buyer with a list of Leases with asserted Title Defects that it will undertake to attempt to cure, and in that event, the Purchase Price will be reduced at Closing by
the Allocated Value of the affected Leases, and the Buyer’s obligation to drill the DeWitt Earning Wells and the KGW Earning Wells will be reduced under the standards set forth above, and the affected Leases will not be conveyed to Buyer at
Closing. Seller will have sixty (60) days following the Closing Date to attempt to cure such asserted Title Defects. If Seller is able to cure a Title Defect to the reasonable satisfaction of Buyer or if Buyer elects to waive the asserted Title
Defect, Seller shall make an additional assignment of the affected Lease to Buyer, and Buyer shall pay Seller the Allocated Value deducted from the Purchase Price with respect to such Title Defect within five (5) days thereafter, and any
reduction in the Buyer’s obligation to drill the DeWitt Earning Wells and the KGW Earning Wells because of such Leases as set forth above will be reinstated. If an affected Lease is not ever assigned to Buyer pursuant to the foregoing
provisions of this paragraph, such Lease will not be considered part of the Property; Seller shall retain such Lease and the Purchase Price shall be deemed permanently reduced by an amount equal to the Allocated Value of the affected Lease, and the
Buyer’s obligation to drill the KGW Earning Wells and/or the DeWitt Earning Wells shall be permanently reduced as set forth above. 
 (e) Required Consents. The Parties agree that, under the terms of certain Leases, the consents of the lessors of such Leases (other than Routine Consents) are required to be obtained in
connection with the assignment of such Leases from Seller to Buyer (“Required  

  
 8 

 
Consents”) and that Exhibit “C” attached hereto lists all of the Required Consents. Seller shall use its commercially reasonable efforts to obtain such Required
Consents prior to Closing, provided that Seller shall not be required to expend any funds or make any other type of financial commitment as a condition to obtaining such Required Consent. If a Required Consent has not been obtained as of the
Closing, then (i) the Lease for which such Required Consent has not been obtained shall not be conveyed at the Closing, (ii) the Allocated Value for that Lease shall not be paid to Seller, (iii) the Buyer’s obligation to drill
the KGW Earning Wells and/or the DeWitt Earning Wells, depending on the location of the affected Lease(s), shall be reduced proportionately to the reduction caused by the affected Lease in relation to the net leasehold acres of the KGW Leases or the
DeWitt Leases, as appropriate (provided however, before Buyer’s obligation to drill a KGW Earning Well and/or a DeWitt Earning Well is reduced, the affected Leases must total at least twenty percent (20%) of the total net leasehold acres
within the KGW Leases and/or the DeWitt Leases, as appropriate); and (iv) Seller shall use its commercially reasonable efforts to obtain such Required Consent as promptly as practicable following Closing. If a Required Consent has been obtained
within sixty (60) days after the Closing, Seller shall convey the affected Lease to Buyer effective as of the Closing Date, and Buyer shall pay Seller the Allocated Value of the affected Lease, and any reduction in the Buyer’s obligation
to drill the DeWitt Earning Wells and the KGW Earning Wells because of such Leases as set forth above will be reinstated. If such Required Consent has not been obtained within sixty (60) days after the Closing, the affected Lease will not be
considered part of the Property; Seller shall retain such Lease; and the Purchase Price shall be deemed permanently reduced by an amount equal to the Allocated Value of the affected Lease, and the Buyer’s obligation to drill the KGW Earning
Wells and/or the DeWitt Earning Wells shall be permanently reduced as set forth above. 
 (f)
Termination Right. Either Party may elect to terminate this Agreement without liability to the other Party by giving the other party written notice of such termination at any time prior to the Closing Date, if (i) the sum of the
Title Defects equals or exceeds Twenty Five Percent (25%) of the Purchase Price and Seller elects not to cure such Title Defects; or (ii) the sum of the Required Consents not obtained by Seller equals or exceeds Twenty-Five Percent
(25%) of the Purchase Price. However, as a condition to Seller’s right to terminate hereunder, Seller shall first make a good faith effort to cure the Title Defects and/or obtain the Required Consent, and, if Seller is unable to cure such
Title Defects to the reasonable satisfaction of Buyer, or obtain the Required Consent, then, in the event the remaining uncured Title Defects or Required Consents not obtained by Seller at the Closing Date equal or exceed Twenty Five Percent
(25%) of the Purchase Price and Buyer elects not to waive a sufficient number of the Title Defects or un-obtained Required Consents, so that the remaining Title Defects or un-obtained Required Consents are less than Twenty Five Percent
(25%) of the Purchase Price, Seller may terminate this Agreement. For the purposes of this Subsection 6(f), the term “good faith effort” shall not require Seller to initiate litigation with respect to any Lease, or incur costs and
expenses in connection with a particular Lease in excess of the sum of one percent (1.0%) of the Allocated Value of such Lease. 
 7. Right to Participate. 
 (a)
Joint Operating Agreement. The Parties hereby agree that they and any of their successors, transferees and assigns are bound by and subject to the joint operating agreement attached hereto as Exhibit “D”
(“JOA”). It is contemplated herein that there will be 

  
 9 

 
only one JOA between the Parties with respect to the Leases. The Parties agree to amend Exhibit “A” to such JOA by inserting from time to time addenda in which the working interests of
Seller, its designees, successors, transferees and/or assigns and Buyer, its designees, successors, transferees and/or assigns in each well drilled thereunder shall be duly noted. In the event of a conflict between the JOA and this Agreement, then,
in that case, this Agreement shall govern. The Parties agree to execute and cause to be recorded in the real property records of the counties in which the Properties are located the form of Memorandum of Joint Operating Agreement attached as Exhibit
“F” to the JOA. The Parties further agree that any assignment, reassignment and/or other transfer of all or a portion of Buyer’s interest in the Properties shall expressly provide that the party acquiring such interest shall be bound
by and subject to the JOA and the surviving provisions of this Agreement, and absent such language such assignment shall be null and void and of no force and effect. 

(b) Participation Right – DeWitt. Under the terms of this Agreement and the JOA, Seller
shall be deemed to participate to the full extent of a Fifteen Percent (15%) working interest in each of the first five (5) wells drilled on the DeWitt Leases (the “DeWitt Earning Wells”); provided, however, Seller’s
working interest in each DeWitt Earning Well shall be proportionately reduced to the extent the Leases, or portions thereof, included within such drilling and spacing unit are (i) pooled, spaced, or unitized with other lands,
(ii) represent less than One Hundred Percent (100%) of the leasehold in the lands covered by such Leases or (iii) represent less than One Hundred Percent (100%) of the mineral estate in the lands covered by such Leases. Buyer, on
behalf of Seller, shall bear and pay One Hundred Percent (100%) of Seller’s working interest share of the drilling and completion costs incurred through the tanks, for each DeWitt Earning Well. Buyer will be entitled to receive Eighty Five
Percent (85%) of the production attributable to each DeWitt Earning Well until such time as it has reached Payout (as defined below). “Payout” shall occur when Buyer has recouped One Hundred Percent (100%) of the costs to
acquire, drill, complete, equip and produce a well. For the purposes of this Agreement, the costs used to determine when Payout has occurred shall be those costs and expenses described in Exhibit “C” to the JOA which the operator
thereunder may properly charge to the non-operators, and inclusive of Buyer’s lease acquisition costs. Once each DeWitt Earning Well has reached Payout, Seller will have the right, but not the obligation, to back-in for an additional
Thirty-Five Percent (35%) working interest (proportionately reduced to the extent the Leases, or portions thereof, included within such drilling and spacing unit are (i) pooled, spaced, or unitized with other lands, (ii) represent
less than One Hundred Percent (100%) of the leasehold in the lands covered by such Leases or (iii) represent less than One Hundred Percent (100%) of the mineral estate in the lands covered by such Leases) in the DeWitt Earning Wells
on a well-by-well basis, for no additional consideration. No later than twenty (20) days after reaching Payout on a particular DeWitt Earning Well, Buyer shall give written notice thereof to Seller. Upon receipt of the Buyer’s notice of
reaching Payout with respect to a DeWitt Earning Well, Seller shall have a period of thirty (30) days in which to elect in writing to participate. In addition, under the terms of this Agreement and the JOA, Seller shall have the right to
participate, on a well-by-well basis, for a Fifty Percent (50%) working interest (proportionately reduced in the same manner as for the DeWitt Earning Wells) in all wells drilled on the DeWitt Leases or on lands and other leases unitized,
communitized or pooled with the DeWitt Leases to the extent such wells are not DeWitt Earning Wells (“Subsequent DeWitt Wells”). If Seller makes such an election to participate, Seller shall pay its working interest share of the
drilling, completion, testing and equipping costs for all Subsequent DeWitt Wells in accordance with the 

  
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JOA. Seller’s rights to participate and working interest obligations under this Section 7(b) shall also apply with respect to any renewals and extensions of any DeWitt Lease
acquired at any time prior to the expiration of such DeWitt Lease. Provided that any assignment, transfer or security interest is made specifically subject to the terms and conditions of this Agreement and the JOA, Seller (i) may assign or
otherwise transfer its rights to participate arising under this Agreement with the consent of the Buyer, which consent may not be unreasonably withheld, (ii) may create a security interest in such rights and (iii) may mortgage and create a
lien or security interest in any interest that it earns or receives hereunder and has been assigned from Buyer in accordance with Section 7(d) below. 

(c) Participation Right – KGW. Buyer shall bear and pay One Hundred Percent
(100%) of the drilling and completion costs incurred through the tanks, for each of the first five (5) wells drilled on the KGW Leases by Buyer (the “KGW Earning Wells”). Buyer will be entitled to receive One Hundred
Percent (100%) of the production attributable to each KGW Earning Well until Payout. Once each KGW Earning Well has reached Payout, Seller will have the right, but not the obligation, to back-in for a Twenty Five Percent (25%) working
interest (proportionately reduced in the same manner as for the DeWitt Earning Wells) in the KGW Earning Wells on a well-by-well basis, for no additional consideration. No later than twenty (20) days after reaching Payout on a particular KGW
Earning Well, Buyer shall give written notice thereof to Seller. Upon receipt of the Buyer’s notice of reaching Payout with respect to a KGW Earning Well, Seller shall have a period of thirty (30) days in which to elect in writing to
participate. Subsequent to the drilling and completion of all five (5) KGW Earning Wells, Seller will have a one-time election to acquire a Twenty Five Percent (25%) leasehold interest (proportionately reduced) in the KGW Leases for a
one-time payment to Buyer of Five Million, Five Hundred Ten Thousand Nine Hundred Ninety Nine Dollars ($5,510,999.56) (the “Orca Participation Payment”), said election and Orca Participation Payment will be due within Thirty
(30) days of written notification by Buyer that all five (5) KGW Earning Wells have been drilled and completed. Should Seller fail to elect and make the Orca Participation Payment within Thirty (30) days then it will be deemed to have
forfeited all of its rights and interests contemplated by the one-time election. Upon Seller’s election and payment of the Orca Participation Payment, Seller will acquire the right to participate in all subsequent wells on the KGW Leases or on
lands and other leases unitized, communitized or pooled with the KGW Leases to the extent such wells are not KGW Earning Wells (“Subsequent KGW Wells”). If Seller makes such an election, Seller shall pay its working interest share
of the drilling, completion, testing and equipping costs for all Subsequent KGW Wells in accordance with the JOA. Seller’s rights to participate and working interest obligations under this Section 7(c) shall also apply with respect
to any renewals and extensions of any KGW Lease acquired at any time prior to the expiration of such KGW Lease. Provided that any assignment, transfer or security interest is made specifically subject to the terms and conditions of this Agreement
and the JOA, Seller (i) may assign or otherwise transfer its rights to participate arising under this Agreement with the consent of the Buyer, which consent may not be unreasonably withheld, (ii) may create a security interest in such
rights and (iii) may mortgage and create a lien or security interest in any interest that it earns or receives hereunder and has been assigned from Buyer in accordance with Section 7(d) below. 

  
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 (d) Reassignment. 

(i) If the cumulative production from any DeWitt Earning Well reaches 500,000 Barrels of Oil Equivalent,
then no later than twenty (20) days thereafter, Buyer shall assign to Seller, by delivery of an Assignment in the form attached hereto as Exhibit “E” (the “DeWitt Five Percent Reassignment”), an undivided Five
Percent (5%) working interest, proportionately reduced, in (i) the DeWitt Leases insofar and only insofar as they provide rights in and to the wellbore for such well, (ii) the Hydrocarbons produced from such well, (iii) the
equipment used or obtained in connection with such well and (iv) other rights and agreements relating to or used in connection with such well, all as more particularly described and set forth in the form of the DeWitt Five Percent Reassignment.

 (ii) If the cumulative production from any DeWitt Earning Well reaches 750,000 Barrels of Oil
Equivalent, then no later than twenty (20) days thereafter, Buyer shall assign to Seller, by delivery of an Assignment in the form attached hereto as Exhibit “F” (the “DeWitt Fifteen Percent Reassignment”), an
undivided Fifteen Percent (15%) working interest, proportionately reduced, in (i) the DeWitt Leases insofar and only insofar as they provide rights in and to the wellbore for such well, (ii) the Hydrocarbons produced from such well,
(iii) the equipment used or obtained in connection with such well and (iv) other rights and agreements relating to or used in connection with such well, all as more particularly described and set forth in the form of the DeWitt Fifteen
Percent Reassignment. 
 (iii) Upon Payout of any KGW Earning Well, and election by Seller to
back-in to such well, then no later than twenty (20) days thereafter, Buyer shall assign to Seller, by delivery of an Assignment in the form attached hereto as Exhibit “G” (the “KGW Earning Well Reassignment”),
an undivided Twenty Five Percent (25%) working interest, proportionately reduced, in (i) the KGW Leases insofar and only insofar as they provide rights in and to the well and 110 acres surrounding the wellbore for such well in the form of
a rectangle with the wellbore in the center, (ii) the Hydrocarbons produced from such well, (iii) the equipment used or obtained in connection with such well and (iv) other rights and agreements relating to or used in connection with
such well, all as more particularly described and set forth in the form of the KGW Earning Well Reassignment. 
 (iv) Upon the payment of the Orca Participation Payment, then no later than twenty (20) days thereafter, Buyer shall assign to Seller, by delivery of an Assignment in the form attached hereto as
Exhibit “H” (the “Orca Participation Reassignment”), an undivided Twenty Five Percent (25%) interest, proportionately reduced, in the KGW Leases as more particularly described and set forth in the form of the
Orca Participation Reassignment. 
 (e) Lease Burdens. The Parties hereby agree
that Seller’s working interest in all wells contemplated hereby shall be burdened by and shall bear its proportionate share of the Lease Burdens but shall not be burdened by any overriding royalties, liens, encumbrances, mortgages or other
burdens which do not exist as of March 17, 2011. 
 (f) Rights of Ingress and
Egress. To the extent not included in the Property and except to the extent prohibited by law or by the terms of the particular rights-of-way, easements, licenses, servitudes, surface rights agreements or other applicable agreements, upon

  
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reasonable request from Buyer and subject to the negotiation of a mutually acceptable license agreement or agreements without requiring payment of any monetary consideration, Seller shall agree
to license to Buyer the right to use, in connection with the ownership and operation after the Closing of the Property, particular rights-of-way, easements, licenses, servitudes, or other surface rights owned by Seller and used in connection with
the ownership and operation of the Property, if any. In such case, such license agreements will require the licensee to contribute to any maintenance and repair obligations related to, and to comply with all of the terms and conditions of, the
rights-of-way, easements, licenses, servitudes, surface rights agreements and other applicable agreements, cooperate with all reasonable requests by the counterparties thereto and use commercially reasonable efforts to preserve the good relations of
Seller with such counterparties. 
 8. Feasibility Period; Inspections. 

a. Physical Due Diligence. Commencing on the Effective Date and continuing until the Closing, Buyer shall
have reasonable access to the Property at all reasonable times during normal business hours, for the purpose of conducting reasonably necessary tests, evaluations and inspections, provided that (i) Buyer must give Seller two full Business
Days’ prior telephone or written notice of any such inspection or test, and (ii) prior to performing any physical inspection or test for which Buyer or any agent of Buyer enters upon any of the real property described in the Leases, Buyer
must deliver a certificate of insurance to Seller evidencing that Buyer and its contractors, agents and representatives have in place (and Buyer and its contractors, agents and representatives shall maintain during the pendency of this Agreement)
(1) commercial general liability insurance with limits of at least One Million Dollars ($1,000,000) for bodily or personal injury or death, (2) property damage insurance in the amount of at least One Million Dollars ($1,000,000),
(3) contractual liability insurance with respect to Buyer’s obligations hereunder, and (4) workers’ compensation insurance in accordance with applicable law, all covering any accident arising in connection with the presence of
Buyer, its contractors, agents and representatives on the Property, which insurance shall (A) name as additional insureds thereunder Seller and such other parties holding insurable interests as Seller may designate and (B) be written by a
reputable insurance company. Buyer shall bear the cost and risk of all such inspections or tests and shall be responsible for and act as the generator with respect to any wastes generated by those tests, which obligation shall survive the
termination of this Agreement. 
 b. No Representation or Warranty by Seller. Buyer acknowledges
that, except as expressly set forth in this Agreement, Seller has not made and does not make any warranty or representation regarding the Property. Buyer shall rely solely upon its own investigation with respect to the Property, including, without
limitation, the Property’s physical, environmental or economic condition, compliance or lack of compliance with any ordinance, order, permit or regulation or any other attribute or matter relating thereto. 

c. Buyer’s Responsibilities. In conducting any inspections, investigations or tests of the Property,
Buyer and its agents and representatives shall: (i) not damage any part of the Property or any personal property owned or held by any third party; (ii) comply with all applicable laws; (iii) promptly pay when due the costs of all
tests, investigations, and examinations done with regard to the Property; (iv) not permit any liens to attach to any of the 

  
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Property by reason of the exercise of its rights hereunder; and (v) repair any damage to the Property resulting directly or indirectly from any such inspection or tests. 

d. Buyer’s Agreement to Indemnify. Buyer hereby agrees to indemnify, defend and hold Seller
harmless from and against any and all liens, claims, causes of action, damages, liabilities and expenses (including reasonable attorneys’ fees) arising out of Buyer’s inspections or tests permitted under this Agreement or any violation of
the provisions of this Section 8. Buyer’s obligations under this Section 8(d) shall survive the termination of this Agreement and shall survive the Closing. 

9. Covenants of Seller Prior to Closing. 

(a) Operations. Until Closing, Seller agrees to do the following: 

(i) Operate the Property in a good and workmanlike manner and in substantially the same manner as it
previously operated the Property; 
 (ii) Maintain insurance now in force with respect to the
Property; 
 (iii) Notify Buyer of any claim or demand received by Seller which might materially
adversely affect title to or operation of the Property; 
 (iv) Pay taxes, costs and expenses
attributable to the Property as they become due; and 
 (v) Pay all delay rentals, maintenance
payments, deferred payments and/or extension payments as they become due under the Leases. 
 (b)
Negative Covenants. Until Closing, Seller shall not do any of the following with regard to the Property without Buyer’s consent: 

(i) Release all or any portion of a Lease, Contract or easement; 

(ii) Commence or consent to an operation if the estimated cost of the operation exceeds Five Thousand
Dollars and No/100 ($5,000.00) net to the Seller’s interest; 
 (iii) Create a lien,
overriding royalty interest or other burden, security interest or other encumbrance on the Property; 
 (iv) Dispose of the Property; 
 (v) Amend a Lease,
Contract or easement or enter into any new contracts affecting the Property; or 
 (vi) Waive,
compromise or settle any claim that would materially affect ownership, operation or value of any of the Property. 

  
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 10. Closing. 

(a) Time and Place. The Closing shall be held at 11:00 A.M., Texas time on the date that is
five (5) business days following the Effective Date, at Buyer’s offices located at One Lincoln Centre, 5400 LBJ Freeway, Suite 1500, Dallas, Texas 75240, or at such other time and place as the Parties shall mutually agree. 

(b) Preliminary Closing Settlement Statement. Seller shall provide Buyer five (5) days
prior to Closing with a “Preliminary Closing Settlement Statement” that shall include the respective adjustments to the Purchase Price (except any adjustments relating to Title Defects and Environmental Defects) along with
supporting detail, and the portion of the adjusted Purchase Price due Seller, prepared in accordance with customary accounting principles used in the oil and gas industry. Seller shall additionally provide Buyer with wiring instructions designating
the account or accounts to which the Closing funds are to be delivered. 
 (c) Agreed
Closing Settlement Statement. One (1) day prior to Closing, Buyer and Seller shall agree upon a “Closing Settlement Statement” that shall include adjustments to the Purchase Price, which are known as of the Closing
Date, as follows (the following adjustments shall apply only to the extent they are attributable to the Property): 
 (i) All ad valorem, property, production, severance and similar taxes and assessments on the Property (collectively “Property Taxes”) with respect to the tax period in which the Effective
Date occurs shall be apportioned as of the Effective Date between the Seller and the Buyer. No later than one (1) year following the Closing Date, the Parties shall make a post-Closing settlement of all Property Taxes upon receipt of the notice
of Property Taxes due for the tax period in which the Effective Date occurs. 
 (ii) A
proportionate decrease in the Purchase Price in the aggregate amount of the adjustments for Title Defects in accordance with Section 6, if any; 

(iii) An increase in the Purchase Price in the proportionate amount of any lease maintenance payments and
other expenses paid by Seller attributable to the period after the Effective Date as permitted by this Agreement, if any; and 
 (iv) Any other adjustments agreed to by Buyer and Seller. 
 (d) Seller’s Deliveries. At the Closing, Seller shall deliver the following: 
 (i) An Assignment, Conveyance and Bill of Sale executed and acknowledged by Seller containing a special warranty of title by, through and under Seller, but not otherwise, the form of which is attached
hereto as Exhibit “I” (the “Assignment”); 
 (ii) The
additional releases, termination statements, ratifications, consents and waivers from third parties listed on Exhibit “C” attached hereto; 

(iii) An executed statement described in Treasury Regulation 1.445-2(b)(2) certifying that Seller is not a
foreign person within the meaning of the Internal Revenue Code. 

  
 15 

 (iv) An instrument terminating Orca Assets GP, LLC’s
right, title and interest in and to the overriding royalty interests reserved in (1) that certain Assignment of Oil and Gas Leases dated November 30, 2010, and recorded in Volume 1037, Page 36, Gonzales County Deed records; (2) that
certain Assignment of Oil and Gas Leases dated October 30, 2010, and recorded at Volume 949, Page 439, Karnes County Deed Records; (3) that certain Assignment of Oil and Gas Leases dated October 30, 2010, recorded at Volume 1581, Page
816, Wilson County Deed Records; and (4) that certain Assignment of Oil and Gas Leases dated October 30, 2010, recorded at Volume 330, Page 618, DeWitt County Deed Records. 

(e) Buyer’s Deliveries. At the Closing, Buyer shall deliver the following: 

(i) The Purchase Price, as adjusted pursuant to this Section 10, to Seller by wire transfer
pursuant to wire instructions provided to Buyer by Seller; 
 (ii) The Assignment executed and
acknowledged by Buyer. 
 (f) Copies of Data and Recorded Assignment. Promptly
following the Closing, Seller shall deliver copies of any Data not previously provided to Buyer. Buyer shall record the Assignment in the applicable counties at its sole cost and expense and shall deliver copies of the recorded Assignment to Seller
no later than sixty (60) days after the Closing. 
 (g) Sales and Transfer
Taxes. The Final Purchase Price (as hereinafter defined) does not include any sales, transfer or use taxes or other taxes in connection with the sale of the Property pursuant to this Agreement. If a determination is ever made that a sales or
use tax or other transfer tax applies, Buyer shall be liable for such tax. Buyer shall also be liable for any applicable conveyance, transfer and recording fees, and real estate transfer stamps or taxes imposed on any transfer of the Property
pursuant to this Agreement. 
 11. Post-Closing Obligations. 

(a) Final Settlement Statement. Subject to the provisions of Section 10(c)(i) with
respect to Property Taxes, not more than seventy five (75) days after the Closing, Seller shall prepare and deliver to Buyer, in accordance with this Agreement, a “Final Settlement Statement” setting forth each adjustment or
payment which was not finally determined as of the Closing (after taking into account any Title Defect and Environmental Defect adjustments and any cure or remediation of any such defects) and showing the calculation of such adjustments and showing
the aggregate amount that should have been payable by Buyer to Seller in connection with the Closing, after taking into account all such adjustments and any post-Closing curative and remediation activity as though such activity had preceded the
Closing (the “Final Purchase Price”), prepared in accordance with customary accounting principles used in the oil and gas industry. As soon as practicable, but not later than twenty (20) days after receipt of the Final
Settlement Statement, Buyer shall deliver to Seller a written report containing any changes which Buyer proposes be made to the Final Settlement Statement and Final Purchase Price. The Parties shall agree on the Final Settlement Statement and Final
Purchase Price no later than ninety five (95) days after Closing. The date upon which such agreement is reached or upon which the Final Purchase Price is established shall be called the “Final Settlement Date.” If the Parties
are unable to agree as to the Final Settlement Statement and Final Purchase Price within 

  
 16 

 
ninety five (95) days after Closing, the Parties will follow the dispute resolution provisions of Section 14 below. 

(b) Payment of Final Settlement Amounts. If the Final Purchase Price is more than the
aggregate of the amounts paid by Buyer to Seller at Closing and pursuant to Sections 6(d), Buyer shall pay to Seller in immediately available funds the amount of such difference based on instructions provided by Seller. If the Final Purchase
Price is less than the aggregate of the amounts paid by Buyer to Seller at Closing and pursuant to Sections 6(d), Seller shall pay to Buyer in immediately available funds the amount of such difference. Payment by Buyer or Seller shall be made
within five (5) business days of the Final Settlement Date. 
 (c) Additional Payments
Received. After the Final Settlement Date, Seller shall promptly deliver to Buyer, from time to time as and when received by it, any cash, checks with appropriate endorsements (using its reasonable efforts not to convert such checks into
cash), or other property that it may receive which properly belongs to Buyer, and shall account to Buyer for all such receipts. 
 (d) Revenues and Expenses. For all purposes, including Purchase Price adjustments, Seller and Buyer will properly allocate revenues and expenses before and after the Effective Date and will make
payments to each other to the extent necessary for such proper allocation. All expenses (capital and operating) incurred in the operation of the Property before the Effective Date will be borne by Seller. 

(e) Drilling and Completion of Earning Wells. Buyer shall drill and complete,
or cause to be drilled and completed, at its sole cost and expense, the DeWitt Earning Wells and the KGW Earning Wells no later than the date that is twenty-two (22) months after the Closing Date (the “Completion Date”),
provided, however, Buyer shall not be in default under this Section 11(e) if Buyer has commenced the drilling of all the Earning Wells as of the Completion Date and is diligently and continuously pursuing the completion of the same. For the
purposes hereof, a Dewitt Earning Well or a KGW Earning Well shall be deemed to be completed only if such Earning Well shall: at a minimum contain five thousand (5,000.00) feet of 5  1/2” casing, cemented laterally in the Eagle Ford Shale formation,
defined as the interval from 12,790’ to 12,960’ on the electric log of the Frances Lewton 1-H pilot hole included on Exhibit “J” attached hereto, and contain a minimum of fifteen (15) fracturing stages.
Notwithstanding the foregoing, if the preceding standards are not permitted by the terms of a particular Lease, prohibited by applicable rule or regulation, or are not reasonably practicable, then if Buyer and Seller cannot agree on a commercially
reasonable substitute standard(s), then Buyer and Seller shall each shall designate a registered petroleum engineer who collectively shall determine a commercially reasonable replacement standard. In the event Buyer shall fail to drill and complete
all of the DeWitt Earning Wells and the KGW Earning Wells on or before the Completion Date in accordance with this Agreement, then as a condition precedent to Seller commencing any legal action or arbitration seeking damages as a result of
Buyer’s breach of this Section 11(e), Seller shall be required to drill and complete, or cause to be drilled and completed, the KGW Earning Wells and/or DeWitt Earning Wells that Buyer failed or refused to drill and complete.

  
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 (f) Identification of Wells. All wells drilled
on the Leases, including but not limited to the DeWitt Earning Wells and the KGW Earning Wells shall contain the name “Orca”, and be identified with “Orca” in the name of the well in all filings and correspondence with any
regulatory agency, governmental body, or trade association, unless objected to by a Lessor or a regulatory body. This provision shall only apply to wells in which Seller has or may acquire a participating interest. 

12. Indemnification. 

(a) By Seller. Except as specifically provided herein, Seller agrees to indemnify and hold
Buyer, its officers, directors, employees and agents (“Buyer Group”) harmless from all claims, losses, costs, liabilities and expenses, including without limitation reasonable attorneys’ fees (“Claims”),
arising out of or resulting from Seller’s ownership or operation of the Properties prior to the Closing Date, but subject to the ordinary rules of applicable statutes of limitation. Seller’s indemnity hereunder shall not extend to matters
for which Buyer has agreed to indemnify Seller hereunder. THE FOREGOING INDEMNIFICATIONS SHALL APPLY WHETHER OR NOT SUCH DUTIES, OBLIGATIONS OR LIABILITIES, OR SUCH CLAIMS, LIABILITIES, LOSSES, COSTS OR EXPENSES, ARISE OUT OF (i) NEGLIGENCE
(INCLUDING SOLE NEGLIGENCE, SIMPLE NEGLIGENCE, CONCURRENT NEGLIGENCE, ACTIVE OR PASSIVE NEGLIGENCE, BUT EXPRESSLY NOT INCLUDING GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF ANY INDEMNIFIED PARTY OR (ii) STRICT LIABILITY. THE PARTIES AGREE THAT
THE FOREGOING COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS. 
 (b) By
Buyer. Except as specifically provided herein, Buyer agrees to indemnify and hold Seller and its partners, and their respective partners, members, managers, owners, directors, officers, employees and agents (“Seller Group”)
harmless from all Claims arising out of or resulting from (i) any misrepresentations or breach of any warranty, covenant or agreement of Buyer contained in this Agreement and (ii) Buyer’s operations on the Properties after the Closing
Date, but subject to the ordinary rules of applicable statutes of limitation. THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH DUTIES, OBLIGATIONS OR LIABILITIES, OR SUCH CLAIMS, LIABILITIES, LOSSES, COSTS OR EXPENSES ARISE OUT OF
(i) NEGLIGENCE (INCLUDING SOLE NEGLIGENCE, SIMPLE NEGLIGENCE, CONCURRENT NEGLIGENCE, ACTIVE OR PASSIVE NEGLIGENCE, BUT EXPRESSLY NOT INCLUDING GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF ANY INDEMNIFIED PARTY OR (ii) STRICT LIABILITY. THE
PARTIES AGREE THAT THE FOREGOING COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS. 
 13.
Area of Mutual Interest. The Parties agree to establish an area of mutual of interest consisting of Karnes County, Wilson County, Dewitt County and Gonzales County, Texas (the “AMI”). If either Party should acquire an
oil and gas lease or leasehold interest therein with Marketable Title, covering lands located in the AMI, and such lease or leasehold interest contains or covers at least twenty-five (25) acres or is adjacent to and contiguous with an existing
Lease, then such Party (the “Offering Party”) may elect to offer the other Party (the “Acquiring Party”) the right, but not the obligation, to acquire up to an undivided Fifty Percent

  
 18 

 
(50%) interest, but not less than an undivided Ten Percent (10%) interest, to be designated by the Acquiring Party, in the interest acquired by Offering Party in said oil and gas lease (the
“AMI Interest”). Upon receipt of notice from the Offering Party, the Acquiring Party shall have a period of five (5) business days in which to elect in writing to purchase an interest in the interest being offered and to
deliver payment for the same, as provided below. The Acquiring Party will pay the Offering Party a minimum of $5,000.00 per net mineral acre for the AMI Interest. However, if the Offering Party’s Lease Acquisition Costs (as defined below)
exceed $3,000.00 per net mineral acre then the Acquiring Party shall pay its proportionate share of the Lease Acquisition Costs plus an additional $2,000.00 per net mineral acre included in the AMI Interest. The “Lease Acquisition
Costs” shall be defined as the Offering Party’s lease bonus payment, cash consideration paid, out-of-pocket lease brokerage costs, title research and review costs, and attorney’s fees. The Offering Party may require the execution
of a commercially reasonable confidentiality agreement as a condition to presenting any such leasehold interest to the Acquiring Party. Such AMI Interest shall be bound and subject to the JOA attached hereto as Exhibit “D”.

 14. Dispute Resolution. The Parties agree to resolve all disputes concerning this Agreement
pursuant to the provisions of this Section 14. 
 (a) Mediation.

 (i) If a dispute arises out of or in connection with this Agreement or the alleged breach
thereof, or if a dispute arises out of the operations contemplated in this Agreement, and if the dispute cannot be settled through negotiation, the Parties hereby agree to submit all disputes, controversies, claims and matters of differences
(“Disputes”) to mandatory mediation under the Commercial Mediation Rules of the American Arbitration Association (“AAA”). The party desiring mediation shall so notify the other Party identifying in reasonable detail
the matters to be mediated and the relief sought. 
 (ii) The Parties agree to use a mediator
mutually agreed to by the Parties. In the event the Parties cannot agree to a mediator within two (2) weeks of a Party’s notice seeking mediated relief, the Parties shall each choose a mediator who together shall agree on a third and final
mediator. The mediator shall be entitled to a fee commensurate with his or her fees for professional services requiring similar time and effort. Each Party shall be required to share the cost of the mediator and to bear its own costs of mediation.
All matters mediated hereunder shall be mediated in San Antonio, Texas; shall be governed by Texas law, without reference to any choice of law rules; and shall be conducted in accordance with the Commercial Mediation Rules of the AAA. The mediator
shall conduct the mediation no later than thirty (30) days after submission of the matter to mediation. Any agreement reached in the mediation shall be memorialized in writing and signed by both Parties. 

(b) Arbitration. 

(i) If mediation is unsuccessful, the Parties agree to submit all Disputes to binding arbitration in San
Antonio, Texas, such arbitration to be conducted pursuant to the AAA Commercial Arbitration rules (but need not be filed with or administered by the AAA if the parties agree such that the filing fees with the AAA can be avoided). 

  
 19 

 (ii) The arbitration shall be governed
by Texas law. The arbitration shall be before a three-person panel of arbitrators (the “Arbitrators”). Not later than five (5) days after the submission of the matter to arbitration, each Party shall select an Arbitrator and
request the two selected Arbitrators to select a third neutral Arbitrator. If the two Arbitrators fail to select a third on or before the 10th day after the second Arbitrator was selected, either Party is entitled to request the AAA to appoint the third neutral
Arbitrator in accordance with its rules. Before beginning the hearings, each Arbitrator must provide an oath or undertaking of impartiality. 
 (iii) Either Party is entitled to seek from any court having jurisdiction any interim or provisional relief that is necessary to protect the rights or property of that Party. By doing so, that Party does
not waive any right or remedy under this Agreement. The interim or provisional relief is to remain in effect until the arbitration award is rendered or the controversy is resolved. 

(iv) Any disputes over the scope of discovery shall be determined by the Arbitrators. The Arbitrators
shall conduct a hearing no later than sixty (60) days after submission of the matter to arbitration, and the Arbitrators shall render a written decision within thirty (30) days of the hearing. 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 Arbitrators shall consider any evidence and testimony that they determine to be relevant, in accordance with
procedures that they determine to be appropriate. Any award entered in the arbitration shall be made by a written opinion stating the reasons and basis for the award made and any payment due pursuant to the arbitration shall be made within fifteen
(15) days of the decision by the Arbitrators. The Arbitrators will have no authority to award punitive damages or other damages not measured by the prevailing Party’s actual damages. 

(v) The final award and decision of the Arbitrators shall be binding on the Parties, final and may be
filed in a court of competent jurisdiction and may be enforced by any Party as a final judgment of such court. Each Party shall bear its own costs and expenses of the arbitration; provided, however, that the costs of employing the Arbitrators shall
be borne Fifty Percent (50%) by Seller and Fifty Percent (50%) by Buyer. However, the Arbitrators may, in their discretion, award fees (including reasonable attorneys’ fees) and costs to the prevailing Party, including reasonable
attorneys’ fees and costs associated with any action which the Prevailing Party may be required to take in order to enforce the Arbitrators’ award through judicial or other legal process. 

15. Miscellaneous. 

(a) Further Assurances. The Parties agree to execute any documents, whether before or after
the Closing, to aid the other Party in fulfilling the purpose of this Agreement. 
 (b)
Entire Agreement. This Agreement, together with the Exhibits and Schedules attached hereto and the Assignment and other documents to be delivered pursuant to the terms hereof, shall constitute the complete agreement between the Parties
hereto and shall supersede and terminate all prior agreements, whether written or oral, including that certain letter 

  
 20 

 
agreement between the Parties dated as of March 17, 2011, and any representations or conversations with respect to the Property. 

(c) Confidentiality. The Parties agree to hold in confidence and not disclose the terms and
conditions of this Agreement to any third party; provided, however, either Party may disclose such terms and conditions to its directors, partners, officers, employees, attorneys, auditors, consultants, lenders, agents and shareholders, or otherwise
as may be required by applicable law, securities or stock exchange regulation or pursuant to court order, subpoena or other legal process. Prior to the Closing and for a period of one (1) year from the Closing Date, except as required by
applicable law, Buyer and Seller shall hold in strict confidence all information, including the Data, furnished or made available by the Parties relating to the Property, unless such Data is traded or divulged pursuant to an existing agreement or
pursuant to an exchange of like data in the ordinary course of business. Furthermore, if the Closing does not occur, Buyer shall return to Seller all the information, including the Data, furnished or made available by Seller to Buyer hereunder or in
contemplation hereof, shall keep such information strictly confidential, shall destroy all notes, reports, studies or analyses and all data and information generated by Buyer to the extent based on or incorporating such information furnished or made
available by Seller and shall not use or permit the use of any of such information to Buyer’s advantage or in competition with or in a manner that damages Seller. The obligations of Buyer to retain in confidence such information shall not apply
to the extent such information: 
 (i) was already in the public domain, not as a result of
disclosure by Buyer; 
 (ii) was already known to Buyer; 

(iii) is developed by Buyer independently from the information supplied by Seller; or 

(iv) is furnished to Buyer by a third party independently of Buyer’s investigation related to the
transaction contemplated by this Agreement. 
 Buyer shall use reasonable commercial efforts to cause its affiliates, officers,
employees, consultants, representatives and agents to comply with the foregoing confidentiality covenants and requirements. 
 (d) Notices. All communications required or permitted under this Agreement shall be in writing and may be sent by facsimile delivery; electronic mail (e-mail); certified United States Mail,
return receipt requested; or commercial overnight delivery service. Such communication shall be deemed made upon (i) the earlier of actual delivery or refusal of delivery, if sent by commercial overnight delivery service; (ii) two
(2) business days after deposit in the U.S. Mail, if sent by certified mail; (iii) upon receipt if sent by facsimile, provided such receipt occurs between the hours of 8:00 a.m. and 6:00 p.m. on a day other than a weekend or holiday
(facsimile deliveries occurring after such hours or on a weekend or holiday shall be deemed received the next business day); and (iv) email notice shall be deemed when received provided notice is also given according to one of the other methods
set forth in this Section 

  
 21 

 
15(d). Either party may, by written notice to the other, change the address for mailing such notices. 
  

			
	 Notices to Seller:
	  	Orca ICI Development, JV
		  	5005 Riverway, Suite 440
		  	Houston, Texas 77056
		  	Attn: Lawrence Berry
		  	Telephone: 713-963-9112
		  	Facsimile: 713-623-2382
		
	 Notices to Buyer:
	  	Matador Resources Company
		  	One Lincoln Centre
		  	5400 LBJ Freeway, Suite 1500
		  	Dallas, Texas 75240
		  	Attn: David E. Lancaster
		  	Telephone: 972-371-5200
		  	Facsimile: 972-371-5201

 (e) Binding Effect. This Agreement shall be binding upon and
shall inure to the benefit of the Parties hereto, and their successors and assigns. No assignment of this Agreement by either Party shall be made without the prior written consent of the other Party, which consent may be withheld in such
party’s sole discretion. Notwithstanding the foregoing, Buyer may assign its rights under this Agreement to an affiliate only upon the following conditions: (1) the assignee of Buyer must be an entity controlling, controlled by, or under
common control with Buyer, (2) all of the Purchase Price must have been delivered in accordance herewith, (3) the Feasibility Period shall be deemed to have ended, (4) the assignee of Buyer shall expressly assume all obligations of
Buyer hereunder, but Buyer shall remain primarily liable for the performance of Buyer’s obligations, (5) Buyer shall deliver written notice to Seller of the assignee name, notice address and signature block prior to such assignment being
effective and (6) a copy of the fully-executed written assignment and assumption agreement shall be delivered to Seller within five (5) days of the effective date of such assignment. 

(f) Counterparts. This Agreement may be executed in any number of counterparts, which taken
together shall constitute one instrument and each of which shall be considered legally enforceable. 
 (g) Law Applicable; Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without regard to its choice of law
principles. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST THE PARTIES ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY OBLIGATIONS HEREUNDER, SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN BEXAR COUNTY, TEXAS. BY
EXECUTING AND DELIVERING THIS AGREEMENT, THE PARTIES IRREVOCABLY (I) ACCEPT GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF THESE COURTS; (II) WAIVE ANY OBJECTIONS WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTIONS OR PROCEEDINGS ARISING OUT OF OR  

  
 22 

 
IN CONNECTION WITH THIS AGREEMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (I) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT SUCH
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 

(h) Survival. All representations and warranties of this Agreement shall expire at Closing,
except (i) the special warranty of title which is incorporated in the Assignment; (ii) Section 11 “Post Closing Obligations” shall survive until such provisions are fully satisfied; (iv) Section 12
“Indemnification” shall survive as set forth therein; (v) Section 7 “Right to Participate;” Sub-Section 15(g) “Law Applicable; Jurisdiction and Venue” and the JOA shall survive Closing
and remain in effect for as long as any of the Leases remain in force and effect. 
 (i)
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 and provisions of this Agreement. 

(j) Timing. Time is of the essence in this Agreement. 

(k) Expenses. All fees, costs and expenses incurred by the Parties in negotiating this
Agreement and in consummating the transactions contemplated by this Agreement shall be paid by the Party that incurred such fees, costs and expenses. 

(l) Amendment and Waiver. This Agreement may be altered, amended or waived only by a written
agreement executed by Buyer and Seller. No waiver of any provision of this Agreement shall be construed as a continuing waiver of the provision. 
 (m) Announcements. Except as otherwise permitted by the first sentence of Section 15(c), no Party shall publicly announce or otherwise publicize the existence of this Agreement,
its terms and conditions or the transactions contemplated hereby without first providing the other Party the opportunity to review the proposed announcement and obtaining the other Party’s prior written consent to such proposed announcement,
which consent shall not be unreasonably withheld. 
 (n) Third-Party Beneficiaries.
Unless expressly stated to the contrary, no third party is intended to have any rights, benefits or remedies under this Agreement. 
 (o) Severance. If any provision of this Agreement is found to be illegal or unenforceable, the other terms of this Agreement shall remain in effect and this Agreement shall be construed as
if the illegal or unenforceable provision had not been included. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 – SIGNATURE PAGE FOLLOWS] 

  
 23 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
below by their duly authorized representatives. 
  

			
	Seller:
	
	ORCA ICI DEVELOPMENT, JV
		
	By:	 	 ORCA ASSETS G.P., LLC, 
 its
Managing Partner

		
	By:	 	/s/ Lawrence Berry 
		 	 Lawrence Berry

President

	
	Buyer:
	
	MATADOR RESOURCES COMPANY
		
	By:	 	/s/ Joseph Wm. Foran 
		 	Joseph Wm. Foran
		 	Chairman, President & CEO

  
 24Amendment No. 2 to Loan and Servicing Agreement

 Exhibit 10.1 
 Confidential information in this Amendment No. 2 to Loan and Servicing Agreement has been omitted and 
 filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Request. 
 AMENDMENT NO. 2 TO 
 LOAN AND SERVICING AGREEMENT 

This AMENDMENT NO. 2 TO LOAN AND SERVICING AGREEMENT, dated as of September 19, 2011 (this “Amendment”), is
executed by and among DT WAREHOUSE IV, LLC, a Delaware limited liability company (together with its successors and assigns, the “Borrower”), DT CREDIT COMPANY, LLC, an Arizona limited liability company, as servicer (in such
capacity, the “Servicer”), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Backup Servicer, Paying Agent and Securities Intermediary (“Paying Agent”), WINDMILL FUNDING CORPORATION, as
Conduit Lender and THE ROYAL BANK OF SCOTLAND PLC, as Program Agent for the Conduit Lenders and the Committed Lenders (“Program Agent”) and as sole Managing Agent and sole Committed Lender. Capitalized terms used, but not otherwise
defined herein, shall have the meanings ascribed thereto in the “Loan and Servicing Agreement” (defined below). 

WITNESSETH: 

WHEREAS, the Borrower, the Servicer, the Program Agent, the Paying Agent, the Commercial Paper Conduits from time to time party thereto,
and the Financial Institutions from time to time party thereto entered into that certain Loan and Servicing Agreement dated as of July 23, 2010 as amended by Amendment No. 1 dated as of May 13, 2011 (the “Loan and Servicing
Agreement”); 
 WHEREAS, as provided herein, the parties hereto have agreed to amend certain provisions of the Loan and
Servicing Agreement as described below; 
 NOW, THEREFORE, in consideration of the premises and the mutual agreements
hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 SECTION 1. Amendment to the Loan and Servicing Agreement. Effective as of the date hereof, and subject to the satisfaction of the conditions precedent and subsequent set forth in Section 2
hereof, the Loan and Servicing Agreement is hereby amended as follows: 
 SECTION 2. Amendment to the Loan and Servicing
Agreement. Effective as of the date hereof, and subject to the satisfaction of the conditions precedent and subsequent set forth in Section 2 hereof, the Loan and Servicing Agreement is hereby amended as follows: 

2.1 The definitions of “Charged-Off Losses Ratio”, “Delinquency Measurement Ratio”, “DTCS” and
“Overconcentration Amount”, set forth in Section 1.01 of the Loan and Servicing Agreement are hereby amended and restated as follows: 
 “Charged-Off Losses Ratio” means, with respect to any Accounting Period (i) with respect to the Pledged Contracts, the percentage equivalent of a fraction, the numerator of which is
the aggregate Principal Balance of such Pledged Contracts which became Charged-Off Contracts during such Accounting Period, minus the aggregate of amounts received by the Servicer during such Accounting Period and applied to any Pledged Contract
which is a Charged-Off Contract as of the end of such Accounting 

 
Period, and the denominator of which is the aggregate Principal Balance of all Pledged Contracts as of the end of such Accounting Period, or (ii) with respect to the Managed Portfolio
Contracts, the percentage equivalent of a fraction, the numerator of which is the aggregate Principal Balance of the Managed Portfolio Contracts which became Charged-Off Contracts during such Accounting Period, minus the aggregate of amounts
received by the Servicer during such Accounting Period and applied to any such Managed Portfolio Contract which is a Charged-Off Contract as of the end of such Accounting Period, and the denominator of which is the aggregate Principal Balance of all
Managed Portfolio Contracts as of the end of such Accounting Period. 
 “Delinquency Measurement
Ratio” means, as of any Measurement Date, (a) with respect to the Pledged Contracts, the quotient (expressed as a percentage) of (i) the Principal Balance of the Pledged Contracts which are Delinquency Measurement Contracts as of
such Measurement Date, divided by (ii) the aggregate Principal Balance of all Pledged Contracts as of such Measurement Date, or (b) with respect to the Managed Portfolio Contracts, the quotient (expressed as a percentage) of (i) the
Principal Balance of all of the Managed Portfolio Contracts which are Delinquency Measurement Contracts as of such Measurement Date, divided by (ii) the aggregate Principal Balance of all Managed Portfolio Contracts as of such Measurement Date

 “DTCS” means DriveTime Car Sales Company, LLC, an Arizona limited liability company, together
with its successors and each wholly-owned subsidiary of DriveTime Car Sales Company, LLC, created for the purpose of originating Contracts. 
 “Overconcentration Amount” means, at any time, the sum of (i) the amount, if any, by which the aggregate Principal Balances of all Eligible Contracts as to which the related Contract
Debtor is rated “D+”, “D” or “D-” pursuant to the Credit and Collection Policy exceeds the product of 5.00% and the aggregate Principal Balances of all Eligible Contracts at such time, plus (ii) the amount, if any,
by which the aggregate Principal Balances of all Eligible Contracts as to which the related Contract Debtor is rated “C-”, “D+”, “D” or “D-” pursuant to the Credit and Collection Policy exceeds the product of
12.50% and the aggregate Principal Balances of all Eligible Contracts at such time, plus (iii) the amount, if any, by which the aggregate Principal Balances of all Eligible Contracts as to which the Contract Debtors have an address in a
particular State (other than Texas or Florida) exceeds the product of 15% and the aggregate Principal Balances of all Eligible Contracts at such time, plus (iv) the amount, if any, by which the aggregate Principal Balances of all Eligible
Contracts as to which the Contract Debtors have an address in Texas exceeds the product of 30% and the aggregate Principal Balances of all Eligible Contracts at such time, plus (v) the amount, if any, by which the aggregate Principal Balances
of all Eligible Contracts as to which the Contract Debtors have an address in Florida exceeds the product of 22.5% and the aggregate Principal Balances of all Eligible Contracts at such time plus (vi) the amount by which the aggregate Principal
Balances of all Eligible Contracts as to which all or part in excess of 10.00% of any Scheduled Payment is 31 or more but less than 61 days delinquent exceeds the product of 5.00% and the aggregate Principal Balances of all Eligible Contracts at
such time plus (vii) the amount by which the aggregate Principal Balances of all Eligible Contracts as to 

 
which the original term to maturity exceeds sixty-eight (68) months exceeds the product of 5.00% and the aggregate Principal Balances of all Eligible Contracts at such time. 

2.2 The definition of “Eligible Contract” set forth in Section 1.01 of the Loan and Servicing Agreement is hereby amended
by deleting clauses (g), (i) and (uu) thereof and substituting, in lieu thereof, respectively, the following: 
 (g) which is not (i) a Charged-off Contract, (ii) a Contract for which the Contract Debtor is a party to a proceeding under any Debtor Relief Law which arose after the creation of such Contract
(other than as a creditor or claimant), (iii) a Contract for which the Amount Financed was in excess of $30,000, or (iv) a Contract that (A) was previously a Pledged Contract and (B) was previously transferred by the Borrower in
connection with a Contract Disposition Transaction and, at the time of such Contract Disposition Transaction, was a Delinquency Measurement Contract; provided that notwithstanding the foregoing, a Contract of the type described in this clause
(iv) may become an Eligible Contract if it otherwise satisfies the definition thereof upon the earlier of (x) the date after such Contract Disposition Transaction on which such Contract is not a Delinquency Measurement Contract and the
related Contract Debtor has made at least four (4) Scheduled Payments thereunder and (y) the date on which such Contract was not a Delinquency Measurement Contract for three (3) consecutive Accounting Periods; 

(i) which (i) has an original term to maturity that is not less than twelve (12) months and does not exceed
sixty-two (62) months, or such other period as may be agreed to from time to time by the Borrower and the Program Agent, provided that (x) for Receivables as to which the Contract Debtor is rated “B” the original term to maturity
is not less than twelve (12) months and does not exceed sixty-eight (68) months and (y) for Receivables as to which the Contract Debtor is rated “A” the original term to maturity is not less than twelve (12) months and
does not exceed seventy-two (72) months, (ii) the Schedule of Payments has equal periodic payments except for payments due during the first 90 days of the term of such Contract, and except for the final payment which may be less than the
other equal payments, and the payment obligation is in United States dollars, and (iii) does not cause the weighted average (based on Principal Balances of the applicable Eligible Contracts) original term to maturity of all Eligible Contracts
that are Pledged Contracts to exceed sixty-two (62) months; provided that the Pledged Contracts rendered ineligible solely pursuant to the foregoing clause (iii) shall be selected by the Borrower from the Pledged Contracts with the
longest original term to maturity and only with Principal Balances required to reduce such weighted average original term to maturity of all Eligible Contracts that are Pledged Contracts to or below sixty-two (62) months; provided that
any such ineligible Pledged Contract may be subsequently designated by the Borrower as an “Eligible Contract” if the eligibility of such Pledged Contract would not cause such weighted average original term to maturity of all Pledged
Contracts to exceed sixty-two (62) months. 
 (uu) with respect to which the scheduled payments under the
Contract are due at least monthly in level payments through its maturity date sufficient to fully amortize the principal balance of such Contract by its maturity date, assuming timely payment by

 
Obligors on simple interest Contracts, except that the payment in the first or last month of the life of the Contract may be minimally different from the level payment. 

2.3 Section 1.01 of the Loan and Servicing Agreement is hereby amended by deleting the definition of “Ineligible Securitization
Contract”. 
 2.4 Section 4.01(j) of the Loan and Servicing Agreement is hereby amended and restated as follows:

 (j) Collection Information; Master Agency Agreement. The names and addresses of all the Approved
Sub-servicers, Depository Account Banks and Lock-Box Processors, together with the addresses of the Lock-Boxes and the account numbers of the Depository Accounts are as specified in Exhibit F. The Lock-Boxes set forth on Exhibit F are the only
addresses to which Contract Debtors and Approved Sub-servicers of Pledged Contracts are directed to make payment. The Depository Accounts set forth on Exhibit F are the only accounts (other than zero balance accounts) to which Contract Debtors,
Approved Sub-servicers or Lock-Box Processors remit Collections of Pledged Contracts by wire transfer or electronic funds transfer. Exhibit N hereto is a full, complete and correct copy of the Master Agency Agreement and such agreement has not been
modified and is in full force and effect. There are no agreements or understandings relating to the Master Agency Agreement that are not fully and accurately described in Exhibit N. No DT Entity has granted any Person, other than Wells Fargo Bank,
National Association under the Master Agency Agreement, “control” (within the meaning of Section 9-102 of any applicable enactment of the UCC) of any Depository Account or the right to take control of any Depository Account at a
future time or upon the occurrence of a future event. 
 2.5 Schedule II to the Loan and Servicing Agreement is hereby amended
and restated as set forth on Schedule II hereto. 
 2.6 Exhibit F to the Loan and Servicing Agreement is hereby amended and
restated as set forth on Exhibit F hereto. 
 SECTION 3. Conditions to Effectiveness. 

3.1 Conditions Precedent. This Amendment shall become effective as of the date hereof upon receipt by the Program Agent of
counterparts of this Amendment executed by each of the parties hereto. 
 3.2 Conditions Subsequent. The continued
effectiveness of this Amendment shall be conditioned upon the delivery to the Program Agent and Managing Agents, on or prior to October 31, 2011, of a written reaffirmation or other confirmation satisfactory to Program Agent from DBRS with
respect to the “AA” rating of Notes (and any failure to deliver such reaffirmation or other confirmation by such date shall be deemed an “Amendment Termination Event”). Upon the occurrence of an Amendment Termination
Event, this Amendment shall be automatically terminated and cease to be of any force or effect and the terms of the Loan and Servicing Agreement shall revert to the terms of the Loan and Servicing Agreement without regard to this Amendment. It is
hereby understood and agreed that if, upon the occurrence of an 

 
Amendment Termination Event and the resulting termination of the Amendment, there occurs a Borrowing Base Deficiency, such Borrowing Base Deficiency shall be deemed to occur as of
October 31, 2011 and shall be remedied pursuant to Section 2.05(b) of the Loan and Servicing Agreement (and if not so remedied, shall constitute an Event of Termination as of such date pursuant to Section 7.01(a) of the
Loan and Servicing Agreement). 
 SECTION 4. Representations, Warranties and Confirmations. Each of the Servicer and the
Borrower hereby represents and warrants that: 
 4.1 It has the power and is duly authorized to execute and deliver this
Amendment. 
 4.2 The execution and delivery of this Amendment has been duly authorized by all corporate or limited liability
company action necessary on its part. 
 4.3 This Amendment and the Loan and Servicing Agreement as amended hereby, constitute
legal, valid and binding obligations of such parties and are enforceable against such parties in accordance with their terms. 

4.4 Immediately prior, and after giving all effect, to this Amendment, the covenants, representations and warranties of each such party,
respectively, set forth in the Loan and Servicing Agreement and as amended hereby, are true and correct in all material respects as of the date hereof (except to the extent such representations or warranties relate solely to an earlier date and then
as of such date). 
 4.5 Immediately prior, and after giving all effect, to this Amendment, no event, condition or circumstance
has occurred and is continuing which constitutes an Event of Termination or Incipient Event of Termination. 
 SECTION 5.
Entire Agreement. The parties hereto hereby agree that this Amendment constitutes the entire agreement concerning the subject matter hereof and supersedes any and all written and/or oral prior agreements, negotiations, correspondence,
understandings and communications. 
 SECTION 6. Effectiveness of Amendment. Except as expressly amended by the terms of
this Amendment, all terms and conditions of the Loan and Servicing Agreement shall remain in full force and effect and are hereby ratified and confirmed. This Amendment is effective only for the specific purpose for which it is given and shall not
operate as a consent, waiver, amendment or other modification of any other term or condition set forth in the Loan and Servicing Agreement or any right, power or remedy of any Program Agent under the Loan and Servicing Agreement. Upon the
effectiveness of this Amendment, each reference in the Loan and Servicing Agreement to “this Agreement” or “this Loan and Servicing Agreement” or words of like import shall mean and be references to the Loan and Servicing
Agreement as amended hereby, and each reference in any other Facility Document to the Loan and Servicing Agreement or to any terms defined in the Loan and Servicing Agreement which are modified hereby shall mean and be references to the Loan and
Servicing Agreement or to such terms as modified hereby. 

 SECTION 7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 8. Severability. In case
any provision in this Amendment will be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. 

SECTION 9. Binding Effect. This Amendment shall be binding upon and shall be enforceable by parties hereto and their respective
successors and permitted assigns. 
 SECTION 10. Headings. The Section headings herein are for convenience only and will
not affect the construction hereof. 
 SECTION 11. Novation. This Amendment does not constitute a novation or termination
of the Loan and Servicing Agreement or any Facility Document and all obligations thereunder are in all respects continuing with only the terms thereof being modified as provided herein. 

SECTION 12. Counterparts. This Amendment may be executed in any number of counterparts, each of which so executed will be deemed
to be an original, but all such counterparts will together constitute but one and the same instrument. 
 [SIGNATURE PAGE TO
FOLLOW] 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their respective authorized officers as of the date first above written. 
  

			
	DT WAREHOUSE IV, LLC
		
	By:	 	/s/ Jon Ehlinger
	Name:	 	Jon Ehlinger
	Title:	 	Secretary
	
	DT CREDIT COMPANY, LLC
		
	By:	 	/s/ Jon Ehlinger 
	Name:	 	Jon Ehlinger
	Title:	 	Secretary 
	
	WELLS FARGO BANK, NATIONAL
ASSOCIATION
	as Backup Servicer, Paying Agent and Securities
Intermediary
		
	By:	 	/s/ Jeanine C. Casey
	Name:	 	Jeanine C. Casey
	Title:	 	Vice President

 
			
	WINDMILL FUNDING CORPORATION
	as Conduit Lender
		
	By:	 	/s/ Jill A. Russo
	Name:	 	Jill A. Russo
	Title:	 	Vice President
	
	THE ROYAL BANK OF SCOTLAND PLC
as Program Agent, sole Managing Agent and sole

	Committed Lender
		
	By:	 	RBS Securities Inc., as agent
		
	By:	 	/s/ Gregory S. Blanck
	Name:	 	Gregory S. Blanck
	Title:	 	Managing Director

 SCHEDULE II 
 NOTICE ADDRESSES 
 DT Warehouse IV, 

LLC 4020 East Indian School Road, Suite 650 

Phoenix, AZ 85018 
 Telephone:
(602) 667-2433 
 Attention: Secretary 
 DT Credit Company, LLC 
 4020 East Indian School Road 

Phoenix, AZ 85018 
 Telephone:
(602) 852-6600 
 Attention: Secretary 
 Wells Fargo Bank, National Association 
 MAC N9311-161 

Sixth Street and Marquette Avenue 
 Minneapolis,
Minnesota 55479 
 Telephone: (612) 667-3464 
 Facsimile: (612) 667-8058 
 Attention: Corporate Trust Services – Asset-Backed
Administration 

 The Royal Bank of Scotland PLC 
 550 West Jackson St. 
 Chicago, IL 60661 
 Attention: Joseph Kleinwachter 
 Telephone: 312 664 6587

Fax: 203-873-5749 
 E-mail:
Joseph.Kleinwachter@rbs.com 
 Windmill Funding Corporation 
 c/o Global Securitization Services, LLC
 68 South Service Road, Ste. 120 

Melville, New York 11747 

Attention: Frank B. Bilotta 

Telephone: (212) 302-8331 

Telecopy: (212) 302-8767 
 With a copy
to: 
 RBS Global Banking and Markets 

550 West Jackson Boulevard 
 Chicago,
Illinois 60661 
 Attention: Windmill-Administrator 
 Telephone: (312) 664-6566 
 Telecopy: (203) 873-4152 

DBRS 
 140 Broadway,
35th floor 

New York, New York 10005 
 Telephone:
(212) 806-3277 
 Facsimile: (212) 806-3201 
 Attention: ABS Surveillance 
 With a copy to: ABS_surveillance@dbrs.com 

 EXHIBIT F 
 LIST OF LOCK-BOXES, LOCK-BOX PROCESSORS; DEPOSITORY 
 ACCOUNTS; AND
DEPOSITORY ACCOUNT BANKS 
 HOME OFFICE 
 4020 East Indian School Road, Phoenix, AZ 85018 
 MESA OFFICE 

7300 East Hampton Boulevard, Mesa, AZ 85029 

DEALERSHIPS 
 PROVIDED BY DTAC

 P.O. BOXES 
 DT Credit
Company, LLC, P.O. Box 53087, Phoenix, AZ 85072 
 DEPOSITORY ACCOUNTS 
 Wells Fargo Bank, 100 West Washington Street, Phoenix, AZ 85003 
 Attn: Mr. John Helms,
(602) 378-6633 
 Acct: [*] (Concentration) 
 Acct: [*] (Collection) 
  

	*	Confidential information on this page has been omitted and filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Request.

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