Document:

ENERGOUS CORPORATION

 

2014 NON-EMPLOYEE EQUITY COMPENSATION
PLAN

 

Energous Corporation, a Delaware corporation
(the “Company”), sets forth herein the terms of its 2014 Non-employee Equity Compensation Plan (the “Plan”),
as follows:

 

		1.	PURPOSE

 

The Plan is intended to enhance the ability
of the Company and its Affiliates (as defined herein) to attract and retain highly qualified non-employee members of the Board,
consultants and advisors, and to motivate such non-employee members of the Board, consultants and advisors to serve the Company
and its Affiliates and to expend maximum effort to improve the business results and earnings of the Company, by providing to such
persons an opportunity to acquire or increase a direct proprietary interest in the operations and future success of the Company.
To this end, the Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units,
unrestricted stock, other stock-based awards and cash awards. Any of these awards may, but need not, be made as performance incentives
to reward attainment of performance goals in accordance with the terms hereof. Stock options granted under the Plan shall be non-qualified
stock options.

 

		2.	DEFINITIONS

 

For purposes of interpreting the Plan and
related documents (including Award Agreements), the following definitions shall apply:

 

2.1. “Acquiror”
shall have the meaning set forth in Section 15.2.1.

 

2.2. “Affiliate”
means any company or other trade or business that “controls,” is “controlled
by” or is “under common control” with the Company within the meaning of Rule 405 of Regulation C under the Securities
Act, including, without limitation, any Subsidiary. 

 

2.3. “Award”
means a grant of an Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit,
Other Stock-based Award or cash award under the Plan. 

 

2.4. “Award
Agreement” means a written agreement between the Company and a Grantee, or notice from
the Company or an Affiliate to a Grantee that evidences and sets out the terms and conditions of an Award. 

 

2.5. “Board”
means the Board of Directors of the Company. 

 

2.6. “Business
Combination” shall have the meaning set forth in Section 15.2.2.

 

2.7. “Change
in Control” shall have the meaning set forth in Section 15.2.2. 

 

2.8. “Code”
means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. References
to the Code shall include the valid and binding governmental regulations, court decisions and other regulatory and judicial authority
issued or rendered thereunder.

 

2.9. “Committee”
means the Compensation Committee of the Board, or such other committee as determined by the Board.
The Compensation Committee of the Board may, in its discretion, designate a subcommittee of its members to serve as the Committee
(to the extent the Board has not designated another person, committee or entity as the Committee). Following the Initial Public
Offering, (i) the Board will cause the Committee to satisfy the applicable requirements of any stock exchange on which the Common
Stock may then be listed; and (ii) for purposes of Awards to Grantees who are subject to Section 16 of the Exchange Act, Committee
means all of the members of the Compensation Committee who are “non-employee directors” within the meaning of Rule
16b-3 adopted under the Exchange Act.

 

    	 

    	 

    

 

2.10. “Company”
shall have the meaning set forth in the preamble.

 

2.11. “Common
Stock” or “Stock” means a share of
common stock of the Company, par value $.0001 per share.

 

2.12. “Consultant”
means a consultant or advisor that provides bona fide services to the Company or any Affiliate
and who qualifies as a consultant or advisor under Rule 701 of the Securities Act (during any period in which the Company is not
a public company subject to the reporting requirements of the Exchange Act) or Form S-8 (during any period in which the Company
is a public company subject to the reporting requirements of the Exchange Act).

 

2.13. “Effective
Date” means March 10, 2014, the date the Plan was approved by the Company’s stockholders.

 

2.14. “Exchange
Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended.

 

2.15. “Fair
Market Value” of a share of Common Stock as of a particular date shall mean (1) if the
Common Stock is listed on a national securities exchange, the closing or last price of the Common Stock on the composite tape or
other comparable reporting system for the applicable date, or if the applicable date is not a trading day, the trading day immediately
preceding the applicable date, or (2) if the shares of Common Stock are not then listed on a national securities exchange, or the
value of such shares is not otherwise determinable, such value as determined by the Board in good faith in its sole discretion.

 

2.16. “Family
Member” means a person who is a spouse, former spouse, child, stepchild, grandchild, parent,
stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother, sister, brother-in-law,
or sister-in-law, including adoptive relationships, of the applicable individual, any person sharing the applicable individual’s
household (other than a tenant or employee), a trust in which any one or more of these persons have more than fifty percent of
the beneficial interest, a foundation in which any one or more of these persons (or the applicable individual) control the management
of assets, and any other entity in which one or more of these persons (or the applicable individual) own more than fifty percent
of the voting interests. 

 

2.17. “Grant
Date” means, as determined by the Board, the latest to occur of (i) the date as of
which the Board approves an Award, (ii) the date on which the recipient of an Award first becomes eligible to receive an Award
under Section 6, or (iii) such other date as may be specified by the Board in
the Award Agreement. 

 

2.18. “Grantee”
means a person who receives or holds an Award under the Plan. 

 

2.19. “Holder”
means, with respect to any Issued Shares, the person holding such Issued Shares, including the
initial Grantee or any Permitted Transferee.

 

2.20. “Incumbent
Directors” shall have the meaning set forth in Section 15.2.2.

 

2.21. “Initial
Public Offering” means the initial public offering of shares of Common Stock pursuant to
a registration statement (other than a Form S-8 or successor forms) filed with, and declared effective by, the SEC.

 

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2.22. “Issued
Shares” means, collectively, all outstanding shares of Stock issued pursuant to Awards
(including without limitation, outstanding shares of Restricted Stock prior to or after vesting and shares issued in connection
with the exercise of an Option or SAR).

 

2.23. “New
Shares” shall have the meaning set forth in Section 15.1.

 

2.24. “Offered
Shares” shall have the meaning set forth in Section 17.4.1.

 

2.25. “Offering”
shall have the meaning set forth in Section 17.5.

 

2.26. “Option”
means an option to purchase one or more shares of Stock pursuant to the Plan.

 

2.27. “Option
Price” means the exercise price for each share of Stock subject to an Option. 

 

2.28. “Other
Stock-based Awards” means Awards consisting of Stock units, or other Awards, valued in
whole or in part by reference to, or otherwise based on, Common Stock.

 

2.29. “Performance
Award” means an Award made subject to the attainment of performance goals (as described
in Section 12) over a performance period of at least one year. 

 

2.30. “Permitted
Transferee” means any of the following to whom a Holder may transfer Issued Shares hereunder
(as set forth in Section 17.13.3): the Holder’s spouse, children (natural or adopted),
stepchildren or a trust for their sole benefit of which the Holder is the settlor; provided however, that any such trust
does not require or permit distribution of any Issued Shares during the term of this Agreement unless subject to its terms. Upon
the death of the Holder, the term Permitted Transferees shall also include such deceased Holder’s estate, executors, administrators,
personal representatives, heirs, legatees and distributees, as the case may be.

 

2.31. “Plan”
shall have the meaning set forth in the preamble. 

 

2.32. “Purchase
Price” means the purchase price for each share of Stock pursuant to a grant of Restricted
Stock. 

 

2.33. “Restricted
Period” shall have the meaning set forth in Section 10.1.

 

2.34. 
“Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to
Section 10. 

 

2.35. “Restricted
Stock Unit” means a bookkeeping entry representing the equivalent of shares of Stock, awarded
to a Grantee pursuant to Section 10. 

 

2.36. “SAR
Exercise Price” means the per share exercise price of a SAR granted to a Grantee under
Section 9. 

 

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

 

2.38. “Section
409A” means Section 409A of the Code. 

 

2.39. “Securities
Act” means the Securities Act of 1933, as now in effect or as hereafter amended. 

 

2.40. “Separation
from Service” means a termination of Service by a Service Provider, as determined by the
Board, which determination shall be final, binding and conclusive; provided, however, that if any Award governed
by Section 409A is to be distributed on a Separation from Service, then the definition of Separation from Service for such
purposes shall comply with the definition provided in Section 409A.

 

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2.41. “Service”
means service as a Service Provider to the Company or an Affiliate. Unless otherwise stated in
the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated Service,
so long as such Grantee continues to be a Service Provider to the Company or an Affiliate. 

 

2.42. “Service
Provider” means a non-employee member of the Board, or Consultant of the Company or an
Affiliate. 

 

2.43. “Stock
Appreciation Right” or “SAR” means
a right granted to a Grantee under Section 9. 

 

2.44. “Subsidiary”
means any “subsidiary corporation” of the Company within the meaning of Section 424(f)
of the Code. 

 

2.45. “Substitute
Award” means any Award granted in assumption of or in substitution for an award of a company
or business acquired by the Company or a Subsidiary or with which the Company or an Affiliate combines. 

 

2.46. “Termination
Date” means the date that is ten (10) years after the Effective Date, unless the Plan is
earlier terminated by the Board under Section 5.2.

 

2.47. “Voting
Securities” shall have the meaning set forth in Section 15.2.2.

 

		3.	ADMINISTRATION OF THE PLAN

 

3.1. General.

 

The Board shall have such powers and authorities
related to the administration of the Plan as are consistent with the Company’s certificate of incorporation and bylaws and
applicable law. The Board shall have the power and authority to delegate its responsibilities hereunder to the Committee, which
shall have full authority to act in accordance with its charter (as in effect from time to time), and with respect to the authority
of the Board to act hereunder, all references to the Board shall be deemed to include a reference to the Committee, to the extent
such power or responsibilities have been delegated. Except as specifically provided in Section 14 or as otherwise may be
required by applicable law, regulatory requirement or the certificate of incorporation or the bylaws of the Company, the Board
shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan,
any Award or any Award Agreement, and shall have full power and authority to take all such other actions and make all such other
determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate
to the administration of the Plan. Following the Initial Public Offering, the Committee shall administer the Plan; provided, however,
the Board shall retain the right to exercise the authority of the Committee to the extent consistent with applicable law and the
applicable requirements of any securities exchange on which the Common Stock may then be listed. The interpretation and construction
by the Board of any provision of the Plan, any Award or any Award Agreement shall be final, binding and conclusive. Without limitation,
the Board shall have full and final authority, subject to the other terms and conditions of the Plan, to:

 

(i)         designate Grantees;

 

(ii)        determine the type or types of
Awards to be made to a Grantee;

 

(iii)       determine the number of shares
of Stock to be subject to an Award;

 

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(iv)       establish the terms and conditions
of each Award (including, but not limited to, the Option Price of any Option, the nature and duration of any restriction or condition
(or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of an Award or the shares of Stock
subject thereto;

 

(v)       
prescribe the form of each Award Agreement; and

 

(vi)       amend, modify, or supplement the
terms of any outstanding Award including the authority, in order to effectuate the purposes of the Plan, to modify Awards to foreign
nationals or individuals who are employed outside the United States to recognize differences in local law, tax policy, or
custom.

 

3.2. Award
Agreements; Clawbacks.

 

The grant of any Award may be contingent
upon the Grantee executing the appropriate Award Agreement. The Company may retain the right in an Award Agreement to cause a forfeiture
of the gain realized by a Grantee on account of actions taken by the Grantee in violation or breach of or in conflict with any
employment agreement, non-competition agreement, any agreement prohibiting solicitation of employees or clients of the Company
or any Affiliate thereof or any confidentiality obligation with respect to the Company or any Affiliate thereof or otherwise in
competition with the Company or any Affiliate thereof, to the extent specified in such Award Agreement applicable to the Grantee.
Furthermore, the Company may annul an Award if the Grantee is terminated for “cause” as defined in the applicable Award
Agreement.

 

Following the Initial Public Offering, Awards
shall be subject to the requirements of (i) Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (regarding
recovery of erroneously awarded compensation) and any implementing rules and regulations thereunder,, (ii) similar rules under
the laws of any other jurisdiction, (iii) any compensation recovery policies adopted by the Company to implement any such requirements
or (iv) any other compensation recovery policies as may be adopted from time to time by the Company, all to the extent determined
by the Committee in its discretion to be applicable to a Grantee.

 

3.3. Deferral
Arrangement. 

 

The Board may permit or require the deferral
of any Award payment into a deferred compensation arrangement, subject to such rules and procedures as it may establish and in
accordance with Section 409A, which may include provisions for the payment or crediting of interest or dividend equivalents,
including converting such credits into deferred Stock units.

 

3.4. No
Liability. 

 

No member of the Board or of the Committee
shall be liable for any action or determination made in good faith with respect to the Plan, any Award or Award Agreement.

 

3.5. Book
Entry. 

 

Notwithstanding any other provision of this
Plan to the contrary, the Company may elect to satisfy any requirement under this Plan for the delivery of stock certificates through
the use of book-entry.

 

		4.	STOCK SUBJECT TO THE PLAN

 

4.1. Authorized
Number of Shares.

 

Subject to adjustment under Section 15,
the aggregate number of shares of Common Stock that may be initially issued pursuant to the Plan is 997,500; provided that
upon completion of the reverse stock split implemented by the Company in connection with the Initial Public Offering and in lieu
of an adjustment pursuant to Section 15 hereof, the number of shares that may be initially issued pursuant to the Plan shall be
adjusted concurrently therewith so that it shall equal 250,000 shares of Common Stock. Shares issued under the Plan may consist
in whole or in part of authorized but unissued shares, treasury shares, or shares purchased on the open market or otherwise, all
as determined by the Company from time to time.

 

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4.2. Share
Counting.

 

Any Award settled in cash shall not be counted
as shares of Common Stock for any purpose under this Plan. If any Award under the Plan expires, or is terminated, surrendered or
forfeited, in whole or in part, the unissued Common Stock covered by such Award shall again be available for the grant of Awards
under the Plan. If shares of Common Stock issued pursuant to the Plan are repurchased by, or are surrendered or forfeited to the
Company at no more than cost, such shares of Common Stock shall again be available for the grant of Awards under the Plan. If shares
of Common Stock issuable upon exercise, vesting or settlement of an Award, or shares of Common Stock owned by a Grantee (which
are not subject to any pledge or other security interest), are surrendered or tendered to the Company in payment of the Option
Price or Purchase Price of an Award or any taxes required to be withheld in respect of an Award, in each case, in accordance with
the terms and conditions of the Plan and any applicable Award Agreement, such surrendered or tendered shares of Common Stock shall
again become available for issuance under the Plan. In addition, in the case of any Substitute Award, such Substitute Award shall
not be counted against the number of shares reserved under the Plan.

 

		5.	EFFECTIVE DATE, DURATION AND AMENDMENTS

 

5.1. Term.

 

The Plan shall be effective as of the Effective
Date, provided that it has been approved by the Company’s stockholders. The Plan shall terminate automatically on the ten
(10) year anniversary of the Effective Date and may be terminated on any earlier date as provided in Section 5.2.

 

5.2. Amendment
and Termination of the Plan. 

 

The Board may, at any time and from time
to time, amend, suspend, or terminate the Plan as to any Awards which have not been made. An amendment shall be contingent on approval
of the Company’s stockholders to the extent stated by the Board, required by applicable law or required by applicable stock
exchange listing requirements. No Awards shall be made after the Termination Date. The applicable terms of the Plan, and any terms
and conditions applicable to Awards granted prior to the Termination Date shall survive the termination of the Plan and continue
to apply to such Awards. No amendment, suspension, or termination of the Plan shall, without the consent of the Grantee, materially
impair rights or obligations under any Award theretofore awarded.

 

		6.	AWARD ELIGIBILITY AND LIMITATIONS

 

6.1. Service
Providers. 

 

Subject to this Section 6, Awards may be
made to any Service Provider as the Board shall determine and designate from time to time in its discretion.

 

6.2. Successive
Awards. 

 

An eligible person may receive more than
one Award, subject to such restrictions as are provided herein.

 

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6.3. Stand-Alone,
Additional, Tandem, and Substitute Awards. 

 

Awards may, in the discretion of the Board,
be granted either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or any award granted
under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate, or any
other right of a Grantee to receive payment from the Company or any Affiliate. Such additional, tandem, and substitute or exchange
Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Board shall have the
right to require the surrender of such other Award in consideration for the grant of the new Award. Subject to the requirements
of applicable law, the Board shall have the right, in its discretion, to make Awards in substitution or exchange for any other
award under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate. In
addition, Awards may be granted in lieu of cash compensation, including in lieu of cash amounts payable under other plans of the
Company or any Affiliate, in which the value of Stock subject to the Award is equivalent in value to the cash compensation (for
example, Restricted Stock Units or Restricted Stock).

 

		7.	AWARD AGREEMENT

 

Each Award shall be evidenced by an Award
Agreement, in such form or forms as the Board shall from time to time determine. Without limiting the foregoing, an Award Agreement
may be provided in the form of a notice which provides that acceptance of the Award constitutes acceptance of all terms of the
Plan and the notice. Award Agreements granted from time to time or at the same time need not contain similar provisions but shall
be consistent with the terms of the Plan.

 

		8.	TERMS AND CONDITIONS OF OPTIONS

 

8.1. Option
Price. 

 

The Option Price of each Option shall be
fixed by the Board and stated in the related Award Agreement. In no case shall the Option Price of any Option be less than the
par value of a share of Stock.

 

8.2. Vesting.

 

Subject to Section 8.3, each
Option shall become exercisable at such times and under such conditions (including, without limitation, performance requirements)
as shall be determined by the Board and stated in the Award Agreement.

 

8.3. Term.

 

Each Option shall terminate, and all rights
to purchase shares of Stock thereunder shall cease, upon the expiration of the Option term determined by the Board and stated in
the Award Agreement not to exceed ten (10) years from the Grant Date, or under such circumstances and on such date
prior thereto as is set forth in the Plan or as may be fixed by the Board and stated in the related Award Agreement.

 

8.4. Limitations
on Exercise of Option. 

 

Notwithstanding any other provision of the
Plan, in no event may any Option be exercised, in whole or in part, (i) prior to the date the Plan is approved by the stockholders
of the Company as provided herein or (ii) after the occurrence of an event which results in termination of the Option.

 

8.5. Method
of Exercise. 

 

An Option that is exercisable may be exercised
by the Grantee’s delivery of a notice of exercise to the Company, setting forth the number of shares of Stock with respect
to which the Option is to be exercised, accompanied by full payment for the shares. To be effective, notice of exercise must be
made in accordance with procedures established by the Company from time to time.

 

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8.6. Rights
of Holders of Options. 

 

Unless otherwise stated in the related Award
Agreement, an individual holding or exercising an Option shall have none of the rights of a stockholder (for example, the right
to receive cash or dividend payments or distributions attributable to the subject shares of Stock or to direct the voting of the
subject shares of Stock ) until the shares of Stock covered thereby are fully paid and issued to him. Except as provided in Section 15
or the related Award Agreement, no adjustment shall be made for dividends, distributions or other rights for which the record date
is prior to the date of such issuance.

 

8.7. Delivery
of Stock Certificates. 

 

Promptly after the exercise of an Option
by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a stock certificate
or certificates evidencing his or her ownership of the shares of Stock subject to the Option.

 

		9.	TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS

 

9.1. Right
to Payment. 

 

A SAR shall confer on the Grantee a right
to receive, upon exercise thereof, the excess of (i) the Fair Market Value of one share of Stock on the date of exercise over
(ii) the SAR Exercise Price, as determined by the Board. The Award Agreement for an SAR shall specify the SAR Exercise Price.
SARs may be granted alone or in conjunction with all or part of an Option or at any subsequent time during the term of such Option
or in conjunction with all or part of any other Award.

 

9.2. Other
Terms. 

 

The Board shall determine at the Grant Date
or thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including
based on achievement of performance goals and/or future service requirements), the time or times at which SARs shall cease to be
or become exercisable following Separation from Service or upon other conditions, the method of exercise, whether or not a SAR
shall be in tandem or in combination with any other Award, and any other terms and conditions of any SAR.

 

9.3. Term
of SARs. 

 

The term of a SAR granted under the Plan
shall be determined by the Board, in its sole discretion; provided, however, that such term shall not exceed ten
(10) years.

 

9.4. Payment
of SAR Amount. 

 

Upon exercise of a SAR, a Grantee shall
be entitled to receive payment from the Company (in cash or Stock, as determined by the Board) in an amount determined by multiplying:

 

(i)   the difference between the Fair Market
Value of a share of Stock on the date of exercise over the SAR Exercise Price; by

 

(ii)  the number of shares of Stock with
respect to which the SAR is exercised.

 

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		10.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND RESTRICTED
STOCK UNITS

 

10.1. Restrictions.

 

At the time of grant, the Board may, in
its sole discretion, establish a period of time (a “Restricted Period”) and any additional restrictions including
the satisfaction of corporate or individual performance objectives applicable to an Award of Restricted Stock or Restricted Stock
Units in accordance with Section 12.1
and 12.2. Each Award of Restricted Stock or Restricted Stock Units may be subject to a different Restricted Period and additional
restrictions. Neither Restricted Stock nor Restricted Stock Units may be sold, transferred, assigned, pledged or otherwise encumbered
or disposed of during the Restricted Period or prior to the satisfaction of any other applicable restrictions.

 

10.2. Restricted
Stock Certificates. 

 

The Company shall issue stock, in the name
of each Grantee to whom Restricted Stock has been granted, stock certificates or other evidence of ownership representing the total
number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The Board
may provide in an Award Agreement that either (i) the Secretary of the Company shall hold such certificates for the Grantee’s
benefit until such time as the Restricted Stock is forfeited to the Company or the restrictions lapse, or (ii) such certificates
shall be delivered to the Grantee; provided, however, that such certificates shall bear a legend or legends that
comply with the applicable securities laws and regulations and make appropriate reference to the restrictions imposed under the
Plan and the Award Agreement.

 

10.3. Rights
of Holders of Restricted Stock. 

 

Unless the Board otherwise provides in an
Award Agreement, holders of Restricted Stock shall have rights as stockholders of the Company, including voting and dividend rights.

 

10.4. Rights
of Holders of Restricted Stock Units. 

 

10.4.1. Settlement
of Restricted Stock Units. 

 

Restricted Stock Units may be settled in
cash or Stock, as determined by the Board and set forth in the Award Agreement. The Award Agreement shall also set forth whether
the Restricted Stock Units shall be settled (i) within the time period specified in Section 17.11 for short term
deferrals or (ii) otherwise within the requirements of Section 409A, in which case the Award Agreement shall specify
upon which events such Restricted Stock Units shall be settled.

 

10.4.2. Voting
and Dividend Rights. 

 

Unless otherwise stated in the applicable
Award Agreement, holders of Restricted Stock Units shall not have rights as stockholders of the Company, including no voting or
dividend or dividend equivalents rights.

 

10.4.3. Creditor’s
Rights. 

 

A holder of Restricted Stock Units shall
have no rights other than those of a general creditor of the Company. Restricted Stock Units represent an unfunded and unsecured
obligation of the Company, subject to the terms and conditions of the applicable Award Agreement.

 

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10.5. Purchase
of Restricted Stock. 

 

The Grantee shall be required, to the extent
required by applicable law, to purchase the Restricted Stock from the Company at a Purchase Price equal to the greater of (i) the
aggregate par value of the shares of Stock represented by such Restricted Stock or (ii) the Purchase Price, if any, specified
in the related Award Agreement. If specified in the Award Agreement, the Purchase Price may be deemed paid by Services already
rendered. The Purchase Price shall be payable in a form described in Section 11 or, in the discretion of the Board,
in consideration for past Services rendered.

 

10.6. Delivery
of Stock. 

 

Upon the expiration or termination of any
Restricted Period and the satisfaction of any other conditions prescribed by the Board, the restrictions applicable to shares of
Restricted Stock or Restricted Stock Units settled in Stock shall lapse, and, unless otherwise provided in the Award Agreement,
a stock certificate for such shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary
or estate, as the case may be.

 

		11.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK

 

11.1. General
Rule. 

 

Payment of the Option Price for the shares
purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock shall be made in cash or in cash equivalents
acceptable to the Company, except as provided in this Section 11.

 

11.2. Surrender
of Stock. 

 

To the extent the Award Agreement so provides,
payment of the Option Price for shares purchased pursuant to the exercise of an Option or the Purchase Price for Restricted Stock
may be made all or in part through the tender to the Company of shares of Stock, which shares shall be valued, for purposes of
determining the extent to which the Option Price or Purchase Price for Restricted Stock has been paid thereby, at their Fair Market
Value on the date of exercise or surrender.

 

11.3. Cashless
Exercise. 

 

With respect to an Option only (and not
with respect to Restricted Stock) following the Initial Public Offering, to the extent permitted by law and to the extent the Award
Agreement so provides, payment of the Option Price may be made all or in part by delivery (on a form acceptable to the Company)
of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all
or part of the sales proceeds to the Company in payment of the Option Price and any withholding taxes described in Section 17.3.

 

11.4. Other
Forms of Payment. 

 

To the extent the Award Agreement so provides,
payment of the Option Price or the Purchase Price for Restricted Stock may be made in any other form that is consistent with applicable
laws, regulations and rules, including, but not limited to, the Company’s withholding of shares of Stock otherwise due to
the exercising Grantee.

 

		12.	TERMS AND CONDITIONS OF PERFORMANCE AWARDS

  

12.1. Performance
Conditions. 

 

The right of a Grantee to exercise or receive
a grant or settlement of any Award, and the timing thereof, may be subject to such performance conditions as may be specified by
the Board. The Board may use such business criteria and other measures of performance as it may deem appropriate in establishing
any performance conditions, and may exercise its discretion to reduce the amounts payable under any Award subject to performance
conditions.

 

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12.2. Settlement of Performance Awards;
Other Terms.

 

Settlement of Performance Awards shall be
in cash, Stock, other Awards or other property, in the discretion of the Board. The Board may, in its discretion, reduce the amount
of a settlement otherwise to be made in connection with such Performance Awards.

 

		13.	OTHER STOCK-BASED AWARDS

 

13.1. Grant
of Other Stock-based Awards.

 

Other Stock-based Awards may be granted
either alone or in addition to or in conjunction with other Awards under the Plan. Subject to the provisions of the Plan, the Board
shall have the sole and complete authority to determine the persons to whom and the time or times at which such Awards shall be
made, the number of shares of Common Stock to be granted pursuant to such Awards, and all other conditions of such Awards. Unless
the Board determines otherwise, any such Award shall be confirmed by an Award Agreement, which shall contain such provisions as
the Board determines to be necessary or appropriate to carry out the intent of this Plan with respect to such Award.

 

13.2. Terms
of Other Stock-based Awards.

 

Any Common Stock subject to Awards made
under this Section 13 may not be sold, assigned, transferred, pledged or otherwise encumbered prior to the date on which
the shares are issued, or, if later, the date on which any applicable restriction, performance or deferral period lapses.

 

		14.	REQUIREMENTS OF LAW

 

14.1. General.

 

The Company shall not be required to sell
or issue any shares of Stock under any Award if the sale or issuance of such shares would constitute a violation by the Grantee,
any other individual exercising an Option, or the Company of any provision of any law or regulation of any governmental authority,
including without limitation any federal or state securities laws or regulations. If at any time the Company shall determine, in
its discretion, that the listing, registration or qualification of any shares subject to an Award upon any securities exchange
or under any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance or purchase
of shares hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual exercising an Option pursuant
to such Award unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the
Award. Specifically, in connection with the Securities Act, upon the exercise of any Option or the delivery of any shares of Stock
underlying an Award, unless a registration statement under such Act is in effect with respect to the shares of Stock covered by
such Award, the Company shall not be required to sell or issue such shares unless the Board has received evidence satisfactory
to it that the Grantee or any other individual exercising an Option may acquire such shares pursuant to an exemption from registration
under the Securities Act. Any determination in this connection by the Board shall be final, binding, and conclusive. The Company
may, but shall in no event be obligated to, register any securities covered hereby pursuant to the Securities Act. The Company
shall not be obligated to take any affirmative action in order to cause the exercise of an Option or the issuance of shares of
Stock pursuant to the Plan to comply with any law or regulation of any governmental authority. As to any jurisdiction that expressly
imposes the requirement that an Option shall not be exercisable until the shares of Stock covered by such Option are registered
or are exempt from registration, the exercise of such Option (under circumstances in which the laws of such jurisdiction apply)
shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.

 

    	11

    	 

    

 

14.2. Section
25102(o) of the California Corporations Code. 

 

This Plan is intended to comply with Section
25102(o) of the California Corporations Code. In that regard, to the extent required by Section 25102(o), (i) the terms of any
Options or SARs, to the extent vested and exercisable upon a Grantee’s Separation from Service, shall include any minimum
exercise periods following Separation from Service specified by Section 25102(o), and (ii) any repurchase right of the Company
with respect to shares of Stock issued under the Plan shall include a minimum 90-day notice requirement. Any provision of this
Plan which is inconsistent with Section 25102(o) shall, without further act or amendment by the Company or the Board, be reformed
to comply with the requirements of Section 25102(o).

 

14.3. Rule
16b-3. 

 

During any time when the Company has a class
of equity security registered under Section 12 of the Exchange Act, it is the intent of the Company that Awards and the exercise
of Options granted to officers and directors hereunder will qualify for the exemption provided by Rule 16b-3 under the Exchange
Act. To the extent that any provision of the Plan or action by the Board or Committee does not comply with the requirements of
Rule 16b-3, it shall be deemed inoperative to the extent permitted by law and deemed advisable by the Board, and shall not affect
the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify
this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption
or its replacement.

 

		15.	EFFECT OF CHANGES IN CAPITALIZATION

 

15.1. Adjustments
for Changes in Capital Structure. 

 

Subject to any required action by the stockholders
of the Company, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through
merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse
stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure
of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than
Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate and
proportionate adjustments shall be made in the number and class of shares subject to the Plan and to any outstanding Awards, and
in the Option Price, SAR Exercise Price or Purchase Price per share of any outstanding Awards in order to prevent dilution or enlargement
of Grantees’ rights under the Plan. For purposes of the foregoing, conversion of any convertible securities of the Company
shall not be treated as “effected without receipt of consideration by the Company.” If a majority of the shares which
are of the same class as the shares that are subject to outstanding Awards are exchanged for, converted into, or otherwise become
(whether or not pursuant to a Change in Control) shares of another corporation (the “New Shares”), the Board
may unilaterally amend the outstanding Awards to provide that such Awards are for New Shares. In the event of any such amendment,
the number of shares subject to, and the Option Price, SAR Exercise Price or Purchase Price per share of, the outstanding Awards
shall be adjusted in a fair and equitable manner as determined by the Board, in its discretion. Any fractional share resulting
from an adjustment pursuant to this Section 15.1 shall be rounded down to the nearest whole number and the Option Price,
SAR Exercise Price or Purchase Price per share shall be rounded up to the nearest whole cent. In no event may the exercise price
of any Award be decreased to an amount less than the par value, if any, of the stock subject to the Award. The Board in its sole
discretion, may also make such adjustments in the terms of any Award to reflect, or related to, such changes in the capital structure
of the Company or distributions as it deems appropriate. Adjustments determined by the Board pursuant to this Section 15.1 shall
be made in accordance with Section 409A to the extent applicable.

 

    	12

    	 

    

 

15.2. Change
in Control. 

 

15.2.1. Consequences
of a Change in Control.

 

Subject to the requirements and limitations
of Section 409A if applicable, the Board may provide for any one or more of the following in connection with a Change in Control:

 

(a)          Accelerated
Vesting. The Board may, in its discretion, provide in any Award Agreement or, in the event of a Change in Control, may
take such actions as it deems appropriate to provide for the acceleration of the exercisability, vesting and/or settlement in connection
with such Change in Control of each or any outstanding Award or portion thereof and shares acquired pursuant thereto upon such
conditions, including termination of the Grantee’s Service prior to, upon, or following such Change in Control, to such extent
as the Board shall determine. 

 

(b)            Assumption,
Continuation or Substitution. In the event of a Change in Control, the surviving, continuing, successor, or purchasing
corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), may, without
the consent of any Grantee, either assume or continue the Company’s rights and obligations under each or any Award or portion
thereof outstanding immediately prior to the Change in Control or substitute for each or any such outstanding Award or portion
thereof a substantially equivalent award with respect to the Acquiror’s stock, as applicable. For purposes of this Section
15.2.1, if so determined by the Board, in its discretion, an Award denominated in shares of Stock shall be deemed assumed if,
following the Change in Control, the Award confers the right to receive, subject to the terms and conditions of the Plan and the
applicable Award Agreement, for each share of Stock subject to the Award immediately prior to the Change in Control, the consideration
(whether stock, cash, other securities or property or a combination thereof) to which a holder of a share of Stock on the effective
date of the Change in Control was entitled; provided, however, that if such consideration is not solely common stock
of the Acquiror, the Board may, with the consent of the Acquiror, provide for the consideration to be received upon the exercise
or settlement of the Award, for each share of Stock subject to the Award, to consist solely of common stock of the Acquiror equal
in Fair Market Value to the per share consideration received by holders of Stock pursuant to the Change in Control. If any portion
of such consideration may be received by holders of Stock pursuant to the Change in Control on a contingent or delayed basis, the
Board may, in its sole discretion, determine such Fair Market Value per share as of the time of the Change in Control on the basis
of the Board’s good faith estimate of the present value of the probable future payment of such consideration. Any Award or
portion thereof which is neither assumed or continued by the Acquiror in connection with the Change in Control nor exercised or
settled as of the time of consummation of the Change in Control shall terminate and cease to be outstanding effective as of the
time of consummation of the Change in Control.  

 

(c)          Cash-Out
of Awards. The Board may, in its discretion and without the consent of any Grantee, determine that, upon the occurrence
of a Change in Control, each or any Award or a portion thereof outstanding immediately prior to the Change in Control and not previously
exercised or settled shall be canceled in exchange for a payment with respect to each vested share (and each unvested share, if
so determined by the Board) of Stock subject to such canceled Award in (i) cash, (ii) stock of the Company or of a corporation
or other business entity a party to the Change in Control, or (iii) other property which, in any such case, shall be in an
amount having a Fair Market Value equal to the Fair Market Value of the consideration to be paid per share of Stock in the Change
in Control, reduced by the exercise or purchase price per share, if any, under such Award. If any portion of such consideration
may be received by holders of Stock pursuant to the Change in Control on a contingent or delayed basis, the Board may, in its sole
discretion, determine such Fair Market Value per share as of the time of the Change in Control on the basis of the Board’s
good faith estimate of the present value of the probable future payment of such consideration. In the event such determination
is made by the Board, the amount of such payment (reduced by applicable withholding taxes, if any) shall be paid to Grantees in
respect of the vested portions of their canceled Awards as soon as practicable following the date of the Change in Control and
in respect of the unvested portions of their canceled Awards in accordance with the vesting schedules applicable to such Awards.
For avoidance of doubt, if the amount determined pursuant to this Section 15.2.1(c) for an Option or SAR is zero or less,
the affected Option or SAR may be cancelled without any payment therefore.

 

    	13

    	 

    

  

15.2.2. Change
in Control Defined.

 

Except as may otherwise be defined in an
Award Agreement, a Change in Control shall mean the occurrence of any of the following events:

 

(a)          the
acquisition, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or Section
14(d)(2) of the Exchange Act), other than the Company or any subsidiary, affiliate (within the meaning of Rule 144 promulgated
under the Securities Act of 1933, as amended) or employee benefit plan of the Company, of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Voting Securities”);
or

 

(b)          a
reorganization, merger, consolidation or recapitalization of the Company (a “Business Combination”), other than
a Business Combination in which more than 50% of the combined voting power of the outstanding voting securities of the surviving
or resulting entity immediately following the Business Combination is held by the persons who, immediately prior to the Business
Combination, were the holders of the Voting Securities; or

 

(c)          a
complete liquidation or dissolution of the Company, or a sale of all or substantially all of the assets of the Company; or

 

(d)          during
any period of 24 consecutive months, the Incumbent Directors cease to constitute a majority of the Board of Directors; “Incumbent
Directors” shall mean individuals who were members of the Board of Directors at the beginning of such period or individuals
whose election or nomination for election to the Board of Directors by the Company's stockholders was approved by a vote of at
least a majority of the then Incumbent Directors (but excluding any individual whose initial election or nomination is in connection
with an actual or threatened proxy contest relating to the election of directors).  

 

Notwithstanding the foregoing, if it is
determined that an Award hereunder is subject to the requirements of Section 409A and payable upon a Change in Control, the Company
will not be deemed to have undergone a Change in Control unless the Company is deemed to have undergone a “change in control
event” pursuant to the definition of such term in Section 409A.

 

15.3. Adjustments.

 

Adjustments under this Section 15
related to shares of Stock or securities of the Company shall be made by the Board, whose determination in that respect shall be
final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any
fractions resulting from any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share.

 

		16.	NO LIMITATIONS ON COMPANY

 

The making of Awards pursuant to the Plan
shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations,
or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or
any part of its business or assets.

 

    	14

    	 

    

  

		17.	TERMS APPLICABLE GENERALLY TO AWARDS GRANTED UNDER
THE PLAN

 

17.1. Disclaimer
of Rights. 

 

No provision in the Plan or in any Award
Agreement shall be construed to confer upon any individual the right to remain in the employ or service of the Company or any Affiliate,
or to interfere in any way with any contractual or other right or authority of the Company or any Affiliate either to increase
or decrease the compensation or other payments to any individual at any time, or to terminate any employment or other relationship
between any individual and the Company or any Affiliate. In addition, notwithstanding anything contained in the Plan to the contrary,
unless otherwise stated in the applicable Award Agreement, no Award granted under the Plan shall be affected by any change of duties
or position of the Grantee, so long as such Grantee continues to be a Service Provider. The obligation of the Company to pay any
benefits pursuant to this Plan shall be interpreted as a contractual obligation to pay only those amounts described herein, in
the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer
any amounts to a third party trustee or otherwise hold any amounts in trust or escrow for payment to any Grantee or beneficiary
under the terms of the Plan.

 

17.2. Nonexclusivity
of the Plan. 

 

Neither the adoption of the Plan nor the
submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations upon the
right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable
either generally to a class or classes of individuals or specifically to a particular individual or particular individuals), including,
without limitation, the granting of stock options as the Board in its discretion determines desirable.

 

17.3. Withholding
Taxes. 

 

The Company or an Affiliate, as the case
may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any federal, state, or local taxes
of any kind required by law to be withheld (i) with respect to the vesting of or other lapse of restrictions applicable to
an Award, (ii) upon the issuance of any shares of Stock upon the exercise of an Option or SAR, or (iii) otherwise due
in connection with an Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the Affiliate,
as the case may be, any amount that the Company or the Affiliate may reasonably determine to be necessary to satisfy such withholding
obligation. Subject to the prior approval of the Company or the Affiliate, which may be withheld by the Company or the Affiliate,
as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part, (i) by
causing the Company or the Affiliate to withhold the minimum required number of shares of Stock otherwise issuable to the Grantee
as may be necessary to satisfy such withholding obligation or (ii) by delivering to the Company or the Affiliate shares of
Stock already owned by the Grantee. The shares of Stock so delivered or withheld shall have an aggregate Fair Market Value equal
to such withholding obligations. The Fair Market Value of the shares of Stock used to satisfy such withholding obligation shall
be determined by the Company or the Affiliate as of the date that the amount of tax to be withheld is to be determined. A Grantee
who has made an election pursuant to this Section 17.3 may satisfy his or her withholding obligation only with shares
of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.

 

    	15

    	 

    

 

17.4. Right
of First Refusal; Right to Repurchase. 

 

17.4.1. Right
of First Refusal. 

 

Except as otherwise expressly provided in
an Award Agreement, stockholders’ agreement or other agreement to which a Holder is a party, at any time prior to registration
by the Company of its Common Stock under Section 12 of the Exchange Act, in the event that the Holder desires at any time to sell
or otherwise transfer all or any part of such Holder’s Issued Shares (to the extent vested), the Holder first shall give
written notice to the Company of the Holder’s intention to make such transfer. Such notice shall state the number of Issued
Shares which the Holder proposes to sell (the “Offered Shares”), the price and the terms at which the proposed sale
is to be made and the name and address of the proposed transferee. At any time within 30 days after the receipt of such notice
by the Company, the Company or its assigns may elect to purchase all or any portion of the Offered Shares at the price and on the
terms offered by the proposed transferee and specified in the notice. The Company or its assigns shall exercise this right by mailing
or delivering written notice to the Holder within the foregoing 30-day period. If the Company or its assigns elect to exercise
its purchase rights under this Section 17.4.1, the closing for such purchase shall, in any event, take place within 45 days
after the receipt by the Company of the initial notice from the Holder. In the event that the Company or its assigns do not elect
to exercise such purchase right, or in the event that the Company or its assigns do not pay the full purchase price within such
45-day period, the Holder may, within 60 days thereafter, sell the Offered Shares to the proposed transferee and at the same price
and on the same terms as specified in the Holder’s notice. Any Issued Shares purchased by such proposed transferee shall
no longer be subject to the terms of the Plan. Any Issued Shares not sold to the proposed transferee shall remain subject to the
Plan.

 

17.4.2. Right
of Repurchase. 

 

Except as otherwise expressly provided in
an Award Agreement, stockholders’ agreement or other agreement to which a Grantee is a party, at any time prior to registration
by the Company of its Common Stock under Section 12 of the Exchange Act, in the case of any Grantee whose Separation from Service
is for Cause, or where the Grantee has, in the Board's reasonable determination, taken any action prior to or following his Separation
of Service which would have constituted grounds for Cause, the Company shall have the right, exercisable at any time and from time
to time thereafter, to repurchase from the Grantee (or any successor in interest by purchase, gift or other mode of transfer) any
shares of Common Stock issued to such Grantee under the Plan for the purchase price paid by the Grantee for such shares of Common
Stock (or the Fair Market Value of such Common Stock at the time of repurchase, if lower).

 

17.5. Market
Standoff Requirement. 

 

Except as otherwise expressly provided in
an Award Agreement, stockholders’ agreement or other agreement to which a Grantee is a party, in connection with any
underwritten public offering of its Common Stock (“Offering”) and upon request of the Company or the underwriters
managing the Offering, Grantees shall not be permitted to sell, make any short sale of, loan, grant any option for the purchase
of, or otherwise directly or indirectly dispose of any Common Stock delivered under the Plan (other than those shares of Common
Stock included in the Offering) without the prior written consent of the Company or such underwriters, as the case may be, for
such period of time from the effective date of the registration statement with respect to such Offering as may be requested by
the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters
in connection with such Offering.

 

17.6. Captions.

 

The use of captions in this Plan or any
Award Agreement is for the convenience of reference only and shall not affect the meaning of any provision of the Plan or any Award
Agreement.

 

17.7. Other
Provisions. 

 

Each Award Agreement may contain such other
terms and conditions not inconsistent with the Plan as may be determined by the Board, in its sole discretion. In the event of
any conflict between the terms of an employment agreement and the Plan, the terms of the employment agreement govern.

 

    	16

    	 

    

 

17.8. Number
and Gender. 

 

With respect to words used in this Plan,
the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as the context requires.

 

17.9. Severability.

 

If any provision of the Plan or any Award
Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions
hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable
in any other jurisdiction.

 

17.10. Governing
Law. 

 

The Plan shall be governed by and construed
in accordance with the laws of the State of Delaware without giving effect to the principles of conflicts of law.

 

17.11. Section 409A.

 

The Plan is intended to comply with Section
409A to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered
to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral period”
as defined in Section 409A shall not be treated as deferred compensation unless applicable laws require otherwise. Notwithstanding
anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A,
amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month
period immediately following the Grantee’s Separation from Service shall instead be paid on the first payroll date after
the six-month anniversary of the Grantee’s Separation from Service (or the Grantee’s death, if earlier). Notwithstanding
the foregoing, neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of
any excise tax or penalty on any Grantee under Section 409A and neither the Company nor the Committee will have any liability to
any Grantee for such tax or penalty.

 

17.12. Separation
from Service. 

 

The Board shall determine the effect of
a Separation from Service upon Awards, and such effect shall be set forth in the appropriate Award Agreement. Without limiting
the foregoing, the Board may provide in the Award Agreements at the time of grant, or any time thereafter with the consent of the
Grantee, the actions that will be taken upon the occurrence of a Separation from Service, including, but not limited to, accelerated
vesting or termination, depending upon the circumstances surrounding the Separation from Service.

 

17.13. Transferability
of Awards and Issued Shares. 

 

17.13.1. Transfers
in General.

 

Except as provided in Section 17.13.2,
no Award shall be assignable or transferable by the Grantee to whom it is granted, other than by will or the laws of descent and
distribution, and, during the lifetime of the Grantee, only the Grantee personally (or the Grantee’s personal representative)
may exercise rights under the Plan.

 

    	17

    	 

    

  

17.13.2. Family
Transfers. 

 

If authorized in the applicable Award Agreement,
a Grantee may transfer, not for value, all or part of an Award to any Family Member. For the purpose of this Section 17.13.2,
a “not for value” transfer is a transfer which is (i) a gift, (ii) a transfer under a domestic relations
order in settlement of marital property rights; or (iii) a transfer to an entity in which more than fifty percent of the voting
interests are owned by Family Members (or the Grantee) in exchange for an interest in that entity. Following a transfer under this
Section 17.13.2, any such Award shall continue to be subject to the
same terms and conditions as were applicable immediately prior to transfer. Subsequent transfers of transferred Awards are prohibited
except to Family Members of the original Grantee in accordance with this Section 17.13.2 or by will or the laws of
descent and distribution.

 

17.13.3. Issued
Shares. 

 

No Issued Shares shall be sold, assigned,
transferred, pledged, hypothecated, given away or in any other manner disposed of or encumbered, whether voluntarily or by operation
of law, unless (i) such transfer is in compliance with the terms of the applicable Award, all applicable securities laws, and with
the terms and conditions of the Plan (including Sections 17.4 and 17.5 and this Section 17.13.3), (ii) such
transfer does not cause the Company to become subject to the reporting requirements of the Exchange Act, and (iii) the transferee
consents in writing to be bound by the provisions of the Plan (including Sections 17.4 and 17.5 and this Section
17.13.3). In connection with any proposed transfer, the Board may require the transferor to provide at the transferor’s
own expense an opinion of counsel to the transferor, satisfactory to the Board, that such transfer is in compliance with all foreign,
federal and state securities laws. Any attempted disposition of Issued Shares not in accordance with the terms and conditions of
this Section 17.13.3 shall be null and void, and the Company shall not reflect on its records any change in record ownership
of any Issued Shares as a result of any such disposition, shall otherwise refuse to recognize any such disposition and shall not
in any way give effect to any such disposition of Issued Shares. Subject to the foregoing general provisions, and unless otherwise
provided in the agreement with respect to a particular Award, Issued Shares may be transferred pursuant to the following specific
terms and conditions:

 

(a)          Transfers
to Permitted Transferees. The Holder may sell, assign, transfer or give away any or all of the Issued Shares to Permitted Transferees;
provided, however, that following such sale, assignment, or other transfer, such Issued Shares shall continue to be subject
to the terms of this Plan (including Sections 17.4 and 17.5 and this Section 17.13.3) and such Permitted Transferee(s)
shall, as a condition to any such transfer, deliver a written acknowledgment to that effect to the Company.

 

(b)          Transfers
Upon Death. Upon the death of the Holder, any Issued Shares then held by the Holder at the time of such death and any Issued
Shares acquired thereafter by the Holder’s legal representative shall be subject to the provisions of this Plan, and the
Holder’s estate, executors, administrators, personal representatives, heirs, legatees and distributees shall be obligated
to convey such Issued Shares to the Company or its assigns under the terms contemplated hereby.

 

17.14. Dividends
and Dividend Equivalent Rights. 

 

If specified in the Award Agreement, the
recipient of an Award under this Plan may be entitled to receive, currently or on a deferred basis, dividends or dividend equivalents
with respect to the Common Stock or other securities covered by an Award. The terms and conditions of a dividend equivalent right
may be set forth in the Award Agreement. Dividend equivalents credited to a Grantee may be paid currently or may be deemed to be
reinvested in additional shares of Stock or other securities of the Company at a price per unit equal to the Fair Market Value
of a share of Stock on the date that such dividend was paid to shareholders, as determined in the sole discretion of the Board.

 

Adopted by the Board on March 6, 2014

Approved by Stockholders on March 10, 2014

Termination Date: March 10, 2024

 

    	18Exhibit 10.2

 

 

 

 

 

FORM OF MANAGEMENT SERVICES AGREEMENT

 

 

 

 

 

 

 

    	

    	 

    

 

MANAGEMENT SERVICES AGREEMENT

 

BY AND AMONG

 

AECP MANAGEMENT, LLC,

an Oklahoma Limited Liability Company

 

AMERICAN ENERGY CAPITAL PARTNERS, LP

a Delaware Limited Partnership

 

AND

 

AECP OPERATING COMPANY, LLC

a Delaware Limited Liability Company and

Wholly Owned Subsidiary of AECP LP

 

Dated [●], 2014

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	ARTICLE I Defined Terms, Interpretation	1
	 	 	 
	Section 1.1	Defined Terms	1
	 	 	 
	Section 1.2	References and Titles	12
	 	 	 
	ARTICLE II Management Services	13
	 	 	 
	Section 2.1	Engagement of Manager	13
	 	 	 
	Section 2.2	Direction of Result of Management Services	13
	 	 	 
	Section 2.3	Management Standards	13
	 	 	 
	Section 2.4	Records; Financial Reports; Instruments of Service	14
	 	 	 
	Section 2.5	Certain Limitations on Management Services	14
	 	 	 
	Section 2.6	Well Operations	15
	 	 	 
	Section 2.7	Limitations on Farmouts to Affiliates of the Manager	15
	 	 	 
	ARTICLE III Financial Administration	16
	 	 	 
	Section 3.1	Budget	16
	 	 	 
	Section 3.2	Cash Management	17
	 	 	 
	Section 3.3	Revenues and Joint Interest Billings	17
	 	 	 
	Section 3.4	Manager Payments	17
	 	 	 
	Section 3.5	Payment to Owner	17
	 	 	 
	ARTICLE IV Contract Administration; Power of Attorney	18
	 	 	 
	Section 4.1	Contract Administration	18
	 	 	 
	Section 4.2	Purchases for the Owner	18
	 	 	 
	Section 4.3	Affiliate Transactions	18
	 	 	 
	Section 4.4	Power of Attorney	18
	 	 	 
	ARTICLE V Compensation and Expenses	19
	 	 	 
	Section 5.1	Management Fee	19
	 	 	 
	Section 5.2	Reimbursement of Organization and Offering Expenses; Reimbursement of Out-of-Pocket Expenses	19
	 	 	 
	Section 5.3	Acquisition Fee and Acquisition Expenses	21
	 	 	 
	Section 5.4	Disposition Fee and Disposition Expenses	22
	 	 	 
	Section 5.5	Financing Coordination Fee	23
	 	 	 
	ARTICLE VI Representations, Warranties and Covenants	24
	 	 	 
	ARTICLE VII Additional Agreements of Manager; Restrictions on Manager	25
	 	 	 
	Section 7.1	Compliance with Laws	25

 

    	i

    	 

    

 

	Section 7.2	Compliance with Obligations	25
	 	 	 
	Section 7.3	Prohibited Acts	25
	 	 	 
	Section 7.4	Emergencies	28
	 	 	 
	Section 7.5	Manager’s Insurance	28
	 	 	 
	ARTICLE VIII Personnel Administration	28
	 	 	 
	Section 8.1	General	28
	 	 	 
	Section 8.2	Responsibility	28
	 	 	 
	ARTICLE IX Investment Opportunities	29
	 	 	 
	Section 9.1	Investment Opportunities.	29
	 	 	 
	Section 9.2	Initial Budget; Revisions to Budget	30
	 	 	 
	ARTICLE X Term; Termination	31
	 	 	 
	Section 10.1	Term	31
	 	 	 
	Section 10.2	Termination	31
	 	 	 
	Section 10.3	Transition Services	32
	 	 	 
	Section 10.4	Effect of Termination	32
	 	 	 
	ARTICLE XI Indemnification; Liability of the Parties	33
	 	 	 
	Section 11.1	Indemnification	33
	 	 	 
	Section 11.2	EXTENT OF INDEMNIFICATION; EXPRESS NEGLIGENCE RULE	35
	 	 	 
	Section 11.3	Indemnification Procedure	35
	 	 	 
	Section 11.4	Limitation on Consequential and Other Damages	35
	 	 	 
	Section 11.5	Manager Liability	36
	 	 	 
	Section 11.6	Conspicuous	36
	 	 	 
	ARTICLE XII Force Majeure	36
	 	 
	ARTICLE XIII Miscellaneous	36
	 	 	 
	Section 13.1	Time	36
	 	 	 
	Section 13.2	Independent Contractor	37
	 	 	 
	Section 13.3	Notices	37
	 	 	 
	Section 13.4	Cooperation	38
	 	 	 
	Section 13.5	No Third Party Beneficiaries	39
	 	 	 
	Section 13.6	Cumulative Remedies	39
	 	 	 
	Section 13.7	Governing Law; Jurisdiction; Waiver of Jury Trial	39
	 	 	 
	Section 13.8	Entire Agreement	39
	 	 	 
	Section 13.9	Assignment	39
	 	 	 
	Section 13.10	Amendment	40

 

    	ii

    	 

    

 

	Section 13.11	Severability	40
	 	 	 
	Section 13.12	Waiver	40
	 	 	 
	Section 13.13	Counterparts; Facsimiles; Electronic Transmission	40
	 	 	 
	Section 13.14	Corporate Opportunity	40
	 	 	 
	Section 13.15	Joint Acknowledgement	41
	 	 	 
	EXHIBITS:	 	 
	 	 	 
	Exhibit A	Scope of Services	A-1
	 	 	 
	Exhibit B	Insurance	B-1
	 	 	 
	Exhibit C	Cost Reimbursement	C-1
	 	 	 
	Exhibit D	Operating Agreement	D-1

 

    	iii

    	 

    

 

MANAGEMENT SERVICES AGREEMENT

 

This MANAGEMENT SERVICES
AGREEMENT (this “Agreement”), dated as of [•] [•], 2014 and effective for all purposes as of
the [___] day of ____________, 2014 (the “Effective Date”), is by and among AECP
MANAGEMENT, LLC, an Oklahoma limited liability company (the “Manager”), American
Energy CAPITAL PARTNERS, LP, a Delaware limited partnership (“AECP LP”), and AECp
OPERATING COMPANY, LLC, a Delaware limited liability company and a wholly owned subsidiary of AECP LP (the “Owner”).
The Manager, AECP LP and Owner are referred to herein individually as a “Party,” and collectively as
the “Parties.” Capitalized terms used but not defined herein shall have the meanings assigned to such
terms in Article I.

 

BACKGROUND:

 

A.           AECP
GP is the sole general partner of AECP LP; and

 

B.           The
Owner is engaged in the Business; and

 

C.           The
Manager is experienced and skilled in the conduct of business in the oil and gas acquisition, exploration, development and production
industry, and has the ability to provide technical, commercial, financing and management services that may be necessary or useful
to the Owner; and

 

D.           The
Owner desires to engage the Manager to perform and provide, and the Manager desires to perform and provide for and on behalf of
the Owner, the Services as set forth herein and in accordance with the terms and conditions hereof.

 

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

 

ARTICLE
I

Defined Terms, Interpretation

 

Section 1.1           Defined
Terms. As used in this Agreement, each of the following terms has the meaning given
in this Section 1 as follows:

 

“Acquisition
Expenses” means any and all expenses, including but not limited to legal fees and expenses, travel and communications
expenses, financial advisory fees, brokerage fees, costs of appraisals, engineering fees and expenses, nonrefundable option payments
on property not acquired, accounting fees and expenses, title insurance premiums and the costs of performing due diligence (including,
without limitation, title, environmental and similar due diligence), but excluding Acquisition Fees, in each case incurred by AECP
LP, the Owner, the Manager or any of their Affiliates in connection with the selection, evaluation, acquisition, origination, making
or development of any Property Acquisition, whether or not acquired.

 

    	 

    	 

    

 

“Acquisition
Fee” means the fee payable to the Manager pursuant to Section 5.3.

 

“AECP
GP” means American Energy Capital Partners, GP LLC, a Delaware limited liability company and the general partner
of AECP LP.

 

“AECP
LP” has the meaning specified in the introductory paragraph.

 

“Affiliate”
means, with respect to any Person, each other Person that directly or indirectly (through one or more intermediaries or otherwise)
controls, is controlled by, or is under common control with such Person, provided, however, that the Parties specifically
acknowledge and agree that for purposes of this Agreement none of AECP GP, AECP LP or Owner is an Affiliate of the Manager.

 

“Agreement”
means this Agreement, as amended, supplemented or modified from time to time.

 

“Approved
Credit Facility” means a revolving or other credit facility entered into by AECP LP, the Owner or a Subsidiary of
the Owner.

 

“Assets”
means (a) the Leases; (b) the Wells; (c) all royalty, overriding royalty, production payments, net profits interests and other
interests in oil and gas properties owned by the Owner and its Subsidiaries; (d) all tangible personal property, equipment,
machinery, inventory, supplies, spare parts, fixtures and improvements that are a part of any Lease or Well or are owned by or
in the possession of the Owner and its Subsidiaries; and (e) all files, records and business data that relate to any Lease or Well
or any of the business of the Owner and its Subsidiaries.

 

“Bankruptcy”
means, with respect to any Person, the occurrence of any of the following events, conditions or circumstances: (i) such Person
shall file a voluntary petition in bankruptcy or shall be adjudicated as bankrupt or insolvent, or shall file any petition or answer
or consent seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself
under the United States Bankruptcy Reform Act of 1978 (the “Bankruptcy Code”) or any present or future
applicable federal, state or other statute or Law relating to bankruptcy, insolvency, reorganization or other relief for debtors,
or shall seek or consent to, or acquiesce in, the appointment of any trustee, receiver, conservator or liquidator of such Person
or of all or any substantial part of its properties (the term “acquiesce,” as used in this definition, includes the
failure to file a petition or motion to vacate or discharge any order, judgment or decree within 20 days, after entry of such order,
judgment or decree); (ii) an involuntary case or other proceeding shall be commenced against such Person seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief with respect to such Person or its debts under
the Bankruptcy Code or any present or future applicable federal, state or other statute or Law relating to bankruptcy, insolvency,
reorganization or other relief for debtors, or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed
or unstayed for a period of 90 consecutive days, (iii) a court of competent jurisdiction shall enter an order, judgment or decree
approving a petition filed against such Person seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under the Bankruptcy Code, or any other present or future applicable federal, state or other statute or law relating
to bankruptcy, insolvency, reorganization or other relief for debtors, and such Person shall acquiesce in the entry of such order,
judgment or decree or such order, judgment or decree shall remain unvacated and unstayed for an aggregate of 90 days (whether or
not consecutive) from the date of entry thereof, or any trustee, receiver, conservator or liquidator of such Person or of all or
any substantial part of its property shall be appointed without the consent or acquiescence of such Person and such appointment
shall remain unvacated and unstayed for an aggregate of 90 days (whether or not consecutive); (iv) such Person shall admit in writing
its inability to pay its debts as they mature or shall generally not be paying its debts as they become due; or (v) such Person
shall make a general assignment for the benefit of creditors or take any other similar action for the protection or benefit of
creditors.

 

    	2

    	 

    

 

“Basket
Amount” means the following: (i) prior to 90 days following the second Fiscal Year after the occurrence of the Full
Investment Date, 2.0% of the aggregate capital contributions to AECP LP made on or before such date, and (ii) beginning on the
90th day following the second Fiscal Year after the occurrence of the Full Investment Date, 2.0% of the after tax present
value, discounted at 10%, of the cash flows attributable to AECP LP’s consolidated estimated net proved reserves as set forth
in AECP LP’s financial statements filed with the Securities and Exchange Commission (or, if at any time after the second
Fiscal Year after the Full Investment Date AECP LP shall no longer be required to file its financial statements with the Securities
and Exchange Commission, then as set forth in AECP LP’s consolidated financial statements prepared in accordance with GAAP).

 

“Budget”
means the budget approved pursuant to Section 3.1(a), as amended and revised from time to time in accordance with Section
3.1(b).

 

“Business”
of the Owner and its subsidiaries is (a) to acquire, hold, maintain, renew, drill, develop, operate and sell working interests,
net profits interests, leasehold interests, royalties, and other types of oil and gas interests and/or equity interests in corporate,
limited liability company or partnership entities owning oil and gas interests; (b) to produce, collect, store, treat, deliver,
market, sell, farm-out or otherwise dispose of oil, gas and related hydrocarbons and minerals from its properties and interests;
and (c) to take all such other actions incidental to any of the foregoing as may be necessary or desirable.

 

“Business
Day” means any day other than Saturday or Sunday or any day on which commercial banks in Oklahoma City, Oklahoma
or New York, New York are authorized or required by law to close.

 

“Calendar
Month” means any of the months in the Gregorian calendar.

 

“Calendar
Quarter” means the calendar quarter of each Calendar Year ending March 31, June 30, September 30 and December
31.

 

    	3

    	 

    

 

“Calendar
Year” means a 12 consecutive Calendar Month period commencing on January 1, but the first Calendar Year will begin
on the Effective Date and the last Calendar Year will end on the date Owner is dissolved.

 

“Common
Units” means common units consisting of limited partner interests of AECP LP issued by AECP LP to Investors in the
Offering.

 

“Company
Agreement” means the First Amended and Restated Limited Liability Company Agreement of AECP GP, as same may be amended,
supplemented or restated during the term of this Agreement.

 

“Contract
Purchase Price” means the total consideration, including any “carried interest” consideration or deferred
or “earn-out” payments when paid by AECP LP or the Owner in connection with the acquisition from any seller(s) of any
Property Acquisition. With respect to any acquisition that consists, in whole or in part, of the contribution to AECP LP or the
Owner by the owner(s) of the property Acquisition in consideration for equity interests of AECP LP, such equity interests shall
be determined to have the fair market value mutually agreed by AECP GP and the Manager.

 

“Contract
Sales Price” means the total consideration, including any “carried interest” consideration or deferred
or “earn-out” payments when received by AECP LP or the Owner for the sale or other disposition of any Assets (other
than sales of oil, gas and other hydrocarbons produced from the Assets in the ordinary course of business). With respect to any
sale or disposition of Assets that consists, in whole or in part, of the receipt by AECP LP or the Owner of non-cash consideration,
such non-cash consideration shall be determined to have the fair market value mutually agreed by AECP GP and the Manager.

 

“Control”
(including collective meanings, “controlling,” “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

 

“Dealer
Manager” means Realty Capital Securities, LLC, or such other Person selected by AECP GP to act as the dealer manager
of the Offering.

 

“Dealer
Manager Fee” means a fee of three percent (3.0%) of the Gross Proceeds that is payable to the Dealer Manager for
serving as the dealer manager of the Offering.

 

“Default
Amount” has the meaning specified in Section 5.3.

 

“Default
Rate” means, on the date of determination, the Prime Rate (as published in the “Money Rates” table of
the Wall Street Journal, eastern edition) plus an additional 2.0 percentage points (that is, 200 basis points; or, if such rate
is at any time contrary to any applicable Law, then “Default Rate” shall be reduced to mean the maximum
rate permitted by applicable Law).

 

    	4

    	 

    

 

“Development
Activities” means all operations and activities related to the development of the Assets, including the drilling
of any Development Wells, recompletions, workovers and operations subsequent to a well reaching its objective depth on any Lease
or other prospect held by the Owner or its subsidiaries and related proposals, activities and operations required to commence and
sustain production from such well(s), including the design, fabrication or other acquisition, and installation, of a related development
system.

 

“Development
Well” means a well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon
known to be productive.

 

“Disposition
Expenses” means any and all expenses, exclusive of Disposition Fees, incurred by AECP LP, the Owner, the Manager
or any of their Affiliates in connection with the sale or other disposition, or proposed sale or other disposition, of all or any
portion of the Assets (other than the sale of oil, gas or other hydrocarbons produced from the Assets) , whether or not sold or
otherwise disposed of, including, without limitation, legal fees and expenses, travel and communications expenses, brokerage fees,
costs of appraisals, engineering fees and expenses, accounting fees and expenses, title insurance premiums and the costs of performing
due diligence.

 

“Disposition
Fee” means the fee payable to the Manager pursuant to Section 5.4.

 

“Draft
Budget” has the meaning specified in Section 3.1(a).

 

“DRULPA”
means the Delaware Revised Uniform Limited Partnership Act or any successor statute, as amended from time to time.

 

“Economic
Run” means data and other information, delivered in written or electronic formats, necessary to present a base case,
an upside case and a downside case economic analysis of a Property Acquisition, including, at a minimum and without limitation,
the following:

 

(a)          Cash
flow financial model analysis, including:

 

(i)          a
calculation of the Property Acquisition internal rate of return using such assumptions with respect to leverage, debt amortization
and general and administrative expenses and management fees as Manager and Owner mutually agree at any time and from time to time
are appropriate for financial modeling purposes with respect to Property Acquisitions; and

 

(ii)         projected
financial results from the Property Acquisition;

 

(b)          supporting
property-level reserve reports prepared by either qualified internal or independent reserve engineers as determined by the Manager
in its discretion; and

 

(c)          a
cash flow analysis showing the projected impact of the Property Acquisition on the projected cash flow of the Owner.

 

    	5

    	 

    

 

“Effective
Date” has the meaning specified in the introductory paragraph of this Agreement.

 

“Emergency”
means any sudden or unexpected event which causes, or risks causing, (a) substantial damage to any Asset or the property of a Third
Party, or (b) death of or injury to any Person, (c) damage or substantial risk of damage to natural resources (including wildlife)
or the environment, (d) safety concerns associated with continued operations or (e) non-compliance with applicable Law, in each
case which event is of such a nature that a response cannot, in the reasonable discretion of Manager, await the decision of Owner.
For the avoidance of doubt, an “Emergency” shall include any release or threatened release of Hazardous Substances
into the environment that requires notification to any Governmental Authority under applicable Law.

 

“Employee”
means each employee or individual independent contractor of Manager.

 

“Excluded
Area” means the Utica Shale areas in Ohio, West Virginia and Pennsylvania and the Woodford Shale area in Central
Northern Oklahoma.

 

“Excluded
Assets” means leasehold interests, working interests, royalty, overriding royalty, production payments, net profits
interests and other interests in developed and undeveloped oil and gas properties, including, without limitation, Leases and Wells,
in the Excluded Area.

 

“Expense
Cap” has the meaning specified in Section 5.2(a).

 

“Farmout”
means an agreement whereby the owner of the leasehold or working interest agrees to assign its interest in certain specific acreage
to the assignee, while retaining an interest such as an overriding royalty interest, an oil and gas payment, offset acreage or
other type of interest, subject to the drilling of one or more specific wells or other performance as a condition of the assignment.

 

“Financing
Coordination Fee” has the meaning specified in Section 5.5.

 

“Force
Majeure Event” means any cause or event not reasonably within the control of the Party whose performance is sought
to be excused thereby including the following causes and events (solely to the extent such causes and events are not reasonably
within the control of the Party claiming suspension), which list of events is not exhaustive: acts of God, strikes, lockouts, or
other industrial disputes or disturbances, acts of the public enemy, wars, blockades, insurrections, civil disturbances and riots,
epidemics, landslides, lightning, earthquakes, fires, tornadoes, hurricanes, storms, floods, washouts, excessive rainfall and warnings
for any of the foregoing which may necessitate the precautionary shut-down of wells, plants, pipelines, gathering systems, or other
related facilities; arrests, orders, directives, restraints and requirements of governments and government agencies, either federal
or state, civil and military; outages (shutdown) for the making of repairs, alterations, relocations or inspections; inability
to secure labor or materials, inclement weather that necessitates extraordinary measures and expense to construct facilities or
maintain operations, or any other causes, whether of the kind enumerated herein or otherwise, not reasonably within the control
of the Party claiming suspension. Such term shall likewise include, in those instances where either Party is required to obtain
servitudes, rights-of-way, grants, permits, or licenses to enable such Party to fulfill its obligations hereunder, the inability
of such Party to acquire, or delays on the part of such Party in acquiring, at reasonable cost and after the exercise of reasonable
diligence, such servitudes, rights-of-way, grants, permits or licenses, and in those instances where either Party hereto is required
to secured permits or permissions from any Governmental Authority to enable such Party to fulfill its obligations hereunder, the
inability of such Party to acquire, or delays on the part of such Party in acquiring, at reasonable cost and after the exercise
of reasonable diligence, such permits and permissions.

 

    	6

    	 

    

 

“Full
Investment Date” means the date on which AECP LP has invested, committed for investment or otherwise spent 90% or
more of the aggregate capital contributions (net of the Dealer Manager Fee, Selling Commissioners, volume discounts, any marketing
expenses, due diligence expenses and Organization and Offering Expenses) received by AECP LP from the Offering.

 

“FWPP”
means the Chesapeake Energy Corporation Founders Well Participation Program, dated as of June 10, 2005.

 

“FWPP
Assets” shall mean any assets or properties acquired by Aubrey K. McClendon, directly or through any of his Affiliates
or by his spouse, in connection with or pursuant to the FWPP.

 

“FWPP
Opportunity” shall mean any right of Aubrey K. McClendon or any entity of which he is an Affiliate to acquire a working
interest in any oil and gas property pursuant to the FWPP.

 

“GAAP”
means generally accepted accounting principles, as recognized by the U.S. Financial Accounting Standards Board (or any generally
recognized successor).

 

“General
Parameters” means the general parameters for a Property Acquisition as the Manager and Owner may mutually agree at
any time and as same may thereafter be amended, modified or superseded by mutual agreement of the Manager and Owner, which general
parameters shall include, without limitation, general parameters for terms and conditions of Property Acquisitions with respect
to title, environmental, other liabilities, indemnification, gas imbalances, conditions to closing and other matters mutually determined
to be appropriate.

 

“General
Partner” means AECP GP, in its capacity as the general partner of AECP LP.

 

“Governmental
Authority” means any federal, national, regional, state, municipal or local government, any political subdivision
or any governmental, judicial, public or statutory instrumentality, tribunal, court, arbitral panel, or other regulatory bureau,
authority, body or entity having legal jurisdiction over the matter or Person in question.

 

    	7

    	 

    

 

“Gross
Proceeds” means the aggregate sales price of all Common Units issued by AECP LP to Investors in the Offering, without
deduction for the Dealer Manager Fee, Selling Commissions, volume discounts, any marketing expense and due diligence expense reimbursement
or Organization and Offering Expenses.

 

“Hazardous
Substances” means any pollutants, contaminants, toxic or hazardous substances, materials, wastes, constituents, compounds
or chemicals that are regulated by, or may form the basis of liability under any environmental Laws, including asbestos-containing
materials (but excluding any NORM).

 

“Hedging
Policy” means a policy or policy with respect to Hedges that Owner approves as the Hedging Policy of the Owner from
time to time.

 

“Hedges”
means any commodity futures contract, commodity swap, commodity option, commodity forward sale, commodity put, call or collar or
other similar agreement or arrangement designed to protect against fluctuations in the price of oil, gas or other hydrocarbons
used, sold or produced by a person.

 

“Holdings”
means AECP Holdings, LLC, an affiliate of the Manager.

 

“Initial
Closing” means the initial closing of the purchase of Common Units from AECP LP by Investors pursuant to the Offering.

 

“Initial
Purchase Price” means $20.00, the amount paid by the Investors to AECP LP to purchase Common Units in the Offering.

 

“Initial
Term” has the meaning specified in Section 10.1.

 

“Insured”
has the meaning specified in Section 7.5.

 

“Investors”
means Purchasers of Common Units from AECP LP pursuant to the Offering.

 

“Invoice”
has the meaning specified in Section 5.1.

 

“Joint
Venture” means any partnership, limited partnership or other arrangements with a Person(s) other than AECP LP or
the Owner in which AECP LP or the Owner is a member, partner or co-venturer and which is established to own, operate or develop
Property Acquisitions.

 

“Law”
means any and all applicable laws, statutes, ordinances, permits, decrees, rulings, writs, injunctions, orders, codes, judgments,
principles of common law, rules or regulations which are promulgated, issued or enacted by a Governmental Authority having jurisdiction.

 

“Lease
Operations” means all necessary or useful lease and land administration services and maintaining all land, lease
and other related records (including title to the Owner’s Assets and the maintenance and curing of the same) and all technical,
regulatory, permitting and marketing supervision and oversight determined by the Manager to be necessary or appropriate to assure
that the Owner’s Assets are being explored, developed, produced, gathered and operated in accordance with this Agreement,
including the Exhibits hereto, and applicable contracts and agreements.

 

    	8

    	 

    

 

“Leases”
means the oil, gas and mineral leases and operating rights now owned or hereafter participated in or acquired by the Owner as of
the date of determination.

 

“Listing
Date” has the meaning assigned to such term in the Partnership Agreement.

 

“Loan(s)”
means any indebtedness or obligation in respect of borrowed money or evidenced by bonds, notes, debentures, deeds of trust, letters
of credit, volumetric production payments, or similar instruments, including secured loans and mezzanine loans.

 

“Management
Services” has the meaning specified in Exhibit A.

 

“Manager”
has the meaning specified in the introductory paragraph of this Agreement.

 

“Manager
Indemnified Parties” has the meaning specified in Section 11.1.

 

“Manager
Personnel” means the officers and employees of the Manager, the officers and employees of Affiliates of the Manager,
and all other persons otherwise engaged by the Manager for the provision of the Management Services hereunder.

 

“Material
Adverse Effect” shall mean any event, circumstance, change or effect (a) that is material and adverse to the business,
assets, properties, liabilities, financial condition or results of operations of AECP, the Owner and any subsidiaries thereof,
determined on a consolidated basis, if applicable.

 

“Material
Commitment” means any agreement, contract or other arrangement binding on Owner or any of its subsidiaries which
could reasonably be expected to result in payments by the Owner or any of its subsidiaries of more than the Basket Amount then
in effect or that AECP GP or Owner advises the Manager would otherwise qualify as a material contract under Regulation S-K of the
Securities Act of 1933.

 

“Monthly
Management Fee” has the meaning specified in Section 5.1.

 

“NASAA
Guidelines” means the guidelines adopted September 22, 1976 by the North American Securities Administrators Association,
Inc. relating to the registration of Oil and Gas Programs, as amended and in effect at the time the determination is made pursuant
to this Agreement.

 

“Offering”
means the best efforts registered public offering of Common Units consisting of (i) a minimum offering of 100,000 Common Units
at the Initial Purchase Price per Common Unit for Gross Proceeds of $2.0 million at the Initial Purchase and (ii) a maximum
offering of 100.0 million Common Units for Gross Proceeds of up to $2.0 billion.

 

    	9

    	 

    

 

“Operating
Agreement” means (i) the operating agreements, gas balancing agreements, and participation agreements (including
the applicable Accounting Procedures) which relate to the Assets or any of the Leases and other agreements governing the drilling
and operation of and accounting for the Leases, and (ii) with respect to Leases owned entirely by the Owner and not already subject
to an operating agreement at the time of acquisition by the Owner, the form of operating agreement attached as Exhibit D
with such additions or modifications thereto as the Manager determines to be necessary or appropriate for the particular Assets
to be subject thereto or for the operations to be conducted thereon.

 

“Operator”
means the person appointed as Operator of any Asset owned by Owner pursuant to an Operating Agreement, which shall be (a) the Manager
or an Affiliate of the Manager with respect to Assets operated by the Manager or an Affiliate of Manager pursuant to Section
2.7 and (b) the Third Party designated as operator with respect to Assets not operated by the Manager or an Affiliate of the
Manager.

 

“Operating
Services” has the meaning specified in Exhibit A.

 

“Organization
and Offering Expenses” means all costs and expenses of organizing and selling the Offering (other than the Selling
Commissions and the Dealer Manager Fees) paid by AECP LP, AECP GP or the Manager in connection with the Offering, including, but
not limited to, fees of the underwriters' attorneys, expenses for printing, engraving, mailing, filing, salaries of employees while
engaged in sales activity, charges of transfer agents, registrars, trustees, escrow holders or escrow agent, depositaries, engineers
and their experts, expenses of qualification of the sale of the Common Units under Federal and State law, including taxes and fees,
accountants' and attorneys' fees and other front-end fees, charges incurred by or on behalf of AECP GP or the Manager in connection
with the formation of AECP LP, the Owner and the Manager, the preparation, negotiation, and execution of the Partnership Agreement,
this Agreement, any dealer manager or soliciting dealer agreement, escrow agent agreement subscription agreement and any other
agreement in connection with or relating to the Offering, issuance of Common Units in the Offering and reimbursement of AECP LP,
AECP GP or the Manager for costs in connection with preparing supplemental sales materials.

 

“OrgOff
Reimbursement Amount” has the meaning specified in Section 5.2(a).

 

“Out-of-Pocket
Expenses” has the meaning specified in Section 5.2(c).

 

“Owner”
has the meaning specified in the introductory paragraph of this Agreement and, unless the context otherwise requires, includes
the subsidiaries of the Owner.

 

    	10

    	 

    

 

“Owner
Agreement” means the First Amended and Restated Limited Liability Company Agreement of Owner, as same may be amended,
supplemented or restated during the term of this Agreement.

 

“Owner
Indemnified Parties” has the meaning specified in Section 11.2.

 

“Parties”
has the meaning specified in the introductory paragraph.

 

“Partnership
Agreement” means the First Amended and Restated Agreement of Limited Partnership of AECP LP, as same may be amended,
supplemented or restated during the term of this Agreement.

 

“Permitted
Investment” means (a) any evidence of indebtedness, maturing not more than one (1) year after the date of issuance,
issued or guaranteed by the United States Government, (b) commercial paper, maturing not more than nine (9) months from the
date of issue, which is issued by a corporation (other than an Affiliate of the Manager) organized under the laws of any state
of the United States or of the District of Columbia and rated A-l by Standard & Poor's Ratings Group, or any successor thereto,
or P-l by Moody's Investors Service, Inc., (c) any certificate of deposit or bankers acceptance, maturing not more than one
(1) year after the date of issuance, which is issued by a commercial banking institution that is a member of the U.S. Federal Reserve
System and has a combined capital and surplus and undivided profits of not less than $500,000,000, or (d) any repurchase agreement
entered into with any commercial banking institution of the stature referred to in clause (c) which (i) is secured
by a fully perfected security interest in any obligation of the type described in any of clauses (a) through (c),
and (ii) has a market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase obligation
of such commercial banking institution thereunder.

 

“Permits”
has the meaning specified in Exhibit A.

 

“Person”
(whether or not capitalized) means any natural person, corporation, company, limited or general partnership, joint stock company,
joint venture, association, limited liability company, trust, bank, trust company, land trust, business trust or other entity or
organization, whether or not a Governmental Authority.

 

“Property
Acquisition” means any acquisition or proposed acquisition of developed and undeveloped producing or non-producing
oil and gas properties (generally consisting of Leases and Wells) where such properties are located onshore in the United States,
but excluding any Excluded Assets and any FWPP Opportunity.

 

“Proposal”
has the meaning specified in Section 9.1(c).

 

‘‘Prospect’’
means an area covering lands which are believed by the Owner to contain subsurface structural or stratigraphic conditions making
it susceptible to the accumulations of hydrocarbons in commercially productive quantities at one or more Horizons. The area, which
may be different for different Horizons, shall be designated by the General Partner in writing prior to the conduct of Partnership
operations and shall be enlarged or contracted from time to time on the basis of subsequently acquired information to define the
anticipated limits of the associated hydrocarbon reserves and to include all acreage encompassed therein. A ‘‘Prospect’’
with respect to a particular Horizon may be limited to the minimum area permitted by state law or local practice, whichever is
applicable, to protect against drainage from adjacent wells if the well to be drilled by AECP LP is to a Horizon containing Proved
Reserves. As used in this definition, the term “Horizon” means with respect to a zone of a particular formation, that
part of a formation of sufficient porosity and permeability to form a petroleum reservoir.

 

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“Reasonably
Prudent Operator” means conducting the applicable activities as a reasonably prudent operator, in a good and workmanlike
manner, with due diligence and dispatch, in accordance with good oilfield practice, and in compliance with applicable law and regulation,
but with no liability for losses sustained or liabilities incurred, except as such may result from gross negligence or willful
misconduct.

 

“Records”
has the meaning specified in Section 2.4.

 

“Rejected
Proposal” has the meaning specified in Section 9.1(b).

 

“Selling
Commission(s)” means the fee(s) payable to the Dealer Manager and reallowable to Soliciting Dealers with respect
to Common Units sold by them in the Offering.

 

“Services”
has the meaning set forth in Section 2.1.

 

“Soliciting
Dealers” means broker-dealers that are members of the Financial Industry Regulatory Authority Inc., or that are exempt
from broker-dealer registration, and that, in either case, have executed soliciting dealer or other agreements with the Dealer
Manager to sell Common Units in the Offering.

 

“Term”
has the meaning specified in Section 10.1.

 

“Third
Party” means any Person other than a Party to this Agreement or any Affiliate of a Party to this Agreement.

 

“Wells”
means all oil, gas and other hydrocarbon wells now owned or hereafter participated in or acquired by the Owner.

 

Section 1.2           References
and Titles. All references in this Agreement to Exhibits, Schedules, Sections,
paragraphs, subsections and other subdivisions refer to the corresponding Exhibits, Schedules, Sections, paragraphs, subsections
and other subdivisions of or to this Agreement unless expressly provided otherwise. The words “this Agreement,” “herein,”
“hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Agreement as
a whole and not to any particular Section, subsection or other subdivision unless expressly so limited. The word “including”
(in its various forms) means including without limitation. All references to “$” or “dollars” shall be
deemed references to United States Dollars. Titles appearing at the beginning of any Sections, subsections or other subdivisions
of this Agreement are for convenience only, do not constitute any part of this Agreement, and shall be disregarded in construing
the language hereof. The words “this Agreement,” “here,” “hereby,” “hereunder’’
and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular subdivision
unless expressly so limited. The words “this Section” and “this subsection,” and words of similar import,
refer only to Section or subsection hereof in which such words occur. The word “or” is not exclusive. Each accounting
term not defined herein, and each accounting term partly defined herein to the extent not defined, will have the meaning given
to it under GAAP. Exhibits and Schedules referred to herein are attached to and by this reference incorporated herein for all
purposes. Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender, and words,
terms and titles (including terms defined herein) in the singular form shall be construed to include the plural and vice versa,
unless the context otherwise requires. References to any Law or agreement (or contract) means such Law or agreement (or contract)
as it may be amended from time-to-time. If an ambiguity, question of intent or question of interpretation arises, this Agreement
must be construed as if drafted jointly, and there must not be any presumption, inference or conclusion drawn against either Party
by virtue of the fact that its representatives have authored this Agreement or any of its terms. Any reference to an agreement
or contract herein shall include any amendment, modification or replacement thereof that is in accordance with the provisions
of this Agreement.

 

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ARTICLE
II

Management Services

 

Section 2.1           Engagement
of Manager. Commencing on the Effective Date, the Owner hereby appoints, retains
and authorizes the Manager, and the Manager hereby accepts and agrees, to perform the Management Services and Operating Services
(collectively, the “Services”) during the Term at all times in accordance with the terms and conditions
set forth in this Agreement.

 

Section 2.2           Direction
of Result of Management Services. Except with respect to the means or method by
which the Manager performs the Services (which shall be subject to the good faith direction or control of the Manager), the provision
of the Services hereunder shall at all times be subject to the direction of the Owner, including, without limitation, the Owner’s
right, subject to Section 3.5, to direct the Manager with respect to funds held in any Owner’s account(s) managed
by the Manager. The Parties acknowledge that the Owner’s need for and scope of the Services may change from time to time
depending on the nature, number and size of the interests comprising the Assets held by the Owner at any given time, and Owner
reserves the right to change the scope of the Services consistent with Exhibit A from time to time by mutual agreement
with the Manager.

 

Section 2.3           Management
Standards. Subject to the terms hereof, the Manager will act in compliance with the provisions of this Agreement and, where
this Agreement does not specifically establish a particular obligation or standard, (a) with respect to Assets subject to an Operating
Agreement of which Manager or an Affiliate of the Manager is the Operator (and if the Owner or any of its subsidiaries is designated
as the Operator of any Assets Owner shall take such actions as are necessary or appropriate to cause the Manager (or its designated
Affiliate) to be designated as the Operator of same) in compliance with the terms of such Operating Agreement as they apply to
the Assets; (b) with respect to Assets subject to an operating agreement of which the Manager is not the Operator, as a Reasonably
Prudent Operator consistent with generally acceptable standards for non-operated properties in the oil and gas business based
on information regarding such operations furnished or otherwise obtained by the Manager and (c) with respect to Assets or business
of the Owner not subject to an Operating Agreement, in a manner consistent with generally acceptable standards in the oil and
gas business. The Manager shall have no obligation to advance funds for the account of the Owner or to pay any sums of its own
in connection with the performance of the actions which it is authorized or required to take on behalf of the Owner hereunder.

 

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Section 2.4           Records;
Financial Reports; Instruments of Service. At all times during the Term, the Manager
shall maintain complete books of account, receipts, disbursements, Permits and all other records relating to the Services performed
hereunder (the “Records”), and all accounting Records shall be maintained in accordance with GAAP. The
Manager shall deliver (i) monthly financial and operating reports to Owner in respect of the most recently ended Calendar Month
in a form requested and as may be required by Owner, but in any event no later than 30 days after the end of each Calendar Month,
and (ii) quarterly cash flow forecasts for Owner as may be required by Owner, but in any event no later than 15 days prior to
the start of the applicable Calendar Quarter. Further, the Manager shall prepare and submit to Owner a monthly management report
in respect of the most recently ended Calendar Month with such information as Owner may request, as well as any other information
(without regard to whether relating to such Calendar Month) that Owner may request. Owner and/or any representatives designated
by Owner may at any time during normal business hours, upon not less than two (2) Business Days’ advance notice, examine
and/or make and retain copies of said Records. Upon the request from Owner to the Manager given at any time or from time to time,
the Manager shall furnish to Owner a report setting forth the borrowing, hedging transactions and intangible drilling costs made
or incurred during the preceding six-month period and such other information as Owner may reasonably request and as is available
to the Manager in order to permit Owner to comply with the reporting requirements of the NASAA Guidelines as then in effect.

 

Section 2.5           Certain
Limitations on Management Services. It is the intent of Owner and the Manager to
maintain the separate corporate existence of both entities, to hold themselves out to others as separate corporate entities and
to conduct their respective businesses in a manner which respects and preserves their separate identities. Owner and the Manager
also acknowledge and agree that AECP LP, as the sole member of Owner, is relying on the establishment and maintenance of the separate
corporate entity of Owner. Accordingly, the Manager will provide the Management Services, and the Owner will operate its business,
consistent with this intent. Without limiting the foregoing, the Manager, to the extent applicable when providing Management Services
on behalf of Owner, shall (i) maintain proper books and records that show the assets, liabilities, and transactions of the Owner
separate from those of any other person and prepare financial statements for Owner in the same manner, (ii) not commingle the
funds received by the Manager on behalf of the Owner with any other person’s funds, including those of the Manager, (iii)
pay liabilities and expenses invoiced directly to the Owner or its Assets only out of the Owner’s own funds maintained by
or on behalf of Owner, and (iv) maintain separate bank accounts belonging only to, or maintained by the Owner. Nothing in this
Agreement shall prohibit the Manager and Owner from acknowledging to third parties their status as parties to this Agreement.

 

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Section 2.6           Well
Operations. If the interest of the Owner in a Lease (together with any interest
owned by the Manager and its Affiliates) entitle the Owner to appoint the Operator of the property, then Owner shall take such
actions as are necessary to designate the Manager (or its designated Affiliate) as the Operator and the Manager (or its designated
Affiliate) shall use its reasonable commercial efforts to assist the Owner to take such actions as are necessary to designate
the Manager (or its designated Affiliate) as the Operator of such property, which designation shall be pursuant to either (i)
the operating agreement currently in effect with respect to a property acquired by the Owner or (ii) if any of such properties
are not currently operated pursuant to an operating agreement, an operating agreement (including COPAS) in the form attached hereto
as Exhibit D, with such additions or modifications thereto as the Manager determines to be necessary or appropriate for
the particular Assets to be subject thereto or for the operations to be conducted thereon. To the extent any of the Services described
herein are duplicative of services to be provided by the Manager or any of its Affiliates under any joint operating agreement
or other agreement, then the Manager shall so advise Owner of such duplicative services, and, unless Owner and the Manager otherwise
mutually agree, no additional obligations will be incurred or implied by any of the terms of this Agreement, and such joint operating
agreements or other agreement (and not this Agreement) will govern the terms of such services.

 

Section 2.7           Limitations
on Farmouts to Affiliates of the Manager. The Manager shall not cause the Owner
to enter into a Farmout of an undeveloped Lease or Well activity to the Manager or an Affiliate(s) of the Manager (pursuant to
which the manager or such Affiliate(s) is the assignee from Owner) unless (a) the General Partner has determined that the price
the Owner receives from the Manager or such Affiliate, as the case may be, is not less than the higher of (i) the Owner’s
costs for the interests assigned in such Farmout to the Manager or such Affiliate, as the case may be, and (ii) the fair market
value of such interests as determined by the Owner in such manner as it determines to be appropriate and the other terms and conditions
are determined by the Owner to be fair and reasonable, and (b) the General Partner exercising the standard of a prudent operator,
has determined the following:

 

		(i)	the Owner lacks the funds to complete the oil and gas
operations on the Lease or Well and cannot obtain suitable financing therefor;

 

		(ii)	drilling on the Lease or the intended Well activity would
concentrate excessive funds in a single location, creating undue risks to the Owner;

 

		(iii)	the Lease(s) or Well activity has been downgraded by
events occurring after assignment to or acquisition by Owner so that development of the Leases or Well activity would not be desirable;
or

 

		(iv)	the best interests of AECP LP would be served by such
a Farmout.

 

If the Owner assigns by Farmout a Lease
or Well activity to the Manager or an Affiliate of the Manager, the Manager acknowledges and agrees that Owner must retain the
economic interests and concessions as the General Partner determines to be appropriate and consistent with the General Partner’s
determination of those items that a reasonably prudent operator would or could retain under the circumstances prevailing at the
time, consistent with industry practices.

 

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ARTICLE
III

Financial Administration

 

Section 3.1           Budget.

 

(a)          Annual
Budget Process. The Manager shall prepare and submit to Owner at least 45 days before the beginning of each Calendar Year after
the first Property Acquisition by Owner, a budget (“Draft Budget”) detailing the Development Activities
planned to be commenced during the relevant Calendar Year, which shall specify the amounts expected to be spent by the Owner during
such Calendar Year to conduct such Development Activities, and to otherwise own its Assets and conduct the Business during such
Calendar Year; provided that in connection with the first acquisition made by the Owner, the Manager shall deliver a Draft Budget
to Owner in connection with such acquisition as contemplated by Section 9.2(a). The Owner shall approve or disapprove the
Draft Budget no later than 15 days prior to the start of the Calendar Year; provided that the first Draft Budget shall be approved
as provided in Section 9.2(a). If the Owner approves the Draft Budget, the Draft Budget shall be deemed the Budget
for purposes of this Agreement, until revised in accordance with Section 3.1(b) below. If the Owner fails to approve a Draft
Budget by the commencement of a Calendar Year, then until a Draft Budget for such Calendar Year is approved, the Manager is authorized
to pay from the Owner’s account the costs and expenses incurred in the ordinary course of business in amounts materially
consistent with, and for Development Activities and other activities set forth in, the prior Calendar Year’s Budget as adjusted
for supplements to such Budget attributable to any subsequent Property Acquisition(s), including in respect of costs and expenses
to the extent incurred pursuant to the contractual obligations of the Owner, including any Material Commitments, and other costs
and expenses approved as provided in this Agreement.

 

(b)          Approval
of Additional Activities. From time to time prior to the termination of this Agreement, the Manager may present to Owner supplemental
Development Activities or other activities that the Manager proposes to be undertaken by the Owner and that are not included in
the applicable approved Budget for such Calendar Year, and revisions to a previously approved Budget that the Manager recommends
be adopted by Owner. If Owner approves such revised Budget, the revised Budget shall be deemed the Budget as used in this Agreement.
In addition, the Budget shall be deemed to be amended as provided in Section 9.2(b).

 

(c)          Cooperation.
Prior to and in respect of any proposals made by the Manager to Owner pursuant to Section 3.1(b), the Manager and Owner
agree to use good faith efforts (1) to exchange information regarding such proposals and proposed activities to be undertaken in
connection with any such proposal or potential alternatives to any such proposal and (2) to ensure an efficient and expedient review
and decision-making process in respect of such proposals. In addition, upon the reasonable request of Owner to the Manager, which
may be submitted no more frequently than once each Calendar Quarter, the Owner will have the right to review with the Manager the
current year’s Budget against expenditures incurred to date during the Calendar Year covered by such Budget.

 

(d)          Permitted
Overruns. Whenever any provision of this Agreement permits the Manager to make an expenditure or conduct a Development Activity
or other operation as provided in the Budget, the Manager will be deemed to have made such expenditure or conducted such Development
Activity or other operation as contemplated by the Budget if (1) the aggregate expenditures during any Budget period do not
exceed the amount set forth in the approved Budget for such Budget period for such Development Activity or other operation by more
than 10.0% (provided that the Manager shall advise Owner of such excess(es) within ten (10) Business Days after it is incurred)
or (2) the expenditure(s) are determined by the Manager to be required in connection with an Emergency.

 

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Section 3.2           Cash
Management. The Manager shall have a fiduciary responsibility to the Owner for
the safekeeping and care of all Owner’s funds that the Manager possesses or controls, and the Manager shall not use the
Owner’s funds as a compensating balance for the Manager’s benefit. The Manager shall implement a cash management system
for the cash and cash equivalents of the Owner, the Manager shall not commingle Owner’s funds with those of the Manager
or its Affiliates, and funds of the Owner held by the Manager shall be employed or applied for the exclusive benefit of Owner.
The Manager shall invest any cash held on behalf of the Owner only in Permitted Investments and shall hold all such Permitted
Investments and any cash in trust on behalf of the Owner. The Manager shall as promptly as commercially practicable deposit all
cash and Permitted Investments held on behalf of Owner in excess of 50% of the then remaining unexpended portion of the approved
Budget as directed by Owner in one or more accounts of Owner.

 

Section 3.3           Revenues
and Joint Interest Billings. The Manager shall receive all revenues and joint interest
billings for the account of the Owner and promptly credit or charge, as the case may be, the Owner with the Owner’s net
revenue and joint interest billings with respect to its properties, on a property-by-property basis.

 

Section 3.4           Manager
Payments. From time to time, Manager shall pay, unless otherwise instructed by
Owner, from the Owner’s funds administered by the Manager, as and to the extent required by any applicable contract, or
Law and, to the Manager’s knowledge, to the extent not previously paid by any purchaser, operator or Third Party, in each
case to the extent such liability is attributable to the Owner’s interest in a property or otherwise an obligation of Owner,
all taxes, royalties, overriding royalties, delay rentals, operating expenses and other charges under operating agreements, debt
service on the Owner’s debts, the OrgOff Reimbursement Amount, the Monthly Management Fee, Acquisition Fee, Disposition
Fee, Financing Fee and Incentive Performance Fee (which shall be paid to the Manager in accordance with Article V) and
other debts and obligations of the Owner (including the costs to be reimbursed to the Manager pursuant to Section 5.2).

 

Section 3.5           Payment
to Owner. As contemplated pursuant to Section 2.2, the Owner may, from time
to time, direct the Manager to transfer to an account specified by the Owner funds in accounts maintained for Owner by the Manager
that the Owner and the Manager mutually agree are not necessary for the conduct of the Owner’s business as contemplated
by the Budget then in effect (for purposes of determining the funds necessary to be retained, taking into account, among other
items, funds required in accordance with the Budget then in effect for working capital purposes, reserves for capital expenditures,
reserves for payments due to the Manager pursuant to Article V and reserves for an approved Property Acquisition; provided,
however, that if in accordance with the direction by Owner of the Manager in accordance with Section 2.2 or Section 3.4
or otherwise an activity contemplated in the Budget then in effect and for which funds are retained is not consummated, then
any remaining funds reserved therefor will then be transferred to the Owner pursuant to this Section 3.5).

 

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ARTICLE
IV

Contract Administration; Power of Attorney

 

Section 4.1           Contract
Administration. The Services shall include negotiating, administering and terminating
contracts, by and on behalf of the Owner, in the ordinary course of Business, but in all cases in compliance with the Budget.
All such contracts shall be executed by the Manager in the name of the Owner, pursuant to the power of attorney granted herein.

 

Section 4.2           Purchases
for the Owner. The day-to-day operations and management of the Owner’s Business
shall include the purchase (or lease) of such equipment, supplies and other goods necessary for the efficient operation of the
Owner’s Business and as shall be consistent with the Budget. Purchases shall be made only at reasonable costs.

 

Section 4.3           Affiliate
Transactions. The Manager shall not make or cause the Owner to make any contract
(other than an Operating Agreement as provided herein) with or purchase or sell goods or services from or to the Manager or any
Affiliate of the Manager, unless such contract or purchase or sale is specifically identified as an Affiliate transaction in the
Budget, or with the prior written approval of Owner. Nothing in this Section 4.3 shall be construed to limit or restrict
the right of the Manager to engage, or require Owner’s prior approval of the engagement by Manager of, any Affiliate of
Manager to perform any of the Services on behalf of the Manager so long as the Affiliate of Manager is not entitled to any payment
by Owner for providing such Services.

 

Section 4.4           Power
of Attorney. (a) By execution of this Agreement, the Owner does hereby make, constitute
and appoint the Manager, and its successors, with full power of substitution, as its true and lawful attorney and agent with full
power and authority in its name, place and stead to execute, swear to, acknowledge, deliver, file, record in the appropriate public
offices and publish any and all contracts, agreements, instruments, conveyances, mortgages, deeds, notes and other documents of
any kind or nature related to, arising out of or in connection with the Manager's performance of this Agreement.

 

(b)          During
the Term of this Agreement, the power of attorney granted in this Section 4.4 shall survive the Bankruptcy, dissolution
or other termination of the Owner, shall extend and be binding upon the Owner's successors and assigns and shall continue in full
force and effect regardless of the occurrence of any of the foregoing. The Owner hereby agrees to be bound by any such contracts,
agreements, instruments, conveyances, mortgages, deeds, notes and other documents executed or otherwise entered into by the attorney
and agent acting in good faith pursuant hereto and pursuant to such power of attorney, and hereby waives any and all defenses that
may be available to contest, negate, or disaffirm any action of the attorney and agent taken under such power of attorney, except
in cases of bad faith, gross negligence, willful misconduct or material breach of this Agreement.

 

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ARTICLE
V

Compensation and Expenses

 

Section 5.1           Management
Fee. In consideration for the performance by the Manager of Management Services,
Owner shall pay to the Manager monthly, in advance, an amount rounded to the nearest $10.00 (such amount, the “Monthly
Management Fee”), which amount is equal to the product of (a) until and including the Calendar Month of termination
of the Offering, 0.291667%, and thereafter, 0.333333%, times (b) the sum of (i) the Gross Proceeds determined as of the last day
of the preceding Calendar Month and (ii) the average outstanding indebtedness of AECP LP (determined on a consolidated basis)
during the preceding Calendar Month. A Monthly Management Fee shall not be payable for any period prior to the Initial Closing.
On or before the 20th day of the Calendar Month immediately preceding the Calendar Month in which the Management Services are
to be provided, the Manager shall furnish to Owner in writing its calculation of the Monthly Management Fee that is payable in
respect of the next succeeding Calendar Month. The Monthly Management Fee payable to the Manager by Owner will be in addition
to all fixed rate charges under any joint operating agreements in which the Manager or its Affiliates act as operator and the
Owner owns a working interest. Each Calendar Month after the Initial Closing and prior to the end of the Term, the Manager will
deliver, together with its calculation of the Monthly Management Fee to be paid by Owner for the succeeding Calendar Month as
provided in the second preceding sentence, a summary of the costs and expenses to be reimbursed to the Manager in accordance with
the immediately preceding sentence (each such written calculation and summary, an “Invoice”). At any
time that is not less than ten (10) days following the date that Owner receives an Invoice, the Manager may apply any funds that
it holds on behalf of Owner to payment of the amount specified in the Invoice less any amount(s) to which Owner has reasonably
objected in writing during such 10-day period. If the Owner timely objects in a notice received by the Manager to any amount in
an Invoice, Owner and Manager shall use their reasonable commercial efforts to resolve such dispute amicably, and promptly after
the resolution of such matter Manager may apply any funds that it holds on behalf of Owner to payment of the amount determined
to be owing to the Manager. If the funds that the Manager holds on behalf of Owner are insufficient to pay in full when due the
amounts due to the Manager pursuant to this Section 5.1, then Owner will promptly make payment to the Manager of the
amount due and unpaid in immediately available funds by wire transfer to an account specified by the Manager to Owner. Pursuant
to Section 7.2(i) of AECP LP Agreement, AECP LP will pay to AECP GP a management fee commencing with a payment for the first Calendar
Month after termination of the Offering, which fee shall be payable in cash monthly after termination of the Offering concurrently
with payment by Owner to the Manager of the Monthly Management Fee pursuant to this Section 5.1 and shall be in an amount
equal to the product of (a) 0.083333% times (b) the Gross Proceeds determined as of the last day of the preceding month.

 

Section 5.2           Reimbursement
of Organization and Offering Expenses; Reimbursement of Out-of-Pocket Expenses.
(a) The Manager and the General Partner expect that Organization and Offering Expenses, including Organization and Offering Expenses
consisting of fees and expenses paid to third parties, that they incur on behalf of AECP LP and the Owner will be incurred in
a ratio approximately one-third (1/3rd) by the Manager and two-thirds (2/3rds) by the General Partner, and if such ratio is not
maintained then the Manager and the General Partner will take such actions prior to the Initial Closing or any subsequent closing
of the Offering, as the case may be, as may be necessary to return to such ratio with respect to the Organization and Offering
Expenses as of each of the Initial Closing and each subsequent closing. At or promptly after (in any event not later than five
(5) Business Days after) the Initial Closing and each subsequent closing of the issuance of Common Units in the Offering, (i)
the Manager will determine the total Organization and Offering Expenses it has incurred prior to such closing that have not been
previously reimbursed by AECP LP or the Owner and will prepare and submit to AECP LP an invoice therefor accompanied by reasonable
supporting documentation; and (ii) AECP LP or the Owner will promptly reimburse the Manager for the amount specified in such
invoice subject to a maximum reimbursement amount of one-half percent (0.5%) of the Gross Proceeds for all Common Units issued
in the Initial Closing and each such subsequent closing of the Offering. The Organization and Offering Expenses to be reimbursed
by AECP LP or the Owner to the Manager shall not exceed one-half percent (0.5%) of the aggregate Gross Proceeds raised in the
Offering (such maximum amount, the “Expense Cap”). To the extent that the Manager incurs Organization
and Offering Expenses in excess of the Expense, the Manager shall not be reimbursed for such expenses. Amounts required to be
paid by AECP LP and the Owner pursuant to this Section 5.2(a) at the Initial Closing and each subsequent closing of the
Offering are referred to as the “OrgOff Reimbursement Amount”.

 

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(b)          Except
as set forth in this Section 5.2, in no event will the Manager be entitled to reimbursement from AECP LP or the Owner, nor
will AECP LP or the Owner be obligated to reimburse the Manager, for any Organization and Offering Expenses incurred by the Manager
and its Affiliates. The Manager may apply any funds that it holds on behalf of AECP LP or the Owner to payment of the OrgOff Reimbursement
Amount then due to the Manager pursuant to this Section 5.2(a), but if the funds that the Manager holds on behalf of AECP
LP or the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.2,
then AECP LP or the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds
by wire transfer to an account specified by the Manager to AECP LP or the Owner. The OrgOff Reimbursement Amount that is payable
to the Manager by AECP LP or the Owner pursuant to Section 5.2(a) will be in addition to all fixed rate charges under any
joint operating agreements in which the Manager or its Affiliates act as operator and the Owner owns a working interest. Pursuant
to the Partnership Agreement, AECP LP will reimburse AECP GP at or promptly after the Initial Closing and each subsequent closing
of the issuance of Common Units in the Offering for the Organization and Offering Expenses it incurs up to a maximum of one percent
(1.0%) of the Gross Proceeds raised in the Offering, which reimbursement shall be made concurrently with each payment to the Manager
of the OrgOff Reimbursement Amount.

 

(c)          The
Manager shall pay all reasonable out-of-pocket expenses (excluding for purposes of this Section 5.2 Organization and Offering
Expenses, Acquisition Expenses and Disposition Expenses) of the Manager and its Affiliates, agents and consultants (“Out-of-Pocket
Expenses”), pursuant to the policies and procedures established by the Manager and approved by the Owner and in accordance
with the Budget, and consistent with the allocations set forth in Exhibit C hereto, for the payment or reimbursement of
such costs with respect to activities conducted for the Owner pursuant to this Agreement. The Owner shall reimburse the Manager
for all such Out-of-Pocket Expenses paid by the Manager on behalf of the Owner or in connection with the Business of the Owner
and for which the Manager has not been previously reimbursed, and on or before the 20th day after each Calendar Month in which
the Manager incurs Out-of Pocket Expenses the Manager will invoice the Owner for such Out-of Pocket Expenses incurred during the
preceding month accompanied by reasonable supporting detail. At any time that is not less than ten (10) days following the date
that Owner receives an invoice for Out-of-Pocket Expenses pursuant to this Section 5.2(b), the Manager may apply any funds
that it holds on behalf of Owner to payment of the amount specified in such invoice less any amount(s) to which Owner has reasonably
objected in writing during such 10-day period. If the Owner timely objects in a notice received by the Manager to any amount in
any such invoice, Owner and Manager shall use their reasonable commercial efforts to resolve such dispute amicably, and promptly
after the resolution of such matter the Manager may apply any funds that it holds on behalf of Owner to payment of the amount determined
to be owing to the Manager. If the funds that the Manager holds on behalf of Owner are insufficient to pay in full when due the
amounts due to the Manager pursuant to this Section 5.2(b), then Owner will promptly make payment to the Manager of the
amount due and unpaid in immediately available funds by wire transfer to an account specified by the Manager to Owner. Any amounts
payable to the Manager by Owner pursuant to this Section 5.2(b) will be in addition to all fixed rate charges under any
joint operating agreements in which the Manager or its Affiliates act as operator and the Owner owns a working interest.

 

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Section 5.3           Acquisition
Fee and Acquisition Expenses. The Owner shall pay an Acquisition Fee to the Manager
as compensation for its Management Services rendered in connection with the investigation, selection and acquisition (by purchase,
contribution, investment or exchange) of any Property Acquisition. The Manager shall be entitled to an Acquisition Fee for any
Property Acquisition acquired after the termination of this Agreement for which a contract for any such Property Acquisition had
been entered into at or prior to such termination. The total acquisition fee (the “Acquisition Fee”)
payable to the Manager for each Property Acquisition (other than a Property Acquisition from the Manager or any of its Affiliates)
shall equal two percent (2.0%) of the Contract Purchase Price of each Property Acquisition, payable in cash. The purchase price
allocable for an Investment held through a Joint Venture shall equal the product of (i) the Contract Purchase Price of the Property
Acquisition and (ii) the direct or indirect ownership percentage in the Joint Venture held directly or indirectly by AECP LP or
the Owner. For purposes of this Section 5.3, “ownership percentage” shall be the percentage of capital stock,
membership interest, partnership interest or other equity interests held by the AECP LP or the Owner, without regard to classification
of such equity interests. Owner shall pay to the Manager the Acquisition Fee promptly upon the closing of each Property Acquisition
(other than a Property Acquisition from the Manager or any of its Affiliates), unless Owner and the Manger mutually agree the
defer payment of such Acquisition Fee in respect of any Property Acquisition, in which event it shall be paid in accordance with
such mutual agreement. In addition to the Acquisition Fee payable to the Manager pursuant to this Section 5.3, AECP LP
or the Owner shall pay directly or reimburse the Manager for all Acquisition Expenses incurred in connection with the selection,
evaluation, acquisition, origination, making or development of any Property Acquisition; provided, however, in no
event shall the sum of the Acquisition Fee and the Acquisition Expenses required to be paid or reimbursed by AECP LP or the Owner
pursuant to this Section 5.3 in respect of any Property Acquisition exceed three percent (3.0%) of the Contract Purchase
Price of such Property Acquisition. AECP LP or the Owner shall pay the Acquisition Fee and reimburse the Manager for Acquisition
Expenses payable pursuant to this Section 5.3 within ten (10) days following each date AECP LP or the Owner receives an
invoice for the amount of the Acquisition Fee payable and Acquisition Expenses reimbursable to the Manager pursuant to this Section
5.3, provided that such invoice shall be furnished no earlier than two (2) Business Days before the closing of any Property
Acquisition or, in the case of Acquisition Expenses in respect of any proposed acquisition that has been unsuccessful, the cessation
of the efforts by AECP LP or the Owner to acquire such Property Acquisition; subject, however, to any mutual agreement by Owner
and the Manager to defer payment of the Acquisition Fee in respect of any Property Acquisition. The Manager may apply any funds
that it holds on behalf of the Owner to payment of the amount specified in such invoice less any amount(s) to which the Owner
has reasonably objected in writing during the 10-day period commencing on receipt of such invoice. If the Owner timely objects
in a notice received by the Manager to any amount in any such invoice, the Owner and the Manager shall use their reasonable commercial
efforts to resolve such dispute amicably, and promptly after the resolution of such matter the Manager may apply any funds that
it holds on behalf of the Owner to payment of the amount determined to be owing to the Manager. If the funds that the Manager
holds on behalf of the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.3,
then the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds by wire transfer
to an account specified by the Manager to the Owner. Any amounts payable to the Manager by the Owner pursuant to this Section
5.3 will be in addition to all fixed rate charges under any joint operating agreements in which the Manager or its Affiliates
act as operator and the Owner owns a working interest. For the avoidance of doubt, the Manager and Owner agree that the Manager
shall not be entitled to an Acquisition Fee for any Property Acquisition from the Manager or any of its Affiliates.

 

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Section 5.4           Disposition
Fee and Disposition Expenses. As compensation to the Manager for its Management
Services rendered in connection with the sale or other disposition by AECP LP or the Owner of all or any portion of the Assets
(other than the sale or other disposition in the ordinary course of business of oil, gas or other hydrocarbons produced from the
Assets and other than a sale or other disposition to the Manager or any of its Affiliates), the Owner shall pay to the Manager
the Disposition Fee. The Manager shall be entitled to a Disposition Fee for any Asset(s) (other than the sale or other disposition
in the ordinary course of business of oil, gas or other hydrocarbons produced from the Assets and other than a sale or other disposition
to the Manager or any of its Affiliates) sold or otherwise disposed of by AECP LP or the Owner after such termination for which
the applicable contract(s) to sell or otherwise dispose of such Asset had been entered into at or prior to such termination date.
The total disposition fee (“Disposition Fee”) payable in cash to the Manager shall equal one-half percent
(0.5%) of the Contract Sales Price of such Asset(s). In addition to the Disposition Fee payable to the Manager pursuant to this
Section 5.4, AECP LP or the Owner shall pay directly or reimburse the Manager for all Disposition Expenses incurred in
connection with the any sale or other disposition or proposed sale or other disposition (other than the sale or other disposition
in the ordinary course of business of oil, gas or other hydrocarbons produced from the Assets). AECP LP or the Owner shall pay
the Disposition Fee and reimburse the Manager for the Disposition Expenses payable pursuant to this Section 5.4 in connection
with the sale or disposition of Assets within ten (10) days following each date AECP LP or the Owner receives an invoice for the
amount of the Disposition Fee so payable to the Manager pursuant to this Section 5.4, which invoice shall be furnished
in connection with the closing of any sale or other disposition or, in the case of Disposition Expenses in respect of any sale
or other disposition that has been unsuccessful, the cessation of the efforts to sell or otherwise dispose of the applicable Asset(s);
provided, however, that if Owner and the Manager mutually agree to defer payment of the Disposition Fee in respect
of the sale of any Assets such Disposition Fee shall be paid in accordance with such mutual agreement. The Manager may apply any
funds that it holds on behalf of the Owner to payment of the amount specified in such invoice less any amount(s) to which the
Owner has reasonably objected in writing during the 10-day period commencing on receipt of such invoice. If the Owner timely objects
in a notice received by the Manager to any amount in any such invoice, the Owner and the Manager shall use their reasonable commercial
efforts to resolve such dispute amicably, and promptly after the resolution of such matter the Manager may apply any funds that
it holds on behalf of the Owner to payment of the amount determined to be owing to the Manager. If the funds that the Manager
holds on behalf of the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section
5.4, then the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds
by wire transfer to an account specified by the Manager to the Owner. Any amounts payable to the Manager by the Owner pursuant
to this Section 5.4 will be in addition to all fixed rate charges under any joint operating agreements in which the Manager
or its Affiliates act as operator and the Owner owns a working interest. Notwithstanding anything to the contrary in this Section
5.4, in no event shall any Disposition Fee be payable by AECP LP or the Owner pursuant to this Section 5.4 in connection
with the sale or exchange in the ordinary course of business by AECP LP or the Manager of oil, natural gas or other hydrocarbons
produced from the Assets. Pursuant to the Partnership Agreement, AECP LP will pay to AECP GP a disposition fee in connection with
the sale or other disposition by AECP LP or the Owner of all or any portion of the Assets (other than the sale or other disposition
in the ordinary course of business of oil, gas or other hydrocarbons produced from the Assets), which fee shall be payable in
cash concurrently with payment by the Owner to the Manager of the Disposition Fee pursuant to this Section 5.4 in respect
of such disposition of Asset(s) and shall be in an amount equal to one-half percent (0.5%) of the Contract Sales Price of such
Asset(s). For the avoidance of doubt, the Manager and Owner agree that the Manager shall not be entitled to a Disposition Fee
for any sale or other disposition of Assets to the Manager or any of its Affiliates.

 

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Section 5.5           Financing
Coordination Fee. As compensation to the Manager for its Management Services rendered
in connection with the financing by AECP LP or the Owner of any Property Acquisition or Asset, the assumption by AECP LP or the
Owner of any Loan(s) with respect to any Property Acquisition or Asset or refinancing by AECP LP or the Owner of any Loan, the
Owner shall pay the Manager a fee, payable in cash (the “Financing Coordination Fee”), equal to one-half
percent (0.5%) of the principal account incurred by AECP LP or the Owner, as the case may be, or outstanding under any such Loan.
AECP LP or the Owner shall pay the Financing Coordination Fee payable pursuant to this Section 5.5 at or promptly after
(and in any event within two (2) Business Days after) the closing of the Loan that is the subject of the Financing Coordination
Fee then due or each draw down by AECP LP of any principal amount of any Loan, as the case may be; provided, however,
that if Owner and the Manager mutually agree to defer payment of any Financing Coordination Fee, then such Financing Coordination
Fee shall be paid in accordance with such mutual agreement. The Manager may apply any funds that it holds on behalf of Owner to
payment of the amount of any Financing Coordination Fee then due and payable to the Manager pursuant to this Section 5.5
less any amount(s) to which Owner has reasonably objected in writing prior to the closing of the Loan that is the subject
of the applicable Financing Coordination Fee. If the Owner timely objects in a notice received by the Manager to any amount of
any Financing Coordination Fee, Owner and Manager shall use their reasonable commercial efforts to resolve such dispute amicably,
and promptly after the resolution of such matter the Manager may apply any funds that it holds on behalf of Owner to payment of
the amount determined to be owing to the Manager. If the funds that the Manager holds on behalf of Owner are insufficient to pay
in full when due the amounts due to the Manager pursuant to this Section 5.5, then Owner will promptly make payment to
the Manager of the amount due and unpaid in immediately available funds by wire transfer to an account specified by the Manager
to Owner. Any amounts payable to the Manager by Owner pursuant to this Section 5.5 will be in addition to all fixed rate
charges under any joint operating agreements in which the Manager or its Affiliates act as operator and the Owner owns a working
interest. Pursuant to the Partnership Agreement, AECP LP will pay to AECP GP a financing coordination fee in connection with the
financing by AECP LP or the Owner of any Property Acquisition or Asset, the assumption by AECP LP or the Owner of any Loan(s)
with respect to any Property Acquisition or Asset or refinancing by AECP LP or the Owner of any Loan, which fee shall be payable
in cash concurrently with payment by Owner to the Manager of the Financing Coordination Fee pursuant to this Section 5.5
in respect of such financing transaction and shall be in an amount equal to one-quarter percent (0.25%) of the principal account
incurred by AECP LP or the Owner, as the case may be, or outstanding under any such Loan.

 

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ARTICLE
VI

Representations, Warranties and Covenants

 

The Manager represents,
warrants and covenants to the Owner and AECP LP as follows:

 

(a)          Organization,
Good Standing, Etc. The Manager is a limited liability company duly formed, validly existing and in good standing under the
laws of the State of Oklahoma. Before commencing operations in any State where Leases are located the Manager will be duly qualified
and/or licensed to the extent and as may be required, and in good standing in such State.

 

(b)          Authority;
Enforceable Agreement. The Manager has taken all necessary action to authorize the execution, delivery and performance of this
Agreement and has adequate power, authority and legal right to enter into, execute, deliver and perform this Agreement. This Agreement
is legal, valid and binding with respect to the Manager and is enforceable in accordance with its terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally.

 

(c)          Legal
Requirements. The Manager has, or before commencing activities in any State or other jurisdiction will have, all requisite
power, approvals, authorizations, consents, licenses, orders, franchises, rights, registrations and permits of all Governmental
Authorities of such State or other jurisdiction required for the Manager to provide the Management Services in such jurisdiction;
each of the foregoing is or will be in full force and effect and has been duly and validly issued; and at the time Management Services
are performed the Manager will be in compliance in all material respects with all terms and conditions of each of the foregoing.

 

(d)          No
Consent. No permit, consent, approval, authorization or order of, and no notice to or filing with, any Governmental Authority
or third party is required in connection with the execution, delivery or performance by the Manager of this Agreement or to consummate
any transactions contemplated hereby and thereby.

 

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(e)          Manager’s
Activities During the Term. The Manager covenants and agrees that during the Term (excluding any period after a Termination
Notice has been received by Manager as contemplated by Section 10.2(a) during which the Manager performs transition services in
accordance with Section 10.3) the Manager’s business and activities will be limited to serving as the manager pursuant to
this Agreement and activities ancillary thereto; provided, however, that the foregoing covenant is not intended,
nor shall it be construed, to restrict or limit the Manager’s ability to serve as a manager or in a similar capacity pursuant
to a management services or similar agreement to one or more partnerships or other entities that may be formed after the Effective
Date by, or that is affiliated with, AR Capital, LLC, AR Capital Energy Holdings, LLC or any of their affiliates to acquire, own,
operate, develop, market or dispose of oil and gas properties. For the avoidance of doubt, the Manager will not own any oil, gas
or mineral leases or developed or undeveloped producing or non-producing oil and gas properties, and will not become the counterparty
to any Farmout by assignment from Owner, at any time during the Term; but the foregoing restriction is not intended, nor shall
it be construed, to apply to, or to restrict the activities or operations of, any Affiliate of the Manager. The Manager shall only
be required to devote such portion of its full productive time to the performance of the Services as is necessary to satisfy its
obligations under this Agreement.

 

ARTICLE
VII

Additional Agreements of Manager; Restrictions on Manager

 

Section 7.1           Compliance
with Laws. In the performance of Services pursuant to this Agreement, the Manager
shall comply in all material respects with applicable Law relative to the use, operation, development and maintenance of the Business
and the Assets. The Manager shall use its reasonable commercial efforts to remedy any violation of any such applicable Law that
comes to its attention. The Manager shall promptly notify the Owner of any material violation of applicable Law in the performance
of the Services pursuant to this Agreement, and the Manager shall transmit promptly to the Owner a copy of any citation or other
communication received by the Manager setting forth any such violation.

 

Section 7.2           Compliance
with Obligations. The Manager, to the extent such matters are reasonably within
its control, shall use diligent and reasonable efforts to cause compliance in all material respects with all terms and conditions
contained in any contract, agreement, judicial, administrative or governmental order, law or ruling, lease, mortgage, deed of
trust or other contractual or security instrument affecting the Business or any of the Assets; provided, however, that,
except as otherwise set forth herein, the Manager shall not be required to make any payment or incur any liability on account
thereof. The Manager shall promptly notify the Owner in writing of any material violation of any such instrument or agreement
in any material respect.

 

Section 7.3           Prohibited
Acts. Notwithstanding anything to the contrary, express or implied, in this Agreement,
without the consent of Owner the Manager shall not:

 

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(a)          Affect
Title. Other than by way of a pledge, mortgage, deed of trust or trust indenture in connection with the terms of an Approved
Credit Facility or a Farmout, joint operating agreement, participation agreement or other similar arrangement, sell, assign, surrender
or relinquish, farm out, encumber, hypothecate, mortgage, burden, or otherwise alter or impair the Owner’s title in, to,
or under, or that may be derived from, any of the Assets, or take any act that has the natural and foreseeable consequence of causing
any of the foregoing. The prohibition in the immediately preceding sentence does not apply, however, to any loss, alteration, or
impairment of title resulting (i) from the abandonment of any well, cessation of operations, non-commencement of the drilling of
any well or any other operations, or non-payment of delay rentals, advance royalties, shut-in well payments, or any other payments
when done with the Owner’s written consent or in accordance with the other terms of this Agreement; (ii) by virtue of
the non-consent, non-participation, or non-performance of any Third Party under any Operating Agreement; (iii) from the pooling,
unitization, or communitization of all or any part of the Owner’s interest in a property; (iv) from the sale or disposition
of worn out or obsolete equipment or spare parts; (v) from the sale of natural gas, crude oil, natural gas liquids, condensate,
other products and other hydrocarbons produced from the Assets; or (vi) from causes or circumstances beyond Manager's reasonable
control. If the Owner sells any of its Asset(s) to the Manager or an Affiliate of the Manager (other than a Farmout to the Manager
or an Affiliate of the Manager which shall be subject to Section 2.7), then the Owner exercising the standard of a prudent
operator must determine that (i) the sales price received by the Owner from the Manager or such Affiliate, as the case may be,
shall not be less than the higher of (A) the costs incurred by the Owner for such Asset(s) and (B) the fair market value of such
Asset(s) as determined by the Owner, and (ii) the other terms and conditions of such sale must be fair and reasonable to Owner.

 

(b)          Borrow
Funds. Except in accordance with Section 7.4, borrow any funds on behalf of the Owner (other than trade accounts payable
in the ordinary course of business).

 

(c)          Litigation
Matters. (i) Except for the filing or prosecution of any lawsuits for the collection of any monies owed to the Owner in the
ordinary course of business, file or prosecute any lawsuit, or (ii) confess any judgment or compromise or settle any pending,
threatened, or asserted claim or litigation, in each case with respect to or on behalf of the Owner or any of the Assets.

 

(d)          Resign
as Operator. Resign as Operator of any operated Asset except in accordance with this Agreement.

 

(e)          Tax
Status. Take any action which would cause the Owner not to be classified and treated as a partnership (and not as an association)
for federal income tax purposes.

 

(f)          Approved
Credit Facility. Amend or waive any provision of the Approved Credit Facility or take any actions which would result in a default
by the Owner under an Approved Credit Facility (but the foregoing shall not be construed to require the expenditure of any funds
by the Manager).

 

(g)          Expenditures.
Except in accordance with Article III, Section 4.3, and Article V, Section 7.1, Section 7.2
or Section 7.4, make or approve any expenditure for the Owner’s account, or obligate the Owner to make any expenditure,
other than for operating expenses (including any Operating Agreement then in effect) made pursuant to operating agreements covering
the Owner’s Assets or as provided in the Budget.

 

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(h)          Activities;
Budget. Conduct for the Owner’s account, or consent to or obligate the Owner, to engage in any activity, other than an
activity provided for in the approved Budget or determined by the Manager to be required in connection with an Emergency.

 

(i)          Acquisitions
and Joint Ventures. Cause or obligate the Owner to enter into any business combination transaction, including any merger, consolidation,
equity exchange, acquisition, sale joint venture, partnership or similar arrangement, or acquire any assets (including any Property
Acquisition(s)), properties or rights, including leasehold and working interests.

 

(j)          Hedging.
Cause the Owner to adopt, revise or waive compliance with, the Hedging Policy, or cause the Owner to enter into or become obligated
under any Hedges that are not in accordance with the Hedging Policy. None of the properties or production attributable to properties
owned by the Manager or any Affiliate of the Manager will benefit from any of Owner’s hedging or marketing arrangements.

 

(k)          Material
Commitment. Enter into any contract or agreement on behalf the Owner, or otherwise obligate the Owner under any contract or
agreement, that would reasonably be expected to constitute a Material Commitment. The Manager shall not commit Owner’s future
production from any Well in which Owner owns an interest for manager’s benefit.

 

(l)          Affiliate
Transactions. Except in compliance with Section 4.3, cause the Owner to enter into any contract or other arrangement
or transaction with the Manager or an Affiliate of the Manager.

 

(m)          Amendment
to Agreements; Waiver of Rights. Cause the Owner to enter into or replace or amend, modify or restate or supplement in a manner
adverse to the Owner in any material respect, or cause the Owner to waive or fail to enforce on behalf of the Owner any material
rights of the Owner under, any participation, joint venture, operating, area of mutual interest or other similar agreement to which
the Owner is a party (provided that the restriction set forth in this clause (m) shall not apply to any extension or termination
of any agreement in accordance with its terms).

 

(n)          Certain
Non-Consent Activities. Cause the Owner to make any election or exercise any vote, or cause the Owner not to exercise any vote,
that has the effect of causing the Owner to not participate in any Development Activities or other activities or operations under
an Operating Agreement in which the Manager or an Affiliate of the Manager owns a working interest, unless the Manager or such
Affiliate also declines to participate in such activity or operations, unless Owner’s election or exercise of, or failure
to elect or exercise, any such vote is a result of Owner’s voluntary election or Owner’s inability or refusal to fund
the cost of the applicable Development Activities or other activities or operation, as the case may be, in which event neither
Manager nor any Affiliate shall be required to decline to participate in such activity in respect of its working interest therein.

 

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(o)          Directed
Activities. Take on behalf of the Owner or cause the Owner to take any action or commit to any action that is contrary to the
good faith reasonable instructions of the Owner, provided that the foregoing shall not be construed to require the Manager to take
any action in violation of applicable Law or to incur any cost or liability that will not be reimbursed or assumed by the Owner.

 

Section 7.4           Emergencies.
Notwithstanding anything to the contrary in this Agreement, if Manager reasonably believes there is any Emergency, Manager may,
in the sole exercise of its discretion and at Owner’s expense, act for and on behalf of Owner in any manner reasonably necessary
or useful under the circumstances without the necessity of giving prior notice to the Owner or receiving any approval or consent
from the Owner. If Manager takes any such action pursuant to this Section 7.4, Manager shall promptly notify the Owner
of such Emergency and of the actions and/or expenditures approved by Manager as soon thereafter as is reasonably practicable.

 

Section 7.5           Manager’s
Insurance. The Manager shall at all times maintain the insurance coverage described
on Exhibit B with financially sound and reputable insurance companies, together with any other insurance that the Manager
generally provides or extends to its subsidiaries. During the Term of this Agreement, the Manager will, subject to reimbursement
by the Owner for the incremental cost thereof, take the actions necessary to cause the Owner to be Insured, under the insurance
policies described, and as indicated, in Exhibit B. As used herein, the term “Insured” means
the Owner will be (i) named an insured to the extent possible, (ii) in the case of workers’ compensation and employers’
liability, named as an alternate employer, or (iii) an additional insured in all other cases; provided, however,
that the Manager will take reasonable commercial efforts to provide for endorsement of the Owner as an insured under each policy
described in Exhibit B.

 

ARTICLE
VIII

Personnel
Administration

 

Section 8.1           General.
The Manager shall have in its employ or available to it during the Term a sufficient number of qualified technical, operating,
land, financial, marketing, accounting, clerical, administrative and field Employees, and other personnel to enable it to supply
all the services as herein provided.

 

Section 8.2           Responsibility.
All matters pertaining to the employment, supervision compensation, promotion and discharge of any Employees or personnel of the
Manager or its Affiliates are the responsibility of the Manager, which is (or its Affiliate is) in all respects
the employer of any such Employees. All such employment arrangements are solely the concern of the Manager and, if applicable,
its Affiliate(s) and, other than as expressly set forth in Exhibit B hereto, the Owner shall have no liability with
respect thereto.

 

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ARTICLE
IX

Investment
Opportunities

 

Section 9.1           Investment
Opportunities.

 

(a)          Commensurate
with the Gross Proceeds raised by AECP LP from time to time that have not been previously invested in Property Acquisitions or
reserved for Development Activities or other investment in any of the Assets or the payment of fees or expenses pursuant to this
Agreement or the Partnership Agreement, the Manager shall offer to Owner the right to purchase any Property Acquisition that (i)
the Manager identifies in accordance with the performance of Item 14 of its Management Services as described in Exhibit
A or that otherwise becomes available to the Manager and (ii) which the Manager believes may be appropriate for the Owner.

 

(b)          The
Manager shall offer to the Owner any Property Acquisition referred to in Section 9.1(a) in accordance with the terms of
Section 9.1(c). Upon receipt of any Proposal, Owner shall decide in accordance with Section 9.1(d) whether or not
to approve the Property Acquisition that is the subject of such Proposal. If Owner determines not to approve or otherwise fails
to approve such Property Acquisition within five (5) Business Days after the Owner’s receipt of a Proposal (a “Rejected
Proposal”), then the Manager or any of its Affiliates may pursue and, if successful in such pursuit, participate
in such Property Acquisition.

 

(c)          If
the Manager proposes to refer a Property Acquisition or other acquisition of oil and gas properties to the Owner, the Manager shall
submit a written report (“Proposal”) to Owner for its consideration. Such Proposal shall be in the form
or format that the Manager generally uses, or will have used when presenting any such Property Acquisition or other acquisition
of oil and gas properties to Owner and shall contain the Economic Run for the Property Acquisition or other acquisition of oil
and gas properties, the initial Budget or any revisions to the Budget as provided in Section 9.2, and all other information
determined by the Manager or requested by Owner as necessary or appropriate to describe the terms, economics, oil and gas reserve
information, and other information requested by Owner as necessary or appropriate to evaluate and consider the Proposal. Additionally,
if the Manager or an Affiliate of the Manager has an existing economic interest in more than 5% of the properties that are the
subject of the Proposal, the Manager shall disclose this fact to Owner in the Proposal. Information submitted to Owner in the Proposal
shall include, without limitation, the Economic Run data with respect to the acquisition that is the subject of the Proposal authorization(s)
for expenditure, budgeting information, a recommendation with respect to the amount of indebtedness to be incurred pursuant to
the Approved Credit Facility, key terms related to such Proposal, including, without limitation, whether such terms deviate or,
to Manager’s knowledge, are expected to deviate from the General Parameters, if applicable, and any other available information
determined by the Manager to be relevant to Owner’s investment decision or requested by Owner. In addition, if the Seller
of a proposed Property Acquisition that is the subject of a Proposal is the Manager or an Affiliate(s) of the Manager, then the
Owner, exercising the standard of a prudent operator, must determine that (i) the price paid by Owner to the Manager or such Affiliate(s),
as the case may be, for such Property Acquisition from the Manager or such Affiliate(s), as the case may be, does not exceed the
lesser of (A) the costs incurred by the Manager or such Affiliate(s), as the case may be, to acquire, own, operate and develop
such Property Acquisition (which shall be supported by reasonable documentation included in the Proposal) and (B) the fair market
value of such Property Acquisition as determined by mutual agreement of the Manager or such Affiliate(s), as the case may be, and
Owner, the Owner exercising the standard of a prudent operator, must determine that in such manner as the Manager and Owner determine
to be appropriate under the circumstances, (ii) at the time of any such Property Acquisition from the Manager or any of its
Affiliates, as the case may be, the Owner must acquire an equal proportionate interest in the Manager’s or such Affiliate’s,
as the case may be, other ownership interests in the same Prospect and (iii) the other terms and conditions of such acquisition
are fair and reasonable to Owner. For purposes of the preceding sentence, a Prospect will be limited to the minimum area permitted
by state law or local practice, whichever is applicable, if the following two conditions are met: (i) the well is being drilled
to a geological feature which contains proved reserves as defined below and (ii) the limitation protects the well against drainage.
In areas where the Prospect is not limited as provided in the immediately preceding sentence and the area constituting the Prospect
that is the subject of this Section is subsequently enlarged based on geological information which is later acquired, then if the
Prospect includes an interest acquired by Owner from the Manager or an Affiliate of the Manager and such Prospect is subsequently
enlarged to cover an area in which the Manager (if an interest was previously acquired from the Manager) or such Affiliate of the
Manager (if an interest was previously acquired from such Affiliate), as the case may be, owns a separate property interest and
the Owner’s activities were material in establishing the existence of proved undeveloped reserves which are attributable
to the separate property interest (and, in the case of the Manager or such an Affiliate of the Manager, the activities of the Manager
or such Affiliate of the Manager, as applicable, were not material in so establishing the existence of such proved undeveloped
reserves), then the separate property interest or a portion thereof must be sold to AECP LP by the Manager or such Affiliate of
the Manager, as the case may be, on terms and conditions conforming to the requirements of the fourth sentence of this Section 9.1(c).

 

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(d)          Upon
receipt of a Proposal, Owner shall have five (5) Business Days to notify the Manager of Owner’s intent to make the Property
Acquisition as described in the Proposal. If Owner does not provide such notice to the Manager within such time, Owner shall be
deemed to have rejected the Property Acquisition that is the subject of the Proposal and such Proposal shall thereafter constitute
a Rejected Proposal.

 

Section 9.2           Initial
Budget; Revisions to Budget.

 

(a)          Initial
Budget. In connection with the first Property Acquisition, the Manager shall prepare a Draft Budget for operation of the properties
proposed to be acquired and submit such Draft Budget to Owner with the Proposal as contemplated by Section 9.1. If the Owner
approves the Property Acquisition, Owner shall be deemed to have approved the Draft Budget and such Draft Budget shall then constitute
the approved Budget as contemplated by Section 3.1.

 

(b)          Revised
Budgets. In connection with each Property Acquisition following the first Property Acquisition, the Manager may prepare an
amendment to the then existing approved Budget to reflect the additional costs and expenses associated with the ownership of the
Assets proposed to be acquired and submit such proposed revision to the Owner as contemplated by Section 9.1. If the Owner
approves the Property Acquisition, Owner shall be deemed to have approved the revision to the Budget and such revised Budget shall
then constitute the approved Budget as contemplated by Section 3.2.

 

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ARTICLE
X

Term;
Termination

 

Section 10.1         Term.
The initial term of this Agreement will begin on the Effective Date and, subject to earlier termination in accordance with Section
10.2, shall continue for so long as the Owner holds any Assets (the “Initial Term”), and thereafter,
until this Agreement is terminated by the Manager or Owner upon not less than 30 days’ prior written notice to the other
(the Initial Term together with any such extension thereafter, the “Term”). Except as expressly provided
herein, the expiration or earlier termination of this Agreement shall not relieve any Party of any obligation or liability arising
prior to such expiration or termination.

 

Section 10.2         Termination.

 

(a)          This
Agreement shall terminate (the “Termination Date”) on the first to occur of (i) the date on which
the Parties mutually agree to terminate this Agreement and (ii) the termination date set forth on any notice given in accordance
with Section 10.2(b) or Section 10.2(c) (each, a “Termination Notice”). Each Termination
Notice shall be provided in writing and set forth in reasonable detail the basis for the termination and the Termination Date.
If requested by Owner, the Manager, following its receipt of a Termination Notice, shall continue to perform the Services in accordance
with this Agreement for a period not to exceed 120 days of such notice and, in such event, the date on which such continued Services
are no longer necessary (as specified by Owner in the Termination Notice) will be considered the Termination Date for purposes
hereof.

 

(b)          Owner
may terminate this Agreement by delivery of a Termination Notice to the Manager following the occurrence of any of the following
events:

 

		(i)	the dissolution and liquidation of AECP LP in connection
with the sale of all or substantially all of the Owner’s assets;

 

		(ii)	during the Bankruptcy of the Manager;

 

		(iii)	at any time during the 30 days after a breach by the
Manager of its obligations hereunder that has had or, if continued, is reasonably likely to have a Material Adverse Effect, which
breach remains uncured 60 days following the receipt by the Manager of written notice of such breach by the Owner;

 

		(iv)	at any time within 15 Business Days following (A) the
determination by a court of competent jurisdiction that the Manager has defrauded AECP LP or Owner or stolen or misappropriated
any of the Assets or funds of Owner and (B) such circumstances have not been cured or remedied (which may include a cash payment)
by Manager within 30 days following such judicial determination;

 

		(v)	the General Partner is removed as the general partner
of AECP LP by the majority vote of the Common Units and the General Partner did not vote in favor of or otherwise approve such
removal; or

 

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		(vi)	upon the approval at a special meeting of the holders
of Common Units called for the purpose of voting to terminate this Agreement, which approval is by the holders of not less than
a majority of the Common Units outstanding as of the record date established for such special meeting excluding for purposes of
such determination Common Units and any vote in respect thereof) owned by the General Partner or its sponsor or any Affiliate(s)
thereof.

 

(c)          The
Manager may terminate this Agreement by delivery of a Termination Notice to Owner (i) during or following the Bankruptcy of the
Owner or (ii) upon a material breach by Owner of its obligations hereunder that remains uncured 60 days following the receipt by
Owner of notice of such breach by the Manager.

 

Section 10.3         Transition
Services. The Manager shall, until the Termination Date, continue to provide the
Management Services in accordance with this Agreement and upon request from Owner will reasonably cooperate with Owner in the
transition of such services to a new manager appointed by Owner by (i) turning over Owner’s books and records and any other
relevant information reasonably requested of the Manager, (ii) if applicable, assigning to Owner all of the Manager’s rights
under subcontracts and other contractual arrangements entered into by the Manager in connection with the performance of the Services
and (iii) facilitating the transfer of Well operations and the management of the Owner’s Assets to the successor manager.
At the end of the Term, the Manager shall deliver to Owner the Records. Following the termination of this Agreement, Owner shall
have the right to appoint any other Person as manager to perform the Management Services by whatever method Owner may deem expedient
or appropriate. Following the termination of this Agreement, the Manager shall have no further rights under this Agreement (except
as provided in Section 10.4) and shall not be entitled to receive any further payments under this Agreement.

 

Section 10.4         Effect
of Termination. The termination of this Agreement shall not relieve any Party from
any expense, liability or other obligation or remedy therefor that has accrued or attached prior to the Termination Date and the
following provisions of this Agreement shall survive such termination: this Section 10.4, each of the indemnity obligations,
the limitation on consequential and other damages under this Section 12.4 and the provisions of Article XII, which
provisions shall survive indefinitely. To the extent this Agreement is terminated by the Owner pursuant to Section 10.2(b)(iv)
hereof, then pursuant to Section 5.8 of the Partnership Agreement, Holdings shall forfeit any incentive distribution rights it
holds as of the date of such termination. To the extent this Agreement is terminated pursuant to Section 10.2(b)(v) or
Section 10.2(b)(vi) hereof, then Owner shall promptly reimburse to the Manager the severance costs and expenses incurred
directly or indirectly by the Manager as a result of any such termination, such reimbursement to be paid within 10 Business Days
after the receipt by Owner from the Manager of an invoice therefor accompanied by reasonable documentation in support of such
invoice.

 

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ARTICLE
XI

Indemnification;
Liability of the Parties

 

Section 11.1         Indemnification.
From and after the Effective Date, the Parties will indemnify each other as follows:

 

(a)          Owner
Indemnification. (i) The Owner shall indemnify, defend, reimburse and hold harmless the Manager and its Affiliates and their
respective officers, managers, representatives, agents, members, employees (together with the Manager, the “Manager
Indemnified Parties”) from and against and in respect of any and all claims, liabilities, losses, costs, expenses
(including reasonable attorneys’ fees and costs of investigation), judgments, fines, penalties, interest, settlements or
damages (collectively, “Liabilities”) incurred or suffered by a Manager Indemnified Party in connection
with, arising out of, or relating to, directly or indirectly, its performance of the Management Services and or Operating Services
hereunder, EVEN IF SUCH LIABILITIES AROSE IN WHOLE OR IN PART FROM THE ACTIVE, PASSIVE, SOLE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY
OR OTHER FAULT OF A MANAGER INDEMNIFIED PARTY, provided, however, that Owner will not be required to so indemnify,
defend, reimburse and hold harmless any of the Manager Indemnified Parties (A) from any Liabilities in respect of any decision
by or on behalf of the Manager in connection with any Property Acquisition, Asset disposition or operation of Assets with respect
to due diligence, waiver or deemed waiver of title defects mistakes in title or environmental review or similar actions or omissions,
and (B) from any other Liabilities unless the following standards are satisfied:

 

I.           the
Manager has made a good faith determination that the Manager’s course of conduct which caused or resulted, or allegedly caused
or resulted in, the Liabilities for which such Manager Indemnified Party seeks indemnification or advancement of expenses pursuant
to this Section 11.1(a) was in the best interests of AECP LP or the Owner;

 

II.          at
the time the conduct was performed that caused or resulted, or allegedly caused or resulted in the Liabilities for which the Manager
Indemnified Party seeks indemnification or advancement of expenses, the Manager was acting on behalf of or performing services
for AECP LP or Owner;

 

III.         there
has not been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the
matter for which such Manager Indemnified Party is seeking indemnification pursuant to this Section 11.1(a), such Manager
Indemnified Party engaged in negligence or misconduct, or in the case of a criminal matter, acted with knowledge that such Manager
Indemnified Party’s conduct was unlawful; and

 

IV.          with
respect to Liabilities arising from or out of an alleged violation of federal or state securities laws,

 

A.           there
has been a successful adjudication on the merits of each count of such alleged violation of securities laws;

 

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B.           such
claims have been dismissed with prejudice on the merits by a court of competent jurisdiction; or

 

C.           a
court of competent jurisdiction approves a settlement of the claims against the Manager or such Manager Indemnified Party and finds
that indemnification of the settlement and the related costs should be made, and the court has been advised of the position of
the Securities and Exchange Commission and the position of any state securities regulatory authority in which securities of AECP
LP were offered or sold as to indemnification of violations of securities laws.

 

Any indemnification pursuant to this Section
11.1(a) shall be made only out of the consolidated tangible net assets of AECP LP and Owner.

 

(ii)         To
the fullest extent permitted by applicable Law and subject to AECP LP and Owner having sufficient funds available, expenses (including
legal fees and expenses) incurred by a Manager Indemnified Party who is indemnified pursuant to Section 11.1(a) in defending
any claim, demand, action, suit or proceeding relating to acts or omissions with respect to the performance of duties or services
pursuant to this Agreement, from time to time, may be advanced by AECP LP prior to a determination that the Indemnitee is not entitled
to be indemnified; provided, that (a) such legal action is initiated by a third party who is not a unitholder of equity
interests in AECP LP or, if such legal action is initiated by such a unitholder, a court of competent jurisdiction shall have approved
such advancement and (b) upon receipt by AECP LP of an undertaking by or on behalf of the Manager Indemnified Party to repay such
amount together with the applicable legal rate of interest thereon if it shall be determined that the Manager Indemnified Party
is not entitled to be indemnified as authorized in Section 11.1(a).

 

(iii)        The
indemnification provided by this Section 11.1(a) shall be in addition to any other rights to which a Manager Indemnified
Party may be entitled under any agreement, pursuant to any approval by AECP LP, as a matter of law or otherwise, both as to actions
in the Manager Indemnified Party’s capacity as a Manager Indemnified Party and as to actions in any other capacity and shall
continue as to a Manager Indemnified Party who has ceased to serve in such capacity and shall inure to the benefit of the heirs,
successors, assigns and administrators of the Manager.

 

(b)          Manager
Indemnification. The Manager shall indemnify, defend and hold harmless AECP GP, AECP LP, the Owner, its Subsidiaries and Affiliates
and their respective officers, directors, representatives, agents, members and employees (collectively, “Owner Indemnified
Parties”) from and against and in respect of any and all Liabilities incurred or suffered by (a) an Owner Indemnified
Party in connection with, arising out of, or relating to, the gross negligence, reckless or intentional misconduct of the Manager
or another Manager Indemnified Party in the Manager’s performance of the Management Services.

 

    	34

    	 

    

 

Section 11.2         EXTENT
OF INDEMNIFICATION; EXPRESS NEGLIGENCE RULE. WITHOUT LIMITING OR ENLARGING THE
SCOPE OF THE INDEMNIFICATION, DEFENSE AND ASSUMPTION PROVISIONS SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY
LAW, AN INDEMNIFIED PARTY SHALL BE ENTITLED TO INDEMNIFICATION HEREUNDER IN ACCORDANCE WITH THE TERMS OF SECTION 11.1 REGARDLESS
OF WHETHER THE ACT, OCCURRENCE OR CIRCUMSTANCE GIVING RISE TO ANY SUCH INDEMNIFICATION OBLIGATION IS THE RESULT OF THE SOLE, ACTIVE,
PASSIVE, CONCURRENT OR COMPARATIVE NEGLIGENCE, STRICT LIABILITY, BREACH OF DUTY (STATUTORY OR OTHERWISE) OR OTHER FAULT OR VIOLATION
OF ANY LAW OF OR BY ANY SUCH OWNER INDEMNIFIED PARTY, PROVIDED, HOWEVER, THAT NO SUCH INDEMNIFICATION SHALL BE APPLICABLE
TO THE EXTENT OF ANY GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTY.

 

Section 11.3         Indemnification
Procedure. If any indemnified party discovers or otherwise becomes aware of an
indemnification claim arising under this Agreement, such party will give written notice to the indemnifying Party, specifying
such claim, and may thereafter exercise any remedies available to such indemnified party under this Agreement; provided,
however, the failure of any indemnified party to give notice as provided herein will not relieve the indemnifying Party
of any obligations hereunder, to the extent the indemnifying Party is not materially prejudiced thereby. Further, promptly after
receipt by an indemnified party hereunder of written notice of the commencement of any action or proceeding with respect to which
a claim for indemnification may be made against the indemnifying Party, the indemnified party will give written notice to the
indemnifying Party of the commencement of such action, accompanied by a copy of all papers, if any, served with respect to the
action or proceeding; provided, however, the failure of any indemnified party to give notice as provided herein
will not relieve the indemnifying Party of any obligations hereunder, to the extent the indemnifying Party is not materially prejudiced
thereby.

 

Section 11.4         Limitation
on Consequential and Other Damages.

 

(a)          NEITHER
PARTY shall be entitled to recover from THE OTHER Party, or such Party’s respective Affiliates any indirect, consequential,
punitive or exemplary damages or damages for lost profits of any kind arising under or in connection with this Agreement or the
transactions contemplated hereby, except to the extent any such Party suffers such damages (including costs of defense and reasonable
attorney’s fees incurred in connection with defending of such damages) to a Third Party, which damages (including costs of
defense and reasonable attorneys’ fees incurred in connection with defending against such damages) shall not be excluded
by this provision as to recovery hereunder. Subject to the preceding sentence, each Party, on behalf of itself and each of its
Affiliates waives any right to recover punitive, special, exemplary and consequential damages, including damages for lost profits,
arising in connection with or with respect to this Agreement or the transactions contemplated hereby.

 

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(b)          The
amount of damages for which an indemnified Party is entitled to indemnity under this Article XI shall be reduced by the
amount of insurance proceeds received by the indemnified Party or its Affiliates with respect to such damages (net of any collection
costs and net of any increase in premiums resulting from claims with respect to such damages), and, to the extent insurance coverage
for such damages is available under insurance policies of the indemnified Party and not under the insurance policies of the indemnifying
Party, the indemnified Party will use commercially reasonable efforts to assert claims under such insurance coverage with respect
to such damages.

 

Section 11.5         Manager
Liability. Subject to the rights of the Owner to terminate this Agreement, in no
event shall the Manager or its Affiliates have any liability under this Agreement, any Operating Agreement or applicable Law,
with respect to the provision of the Services under this Agreement or acting as contract operator for any claim, damage, loss
or liability sustained or incurred in connection with its operations with respect to the Assets or the provision of the Services
or any breach of any provision of this Agreement regarding the standard of performance of the Manager in performing the Services
or operations under this Agreement (including any breach of Section 3.2) or any Operating Agreement, except to the extent
(and only to the extent) such liability is attributable to or arises from the gross negligence or intentional misconduct of any
Manager Indemnified Parties, and the Owner, on its own behalf and on behalf of its Affiliates, releases the Manager and its Affiliates
from such liability, except to the extent (and only to the extent) such liability is attributable to or arises from the gross
negligence or intentional misconduct of any Manager Indemnified Party. Nothing in this Section 11.5 shall be deemed
to be a release by the Owner or any of its Affiliates of any claims against the Manager arising from a breach by the Manager of
its obligation to pay amounts owing to the Owner pursuant to the terms hereof.

 

Section 11.6         Conspicuous.
THE PARTIES AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE OR ENFORCEABLE, THE PROVISIONS IN THIS AGREEMENT
IN ALL-CAPS FONT ARE “CONSPICUOUS” FOR THE PURPOSE OF ANY APPLICABLE LAW.

 

ARTICLE
XII

Force
Majeure

 

If a Party is rendered unable, wholly or
in part, by reason of a Force Majeure Event to perform its obligations under this Agreement, other than obligations to make payments
or provide indemnification or defense when due hereunder, then such Party’s obligations shall be suspended to the extent
affected by the Force Majeure Event. Any Party claiming any Force Majeure Event shall provide prompt written notice thereof to
the other Party including full particulars of such Force Majeure Event.

 

ARTICLE
XIII

Miscellaneous

 

Section 13.1         Time.
The Parties agree that time is of the essence in the performance of this Agreement.

 

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Section 13.2         Independent
Contractor. The Manager and the Owner are independent contractors and this Agreement
shall not be construed as one of partnership, agency, joint venture, or employment between the Manager and the Owner, and the
rights, duties, obligations and liabilities of each of the Parties under this Agreement shall be individual, not collective or
joint. As between the Parties, (a) it is not the intention of the Parties to create, nor shall this Agreement be deemed or construed
to create, a mining or other partnership, joint venture, association or trust, (b) the Manager is not the actual or implied agent
for Owner, and (c) subject to the other express provisions of this Agreement and the right of the Owner to direct the Manager
with respect to the ends to be accomplished, the Manager shall have the exclusive (i) authority to control and direct the
specific means, method and manner of performance of the details of the Management Services to be provided hereunder, and (ii)
responsibility and liability for (A) the direction and supervision of its personnel, (B) the salary, employee benefits, other
compensation and related costs of such Manager personnel and (C) the collection and payment of any payroll taxes or contributions
or taxes for unemployment insurance, workers’ compensation, pensions and social security for the Manager personnel that
are imposed by any Governmental Authority.

 

Section 13.3         Notices.
All notices and communications required or permitted under this Agreement shall be in writing addressed as indicated below, and
any communication or delivery hereunder shall be deemed to have been duly delivered upon the earliest of: (a) actual receipt by
the Party to be notified; (b) if sent by U.S. certified mail, postage prepaid, return receipt requested, then the date shown as
received on the return notice; (c) if by facsimile transmission, then upon confirmation by the recipient of receipt; (d) if by
email, then upon an affirmative reply by email by the intended recipient that such email was received (provided that, for the
avoidance of doubt, an automated response from the e-mail account or server of the intended recipient shall constitute an affirmative
reply); or (e) if by Federal Express overnight delivery (or other reputable overnight delivery service), the date shown on the
notice of delivery. Addresses for all such notices and communication shall be as follows:

 

	To the Manager:	
        AECP Management,
        LLC

        301 N.W.
        63rd Street

        Suite 600

        Oklahoma
        City, Oklahoma 73116

        Attention:Robert
        W. Kelly II

        General
        Counsel

        Phone: (405)
        818-8000

        Fax:(405)
        818-8040

        Email: bob.kelly@aep-lp.com

	 	 
	With a copy to:	
        AECP Management,
        LLC

        301 N.W.
        63rd Street

        Suite 600

        Oklahoma
        City, Oklahoma 73116

        Attention:
        Scott R. Mueller

        Phone: (405)
        818-8000

        Fax:(405)
        818-8040

        Email: scott.mueller@aep-lp.com

 

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	To AECP LP:	
        American Energy Capital Partners,
        LP

        c/o AECP GP LLC

        405 Park Avenue

        New York, NY 10022

        Attention: General Counsel

        Phone: (212) 415-6500

        Fax:(212) 415-____

        Email:_______________________

	 	 
	With a copy to:	
        Kunzman & Bollinger, Inc.

        5100 N. Brookline

        Suite 600

        Oklahoma City, Oklahoma 73112

        Attention: Gerald Bollinger

        Phone: (405) 942-3501

        Fax: (405) 942-3527

        E-mail: gbollinger@kunzboll.com

	 	 
	To Owner:	
        AECP Operating Company, LLC

        405 Park Avenue

        New York, NY 10022

        Attention: General Counsel

        Phone: (212) 415-6500

        Fax:(212) 415-_______

        Email:_______________________

	 	 
	With a copy to:	
        Kunzman & Bollinger, Inc.

        5100 N. Brookline

        Suite 600

        Oklahoma City, Oklahoma 73112

        Attention: Gerald Bollinger

        Phone: (405) 942-3501

        Fax: (405) 942-3527

        E-mail: gbollinger@kunzboll.com

  

Either Party may, upon written notice to
the other Party, change the address(es) and person(s) to whom such communications are to be directed.

 

Section 13.4         Cooperation.
Prior to termination of this Agreement and at all times following the consummation of this Agreement, the Parties agree to execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered, such documents and instruments and do, or cause
to be done, such other acts and things as may reasonably be requested by any Party to this Agreement, or are otherwise necessary
or advisable, to assure that the benefits of this Agreement are realized by the Parties and that the Parties carry out their obligations
under this Agreement and any document or other instrument delivered pursuant hereto.

 

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Section 13.5         No
Third Party Beneficiaries. Except for the indemnification rights under Article XI, nothing in this Agreement, express
or implied, is intended to confer upon anyone, other than the Parties hereto and their respective successors and assigns, any
rights or remedies under or by reason of this Agreement or to constitute any Person a Third Party beneficiary of this Agreement.

 

Section 13.6         Cumulative
Remedies. Subject to the other provisions hereof, no failure on the part of any
Party to this Agreement to exercise and no delay in exercising any right hereunder will operate as a waiver thereof, nor will
any single or partial exercise by any Party hereto of any right hereunder preclude any other or further right of exercise thereof
or the exercise of any other right.

 

Section 13.7         Governing
Law; Jurisdiction; Waiver of Jury Trial. THE VALIDITY, CONSTRUCTION, INTERPRETATION
AND EFFECT OF THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD
TO CONFLICTS RULES WHICH WOULD OTHERWISE APPLY THE LAWS OF ANOTHER JURISDICTION. EACH PARTY AGREES THAT IT SHALL BRING ANY ACTION
OR PROCEEDING IN RESPECT OF ANY CLAIM ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER IN TORT OR CONTRACT OR AT LAW OR IN
EQUITY, EXCLUSIVELY IN ANY U.S. FEDERAL OR STATE COURT IN THE STATE OF TEXAS AND (A) IRREVOCABLY SUBMITS TO THE JURISDICTION OF
SUCH COURTS, (B) WAIVES ANY OBJECTION TO LAYING VENUE IN ANY SUCH ACTION OR PROCEEDING IN SUCH COURTS, (C) WAIVES ANY OBJECTION
THAT SUCH COURTS ARE AN INCONVENIENT FORUM OR DO NOT HAVE JURISDICTION OVER IT AND (D) AGREES THAT SERVICE OF PROCESS UPON IT
MAY BE EFFECTED BY MAILING A COPY THEREOF POSTAGE PREPAID, REGISTERED OR CERTIFIED WITH RETURN RECEIPT REQUESTED AT THE ADDRESS
SPECIFIED IN SECTION 13.3. THE FOREGOING CONSENTS TO JURISDICTION AND SERVICE OF PROCESS SHALL NOT CONSTITUTE GENERAL CONSENTS
TO SERVICE OF PROCESS IN THE STATE OF TEXAS FOR ANY PURPOSE EXCEPT AS PROVIDED HEREIN AND SHALL NOT BE DEEMED TO CONFER RIGHTS
ON ANY PERSON OTHER THAN THE PARTIES. FURTHER, EACH PARTY HEREBY KNOWINGLY AND INTENTIONALLY, IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING UNDER, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

 

Section 13.8         Entire
Agreement. This Agreement constitutes the entire agreement between the Parties
with respect to the subject matter hereof, supersedes any prior agreements with respect to the subject matter hereof and there
are no agreements, understandings, warranties or representations except as set forth herein.

 

Section 13.9         Assignment.
Neither Party may assign any of its rights or delegate any of its duties under this Agreement without the express written consent
of the other Party, except that the Manager may assign any such rights or delegate any such duties to any of its Affiliates. Any
assignment of rights or delegation of duties under this Agreement in violation of this section shall be void ab initio.

 

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Section 13.10         Amendment.
Neither this Agreement, nor any of the provisions hereof can be changed, waived, discharged or terminated, except by an instrument
in writing hand-signed by the Party against whom enforcement of the change, waiver, discharge or termination is sought. In addition,
each of AECP LP and AECP GP covenant and agree that, without the prior written consent of the Manager, it shall not amend, modify
or restate the Partnership Agreement if the effect thereof would be likely to adversely affect the Manager or any of its Affiliates
or the rights of the Manager or any such Affiliate under this Agreement or the Partnership Agreement and any amendment, modification
or restatement effected without such prior written consent of the Manager shall be void and of no force or effect with respect
to the Manager; provided, however, that the prior written consent of the Manager shall not be required in respect
of any amendment made to the Partnership Agreement (even if it would be likely to adversely affect the Manager or any of its Affiliates)
pursuant to Section 13.13(vi) of the Partnership Agreement that is made without the approval of AECP GP and is effected by approval
of a majority in interest of the holders of Common Units.

 

Section 13.11         Severability.
If any clause or provision of this Agreement is illegal, invalid or unenforceable under any present or future law, the remainder
of this Agreement will not be affected thereby. It is the intention of the Parties that if any such provision is held to be illegal,
invalid or unenforceable, there will be added in lieu thereof a provision as similar in terms to such provisions as is possible
to make such provision legal, valid and enforceable.

 

Section 13.12         Waiver.
Waiver of performance of any obligation or term contained in this Agreement by any Party, or waiver by one Party of the other’s
default hereunder, will not operate as a waiver of performance of any other obligation or term of this Agreement or a future waiver
of the same obligation or a waiver of any future default.

 

Section 13.13         Counterparts;
Facsimiles; Electronic Transmission. This Agreement may be executed in multiple
counterparts, each of which will be an original instrument, but all of which will constitute one agreement. The execution and
delivery of this Agreement by any Party may be evidenced by facsimile or other electronic transmission (including scanned documents
delivered by email), which shall be binding upon all Parties.

 

Section
13.14         Corporate Opportunity. AECP LP and the Owner acknowledge
and agree that the Manager and its Affiliates engage and intend to continue to engage in the exploration, development,
production, acquisition and disposition of oil and gas properties in North America and the marketing of production from such
properties, which activities may be in competition with the Business of AECP LP and the Owner. AECP LP and the Owner
acknowledge, covenant and agree that except for the obligation set forth in Article IX of this Agreement,
notwithstanding anything to the contrary in this Agreement or any implied duty under applicable Law, in equity or otherwise,
(a) none of the Manager or any of its Affiliates that acquire knowledge of a potential oil and gas lease, acquisition, or
investment opportunity, or exploration or development transaction involving oil and gas properties and that may be an
opportunity for AECP LP or the Owner shall have any duty to communicate or offer such opportunity to AECP LP or the Owner,
(b) it shall be deemed not to be breach of any duty or any other obligation of any type whatsoever, express or implied, under
this Agreement or applicable Law, of the Manager or any of its Affiliates to not communicate or offer such opportunity to
AECP LP or the Owner, and (c) none of the Manager or any of its Affiliates shall be liable to AECP LP or the Owner or
any other Person by reason of the fact that the Manager or any of its Affiliates pursues or acquires for itself or its
Affiliates, or otherwise directs, any such opportunity to another Person or does not communicate such opportunity or
information to AECP LP or the Owner.

 

    	40

    	 

    

 

Section 13.15         Joint
Acknowledgement. This written Agreement represents the final agreement between
the Parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the Parties. There
are no unwritten oral agreements between the Parties.

 

[Remainder of Page Intentionally Left
Blank

Signature Pages Follow]

 

    	41

    	 

    

 

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

 

	 	MANAGER:
	 	 
	 	AECP Management, LLC
	 	an Oklahoma limited liability company
	 	 	 
	 	By:	 
	 	 	Robert W. Kelly II
	 	 	General Counsel
	 	 	 
	 	AECP LP
	 	 
	 	American Energy Capital Partner, LP
	 	a Delaware limited partnership
	 	 	 
	 	By:	American Energy Capital Partners GP, LLC
	 	 	its General Partner
	 	 	 
	 	By:	Edward M. Weil, Jr.
	 	 	Chief Executive Officer and President
	 	 	 
	 	OWNER:
	 	 
	 	AECP Operating Company, LLC
	 	a Delaware limited liability company
	 	 
	 	By:	 

 

    	 

    	 

    

 

EXHIBIT A

SCOPE OF SERVICES

 

The “Services”
shall mean general management, administrative and operating services reasonably requested by and at the direction of Owner and
shall include, collectively, the Management Services and the Operating Services performed on behalf of the Owner and any Subsidiary,
and other service or activity agreed by Owner and the Manager. At all times, the Manager’s provision of the Management Services
and Operating Services shall be subject to the limitations set forth in this Agreement, and any other limits or restrictions mutually
agreed by Owner and the Manager.

 

The following services
shall constitute “Management Services”:

 

1.          General.
The Manager shall (a) execute and carry out any lawful decisions or courses of action that have been approved by Owner in writing,
(b) maintain the files and records for engineering, design, accounting, tax, regulatory, land and such other matters as are generally
necessary for the conduct of the business of the Owner, (c) assist and support Owner in general planning and budgeting activities
and (d) coordinate and manage the Owner’s reporting requirements for regulatory, tax, environmental or local compliance purposes.

 

2.          Overhead
Services. Manager will provide all general and administrative overhead services required for the Owner to conduct their respective
business and operations.

 

3.          Management.
The Manager shall provide services in respect of the management of the Owner’s business and its Assets as may be requested
by Owner, including (a) services necessary to satisfy the Owner’s contractual obligations and obligations under applicable
Law and permits and Annual Budgets, (b) making recommendations relating to the improvement of the Owner’s operations and
maintenance (including major maintenance) of its assets and (c) the management and administration of the Owner’s contracts
and liaising with any Person that is party to a material contract with the Owner.

 

4.          Liens.
The Manager shall assist Owner in keeping the Owner’s Assets free and clear of all liens and encumbrances excluding liens
and encumbrances arising in the ordinary course of business.

 

5.          Funds
and Funds Management. The Manager shall (a) supervise all disbursements from, and to the extent of the availability of, funds
provided by the Owner necessary to pay its debts and obligations and (b) open accounts in the name of the Owner and deposit, withdraw
and maintain funds provided by Owner or its members, in banks, savings and loan associations or other financial institutions. The
Manager shall not under any circumstances commingle any funds received for the Owner or held for the account of the Owner with
the Manager’s or any other Person’s funds.

 

6.          Tax
and Accounting Services. The Manager shall (a) provide and oversee financial and tax reporting (including all tax work necessary
for Grant Thornton LLP to fulfill its obligations as “tax matters partner” under the Company Agreement or the Partnership
Agreement) and cash management services, (b) monitor the Owner’s compliance with its debt and financing documents and
(c) perform such other accounting services as Owner may reasonably request.

 

    	Exhibit A - 1

    	 

    

 

7.          IT
Services. The Manager shall provide (or cause to be provided) information technology services that are necessary for the Owner
to perform and otherwise complete its business activities, including services for (a) the management and maintenance of computer
networks and databases, technology systems, and phone networks and plans, (b) the development and implementation of plans and standards
relating to information technology and procurement, (c) the development and implementation of security policies and systems for
the computer databases and technology systems of the Owner and (d) the procurement and acquisition of any other information technology
services requested by Owner.

 

8.          Third
Party Services. The Manager shall (a) engage and manage outside legal, accounting and tax services for the Owner including,
at Owner’s request and direction, providing Owner with legal, accounting or tax counseling or recordkeeping as to the Owner’s
business activities, and at Owner’s request and direction, initiating, maintaining, investigating and defending any claims,
actions or proceedings to which the Owner is a party, (b) engage and manage engineering, operations and other technical consulting
services as required in connection with the Owner’s business and (c) engage environmental consulting services, including
services (i) advising and counseling Owner with respect to environmental compliance issues, including researching applicable environmental
Laws and (ii) assisting Owner in obtaining and maintaining compliance with any and all necessary environmental permits, registrations,
authorizations, licenses, approvals or consents from relevant organizations and governmental authorities.

 

9.          Regulatory.
The Manager shall (a) engage and manage regulatory consultants and cause the admission of Owner into regional and industry associations
if such admission would, in the judgment of Owner, be required or desirable for the operations of the Owner’s business, and
(b) with the approval of Owner, engage and manage representation in lobbying, studies, special or extraordinary sessions determined
to involve or be in the interest of the Owner, including assisting Owner in its dealings with governmental, semi-governmental,
administrative, fiscal or judicial bodies, departments, commissions, authorities, agencies or other entities having jurisdiction
or regulatory power over the Owner’s business activities.

 

10.         Insurance.
At the request of the Owner and at the Owner’s expense, the Manager shall procure the insurance required to be maintained
by the Owner under the NASAA Guidelines. The Manager shall make recommendations to Owner in respect of the types, amounts and content
of insurance necessary or desirable for Owner and its business or the business and Assets of the Owner. At the direction of Owner,
the Manager shall procure, on behalf of Owner, insurance policies providing the coverage and in the amounts specified by Owner,
and maintain such policies in full force and effect. The Manager shall be named as an additional insured in respect of all liability
insurance policies maintained by the Owner, with waiver of subrogation.

 

11.         Supervision.
The Manager shall provide supervisory services for Owner or the Owner’s contractors and operators in connection with the
operation of the Owner’s business and Assets.

 

    	Exhibit A - 2

    	 

    

 

12.         Staffing.
As authorized, coordinated and approved by Owner (including pursuant to an Annual Budget), the Manager will contract out those
services most effectively and efficiently provided by third parties on behalf of the Owner.

 

13.         Compliance
with Credit Documentation. Upon the reasonable request by the Owner at any time or from time to time the Manager will assist
the Owner in the negotiation of an Approved Credit Facility subject to any applicable limitations thereon set forth in the Partnership
Agreement that the Manager has been notified by Owner apply in respect of such Approved Credit Facility. The Manager shall provide
a statement indicating the compliance, or failure to comply, of the Owner with any financial covenants, cash flow requirements,
maintenance ratios and reserve balances in any Approved Credit Facility for the periods covered by such financial statements.

 

14.         Business
Development. The Manager will use reasonable commercial efforts to identify Property Acquisitions for the Owner to directly
or indirectly acquire that the Manager believes may be an appropriate opportunity for the Owner. If the Owner elects in accordance
with Section 9.1 to pursue a Property Acquisition, Manager will use its commercially reasonable efforts to negotiate with
the Seller and submit to Owner for execution, a Purchase and Sale Agreement and other applicable transaction documents which, to
the extent reasonably possible, shall comply with the General Parameters. The Manager will provide Owner with each Proposal for
any Property Acquisition the information specified in Section 9.1(c), copies of all title reports and environmental reports
obtained by the Manager with respect to such Property Acquisitions and such other information that is available to the Manager
and that is reasonably requested by the Owner regarding such Property Acquisition, and upon the Owner’s request will meet
with the Owner and its advisors to discuss the evaluation any Property Acquisition pursued by the Owner.

 

15.         Sale
Preparation. At Owner’s request, the Manager will take such actions to prepare (and arrange for) all or any portion of
the Owner’s Assets to be sold or otherwise disposed of or liquidated (including through a dissolution or winding up of the
Owner).

 

16.         Financing
Coordination. At Owner’s request, at any time or from time to time, the Manager will take such actions (a) to investigate
and evaluate financing alternatives for (i) any Property Acquisition, (ii) the ownership, development and operation of any
portion of the Owner’s Assets, or (iii) any refinancing of the foregoing, (b) will advise the Owner of financing alternatives
that the Manager believes to be appropriate under the circumstances for Owner’s consideration, and (c) at Owner’s request
will assist Owner in negotiating the final definitive terms of any Loan documents for execution by Owner and any of its affiliates
subject to any applicable limitations thereon set forth in the Partnership Agreement that the Manager has been notified by Owner
apply in respect of such Loan documents.

 

The following services
shall constitute “Operating Services”:

 

1.          Lease
Operations. The Manager shall perform all Lease Operations in accordance with the Standards set forth in Section 2.3.
The Manager shall manage the progress, evaluation and implementation of all projects (including multi-well drilling, workover and
recompletion projects and secondary/tertiary recovery projects) being carried out in connection with the performance of Lease Operations.

 

    	Exhibit A - 3

    	 

    

 

2.          The
Manager shall apply, pay for (subject to reimbursement by the Owner as set forth herein), obtain, and maintain in a timely manner
all approvals, authorizations, licenses and permits necessary or advisable for or in connection with the Owner’s ownership
of the Assets and operation of its Business (the “Permits”).

 

3.          Authorizations.
The Manager shall provide the oversight to assure that the operator of the Owner’s Assets acquires all permits, consents,
approvals, surface or other rights that may be required for or in connection with the conduct of the Lease Operations.

 

4.          Technical
Evaluation. The Manager shall provide the oversight to assure that the operator of the Owner’s Assets performs the technical,
geological, petroleum engineering and related evaluations that are necessary or appropriate under the Standards set forth in Section 2.3
to perform the Lease Operations and to evaluate proposed acquisitions of oil and gas properties by the Owner.

 

5.          Marketing
and Transportation. The Manager shall provide the oversight to assure that the operator of the Owner’s Assets arranges
for the purchase, transportation and storage of all hydrocarbons and all supplies, materials and equipment needed in order to perform
the Lease Operations.

 

6.          Safety.
The Manager shall provide the oversight to assure that the operator of the Owner’s Assets takes customary measures consistent
with the Standards set forth in Section 2.3 for the protection of life, health, the environment and property in the case
of an emergency.

 

7.          Releases.
The Manager shall provide the oversight necessary or appropriate to assure that the operator of the Owner’s Assets reports
any spill and environmental releases to the appropriate state or federal regulatory agencies as required by applicable Law.

 

8.          Information.
The Manager shall maintain the following data and reports as they are produced or compiled from Lease Operations: (a) copies of
all logs and surveys furnished by the operator(s) of the Owner Assets; (b) regular drilling, workover or similar operations reports
furnished by the operator(s) of Owner’s Assets; (c) copies of all plugging reports; (d) copies of all geological and
geophysical maps and reports; (e) well tests, completion and similar operations reports furnished by the operator(s) of Owner’s
Assets; (f) if prepared, engineering studies, development schedules and annual progress reports on development projects; (g) field
and well performance reports, including reservoir studies and reserve estimates; (h) lease documents, contracts, agreements, title
instruments and title files; and (i) such additional information as would be maintained by a Reasonably Prudent Operator.

 

    	Exhibit A - 4

    	 

    

 

EXHIBIT B

MANAGER’S INSURANCE

 

	TYPE OF INSURANCE	POLICY LIMITS
	
        General Liability

        Including coverage for Personal & Advertising Injury, Products-Completed
        Operations and Underground Resources

        General aggregate

        Each occurrence

         
	
         

         

        $10,000,000

        $10,000,000

         

	
        Automobile Liability

        Any auto – Each accident
	
         

        $10,000,000

	
        Employers Liability

        Each accident
	
         

        $10,000,000

	Workers’ Compensation	Statutory limits
	
        Pollution Liability

        Each claim

        Policy aggregate
	
         

        $1,000,000

        $2,000,000

	
         

        Limits required herein may be satisfied by a combination of
        self-insurance, primary and excess/umbrella insurance.

         

        Owner named as Alternate Employer under Workers Compensation
        and Employers Liability policies except where a state’s monopolistic workers compensation program does not permit.

         

        Owner named as an additional insured on all other policies.

         

        Waiver of Subrogation in favor of Owner applies to all policies.

         

 

    	Exhibit B

    	 

    

 

EXHIBIT C

COST REIMBURSEMENT

 

In addition to the payment of costs and
expenses incurred in connection with the provision of Services under this Agreement as expressly set forth in Section 5.2
of this Agreement, the Manager shall be responsible to pay without reimbursement of any kind from the Owner, all of the following:

 

Personnel salaries and bonuses

Personnel burdens and benefits

Pension, retirement and insurance
plans

Unemployment, payroll and other
taxes

Administrative contractors or
consultants

Office rent and occupancy costs

Office equipment and rentals

Office supplies

Office utilities

Data processing

Office maintenance and repairs

Employee parking

Telephone and communications

Postage and delivery expense

Business meals

Professional dues and subscriptions

Training expenses

Club memberships

Computer and software support

Payroll and other fees

Banking and industry relationships

General land services (unless
associated with a Proposal and other than contract land services)

 

Except to the extent that the following
Services are included within the items for which the Manager is responsible as provided above, the Manager shall be entitled to
reasonable reimbursement in accordance with Section 5.2 of the Management Agreement for the following out-of-pocket expenses
to the extent such costs and expenses are incurred in accordance with the terms of the Agreement and any applicable joint operating
agreement or applicable law:

 

Audit expense

Independent geological, geophysical
and engineering services

Tax return services

Investor reporting expense

Legal services (other than legal
services for prosecuting or defending claims regarding breach of this Agreement or claims brought by employees, consultants, officers,
directors or agents or in formation of the Manager)

Outsourced accounting services

 

    	Exhibit C - 1

    	 

    

 

Contract land services

Acquisition and due diligence
costs - engineering, title, general land services associated with a Proposal, third-party consultants, environmental, broker fees,
travel, meals and lodging directly related to Producing Property Acquisitions for the Owner

Divestiture costs ‒
engineering, title, third-party consultants, financial advisors, environmental, broker fees, travel, meals and lodging directly
related to Assets of the Owner

Formation and offering costs
of the Owner

Travel costs associated with
Owner meetup or meeting with any Investors

Bank services, including without
limitation, the Approved Credit Facility and any amendment, restatement or replacement thereof and any waiver thereunder

COPAS overhead fees and standard
district office expenses rebillable under the applicable operating agreement

Insurance

Franchise or state taxes

Third Party marketing fees

Risk management expenses

 

    	Exhibit C - 2

    	 

    

 

EXHIBIT D

OPERATING AGREEMENT

 

    	Exhibit D

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